Parties
Company
SCR-Sibelco NV
Company
Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc., aiming to become a prominent North American lithium producer, announced a C$63-million joint venture with SCR-Sibelco NV, a global materials solutions leader. The partnership involves Avalon issuing 109,692,764 common shares and a C$3-million secured convertible debenture to Sibelco for C$10 million, giving Sibelco a 19.9% stake in Avalon. This funding will advance Avalon's lithium projects, notably at Separation Rapids, Ontario, focusing on building a mid-stream lithium-hydroxide processing facility.
The strategic move is designed to bolster Avalon's vertical integration in lithium production. Sibelco's investment underscores confidence in Avalon's vision and capabilities, promising accelerated growth and success in clean energy and technical glass markets. Avalon intends to use the proceeds for land acquisition in Thunder Bay for the processing facility, debt repayment, and general corporate purposes.
The joint venture, with Sibelco as the operator, will invest €35 million (about C$50.4 million) into Avalon's lithium projects, including Separation Rapids and Lilypad, with future contributions based on project development needs. Initial stakes are set at 60% for Sibelco and 40% for Avalon, potentially adjusting based on future contributions.
This partnership aligns with Avalon's strategy to enhance its lithium portfolio and develop a North American supply chain for EV batteries, emphasizing the strategic importance of domestic critical-mineral processing for the G7 economies.
Deal Type
Joint VentureIndustry
MiningTransaction
$ 63,000,000Deal Status
ActiveClosing Date