Leading Chinese Chemicals Manufacturer Takes Strategic Stake in MetalsTech

MetalsTech (MTC or the Company) is pleased to announce it has signed a binding agreement with Shenzhen Stock Exchange listed leading hi-tech fine chemicals manufacturer Wuxi Baichuan Chemical Industrial Co Ltd (BCC) based in China to take a circa 10% stake in MTC through an escrowed placement at 18 cents per share.

Highlights

  • BCC to participate in a circa 10% Cornerstone Placement by subscribing for 10,000,000 MTC shares at a price of $0.18 per share to raise $1,800,000 subject to 12 months’ escrow, subject to shareholders ratifying the placement capacity at the upcoming AGM on 24 November 2017
  • MTC to facilitate BCC share accumulation strategy by introducing third party shareholders (and advisors) for the acquisition of up to a further 5,000,000 MTC shares through on-market and offmarket purchases
  • If BCC increases its share ownership to >15% BCC will be entitled to an MTC board seat
  • MTC and BCC to work in good faith to negotiate a project-level equity investment at its projects
  • MTC has also completed a heavily oversubscribed placement to sophisticated and institutional investors via the issue of 4,200,000 fully paid ordinary shares at an issue price of $0.18 per share to raise a further $756,000 using the remaining ASX LR 7.1 placement capacity managed by Alto Capital
  • Strategic funding deal allows MTC to:
    • continue resource definition and feasibility studies at its Cancet Lithium Project;
    • commence maiden drilling at the nearby Adina Lithium Project where surface samples have reported >3% Li2O at surface; and
    • explore plans for a lithium carbonate and hydroxide beneficiation plant within Quebec to process spodumene concentrate from MTC’s projects

Commenting on the strategic placement, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“This is a game-changing milestone for the Company. Strategic alignment with a lithium-ion battery chemicals producer at this juncture will support us in tailoring our feasibility studies beyond spodumene concentrate production, as we look to maximise value and minimise market risk through the investigation of downstream processing opportunities with an experienced technical and financial cornerstone partner.”

The full announcement can be found by CLICKING HERE