- Talga Group (TLG) extends the term of its letter of intent with LKAB and Mitsu under which the parties have the exclusive rights to form a joint venture
- This would provide for the co-development of a scalable anode production facility and integrated graphite mining operation in northern Sweden
- The green anode project would feed into the burgeoning European lithium-ion battery market
- The parties have been conducting due diligence since inking the letter of intent in November 2020, and now have until the end of November this year
- Shares closed at $1.43 on Friday, June 25, 2021
Talga Group (TLG) has signed an extension to a letter of intent to firm up the terms for the potential joint development of its green anode project.
In November 2020, Talga first inked the letter with Luossavaara- Kiirunavaraa Aktiebolag (LKAB) and Mitsui & Co. Europe (Mitsu) under which the parties have the exclusive rights to form a joint venture.
This would provide for the co-development of a scalable anode production facility — with an initial capacity of 19,000 tonnes per annum — and an integrated graphite mining operation at its Vittangi Anode Project in northern Sweden.
The project would also have further expansion opportunities, with the possibility to use materials from the Niska Project, also located in Sweden.
The parties initially had until the end of June 2021 to decide whether to proceed with a binding joint venture agreement but, following the extension, now have until November 30, 2021.
Talga Managing Director Mark Thompson, however, remains positive about the progress to date on the potential joint development of the project.
“Talga is very pleased to progress JV partner discussions with LKAB and Mitsui for the development of our European anode supply chain to serve the lithium-ion battery market from our Swedish operations.”
“We look forward to continue exploring potential synergies across operations, investment and global sales/distribution in our partnership negotiations.”
Shares closed at $1.43 on Friday, June 25, 2021.