The Tin International AG sell their licenses for Sadisdorf and Hegelshöhe in the East Ore Mountains to the joint-venture partner Lithium Australia (ASX:LIT). The total consideration amounts to 2 million €, of which 0.5 million € will be paid in cash and 1.5 million € paid in LIT shares. The shares are subject to a sales restriction of 6 to 18 months. The transaction will result in a pre-tax profit of approximately 1.5 million € for Deutsche Rohstoff group. The sale will become effective when certain conditions precedent are fulfilled, including the consent of the responsible Upper Mining Authority for the transfer of the licenses. The parties expect the sale to be closed within the upcoming months.
Thomas Gutschlag, CEO of Deutsche Rohstoff, commented: “We are pleased to announce the sale of our licenses Sadisdorf and Hegelshöhe. Lithium Australia is well positioned to develop these deposits and benefit with their SiLeach-technology from the upcoming boom of electro-mobility. We are happy to become a significant shareholder of Lithium Australia, and participate in the further development of the company.”