Critical metals announces MoU between European lithium Ltd and Obeikan Investment Group to build and operate hydroxide plant in Saudi Arabia.
European Lithium Ltd (ASX: EUR) (“European Lithium”), a mineral exploration company in a proposed business combination (the “Proposed Business Combination”) with Sizzle Acquisition Corp (Nasdaq: SZZL) (“Sizzle”) to form Critical Metals Corp. (“Critical Metals” or the “Company”), announced it has signed a non-binding Memorandum of Understanding (MoU) with Obeikan Investment Group (“Obeikan”) to build and operate a hydroxide plant in Saudi Arabia for the Wolfsberg Lithium Project in Austria (the “Project”).
Under the MoU, which would create a joint venture between the two parties, European Lithium and Obeikan will work together to negotiate suitable commercial terms for the construction and operation of a hydroxide plant in Saudi Arabia, although no assurance is given that a binding agreement will be executed.
Critical Metals Executive Chairman Tony Sage commented: “This proposed JV with Obeikan will unlock key opportunities for Critical Metals. It will allow us to focus our efforts on building the facilities to start mining concentrate, and is expected to result in significant energy cost savings for the Wolfsberg Project.”
Eng. Abdallah Obeikan, CEO of Obeikan Investment Group, commented:
We are pleased to announce this MoU, a great step ahead in further strengthening the Saudi Australian economic collaboration.
“Our work together would strongly align with Obeikan’s strategy of accelerating sustainability within the energy field.”
Critical Metals previously announced the execution of a binding lithium offtake agreement with BMW to supply battery-grade lithium hydroxide to the premium automotive manufacturer.
Proposed Business Combination to Form Critical Metals
Upon closing of the Proposed Business Combination, which is expected to occur in the first half of 2023, Critical Metals is expected to be a leading lithium mining company and intends to list its shares on Nasdaq under the symbol “CRML.”
As agreed in the Proposed Business Combination, Critical Metals will own the Project, which is currently owned by European Lithium’s wholly owned subsidiary, European Lithium AT (Investments) Limited (“EUR BVI”), as well as a 20% interest in additional Austrian projects currently held by European Lithium. European Lithium will be the largest shareholder of Critical Metals and is expected to continue to trade on the Australian Securities Exchange.
About Critical Metals Corp.
At the closing of the Proposed Business Combination, announced on October 24, 2022, between EUR BVI, a wholly owned subsidiary of European Lithium, and Sizzle, Critical Metals is expected to be a leading lithium mining company.
Critical Metals is expected to own the Wolfsberg Lithium Project, as well as a 20% interest in additional Austrian projects currently held by European Lithium Ltd. For more information, please visit https://criticalmetalscorp.com/.
About European Lithium Ltd
European Lithium is a mineral exploration and development company, which owns the Project located in Carinthia, 270 km south of Vienna, Austria, via its wholly owned subsidiary, EUR BVI. European Lithium’s primary listing is on the Australian Securities Exchange (ASX: EUR) and it is also listed in Frankfurt (FRA: PF8) and USA (OTC-QB: EULIF).
The Project is strategically located in Central Europe with access to established road and rail infrastructure to distribute lithium products to the major lithium consuming countries of Europe. For more information, please visit https://europeanlithium.com/.
About Obeikan Investment Group
Obeikan Investment Group is one of Saudi Arabia’s 100 largest companies, with more than 3,000 employees and operations in 16 countries. Obeikan is a global leader of industry across a diverse range of sectors, inclusive of manufacturing, health, technology and education.
Additional Information and Where to Find It
This press release is provided for informational purposes only and contains information with respect to the Proposed Business Combination among Sizzle, European Lithium, EUR BVI, a company formed in the British Virgin Islands which is wholly owned by European Lithium, and certain other parties formed in connection with the transactions contemplated by the merger agreement (the “Merger Agreement”), including Critical Metals and Project Wolf Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Critical Metals.
Subject to its terms and conditions, the Merger Agreement provides that Sizzle and EUR BVI will become wholly owned subsidiaries of Critical Metals.
Highlights:
- 50:50 joint venture for hydroxide plant is expected to generate significant savings for Critical Metals Corp.’s Wolfsberg Project
Critical Metals Corp. Announces MoU between European Lithium Ltd and Obeikan Investment Group to Build and Operate Hydroxide Plant in Saudi Arabia, PERTH, Australia & WASHINGTON, January 17, 2022
