[SMM Analysis] Australian lithium miner Green Technology Metals has signed an investment and framework agreement worth A$8m with South Korea's EcoPro Innovation.

Australian lithium miner Green Technology Metals has Corporated Investment Subscription of A$8m and Framework Agreement executed with world-leading South Korean EV battery metals producer EcoPro Innovation Co., Ltd (EcoPro or EcoPro Innovation)

• Provides a foundation for partnering in co-operation across GT1’s projects as part of GT1’s strategy to become the first integrated lithium producer in Ontario
• The executed agreements cover proposals for both upstream (mining and raw material extraction) and downstream (processing and conversion) activities, including the development of potential mines and the proposed Lithium Conversion Facility through the following potential pathways:
  – Corporate equity investment – at a significant premium to the last closing price and a 40% premium to the 90-day VWAP for an investment of A$8m via a two-tranche placement
  – Asset level investment options – up to 12-months exclusive rights to negotiate and agree staged asset-level investments in the Seymour and Root mine developments (Projects) in anticipation of negotiation of joint venture agreements to drive project advancement
  – Conversion Facility PFS Cooperation Agreement – negotiation of a comprehensive agreement outlining the execution and co-funding of a Pre-Feasibility Study (PFS) on the proposed Lithium Conversion Facility in Canada, leading to the negotiation and formation of a joint venture for the completion of a Definitive Feasibility study (DFS) and co-development of the facility
• EcoPro brings extensive experience in lithium hydroxide production along with patented technology for lithium extraction
• The partnership validates the Company’s integrated strategy to become Ontario’s first lithium concentrates and chemicals company
• Joint funding application submitted to Invest Ontario for government funding on the proposed Lithium Conversion Facility – in progress
• Proceeds from the subscription agreement will be allocated to a Definitive Feasibility Study to reach a Final Investment Decision (FID) on the Seymour Lithium project, funding the Lithium Conversion Facility PFS and supporting general working capital

Australian lithium miner Green Technology Metals has Corporated Investment Subscription of A$8m and Framework Agreement executed with world-leading South Korean EV battery metals producer EcoPro Innovation Co., Ltd (EcoPro or EcoPro Innovation)

• Provides a foundation for partnering in co-operation across GT1’s projects as part of GT1’s strategy to become the first integrated lithium producer in Ontario
• The executed agreements cover proposals for both upstream (mining and raw material extraction) and downstream (processing and conversion) activities, including the development of potential mines and the proposed Lithium Conversion Facility through the following potential pathways:
  – Corporate equity investment – at a significant premium to the last closing price and a 40% premium to the 90-day VWAP for an investment of A$8m via a two-tranche placement
  – Asset level investment options – up to 12-months exclusive rights to negotiate and agree staged asset-level investments in the Seymour and Root mine developments (Projects) in anticipation of negotiation of joint venture agreements to drive project advancement
  – Conversion Facility PFS Cooperation Agreement – negotiation of a comprehensive agreement outlining the execution and co-funding of a Pre-Feasibility Study (PFS) on the proposed Lithium Conversion Facility in Canada, leading to the negotiation and formation of a joint venture for the completion of a Definitive Feasibility study (DFS) and co-development of the facility
• EcoPro brings extensive experience in lithium hydroxide production along with patented technology for lithium extraction
• The partnership validates the Company’s integrated strategy to become Ontario’s first lithium concentrates and chemicals company
• Joint funding application submitted to Invest Ontario for government funding on the proposed Lithium Conversion Facility – in progress
• Proceeds from the subscription agreement will be allocated to a Definitive Feasibility Study to reach a Final Investment Decision (FID) on the Seymour Lithium project, funding the Lithium Conversion Facility PFS and supporting general working capital

Currently, the company's lithium projects are

Additionally, in May 2023, South Korean battery giant LG Energy Solution (LGES) announced that it had signed an investment agreement with GT1 to strengthen the procurement of key minerals used in electric vehicle batteries. According to the subscription agreement, LG Energy Solution will subscribe to 21,739,130 new shares of GT1 at a price of 0.92 Australian dollars per share, with total proceeds of 20 million Australian dollars. The subscription price represents a significant premium over GT1's recent trading price, reflecting the strategic nature of the investment and related offtake rights, accounting for 7.89% of GT1's issued ordinary shares. According to the term sheet, GT1 will sell 25% of the Seymour spodumene concentrate production to LG Energy Solution for five years from the start of commercial production at Seymour. If GT1 develops a lithium hydroxide conversion facility during this period, GT1 will supply an equivalent amount of lithium content to LG Energy Solution in the form of lithium hydroxide. The prices of spodumene and lithium hydroxide have been agreed upon based on a formula linked to prevailing lithium hydroxide market prices. Both parties agreed to sign a full offtake agreement by August 2023 based on the terms outlined in the term sheet. This agreement marks another extension of LG Energy Solution's ongoing efforts to establish a critical minerals supply chain in North America. Under the agreement, LG Energy Solution will acquire approximately 7.89% of the Australian company and secure 25% of its annual lithium concentrate production over the next five years.