Further to last Monday’s General Meeting, Erris Resources plc (‘Erris’) has been renamed Zinnwald Lithium plc (effective today) in order to better reflect the Group’s revised focus and development strategy following its acquisition of a 50% interest in Deutsche Lithium GmbH from Bacanora Lithium plc (‘Bacanora’, AIM:BCN) via a reverse takeover (‘RTO’).
Deutsche Lithium’s principal asset is the Zinnwald Lithium Project (the ‘Project’). Zinnwald’s Board considers the German-based, late-stage lithium project, which is located within Europe’s chemical and automotive heartlands, has potential to become an important European battery-grade sector supplier.
Global lithium demand has been forecast to sustain a CAGR of 18% from 2020 to 2027, by which time the value of its global opportunity is estimated to reach US$129.3 billion. Erris shareholders registered before 29 October 2020 will also receive, pro rata on a one-for-one basis, shares in the Group’s hitherto subsidiary, Erris Gold Resources Limited (‘Erris Gold’), which now holds the Loch Tay Option Agreement and Erris’s Norwegian exploration licenses.
The Group has also undertaken a placing (the ‘Placing’) of new ordinary shares priced at 5p each (the ‘Placing Price’) to new and existing shareholders, as announced on 8 October 2020. The net proceeds from the £3.75 million (gross) raise, will be applied to the professional fees incurred/general working capital purposes, with Admission also taking place today.
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