TPI provides its latest research note on Zinnwald Lithium plc (ZNWD.L).

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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We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to Zinnwald Lithium plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2019 Turner Pope Investments (TPI) Limited, all rights reserved.

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