European Green Transition PLC (AIM: EGT) commenced trading on AIM today, following a successful £6.5 million fundraising effort. The funds are earmarked for the acquisition of green economy assets in distress and for supporting ongoing projects, notably the Olserum rare earth project in Sweden.
At the time of its launch, the company’s market capitalisation was £14.5 million, based on a placing price of 10p.
CEO Aiden Lavelle and CFO Jack Kelly joined Proactive’s Stephen Gunnion in discussing the company’s successful start.
EGT raised over £6.45 million, exceeding its initial goal, a move seen as a strong endorsement of its business strategy focused on developing a portfolio of green economy assets across Europe.
This diverse portfolio spans various sectors, including metal refining, recycling, and potential solar and wind projects. EGT’s strategy also involves acquiring distressed assets to bolster its wholly-owned projects. A prime example is the Olserum rare earth deposit in Sweden.
Aiden Lavelle, a seasoned geologist with significant experience in Sweden, emphasized the importance of rare earth elements in advancing the green transition, particularly inefficient motors, electric vehicle components, and wind turbines. With the market for these elements projected to grow significantly in the next decade, the Olserum deposit, holding an initial 7.8 million tonnes at 8.6% rare earth dioxide, positions EGT strategically in this sector.
Jack Kelly detailed EGT’s approach to mergers and acquisitions, which involves identifying undervalued or distressed green assets in Europe, enhancing their value, and strategically selling them. This process includes a mix of upfront cash and future royalties. Post-IPO, EGT is eyeing various M&A opportunities in critical minerals, wind and solar projects, and rehabilitation and processing initiatives.
Currently, EGT is exploring several prospects, including a mine and processing facility undergoing administration and a prospective rehabilitation project in Western Europe.
