Zinnwald secures 100% of advanced lithium project at the heart of European electric vehicle industry
(Kitco News) - Zinnwald Lithium, the German focused lithium development company, announced Tuesday that it has entered into a binding agreement to acquire the 50% of Deutsche Lithium that it does not already own for a total consideration of €8.8 million. Deutsche Lithium is developing the advanced Zinnwald lithium project in Germany.
According to a press-release, this acquisition gives the company full ownership and operational control of the project and is in line with its corporate objective to become a key supplier to the European lithium market.
Zinnwald is an advanced, integrated lithium project, located 35 kms from Dresden, in the heart of Europe, designed to produce a suite of value-added downstream battery-grade lithium products.
Zinnwald noted that with a DFS completed, a mine life of 30 years, which equates to < 50% of the current identified mineral resources, approved mining licence, strong economics showing a potential NPV of €428m, IRR of 27%, and 46% EBITDA margin, the company aims to fast-track the project to production.
CEO Anton du Plessis commented, "We believe that the project offers an attractive entry point into the rapidly developing battery metals sector as one of the more advanced European lithium projects. We look forward to advancing the project and keeping shareholders updated."
The mining operation for the project is planned as an underground mine development using a decline for the access to the mine and crushing and grinding of ore to produce ~132,000 tpa of Zinnwaldite concentrate.
Zinnwald will produce battery grade lithium carbonate, lithium hydroxide and lithium fluoride (Li2CO3, LiOH, LiF). The company anticipates that in addition to returns generated by the sale of products, the project also has the potential to produce up to 32,000 tpa of potassium sulphate for sale to the European fertiliser industry.