European Lithium to merge with Sizzle Acquisition to form exploration firm (updated)

US Critical Metals

26/10/2022 01:40

(Adds details on deal, funds, background, and share movement)
       Oct 26 (Reuters) - European Lithium Ltd  EUR.AX  said on
Wednesday it would merge with blank-check company Sizzle
Acquisition Corp  SZZL.O  to launch a lithium exploration firm
and also sell its stake in the Wolfsberg lithium project.
        The merger comes at a time when companies are racing to
capitalize on booming prices and demand of lithium, a key
component of electric vehicle batteries, amid a global push to
reduce carbon emissions.
    European Lithium will be issued shares worth $750 million,
equal to about an 80% stake in the new lithium exploration
company - Critical Metals Corp - which will be listed on the
Nasdaq. 
    Shares of the Australia-listed company soared more than 33%
to their highest levels since April 11.
    European Lithium said it will have an option to increase its
stake by another 10% if some performance-based milestones are
met.
    The company, which is also listed in Frankfurt  PF8.F , said
the implied pro forma market capitalisation of the combined
group would be $972 million and the merger will provide Critical
Metals about $159 million to develop Wolfsberg.
    European Lithium Chairman Tony Sage and Chief Executive
Officer Dietrich Wanke will take up the same roles in the
combined company after the deal, which is expected to close in
the first half of 2023.
 (Reporting by Jaskiran Singh in Bengaluru; Editing by Anil
D'Silva and Sherry Jacob-Phillips)
 ((Jaskiran.Singh@thomsonreuters.com;))