Belgium-based Sibelco to invest $63 million in Toronto lithium mine developer
Avalon Advanced Materials has attracted a strategic European partner to invest $63 million to speed its lithium projects into mines and to move towards establishing a processing facility in Thunder Bay.
Avalon, a Toronto-based lithium company, announced June 15 it has signed a binding term sheet with Belgium’s SCR-Sibelco NV to form and finance a proposed joint venture to advance Avalon’s two lithium projects in northwestern Ontario into production and to site a lithium hydroxide processing facility in Thunder Bay.
The $63-million transaction results in Sibelco owning 19.9 per cent of the issued and outstanding common shares. The deal should be finalized at the end of August.
The money will be rolled out in tranches, including upfront financing of $13 million to purchase a piece of industrial land in Thunder Bay to construct the lithium processing plant to make a battery-grade material for electric vehicle companies. Some of the money is earmarked to tackle a $1.9-million company debt and for working capital purposes. Sibelco will be the operator of the joint venture, holding a 60-40 split with Avalon.