UK-based Zinnwald Lithium has agreed to acquire the remaining 50% it previously did not own in Deutsche Lithium from the estate of SolarWorld Aktiengesellschaft for €8.8m.

The deal consideration includes a cash payment of €1.5m and the issue of nearly 50 million new shares of Zinnwald Lithium.

Deutsche Lithium is engaged in developing Germany’s advanced Zinnwald Lithium Project.

The lithium development company will gain complete ownership and operational control over this project through the latest deal and benefit from its economic strength.

The aim is to advance the lithium project by undertaking test work to evaluate the commercial viability of producing a wider variety of lithium compounds.

Plans are also on to carry out front-end engineering design work, select the optimal location for the chemical processing site, and advance the permitting process for the project.

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Besides, the firm would continue to engage with potential off-take partners for the project.

The Zinnwald project is expected to produce up to 5,112 tonnes per annum (tpa) of high-purity lithium fluoride and 32,000tpa of potassium sulphate (K2SO4) as by-product.

Bacanora’s stake in Zinnwald will dilute to 35.5% from 44.2% upon deal completion. Bacanora will also retain its right to appoint a director to the Zinnwald board.

Zinnwald Lithium CEO Anton du Plessis said: “When we created Zinnwald Lithium via the Reverse Takeover of a 50 per cent. interest in Deutsche Lithium in October 2020, one of our stated strategic objectives was to consolidate ownership of the late-stage Zinnwald Lithium Project.

“The Acquisition announced today fulfils this objective, giving us full ownership and operational control of the Project, which significantly enhances our ability to optimise and progress it at our own pace.

“We believe that the Project offers an attractive entry point into the rapidly developing battery metals sector as one of the more advanced European lithium projects.”

Zinnwald Lithium was created through a reverse takeover deal in 2020, where Bacanora Lithium sold its 50% shareholding in Deutsche Lithium to Erris Resources in exchange for new shares in Erris and a net profit royalty.