Canadian miner Rock Tech Lithium has signed a binding business combination agreement with Swiss junior mining company Arcore to merge their subsidiaries and establish a new European entity named NewCo.
Upon completion of the transaction, Rock Tech will transfer the shares of its fully owned subsidiary, Rock Tech Guben, to NewCo in exchange for a 75% stake in NewCo’s registered share capital.
Arcore will contribute the shares of its wholly owned subsidiary, AR CORE, to NewCo and receive a 25% stake in NewCo’s registered share capital.
This strategic move aims to reduce Europe’s dependence on other regions for critical battery raw materials and create a reliable battery materials supply chain.
NewCo’s core assets will include Rock Tech’s fully permitted lithium converter in Guben, Germany, and Arcore’s lithium-boron-magnesium mining project in Lopare, Bosnia-Herzegovina, which contains an estimated 600,000 tonnes of lithium carbonate equivalent.
Rock Tech CEO and chairman Dirk Harbecke: “Strong European supply chains are essential to secure the regions’ strategic autonomy, promote industrial competitiveness and enable the transformation to a climate-neutral economy.
“Europe is currently heavily dependent on imports of critical raw materials such as lithium. This is an important step for Rock Tech to become the European leader in battery raw materials supply.”
As the leading partner, Rock Tech will engage with local communities and leverage its expertise from the Georgia Lake lithium project in Canada.
Arcore’s Lopare lithium project has the potential to become one of Europe’s largest lithium mines, according to the company.
The project, supported by the state of Brandenburg, is in its final financing phase with all necessary permits and studies completed.
The Lopare deposit’s exploration phase has concluded and a mining concession application is under way.
Arcore Interim CEO Jeff Stone said: “Caring for this exceptionally vital asset of the Republic of Srpska is a fiduciary duty that we assume with the utmost responsibility. It is with that responsibility in mind that we formally submit our concession application. It is a privilege for Arcore alongside Rock Tech to play a defining role in the creation of an independent European supply chain of critical metals.”
The joint venture’s (JV) next step is finalising the pre-feasibility study to assess the project’s technical and economic viability, including its environmental and social compatibility.
Arcore Doo in Bosnia-Herzegovina managing director Vladimir Rudic said: “The Lopare project, thanks to our collaboration and association with Rock Tech, and their cutting-edge technological innovations, will be the standard bearer of new trends in the development of sustainable mining in this traditional mining region.”
Arcore’s Lopare project is set to supply lithium sulphate feedstock to Rock Tech’s Guben converter from 2030, complementing the spodumene supply from contracted partners.
The Guben lithium converter is poised to produce battery-grade lithium hydroxide monohydrate for up to 500,000 electric vehicles annually.
Worley has been appointed as the engineering, procurement and construction management provider for the converter.
