- Talga Resources (TLG) has struck a potential deal with Luossavaara-Kiirunavaara Aktiebolag (LKAB) and Mitsui & Co to develop its Vittangi Anode Project
- The three-way partnership is currently just in the form of a non-binding letter of intent and is subject to Talga’s current Vittangi feasibility study
- Once the results of the study are in, the parties have until June 30, 2021, to solidify their relationship and sign development deals for Vittangi
- LKAB is a Swedish state-owned mining giant with a strong focus on sustainability — making Talga’s graphite project an attractive investment
- Talga and Mitsui & Co signed a memorandum of understanding for a joint venture partnership in March 2020
- Shares in Talga Resources spiked in early action today but have since pared their win back a bit, currently up 0.45 per cent and worth $1.12
Talga Resources (TLG) has struck a potential deal with Luossavaara-Kiirunavaara Aktiebolag (LKAB) and Mitsui & Co to develop its Vittangi Anode Project.
Under the deal, the three parties will team up to develop the project subject to the results of Talga’s current feasibility study, which is slated for completion in March 2021, and some other due diligence work.
Of course, at this point, the three-way partnership is just a non-binding letter of intent. Depending on the results of the feasibility study and the due diligence, LKAB and Mitsui have until June 30, 2021, to solidify their relationship and enter binding co-development agreements with Talga.
Still, Talga Managing Director Mark Thompson said though the deal is in its early days, the company is pleased to be building major partner relationships to develop Vittangi.
“LKAB plays a significant role in the Swedish economy and offers strong synergies, complementary to our joint partner Mitsui, in Talga’s mission to supply European and global battery markets with sustainable anode products,” Mark said.
Who is LKAB?
LKAB is a Swedish state-owned mining giant focussed on developing sustaining mineral projects.
The high-tech company upgrades Swedish iron ore for the global steel market but says sustainability is core to its business — making Talga’s focus on graphite for a more sustainable world an attractive investment target.
Talga said Vittangi is close by to LKAB’s existing mining operations in Northern Sweden, making for a range of potential synergies between the two companies and their mines. On top of this, Talga said there could be some commercial synergies for the companies across sales and distribution.
LKAB joins Japan-based Mitsui & Co is partnering with Talga. Mitsui struck a memorandum of understanding (MoU) for a potential joint venture partnership with Talga in March 2020 through its European subsidiary, Mitsui &Co Europe.
Shares in Talga Resources spiked in early action today but have since pared their win back a little. At 3:33 pm AEDT, TLG shares are up a moderate 0.45 per cent and worth $1.12 each.