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(Kitco News) - Lithium developer Avalon Advanced Materials (TSX: AVL) (OTCQB: AVLNF) today announced the signing of a binding term sheet to create a new joint venture with SCR-Sibelco NV, a global leader in materials solutions.
Avalon said that the C$63-million transaction results in Antwerp-based Sibelco owning approximately 19.9% of the issued and outstanding common shares, and provides Avalon with a first tranche of funding to advance the company's lithium production and processing goals across its suite of lithium mineral assets, led by Separation Rapids in northwestern Ontario.
This new joint venture is expected to accelerate Avalon's core business objective of building a mid-stream lithium-hydroxide processing facility in Ontario.
Avalon added that its new strategic goals are focused on both organic growth of its lithium portfolio, consisting of a suite of critical-mineral mining projects across Canada, as well as developing new related opportunities.
The company's mission is to vertically integrate lithium processing in Ontario, positioning the province as an integral part of a North American supply chain for EV batteries.
"This strategic partnership represents a significant step forward in scaling our business towards full vertical integration of our lithium production," stated CEO Scott Monteith. "Sibelco's investment is a major vote of confidence in our vision, resources and capabilities by a respected and established international operator-and now partner."
Avalon Advanced Materials is a Canadian mineral development company aimed at vertically integrating North America's lithium supply chain. The company is currently focusing on developing its Separation Rapids lithium project near Kenora, Ontario while continuing to advance other projects, including its 100%-owned Lilypad spodumene-cesium-tantalum project located near Fort Hope, Ontario.
Headquartered in Antwerp, Belgium, Sibelco is a global leader in material solutions. Sibelco mines, processes and sells?specialty industrial minerals?-?particularly silica, clays, feldspathics and olivine - and is a leader in glass recycling. Sibelco's solutions serve a diverse range of industries including semi-conductors, solar photovoltaic, glass, ceramics, construction, coatings, polymers and water purification. The Sibelco Group has?production facilities in?more than 30?countries and a team of?more than?5,000?people worldwide.
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