Eurobattery Minerals Signs Investment Agreement With Option to Acquire the Hautalampi Nickel-cobalt-copper Mine

Eurobattery Minerals Signs Investment Agreement With Option to Acquire the Hautalampi Nickel-cobalt-copper Mine

PR Newswire

STOCKHOLM, May 11, 2020

STOCKHOLM, May 11, 2020 /PRNewswire/ -- Eurobattery Minerals AB (NGM Nordic SME: "BAT"; the "Company"), a growth company in the mining and exploration industry, has signed an investment and shareholders agreement including an option for a staged acquisition of 100 per cent of the shares in Vulcan Hautalampi Oy ("VHOy"), 100 per cent owner of the Hautalampi Nickel-Cobalt-Copper Project, in eastern Finland. The option under the Investment and Shareholders Agreement is linked to an obligation to provide successive cash financing for investments in the Hautalampi nickel-cobalt-copper Project (the "Hautalampi Project"). The consideration to be paid by BAT for acquired shares in VHOy and the option premium, and the cash financing to be provided by BAT for the Hautalampi Project amount to approximately €8.6M in total, payable during 48 months. The Board of Directors of the Company has decided, subject the approval of an Extraordinary General Meeting, on a rights issue of units to finance some of the mining activities in connection with the acquisition. For the partial payment of the option premium, the Company will issue new shares to the existing shareholders of VHOy amounting to €0.2M. More information regarding the rights issue of units will be given through a separate press release.

The Hautalampi Project is located at the same site as the famous Keretti (Outokumpu) copper mine (1912-1989). The Hautalampi Ni-Co-Cu orebody is located parallel to and above the exploited copper deposit. Existing surface and underground infrastructure provide significant location advantages in what is already a tier 1 mining jurisdiction.

- This acquisition is an important milestone for Eurobattery Minerals as it accelerates our business strategy and shortens the time to us being producers. As the foundation of the battery value chain we are committed to provide ethically produced and traceable battery minerals from Europe critical for the rapidly growing electric vehicle industry, said Roberto García Martínez, CEO of Eurobattery Minerals.

Key points:

The Company has the option to invest €2.0M, in the way it sees fit, in the Hautalampi Project during 24 months from the acquisition and an additional €0.5M, in the way it sees fit, during the first 36 months from the acquisition. Approximately €10-15M is estimated to have been invested on the Hautalampi Project by the previous owner so far, including 22,000m of core drilling, a decline and additional underground mine development works, mineral resource and reserve estimations, multiple mineral processing studies and a feasibility study. Previous investment enables BAT to fast-track project to an updated feasibility study status.

Acquisition terms

The Company has options to acquire 100 per cent of VHOy in a multi-staged transaction in consideration for €6.05M in cash and BAT shares over a 48 months period. The acquisition is structured as follows:      

The sellers' shares will be locked-up for nine (9) months from the point in time when new shares are issued to them. There is a drag-along clause at a valuation exceeding €15.0M, where the Company has to sell its shares if the old shareholders decide to sell to another party (this at a point when the Company has invested a maximum of €3.5M).

The Board of Directors of the Company has decided, subject the approval of an Extraordinary General Meeting, on a rights issue of units to finance some of the mining activities in connection with the acquisition. More information regarding the rights issue of units will be given through a separate press release.

The Hautalampi Project

Please see the attached full report for details.

For further information, please contact:
Roberto García Martínez
CEO
E-mail: roberto@eurobatteryminerals.com

Website: https://eurobatteryminerals.com/en/

This information is the sort of information that the company is obliged to disclose under the EU market abuse regulation.

The information was submitted by the above contact person for publication on 11 May 2020 at 08:00 CEST.

Eurobattery Minerals is a mining and prospecting company focused on battery minerals such as nickel, cobalt, copper and rare earth elements. Business activities and operations are conducted exclusively in Europe with a focus on Spain and northern Sweden. The Company has one mining licence and eight exploration licences. The headquarters are located in Stockholm.Augment Partners AB, email: info@augment.se, phone: +46 8 505 651 72, is the company's Mentor

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/eurobattery-minerals-ab/r/eurobattery-minerals-signs-investment-agreement-with-option-to-acquire-the-hautalampi-nickel-cobalt-,c3108188

The following files are available for download:

https://mb.cision.com/Main/12124/3108188/1245143.pdf

Release

https://mb.cision.com/Public/12124/3108188/90a50a48ee1771c1.pdf

Hautalampi REPORT

https://news.cision.com/eurobattery-minerals-ab/i/pic,c2782938

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