Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
Diversified major Glencore (LON: GLEN), through its Canadian subsidiary, has made a further investment in Vancouver-based mining junior Group Eleven Resources (TSXV: ZNG), purchasing 15 million units of Group Eleven at C$0.05 per unit for aggregate gross proceeds of C$750,000.
Glencore’s shareholding in Group Eleven would increase from 11.6% to 20% on a non-diluted basis
Each unit consists of one common share and one half of a non-transferrable common share purchase warrant, with each warrant entitling Glencore to purchase one additional common share at a price of C$0.10 per share for 36 months from the date of issue.
The private placement will occur in two tranches. The first tranche of 2.2 million units (C$110,000) is expected to close on or about May 21, while the remaining 12.8 million units (C$640,000), conditional on Group Eleven shareholder approval of Glencore becoming a “control person” of the company, is expected to close approximately in late June.
Following the transaction, Glencore’s shareholding in Group Eleven would increase from 11.6% to 20% on a non-diluted basis.
Group Eleven currently controls the largest ground position in Ireland, consisting of 99 prospecting licenses covering 3,200 square kilometres across four project areas.
The company’s key asset is a 76.56% interest in the Stonepark project in Ireland, which has an estimated 5.1 million tonnes of mineral resource grading 8.7% zinc and 2.6% lead in the inferred category.
The project is adjacent to Glencore’s Pallas Green project, one of the world’s largest undeveloped zinc projects, with an estimated mineral resource of 45.4 million tonnes grading 7% zinc and 1% lead.
