Signed Strategic Deal With Lithium Battery Manufacturer

MetalsTech (MTC or the Company) is pleased to announce it has signed a binding agreement with Dynavolt Renewable Energy Technology Co Ltd, a wholly-owned subsidiary of Shenzhen Stock Exchange listed and world- leading battery manufacturer Guangdong Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), to subscribe for 10 million shares through an escrowed placement at 30 cents per share (Cornerstone Placement).

Highlights

•    Dynavolt is one of the largest battery manufacturers globally and a market leader in EV car and motorcycle batteries, with a market capitalisation of more than 10 billion CNY

•    Dynavolt to subscribe for 10,000,000 MTC shares at a price of $0.30 per share to raise $3,000,000 with 6 months’ escrow, subject to regulatory approval for which MTC will be seeking shareholder approval for the future issue of shares to Dynavolt

•    MTC to facilitate Dynavolt 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 purchases

•    If Dynavolt increases its share ownership to >12.5% Dynavolt will earn:

o    to a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    If Dynavolt increases its share ownership to >15% Dynavolt will earn a Board seat

•    MTC and Dynavolt to work in good faith to negotiate a project-level equity investment at its projects as part of a larger strategy to develop lithium carbonate/hydroxide beneficiation facility in Quebec underpinned by spodumene concentrate feed from MTC projects

•    MTC has also completed a heavily oversubscribed placement to sophisticated and institutional investors of 5,933,333 shares at $0.30 per share to raise a further $1.8 million, which will be issued using the existing placement capacity under ASX Listing Rule 7.1

•    Dynavolt deal is in addition to the $1.8m deal previously announced with Wuxi Baichuan Chemical Industry Co Ltd

•    Strategic funding deal allows MTC accelerate both the Cancet and Adina Lithium Projects

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

“Dynavolt is a global leader in the lithium-ion battery space, having been the battery supplier of choice for market leaders including BMW, Ducati, Suzuki and Kawasaki. They recently invested more than 3 billion CNY in building a high-end lithium battery division and we are excited at the opportunity of working closely with them as we seek to position ourselves as a valuable source of raw and refined lithium materials.

The full announcement can be viewed by CLICKING HERE