Acquisition Update & Restoration of Trading on AIM
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
Erris Resources plc / EPIC: ERIS.L / Market: AIM / Sector: Mining
8 October 2020
Erris Resources plc ("Erris", "Erris Resources", or the "Company")
Proposed acquisition of 50 per cent. interest in Deutsche Lithium GmbH
Placing of 75,000,000 new Ordinary Shares at 5p per share
Divestment of Loch Tay Gold Project
Change of name to Zinnwald Lithium plc
Approval of a waiver under Rule 9 of the City Code on Takeovers and Mergers
Notice of General Meeting &
Restoration of trading on AIM
Erris Resources, the European focused mineral exploration company, is pleased to announce that, further to the announcement dated 30 September 2020, terms have been agreed to acquire 50 per cent. of the issued share capital of Deutsche Lithium GmbH ("Deutsche Lithium") from Bacanora Lithium plc ("Bacanora"); the principal asset of Deutsche Lithium is the Zinnwald Lithium Project ("Zinnwald" or the "Project") in Germany of which it has joint operational control (the "Acquisition"). Accordingly, the Admission Document is now published on the Company's website https://www.errisresources.com/ and trading in the Company's shares on AIM will resume at 7.30 a.m. today.
OVERVIEW
Zinnwald - the potential to be one of Europe's advanced battery-grade lithium projects
· Late-stage lithium project with attractive economics and a mining licence already in place
o A September 2020 Feasibility Study on the Project estimated a pre-tax, discounted at 8%, NPV of approximately €428 million; an Internal Rate of Return ('IRR') of 27.4%; and an average LOM (life of mine) annual EBITDA of €58.5 million
o Located in the heart of Europe's chemical and automotive industries
New Corporate Strategy - to become an important supplier to Europe's fast-growing lithium sector
o Upon completion of the Acquisition, the Company's new strategy will be to advance Zinnwald towards construction and operation of the mine
o The Company will trade under the name of Zinnwald Lithium plc and its new ticker symbol will be ZNWD
o The Loch Tay Gold Project is to be spun out to the Existing Shareholders while future funding partners will be sought for Irish and Swedish projects
o European lithium battery capacity to increase significantly by 2030
o Several countries phasing out sales of fossil fuel vehicles
Terms of Acquisition
o Acquisition satisfied via the issue of 90,619,170 Erris Resources shares to Bacanora and a net profit royalty
Corporate
· Raised £3.75 million (before expenses) by way of a Placing to advance Zinnwald and for general working capital purposes
· Board changes to support new strategy
o Anton du Plessis has become CEO and Jeremy Martin has become Chairman, both with immediate effect
o Peter Secker (CEO of Bacanora) to join the Board from Admission
· General Meeting to approve the Resolutions in relation to, inter alia, the Acquisition, waiver of obligations of the Concert Party to make a mandatory offer for the Company pursuant to Rule 9 of the City Code on Takeovers and Mergers and the Placing, will be held on 26 October 2020
Erris Resources CEO, Anton du Plessis, commented: "Located in heart of Europe's chemical and automotive industries, the Zinnwald Lithium Project represents a compelling opportunity for investors to gain exposure to the fast-growing European lithium market, so we are very excited to be moving forward with the transaction.
" Given its mine life of 30 years equates to < 50% of the current identified mineral resource, the Project's potential upside is significant. Notably, the DFS (Feasibility Study) has suggested a project NPV (100%) of €428 million; an IRR of 27%; and average LOM annual EBITDA of €58.5 million, based on producing 7,285 tpa lithium carbonate equivalent, while construction Capex of €159 million (gross) is low. With an approved mining licence and the permitting process advanced, our aim is to fast-track the Project to production utilising our experienced project management team based in Germany, consisting of world-leading scientists, engineers and geologists."
DETAILS
Introduction
The Board is pleased to inform Shareholders that terms have been agreed for the Acquisition of 50 per cent. of the issued share capital of Deutsche Lithium, the principal activity of which is the development of the Zinnwald Lithium Project in south eastern Germany.
As part of its ongoing corporate strategy, the Board has been reviewing projects in low risk jurisdictions internationally with a specific emphasis on finding more advanced assets that are closer to production. The Board believes that the Zinnwald Lithium Project, which already has a published Feasibility Study and a mining licence, presents an excellent opportunity to create value for Shareholders, particularly as the Project is at an advanced stage when compared with the Company's existing assets.
The consideration for the Acquisition will be satisfied by the issue of the Consideration Shares and the grant of the Bacanora Royalty Agreement to Bacanora, the current owner of 50 per cent. of the issued share capital of Deutsche Lithium. In conjunction with the Acquisition, the Company will acquire the Bacanora Cash, amounting to €1,350,000, of which €935,000 constitutes the Company's funding obligations, with effect from completion of the Acquisition, under the Deutsche Lithium JV Agreement. In addition, the Company has undertaken to provide further funding of €650,000 to Deutsche Lithium in conjunction with the preparation of a lithium hydroxide (LiOH) NI 43-101 compliant technical report and additional detailed capital expenditure design work. This further funding is to be provided in monthly instalments from October 2020 to February 2022. The Bacanora Cash will be paid from Bacanora's existing cash resources.
The Board believes that the Loch Tay Gold Project, whilst already generating promising results and potential drill targets, is at too early an exploration stage to support the costs of a listed company. The Board believes that the Loch Tay Gold Project, on a standalone basis, would be better developed in a private company that can more efficiently utilise its financial resources to advance the project. Consequently, the Divestment is being proposed to occur in conjunction with, inter alia, the Acquisition. Accordingly, Erris Gold Resources, holder of the Loch Tay Option Agreement, will be spun out to the Existing Shareholders, who have funded the Loch Tay Gold Project to date. Erris Gold Resources will have an initial cash balance of €400,000 together with the business and assets and the existing Erris operational staff, including David Hall and Aiden Lavelle. Accordingly, Existing Shareholders will not only retain their Ordinary Shares valued at 5 pence per share (being the Placing Price) but will also receive a share in Erris Gold Resources valued at 1 pence per share on a pure cash basis.
The Company will retain its Abbeytown Project in Ireland and its Brännberg Gold Project in Sweden. The work undertaken by the Company at Abbeytown was successful in advancing the project. However, the macro climate in relation to zinc and general market appetite does not support any further substantial work being undertaken for the time being. The Company's work in Scandinavia, and particularly Brännberg, has also further advanced these projects, but again, the equity capital markets' appetite for these projects has been muted. Both of these projects will remain owned by Erris and the Company will look for future funding partners.
Publication of Admission Document, General Meeting and Admission
The Company has today published its Admission Document with a notice convening a General Meeting which is available to view on its website at www.errisresources.com. The Admission Document will be posted, or notified electronically as the case may be, to Shareholders later today. The Ordinary Shares were suspended from trading on AIM on 30 September 2020. With the publication of the Admission Document today, trading in the Company's Ordinary Shares on AIM will be restored at 7.30 a.m. today.
The General Meeting to approve the Resolutions in relation to, inter alia, the Acquisition, waiver of obligations of the Concert Party to make a mandatory offer for the Company pursuant to Rule 9 of the City Code on Takeovers and Mergers and the Placing, will be held at The Clubhouse, 8 St James's Square, London SW14 4JU at 10.00 a.m. on 26 October 2020. In light of the ongoing COVID-19 pandemic, the holding of the General Meeting will be kept under review in line with Public Health England guidance. However, based on current measures implemented by the Government in the United Kingdom, attendance at the General Meeting will be limited to two persons and shareholders may not attend in person. Shareholders wishing to vote on any matters of business are strongly urged to do so through the completion of a form of proxy. A summary of the action the Shareholders should take is set out in the Admission Document.
The acquisition, which is subject to shareholder approval, constitutes a reverse takeover under the AIM Rules. Upon completion, the Company will trade under the name of Zinnwald Lithium plc and its new ticker symbol will be ZNWD.
Deutsche Lithium & The Zinnwald Lithium Project
Deutsche Lithium has a 50 per cent. interest in, and joint operational control of the Zinnwald Lithium Project covering 256.5 ha and with a 30-year mining licence to 31 December 2047. The Project is located in southeast Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic.
The Zinnwald Lithium Project is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten, and lithium at different times over the past 300 years. With an abundant supply of fluorspar/hydrofluoric acid available in the immediate vicinity, Deutsche Lithium has chosen to focus on LiF (Lithium Fluoride), which is used in the lithium-ion battery supply chain. LiF is a high value downstream lithium product and one of the two key components in the manufacturing process of LiPF6, which is the most important conducting salt in lithium electrolytes and serves as the "shuttle" in the lithium battery electrolyte which "ships" the lithium ion between the cathode and the anode. Approximately 95 per cent. of all lithium battery electrolytes use LiPF6, and the percentage used in each cathode is increasing in some of the newer battery types. The strategic location of the Project allows access to the German automotive and downstream chemical industries.
While the NI 43-101 Feasibility Study for the Project is based solely on the production of LiF, Deutsche Lithium has established the possibility of also producing battery-grade lithium carbonate directly from the lithium mica concentrate with only minimal modifications to the chemical plant circuits. Deutsche Lithium is also undertaking testwork to determine if the same applies to possible lithium hydroxide production.
In May 2019, Deutsche Lithium first announced the results of the NI 43-101 Feasibility Study for the Project, which confirmed the positive economics and favourable operating costs for the production of 5,112 tpa (~7,285 tpa LCE) of battery grade LiF. With a long-life project of 30 years, the Feasibility Study estimated a pre-tax project NPV of €428 million (8 per cent. discount rate); an IRR of 27.4 per cent.; and favourable LOM operating costs resulting in a 46 per cent. EBITDA operating profit margin. The NPV is not a valuation for the purposes of Rule 29 of the Takeover Code and should not be relied upon as such.
The 30-year Feasibility Study mine plan equates to the extraction of less than 50 per cent. of the currently identified resource.
· Measured plus Indicated Mineral Resource estimate containing 35.51 Mt at a grade of 3,519 ppm containing 124,974 t Li at cut-off grade of 2,500 ppm Li
· Represents approximately 665,000 tonnes of lithium carbonate equivalent ('LCE'), comprising approximately 357,500 tonnes of LCE in Measured Resources and approximately 307,500 tonnes of LCE in Indicated Resources
· Estimated Inferred Mineral Resources of 4.87 Mt at a grade of 3,549 ppm containing 17,266 t Li metal (approximately 92,000 tonnes LCE)
In addition to the mining licence in relation to the Project, Deutsche Lithium holds two other exploration licences: the Falkenhain licence (covering 295.7 ha and with a 5-year term to 31 December 2022); and the Altenberg licence (covering 4,225.3 ha and with an approximately 5-year term to 15 February 2024). These exploration licences for lithium deposits may have the potential to significantly increase Zinnwald's resource base and Project life.
The mining operation for the Project is planned as an underground mine development using a single decline ramp for access to the mine and for ore transportation from the mine to the surface. The mine technology will be a commonly used load-haul-dump room and pillar technology with subsequent backfill using self-hardening material. The processing operation will be based on a conventional processing flow sheet using established sulphate route processing technology. The proposed integrated plant is designed to process approximately 570,000 tonnes of ore per year (assuming a 30-year mine plan, which equates to approximately 50 per cent. of the total resource identified to date). However, to make the Project more viable and to reduce the payback time for the investment, the average mined tonnage of the first five years of production is 522,000 tonnes at a grade of 3,400 ppm Li. The Project has a capital cost estimate of approximately €160 million which includes mining, processing plant, infrastructure, tailings management and general administration costs and government grants as well as the requisite contingencies.
At the present time, a risk assessment has been undertaken to identify risks that would inhibit the development of the mine. Any technical risks due to historic mine workings and water drainage pathways should be avoided by detailed technical planning. Further, public acceptance of the planned mine seems to be sufficient and risks are being evaluated.
It is anticipated that in addition to returns generated by the sale of LiF, the Project also has the potential to produce up to 32,000 tpa of potassium sulphate ('SOP', 'K2SO4') for sale to the European fertiliser industry. Further, it is expected that a significant portion of the mined tailings may be sold for use as an aggregate filler to local building companies.
The other 50 per cent. owner of Deutsche Lithium is SolarWorld AG, a company which has been in administration since 1 August 2017. On completion of the Acquisition, and as a result of its then 50 per cent. interest in Deutsche Lithium, Erris will enter into a deed of adherence to the Deutsche Lithium JV Agreement with SolarWorld AG which will form the basis on which the parties work together in relation to the Project. The experience of Bacanora in its dealings with the administrator of SolarWorld AG is that operational matters in relation to Deutsche Lithium and the Zinnwald Lithium Project have been unaffected by the status of SolarWorld AG being in administration.
The Deutsche Lithium JV Agreement sets out the rights and obligations of Deutsche Lithium's shareholders. It restricts shareholders in relation to (i) establishing a competing business whilst they remain a shareholder of Deutsche Lithium and 12 months thereafter, (ii) transferring their shares and/or (iii) granting encumbrances over their shares. The shareholders also agree to abide by deadlock provisions in the instances of any disputes as to how Deutsche Lithium is operated and managed.
In addition, the Deutsche Lithium JV Agreement provides that each shareholder of Deutsche Lithium will be entitled to (i) receive a business plan (including a cash flow statement, monthly projected profit and loss, an operating budget, a management report and a financial report), (ii) access to certain financial records relating to Deutsche Lithium. Furthermore, each shareholder has the right to appoint an appointee to the management board and advisory board of Deutsche Lithium.
Under the terms of the second supplement agreement to the Deutsche Lithium JV Agreement, the Company will be obliged to provide further additional funding to Deutsche Lithium. The Company will acquire the Bacanora Cash pursuant to the terms of the Acquisition Agreement, €935,000 of which will be used for the purpose of providing the balance of such required funding. In addition, the Company has undertaken to provide further funding of €650,000 to Deutsche Lithium in conjunction with the preparation of a lithium hydroxide (LiOH) NI 43-101 compliant technical report and additional detailed capital expenditure design work. This further funding is to be provided in monthly instalments from October 2020 to January 2022.
Each shareholder has pre-emption rights and rights of first refusal in relation to any proposed transfer or disposal of the other shareholder's share in Deutsche Lithium. As a result, SolarWorld AG cannot transfer its share in Deutsche Lithium without first offering it to the Company (and vice versa). In the event that the Company subsequently acquires the remaining share in Deutsche Lithium from SolarWorld AG, as envisaged, then the Deutsche Lithium JV Agreement will terminate.
Lithium in Germany
Europe is becoming an important hub for lithium battery manufacturing and Germany has allocated
€40 billion for climate related stimulus spending, including 70,000 new electric vehicle charging stations. It is doubling its subsidy towards the purchase of electric vehicles to €6,000 and targeting annual production of 7 to 10 million vehicles by 2030. Several EU countries have announced the phasing out of fossil fuel vehicle sales. By 2030, European lithium battery capacity is estimated to increase by over 300 to 400 GWh from current levels. A number of automotive manufactures, such as Volkswagen and BMW, have announced plans for investment and increased production of electric vehicles. Demand for lithium batteries is being driven by lower prices and consumption is growing from 250,000t to 2,000,000t.
Reasons for the Proposals
The strategy of Erris has been the identification and acquisition of attractive mining development projects in low risk, preferably European, jurisdictions. The Directors of Erris are of the opinion that the Zinnwald Lithium Project represents an appropriate acquisition target that will provide the Company with a core asset with several compelling attributes.
· Lithium is an important component of battery chemistry and demand for batteries is anticipated to grow due to factors including a transition to electric vehicles;
· The Zinnwald Lithium Project provides the opportunity and flexibility to produce several battery-grade lithium products including LiF, Li2CO3 and LiOH*H2O;
· The Project is located in Germany, a country that is host to both a major automotive industry and several major chemical producers;
· The European Union has identified lithium as a strategic mineral for local production;
· The Zinnwald Lithium Project has been the subject of a NI 43-101 Feasibility Study that has demonstrated its economic viability;
· The Project has a valid mining licence;
· The management team of the Zinnwald Lithium Project has appropriate technical expertise in place at the project level; and
· The vendor, Bacanora, will continue to provide management support via Board representation and is contributing cash resources as part of the Acquisition.
In relation to the Divestment, it is the opinion of the Directors that as an early stage gold exploration project, the Loch Tay Gold Project is sufficiently different to the advancement of the Zinnwald Lithium Project that ultimately the Loch Tay Gold Project will be in a better position to attract the capital and resources it needs as a standalone focussed entity with a dedicated management team. Given its current early stage, the Directors are of the opinion that a private company is the appropriate vehicle for the advancement of the Loch Tay Gold Project in the near term.
Strategy
Following Admission, the Zinnwald Lithium Project will form the core of the Company and will be the primary focus of the Board and its strategy. The Company, working with the management team at Deutsche Lithium, will seek to advance the Zinnwald Lithium Project in a number of areas, including:
· Identification of and negotiation with off-take partners that could include battery manufacturers, chemical producers or commodity traders;
· Identification and negotiation with potential financing partners that could include banks, national and trans-national development organisations;
· Expansion of the scope of the NI 43-101 Feasibility Study to assess the commercial viability of producing a broader range of lithium compounds, specifically lithium carbonate and lithium hydroxide;
· Front end engineering design work;
· Finalisation of the selection of the optimal chemical processing site location; an
· Completion of the final steps in the permitting process for the construction and operation of the mine.
Part of this strategy with regard to the Zinnwald Lithium Project will be to gain operational control of Deutsche Lithium. The Erris board and management team intends to engage with the administrator of SolarWorld AG to advance these discussions following Admission.
The Board intends to put the Abbeytown Project on care and maintenance, from 2021 onwards, due to the current challenging zinc and lead market conditions. Planned spending on the Abbeytown Project by Erris over the next 18 months is expected to total €30,000, all of which will be focussed on maintaining licence PL 3735. The Company will also be looking for partners to advance or acquire this project. The Company will also only spend the minimum required to maintain its licences at the Brännberg Gold Project, whilst it looks for funding partners or an acquiror.
Principal terms of the Acquisition
On 8 October 2020, the Company entered into a share purchase agreement with Bacanora, pursuant to which it has conditionally agreed to acquire the Sale Share and the Bacanora Cash from Bacanora with the consideration to be satisfied by the issue to Bacanora of the Consideration Shares at the Placing Price, credited as fully paid.
The Acquisition is conditional upon, inter alia
· the passing of the Resolutions relating to the Proposals at the General Meeting;
· the Placing Agreement becoming unconditional in all respects; and
· Admission becoming effective.
As further consideration for the Acquisition Agreement provides that the Company and Bacanora will enter into the Bacanora Royalty Agreement. The Bacanora Royalty Agreement provides for a royalty in favour of Bacanora of 2 per cent. of the net profits earned by the Company which relate to the Company's 50 per cent. shareholding in Deutsche Lithium and its sale of lithium products or minerals particularly in relation to the Zinnwald Lithium Project. The Bacanora Royalty Agreement provides that the royalty will be paid to Bacanora for an initial 40-year term and the Company has the right to extinguish the agreement by paying Bacanora a one-off payment of €2,000,000.
Divestment
The Erris Board believes that the Zinnwald Lithium Project should be the principal focus of Erris going forward. However, it considers that what it sees as the significant potential of the Loch Tay Gold Project should accrue to the existing Shareholders of the Company. Further, the Directors believe that the Loch Tay Gold Project would be better suited, at this stage of its development, to being owned by a standalone private company. Consequently, the Divestment is being proposed to occur as part of the Proposals and the Loch Tay Gold Project will not form part of the Group on Admission. The Loch Tay Gold Project is owned by Erris's subsidiary company, Erris Gold Resources. Following completion of the Proposals and the passing of the Resolutions, all Existing Shareholders in Erris will receive shares in Erris Gold Resources, pro rata on a one-for-one basis to their shareholding of Existing Ordinary Shares. Share certificates in relation to these new shares in Erris Gold Resources will be sent to the registered addresses of Existing Shareholders shortly following completion of the Proposals. David Hall and Aiden Lavelle, respectively the current non-board CEO and COO of Erris, will become directors of Erris Gold Resources and manage the Loch Tay Gold Project on an ongoing basis.
The Divestment will also include various licences in Norway, as well as a consultancy agreement in relation
to a permit application for potential assets in France.
As part of the Divestment, the Company will transfer cash funding of €400,000 to Erris Gold Resources, which is sufficient to meet the expected needs of that business for the next 12 months. It is the intention of the directors of Erris Gold Resources to seek a route back to listed status at the appropriate time having
sufficiently advanced the Loch Tay Gold Project.
Placing
The Company has conditionally raised £3.75 million (before expenses) by way of the proposed issue of the Placing Shares at the Placing Price.
The Company, the Directors, Allenby Capital and TPI have entered into the Placing Agreement pursuant to which TPI has conditionally agreed, as agent for the Company, to use its reasonable endeavours to procure subscribers for the Placing Shares at the Placing Price. The Placing Shares will represent 36.68 per cent. of the Enlarged Ordinary Share Capital. The Placing has not been underwritten and is conditional, inter alia, on Admission occurring on or before 29 October 2020 (or such later date as may be agreed by the Company, Allenby Capital or TPI, not being later than 30 November 2020) and on the Placing Agreement not being terminated. The Placing Agreement contains certain warranties and indemnities from the Company and the Directors in favour of Allenby Capital and TPI, in relation, inter alia, to the accuracy of the information contained in the Admission Document and certain matters relating to the Company.
Use of proceeds
The net proceeds from the Placing of approximately £3.04 million will be applied to the professional fees incurred in relation to the transaction and for general working capital purposes.
Relationship Agreement
Bacanora will hold 90,619,170 Ordinary Shares on Admission, representing approximately 44.32 per cent. of the Enlarged Ordinary Share Capital. Bacanora has undertaken to the Company and Allenby Capital that, for so long as it is interested in Ordinary Shares carrying 25 per cent. or more of the Company's voting share capital, it will not act to unduly influence the Company or its Board and will ensure that transactions entered into with the Company are on an arms' length basis and independently considered by the Company.
The Relationship Agreement provides that for so long as Bacanora is interested in Ordinary Shares carrying
a minimum of 45 per cent. of the Company's voting share capital, Bacanora shall be entitled to appoint two directors to the board of the Company provided that such individuals have experience in the industries in which the Company operates. At Admission, Peter Secker will be Bacanora's only appointed director. The Company understands that it is Bacanora's intention to seek for a further director to be appointed in addition to Mr Secker in the period following Admission. In the event that Bacanora holds more than 20 per cent. but less than 45 per cent. of the Company's voting share capital, it shall be entitled to appoint only one director to the board of the Company.
Board of Directors
With immediate effect, Anton du Plessis will become the Chief Executive Officer of Erris Resources and Jeremy Martin will become Non Executive Chairman. On Admission, Peter Secker will join the Board as a Non Executive Director.
Anton du Plessis (aged 49) - Chief Executive Officer
Mr du Plessis joined Erris, originally as Chief Executive Officer, in October 2018. He has over 20 years' experience in the finance sector. During this time, he has held senior positions at several international investment banks including CIBC, Bank of America Merrill Lynch and Morgan Stanley with a focus on advising natural resources companies on the execution of strategic and financing transactions. He has worked on transactions across a range of commodities and for a number of leading global companies including Anglogold Ashanti, Rio Tinto and BHP Billiton. Prior to embarking on his investment banking career, Mr du Plessis worked for the Anglo American group in a corporate finance and business development capacity.
Cherif Rifaat (aged 49) - Chief Financial Officer
Mr Rifaat has been Chief Financial Officer of the Company since 2017. He is a UK chartered accountant who has more than 20 years of venture capital, corporate finance, operational turnaround and investor relations experience since his qualification with KPMG. He has primarily worked with technology, mining and real estate companies, with an emphasis on those in a start-up, pre-IPO or restructuring phase. He has been a corporate and financial adviser to the lithium mining company, Bacanora, since it listed on AIM in 2014, and is currently its company secretary. Mr Rifaat has been a member of the ICAEW since 1998. Mr Rifaat is a member of the Concert Party.
Jeremy Martin (aged 43) - Non Executive Chairman
Mr Martin was one of the original founders of Erris in 2012 and has performed both non-executive director and non-executive chairman roles. He has significant experience in companies involved in mining exploration. He has worked in South America, Central America and Europe, where he was responsible for grassroots regional metalliferous exploration programmes through to resources definition and mine development. Mr Martin has been involved in the formation of a number of publicly listed mineral resource companies. He is currently Chief Executive Officer of Horizonte Minerals Plc, which is at the post feasibility study stage of its nickel project in Brazil. Mr Martin holds a BSc (Hons), MSc, ACSM and MSEG.
Graham Brown (aged 61) - Non Executive Director
Mr Brown has served as a non-executive director of the Company since 2017. He has been a Fellow of the Society of Economic Geologists ("SEG") since 1999, participated in the Colombia Senior Executives programme in 2004 and the Duke Business Leaders programme in 2007. He is a past councillor of the SEG and current British Geological Survey industry adviser and Natural History Museum honorary research fellow. In 2011, he was the co-recipient of the PDAC Thayer Lindsley Award and from 2013 attained both Chartered Geologist and European Geologist professional status. Mr. Brown joined Amax as an exploration geologist in 1980 and worked on a variety of exploration and mining operations in the Circum-Pacific region. For almost a decade Mr. Brown worked as a consultant involved with the exploration and evaluation of a number of major discoveries in both Asia and Europe. In 1994, he joined Minorco as Chief Geologist. Subsequently, he became the Europe-Asia region's Vice President Exploration and following the Minorco-Anglo American plc merger in 1999, he served as Vice President Geology. In 2003 he was appointed Senior Vice President Exploration and managed geosciences, technical services, and R&D programs. In 2005 he was promoted to Head of Base Metals Exploration and in 2010 he took up the position of Group Head of Geosciences for the Anglo American Group. He is currently a senior adviser to Appian Capital, a prominent private equity fund focussed on mining. Mr Brown holds a BSc. from the University of Strathclyde, Glasgow.
Peter Secker (aged 61) - Non Executive Director on Admission
Mr Secker is Chief Executive of Bacanora. He is a mining engineer with over 35 years' experience in the resources industry. During his career, he has built and operated a number of mines and metallurgical processing facilities in Africa, Australia, China and Canada. His operating and project experience spans a number of commodities, including titanium, copper, iron ore, gold and lithium. For the past 15 years, Mr Secker has been Chief Executive of a number of publicly listed companies in Canada, the UK and Australia. Mr Secker is a member of the Concert Party.
Senior management of the Deutsche Lithium Project team
Deutsche Lithium employs a five-person project team located in Germany led by Prof. Dr Armin Mueller, a chemist with over 25 years' experience who has been involved with the Zinnwald Lithium Project since inception.
Prof. Dr Armin Mueller - Managing Director
Prof. Dr. Armin Mueller has been Managing Director of Deutsche Lithium since 2008. He studied chemistry at the TU Bergakademie Freiberg. He holds a degree in chemistry and became a Ph.D. rer. nat. PhD in chemistry. Since 2008, he has been Honorary Professor of Inorganic-Chemical Technology at the TU Bergakademie Freiberg. His career began in 1991 in the chemical industry at Bayer AG Krefeld in the field of inorganic pigments. In 1996, he moved to Freiberg and worked for Bayer Solar GmbH and subsequently Deutsche Solar GmbH where he was latterly research and development director until 2007. From 2007 to 2011, Prof. Dr Mueller was Chief Technology Officer at Sunicon AG, the main activities of which included the production of high-purity silicon, silicon recycling and the crystallization of silicon for photovoltaics. Between 2003 and 2013, he was also Managing Director of Joint Solar Silicon GmbH, a joint venture between Degussa/Evonik and SolarWorld. From 2010 to 2017, Prof. Dr Mueller was a member of the Supervisory Board of Qatar Solar Technologies, and from 2012 to 2016, Director of Strategic Materials SolarWorld AG.
Dr Torsten Bachmann - Chemist
Dr Bachmann is Dipl.-Ing. of Environmental Technology and has a PhD in Chemistry. He has over 15 years' experience in science and industry in the area of photovoltaics and inorganic chemistry and long-term experience in the management of national research projects. He was team leader in the "Lithium Zinnwald Project" from 2011 to 2015 and since 2017 has been responsible for "Chemical Processing" aspects of the Project.
Jan Henker - Process Engineer
Mr Henker is Dipl.-Ing. of Process Engineering. He has 15 years industry experience in mechanical processing, photovoltaics and inorganic chemistry and over five years of experience in managing plant engineering and construction. From 2012 to 2015 and since 2017 he has been responsible for the "Mineral Processing" aspects of the Project.
Dr Thomas Dittrich - Geologist
Dr Dittrich graduated with a degree in geology/palaeontology in 2009. Between 2009 and 2017, he was a Scientific Research Assistant at the Technical University of Freiberg, where he worked in the fields of the assessment of rare metal deposits and the development of exploration strategies for pollucite bearing rare metal pegmatites. During his studies and doctoral thesis, he also spent several months doing fieldwork in Brazil, Australia and Zimbabwe. In 2017, he joined Deutsche Lithium where he is in charge of mineral exploration and mining.
Dr Matthias Reinecke - Chemist
Dr Reinecke is Dipl.-Ing. for Materials Science and holds a PhD in Chemistry. Dr Reinecke has over 20 years' experience in industry in the area of process development in silicon crystallisation and chemistry and of application of Li-ion battery systems for stationary storage. Since 2018 he has been responsible for "Hydrometallurgical Processing" aspects of the Project.
Director Appointment
With effect from Admission, Peter Secker, the Chief Executive Officer of Bacanora, will join the board as Non Executive Director.
Peter Anthony Secker, aged 61, is or has been a director of the following companies or partnerships in the past five years:
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Current directorships/partnerships |
Past directorships/partnerships (within the past 5 years) |
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Deutsche Lithium Gmbh Bacanora Lithium plc Bacanora Minerals Ltd Bacanora Treasury Limited Bacanora Finco Limited Sonora Lithium Ltd Mineramex Ltd |
Aquila Resources Inc
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Peter Secker was a director of RB Energy Inc. (formerly Canada Lithium Corp.) which filed for an Initial Order to commence proceedings under the Companies' Creditors Arrangement Act from the Quebec Superior Court in October 2014, following which a receiver was appointed in May 2015. A class action against Canada Lithium Corp., its directors and certain officers was settled in November 2016.
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Expected Timetable of Principal Events |
2020 |
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Publication of Admission Document |
8 October |
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Latest time and date for receipt of votes by Proxy |
10.00am on 22 October |
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General Meeting |
10.00am on 26 October |
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Record Date (Divestment) |
6.00pm on 27 October |
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Ex-Dividend Date (Divestment) |
29 October |
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Admission effective and dealings in the Ordinary Shares commence* |
8.00 a.m. on 29 October |
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Expected date for CREST accounts to be credited in respect of new Ordinary Shares |
8.00 a.m. on 29 October |
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Payment Date (Divestment) |
29 October |
|
Dispatch of definitive share certificates, where applicable |
within 10 business days of Admission |
* Assuming the Resolutions are passed at the General Meeting
All future times and/or dates referred to in above are subject to change at the absolute discretion of the Company and Allenby Capital, and if any of the above times or dates should change, the revised times and/or dates will be notified by an announcement on a regulatory information service. All references to times in the admission document are to London times.
Defined terms within this announcement shall have the meaning ascribed to them as set out in the Company's Admission Document dated 8 October 2020.
*ENDS*
For further information visit www.errisresources.com or contact:
|
Anton du Plessis |
Erris Resources plc |
info@errisresources.com |
|
David Hart/Liz Kirchner |
Allenby Capital (Nominated Adviser) |
+44 (0) 20 3328 5656 |
|
Zoe Alexander/Andy Thacker |
Turner Pope Investments (TPI) Ltd (Broker) |
+44 (0) 20 3657 0050 |
|
Isabel de Salis/Beth Melluish |
St Brides Partners (Financial PR) |
+44 (0) 20 7236 1177 |
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