European Lithium AT (Investments), a wholly owned arm of European Lithium, has agreed to merge with publicly traded special purpose acquisition company (SPAC) Sizzle Acquisition .

A related definitive merger agreement has been signed between the two firms that will result in the creation of a lithium mining company, Critical Metals Corp., with a market value of $972m, assuming no redemptions.

Upon closing of the merger, Critical Metals would be listed on Nasdaq in the first half of 2023.

Critical Metals will own European Lithium’s 20% stake in Austrian projects, as well as Wolfsberg Lithium Project, which is currently owned by European Lithium AT (Investments).

According to the pre-feasibility study, the Wolfsberg mine will supply 10,500mtpa of lithium concentrate from 2025. This production is enough to power around 200,000 EVs per annum.

As part of the agreement, European Lithium will roll its existing equity in European Lithium AT (Investments) into the combined entity.

Upon completion of the deal, European Lithium will have nearly 80% of the combined company’s pro forma equity before the impact of redemptions or further capital raised.

Critical Metals executive chairman Tony Sage said: “The funds raised through this transaction will provide us with the resources anticipated to be required to advance construction and commissioning of the Project.

“With the capital raised, in addition to the increased access to the public capital markets by listing on Nasdaq by means of the business combination, we believe we will be able to achieve our commercial goals by 2025.”

Expected to become Europe’s first major source of battery-grade lithium concentrate, the Wolfsberg Lithium Project is capable of supporting the production of 200,000 EVs annually.

Sizzle vice chairman Jamie Karson said: “The team at Critical Metals has made significant progress advancing Europe’s first licensed lithium mine and is well positioned to be the largest supplier of battery-grade lithium in the region.

“As reinforced by Critical Metals’ expected strategic arrangement with BMW AG, we believe the project will play a key role in further accelerating EV adoption in Europe.”

Subject to the approval of European Lithium and Sizzle stockholders and other customary closing conditions, the deal is planned to complete in the first half of 2023.