Mineral mining and exploration company Zenith has unveiled plans to refocus on lithium, and related EV-metals, backed by a new joint venture with the EV Metals Group (EVM).
The agreement will see Zenith work together with EVM to unlock the lithium potential of its Split Rocks and Waratah Well projects in Western Australia.
Zenith CEO Michael Clifford said it also includes a nonexclusive right to bring additional projects to the joint venture by either party, to explore for lithium/EV metals.
“The arrangement goes much deeper than just the joint venture on these two existing Zenith projects, Split Rocks and Waratah Well, with the parties also agreeing to jointly assess new lithium/ EV-metal opportunities throughout Australia where commercially appropriate to do so,” he said.
“The new joint venture arrangement plays to the project generation strengths of the Zenith team, matching this up with the very strong commercial and engineering capability of the EVM group. The arrangement puts Zenith in a unique position to build a significant lithium business in conjunction with EVM”.
Mr Clifford said the company plans to demerge its non-EV-metal projects, including base metals and gold assets, to focus on EV-metal project generative activities.
“Regarding the existing gold and base metals assets, EVM has agreed to provide their commercial and legal support to spinout these assets into one or more new listed entities,” he explained.
“With EVM’s financial backing and appropriate human resourcing we have a pathway to unlocking the value of Zenith’s project portfolio.”
Michael Naylor, Managing Director of EVM, added: “Zenith is an ideal strategic partner for EVM and this is the logical first transaction for our wholly-owned subsidiary Australian Lithium Alliance, part of a broader strategic initiative we have launched alongside this transaction.”
EV Metals Group (EVM) aims to become a global leader in battery chemicals and technology for a clean energy future.
It will produce high purity chemicals and cathode active materials for lithium-ion batteries at the world’s first integrated Battery Chemicals Complex in Saudi Arabia, which is now at the stage of completing front end engineering and design.