Business
Proposed Acquisition & Suspension of Share Trading
Proposed Acquisition & Suspension of Share Trading.
About this update from Zinnwald Lithium Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5107A\n Erris Resources PLC\n 30 September 2020\n \n \n \n \n Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement, this information is now considered to be in the public domain.\n \n \n \n \n \n Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining\n \n \n 30 September 2020\n \n \n \n \n \n Erris Resources plc (\"Erris Resources\" or the \"Company\")\n \n \n Proposed Acquisition of 50% interest in Deutsche Lithium GmbH\n \n \n Suspension of Share Trading on AIM\n \n \n \n \n \n Erris Resources, the European focused mineral exploration company, is pleased to announce that it is in the advanced stages of a transaction for the proposed acquisition from \n Bacanora Lithium plc (\"Bacanora\") \n of 50 per cent. of the issued share capital of Deutsche Lithium GmbH (\"Deutsche Lithium\"), the principal asset of which is the Zinnwald Lithium Project (\"Zinnwald\" or the \"Project\") in Germany of which it has joint operational control (the \"Proposed Acquisition\").\n \n \n \n \n \n Zinnwald, which is located in the industrial heartland of Germany, is a late stage, high value lithium project with highly attractive economics and a mining licence already in place. A 2019 Feasibility Study on the Project estimated that it has a pre-tax, discounted at 8%, NPV of approximately €428 million; \n an Internal Rate of Return ('IRR')\n \n of 27.4%; and an average LOM (life of mine) annual EBITDA of €58.5 million.\n \n \n \n \n \n The Proposed Acquisition will constitute a reverse takeover under rule 14 of the AIM Rules for Companies (the \"AIM Rules\"). Therefore, the Proposed Acquisition will be subject, inter alia, to the approval of Erris Resources' shareholders. As such, a further announcement with full details of the Proposed Acquisition will be issued at the appropriate time and an admission document published and sent to Erris Resources' shareholders with a Notice of General Meeting. The Company has received irrevocable undertakings to vote in favour of the resolutions necessary to effect, inter alia, the Proposed Acquisition from David Hall and Osis...