Total consideration amounts to EUR 2 million
Mannheim/Leipzig/Perth. Tin International AG sells 100% interest in its Sadisdorf and Hegelshöhe licenses in the eastern part of the German Ore Mountains to the current Joint Venture partner Lithium Australia NL (ASX: LIT). The total consideration amounts to EUR 2 million of which EUR 0.5 million will be paid in cash and EUR 1.5 million paid in LIT shares. The shares are subject to a sales restriction of 6-18 months. The transaction will result in a pre-tax profit of approximately EUR 1.5 million for Deutsche Rohstoff. The sale will become effective when certain conditions precedent are fulfilled, including the consent of the responsible Upper Mining Authority for the transfer of the licenses. The parties expect the sale to be closed within the upcoming months.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “We are pleased to announce the sale of our licenses Sadisdorf and Hegelshöhe. Lithium Australia is well positioned to develop these tin-lithium deposits and benefit with their SiLeach-technology from the upcoming boom of electric cars. We are happy to become a significant shareholder of LIT and participate in the further development of the company.”
Mannheim, 11 June 2018