Zinnwald Lithium PLC AGM Statement (2132D)
June 28 2021 - 2:00AM
UK Regulatory
TIDMZNWD
RNS Number : 2132D
Zinnwald Lithium PLC
28 June 2021
Zinnwald Lithium plc / EPIC: ZNWD.L / Market: AIM / Sector:
Mining
28 June 2021
Zinnwald Lithium plc ("Zinnwald Lithium" or the "Company")
AGM Statement
Zinnwald Lithium plc, the German focused lithium development
company, will hold its Annual General Meeting ('AGM') today. At the
AGM, Non-Executive Chairman, Jeremy Martin, will make a statement
which will include an update on activities across its portfolio
including the advanced Zinnwald Lithium Project in Germany (the
"Project").
Highlights
-- Delivered key strategic goal of achieving 100% ownership interest in Deutsche Lithium GmbH
-- Completion of the initial phase of the lithium hydroxide
('LiOH') testwork at the Project with highly encouraging initial
test results
-- Expanded licence footprint in Germany following the grant of the Sadisdorf licence in Saxony
-- Ongoing rationalisation of the Company's portfolio enabling
management and cash resources to be focussed on the Project
Chairman's statement
Zinnwald Lithium Project
"In line with our previously stated corporate strategy, we are
extremely pleased to have successfully completed the acquisition of
a further 50% of Deutsche Lithium GmbH ("Deutsche Lithium") giving
us 100% ownership and full operational control of our flagship
asset, the Zinnwald Lithium Project. The acquisition cost was
EUR8.8 million, with the majority of the purchase consideration
structured as an issue of new ordinary shares in the Company, which
allowed us to conserve cash resources. New ordinary shares
equivalent to 19.6% of our enlarged share capital were issued as
part of the transaction and were distributed to a number of
parties; we welcome them as new shareholders of the Company.
"As we continue to advance the Project, its permitting and
financing, we believe the 100% ownership structure has significant
benefits, including providing our shareholders with greater
exposure to the Project's long-term value.
"At the Project level during the year to date, we have been busy
advancing various workstreams and have completed the initial phase
of the lithium hydroxide ("LiOH") testwork. The initial results
were highly encouraging and showed the potential to produce a high
purity, battery grade product that is low in contaminants. We have
also generated samples, which we will be sharing with potential
off-takers to help them evaluate the product. The ability to
produce a high quality, battery-grade LiOH, alongside the Project's
already demonstrated ability to produce battery grade lithium
fluoride and lithium carbonate, further demonstrates the flexible
nature of the Project and its ability to produce high value
products to meet demand from battery makers.
"Additionally, we recently announced that Deutsche Lithium had
been granted a five-year Exploration Licence (the "Sadisdorf
Licence") covering approximately 225 hectares ("ha") in the
Erzgebirge or Ore Mountains region of Saxony, Germany. This
complements two other exploration licences already held by Deutsche
Lithium: the Falkenhain licence, covering 295.7 ha and with a term
to 31 December 2022; and the Altenberg licence, covering 4,225.3 ha
and with a term to 15 February 2024. The Sadisdorf License is circa
12km NNE of Zinnwald's key lithium deposit and forms part of the
same geological unit that hosts the historic Li-Sn-W deposits at
Zinnwald, Falkenhain and Altenberg.
"The grant of this licence represents exciting expansion
potential for Zinnwald and, based on the historical resource
delineated by previous licence holders, effectively increases our
overall resource to greater than 1 million tons contained lithium
carbonate equivalent ("LCE"), an increase of over 50%. We will be
undertaking further work on all our exploration licence areas to
further evaluate their potential and how they can enhance the
Project.
Other assets
"As previously announced, the Company placed its Irish and
Swedish assets under care and maintenance while seeking either a
partner or purchaser for the assets. In Sweden, the Company has now
decided to relinquish its Brännberg licences as non-core. The value
of these licences in the Company's accounts had previously been
fully written off. With regard to the brownfield Abbeytown Zinc
Project in Ireland, given improving zinc market dynamics where
prices have increased by nearly 60% in the past year, the Company
will undertake a short drill campaign in the second half of this
year to test new zones of potential mineralisation. However, in
order to minimise ongoing holding costs, the Company will
rationalise its other licence holdings in Ireland, retaining just
those related to the Abbeytown area.
Conclusion
"As governments and organisations worldwide drive the rapid
deployment of new clean energy technologies, the role of critical
materials, including metals such as lithium, is becoming more
apparent. The EU estimates 18 times more lithium is required by
2030 to support its climate-neutrality scenarios, while at least 24
new lithium battery Gigafactories are planned in Europe with four
expected to come online in 2021, bringing Europe's production
capacity from its current 30 GWh to 700 GWh by 2028. To keep up
with this demand, the EU is focused on encouraging local supply. We
are positioned to be an important supplier of value-added
downstream battery grade lithium products and look forward to
updating the market on our progress as we achieve further
milestones advancing the Project."
ENDS
For further information go to www.zinnwaldlithium.com or
contact:
Anton du Plessis Zinnwald Lithium plc info@zinnwaldlithium.com
Allenby Capital (Nominated
David Hart/Liz Kirchner Adviser) +44 (0) 20 3328 5656
------------------------------- ----------------------------
Turner Pope Investments
(TPI) Ltd
James Pope/Andy Thacker (Broker) +44 (0) 20 3657 0050
------------------------------- ----------------------------
Isabel de Salis/Selina St Brides Partners (Financial info@stbridespartners.co.uk
Lovell PR)
------------------------------- ----------------------------
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