Australia’s Green Technology Metals has found a South Korean development partner to bring its two lithium deposits in northwestern Ontario into production and help build a refinery in Thunder Bay.
Perth-based Green Tech announced a strategic partnership with South Korean battery giant EcoPro Innovation through a framework agreement that involves an $8-million investment (Australian dollars) into the junior miner.
In a news release, Green Tech is calling this a “transformational investment” on its path to becoming Ontario’s first lithium miner, processor, and supplier to the North American battery supply chain.
EcoPro brings extensive experience to the table in lithium hydroxide production with its patented lithium extraction technology.
For $8 million, EcoPro receives 64 million shares of Green Tech, enough to take a 16.6 per cent stake in the company. That money will be allocated to a feasibility study that will inform a final investment decision on building a mine at Green Tech’s Seymour lithium project near Armstrong and a corresponding lithium refinery in Thunder Bay.
Green Tech has two deposits in northwestern Ontario. Seymour, situated near the north shore of Lake Nipigon, is the more advanced project of the two. The Root deposit, northeast of Sioux Lookout, is the next mine in the development queue.
Seymour is a $282-million project. An integrated Thunder Bay refinery and a two-mine project carries a $1.8-billion price tag.
The framework agreement with EcoPro outlines the basic structure for the partnership arrangement leading to a more binding cooperation agreement and a proposed joint venture to own and operate both the Seymour and Root mine assets and the Thunder Bay processing plant There will a 12-month negotiating period to finalize everything.
In the proposed joint venture arrangement, EcoPro will acquire an initial 10 per cent interest in each lithium project with an the option to acquire an additional 25 per cent interest after feasibility study is posted.
“EcoPro has been assessing the North American market for some time and it's with great optimism that we enter this new phase of GT1's development,” said Green Tech (Gt1) managing director Cameron Henry in a statement.
“EcoPro stands out as a top-tier strategic partner, bringing invaluable experience in owning and operating, not only successful lithium conversion facilities but also nickel precursor and cathode active material facilities globally. Their global scale and expertise in manufacturing and supplying battery-grade lithium chemicals will greatly benefit GT1 as we advance our integrated strategy in North America.”
