The company proposes to acquire the unlisted public company VSPC, a researcher and developer of some of the world’s most innovative and respected new-era cathode material for Li-ion batteries.
VSPC’s intellectual property facilitates the production of battery cathode material.
LIT's strategy currently incorporates the development of disruptive extraction technology, and has now expanded from the processing of natural resources to include the recycling of battery materials.
The new asset is designed to provide full-circle capability for the company via recycling of energy metals.
Adrian Griffin, managing director for LIT, commented:
"The envisaged transaction would allow LIT to participate in the efficient production and total utilisation of Li-ion batteries, with the best technologies integrated to achieve that outcome.
"The entire focus of LIT’s development pathway to date has been that of unlocking the value in lithium minerals previously consigned to the too-hard basket.
"The proposed acquisition would provide the company with full capability across all R&D, access to both fresh and waste ore, and recycling entry points into energy metals and cathode supply for global battery markets.
"LIT’s proposed acquisition of VSPC remains subject to due diligence, plus any required shareholder and regulatory approvals and acceptances."
Plant and testing facility
The proposed acquisition includes a decommissioned pilot plant in Brisbane designed to produce complex metal oxides/phosphates for cathode production.
The plant, which incorporates Australia’s most advanced Li-ion battery-laboratory and testing facility, which can establish the quality, performance and reliability of cells produced using the VSPC technology.
The laboratory includes cathode coating equipment and cell production capacity.
Subject to satisfactory due diligence and any required regulatory approvals, LIT and VSPC have agreed under a non-binding term sheet for LIT to purchase up to 100% of all issued capital of VSPC.
There is a minimum acceptance condition of 75% of VSPC share capital, for consideration of:
- A non-refundable cash payment of up to $45,000 depending on the length of the due diligence period; and
- The issue of up to 61,151,326 LIT shares and up to 30,575,663 $0.25 partly paid LIT shares (paid to $0.0001).