- Hannans (HNR) satisfies the first condition precedent for its deal to commercialise lithium-ion battery recycling technology in Scandinavia
- The memorandum of understanding with Critical Metals will allow the company to recover high purity metals from scrap and spent batteries
- Critical Metals shareholders have approved the deal, marking the first of three conditions needed to complete the transaction
- HNR expects to receive its shareholders’ approval by November and must complete a capital raise of at least $5 million prior to the end of 2021
- Shares have jumped 30.4 per cent to trade at 3 cents apiece
Hannans (HNR) has satisfied the first condition precedent for its deal to commercialise lithium-ion battery (LiB) recycling technology in Scandinavia.
The company entered a memorandum of understanding (MoU) with Critical Metals in September, which would give HNR the rights to recover high purity metals from scrap and spent lithium-ion batteries in Norway, Sweden, Denmark and Finland.
The deal involves a proposed joint venture between the parties, in which Hannans can earn an interest by funding and managing certain tasks and activities.
Today, HNR said Critical Metals shareholders had approved the MoU at their annual general meeting held yesterday.
This marks the first of three conditions precedent. The company will need to receive approval from its own shareholders, which it hopes to gain at its annual general meeting in November.
Further, Hannans is required to complete a capital raising of at least $5 million before the end of the year.
According to HNR, the Nordic region has the highest electric vehicle penetration rates in the world.
Moreover, the company notes growing volumes of scrap and spent lithium-ion batteries which contain significant nickel, cobalt, lithium and manganese.
With the recycling technology to be commercialised, Hannans believes it has the potential to unlock embedded value.
Today’s news comes days after the company ended a deal with Irish company, Greenhouse Investment Group, to expand LiB recycling technology in the UK and Ireland.
The memorandum of agreement was terminated after the ASX considered it likely constituted a change in the nature and scale of Hannans activities in terms of Listing Rule 11.1.
HNR decided recommencing trade was more important and consequently terminated the deal.
Shares jumped 30.4 per cent to trade at 3 cents apiece at 1:28 pm AEDT.