Green Technology Metals Ltd (ASX:GT1, OTC:GTMLF) has completed the first tranche of an A$8 million strategic investment with leading South Korean EV battery metals producer EcoPro.
The partnership supports GT1's strategy to become Ontario's first integrated lithium producer with agreements covering upstream, including mining and raw material extraction, and downstream activities of processing and conversion.
Under the first tranche of the A$8 million investment, GTI has received A$3.875 million to support the advancement of the Seymour Lithium Project in Canada toward a final investment decision and support the definitive feasibility study.
Condition met
In exchange for the $3.875 million, GT1 issued 31 million fully paid ordinary shares at A$0.125 per share to EcoPro, in an agreement that featured a 12-month escrow period.
Subsequently, a condition precedent in the subscription agreement for both tranche 1 and tranche 2 has been met, by receiving approval for the entire investment of A$8 million from the Bank of Korea.
The 33 million tranche 2 shares — which complete the A$8 million strategic investment — are to be issued subject to shareholder approval at a general meeting scheduled on September 26, 2024.
Upon final settlement of tranche 2, EcoPro will become GT1’s largest shareholder with a 16.6% shareholding.
"Top-tier partner"
GT1 managing director Cameron Henry said, “The new investment will enable us to continue advancing our Seymour Project towards a final investment decision and support the definitive feasibility study we've been diligently working on over the past year.
“We look forward to closely collaborating with EcoPro on the joint preliminary feasibility study for the proposed Lithium Conversion Facility, as their extensive experience in lithium conversion will be invaluable in the design and execution of the project.
“Attracting a top-tier partner like EcoPro, along with their premium investment, further validates our company, team, assets and our ability to drive our projects toward production.”