Greenpower Energy to acquire Australian battery minerals focused company
2018-07-05 03:48:00
The acquisition represents an accelerated push to continue development as a battery metals-focused business.
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The acquisition will include two high-grade cobalt projects
Greenpower Energy Ltd (
ASX:GPP) has entered into an option agreement to acquire Australian battery minerals exploration company Ion Minerals Pty Ltd.
The acquisition will include Ion Minerals’ right to acquire an interest in two high-grade cobalt projects, Lincoln Springs in Northern Queensland and Ashburton in Western Australia.
Ion also holds a 100% interest in a vanadium project at Julia Creek in Queensland, for which the exploration permit is expected to be granted in December.
Phased acquisition subject to exploration results
Ion will be acquired by Greenpower in three phases under the agreement, with each phase at Greenpower’s election based on exploration results.
Greenpower will initially pay a $25,000 deposit on execution of the agreement to secure exclusivity of the option and a 60-day due diligence period.
It plans to start an aggressive exploration push, including drilling, at the cobalt projects next quarter.
The company is well-funded with around $3 million in cash to support the acquisition and maintain its existing portfolio.
High grades of cobalt
Lincoln Springs, for which Ion has the right to acquire a 70% interest, has previously returned assay results of up to 3.16% cobalt and 10.4% copper.
These grades have been confirmed by rock samples collected by Ion.
The area around Lincoln Springs is attracting international interest as evidenced by the recent Sconi offtake agreement with South Korean battery supplier SK Innovation.
The Ashburton project has had extensive multi-element anomalism and mineralisation defined by previous exploration, returning maximum rock chip values of 1.89% cobalt, 0.35% zinc and 0.28% nickel.
Ion has a right to acquire 100% of the project.
The exploration licence application for Ashburton has been lodged and is expected to be granted in September.
Management team bolstered
The acquisition will result in appointments to Greenpower’s board, with Ion’s
CameronMcLean as proposed managing director and Alistair Williams as proposed non-executive director.
Greenpower chairman and executive director Gerard King will step down from his executive position and remain on the board as non-executive chairman.
Simon Peters will remain as non-executive director and Matthew Suttling will step down as a director and continue as company secretary and chief financial officer.
