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A new Tripartite Purchase and Sale Agreement has been put in place in connection to a lithium project north of Kenora.
Avalon Advanced Materials has entered into the agreement with SCR-Sibelco NV and Separation Rapids Ltd. or SRL
The deal is for the transfer of the Separation Rapids and Lilypad projects to Separation Rapids Ltd. as a joint venture split with 60 percent owned by Sibelco and and the remaining 40 percent with Avalon.
As a result Sibelco, a company based out of Belgium with a focus on industrial minerals, will be the operator of SRL.
There are several conditions for the deal however, which includes the execution of a definitive Joint Venture Company Shareholders Agreement between SRL, Avalon and Sibelco.
In a release Avalon Chief Executive Officer Scott Monteith says he is pleased with what he calls a dynamic working relationship between Avalon and Sibelco.
“This partnership will unlock tremendous value for Avalon shareholders and accelerate our vision to build Ontario’s first vertically integrated lithium supply chain.”
Closing of the transaction, along with the signing of the JV Agreement and the establishment of SRL as the joint venture company is expected to occur, according to Avalon, later with week with November 9th set as a tentative date.
The Separation Rapids Project is located 70 km north of Kenora with a recent resources estimate has it surpassing the 10 million tonne mark, while the Lilypad project, is a Cesium, Tantalum and Lithium project located near Eabmetoong First Nation and Pickle Lake.
Additionally Avalon continues to work towards developing a lithium processing facility in Thunder Bay in partnership with the Finnish firm Metso.
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