Business combinations are starting to begin amongst “green asset” explorers. IberAmerican Lithium (CBOE: IBER) this morning revealed that it will be acquiring Strategic Minerals Europe (CBOE: SNTA) in an all-stock transaction that seeks to bring together critical mineral assets.
“We are incredibly excited about the potential of this Proposed Transaction and by extension critical green asset consolidation. Upon completion of the Proposed Transaction, IberAmerican shareholders will gain access to a consolidated portfolio of green critical metal assets in Spain, reflecting our dedication to sustainability and positioning us at the forefront of the green economy,” commented Campbell Becher, CEO of IberAmerican.
The transaction will see Strategic Minerals shareholders receive one share of IberAmerican for each share of Strategic currently held.
Strategic Minerals currently holds critical minerals properties in Spain, including a production license for the Penouta Project. The company was the largest producer of tantalite and cassiterite concentrate within the European Union, while also producing what it calls conflict-free tin, tantalum and niobium, however in October of last year the company saw its section C permit suspended. The permit was suspended following a complaint in May 2022 by an environmentalist group that claimed the mine was impacting irrigation in the region.
IberAmerican has indicated it has engaged an engineering firm to analyze and assess the property held by Strategic to ensure value is “maximized.”
The acquisition of Strategic remains subject to approval by 66.7% of Strategic’s shareholders, as well as standard regulatory approvals. The proposed transaction also includes a €1.0 million break fee, and is conditional upon the cancellation of all options, warrants, and other convertible securities in Strategic being exercised, converted or forfeited prior to the closing date.
The transaction is slated to close by June 15, 2024.
IberAmerican Lithium last traded at $0.125 on the CBOE.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
