IDT has already entered into agreements with University of Adelaide, to fund three projects that collectively satisfy the SPA requirement for IDT to provide $1.5 million in funding
Southern Gold to acquire battery technology company and Placement to accelerate commercialisation. (Credit: JUICE on Unsplash)
Southern Gold Limited (ASX: SAU) (‘Southern Gold’ or the ‘Company’) is pleased to announce the proposed acquisition of 100% of the issued capital of battery technology company Iondrive Technologies Pty Ltd (“IDT”) for consideration of $1.2 million payable through the issue of SAU fully paid ordinary shares (the “Acquisition”). The Company is proposing a concurrent $2.5 million placement (the “Placement”), with $1.2 million to fund IDT’s commercialisation activities, and the remainder to fund continued exploration activities in South Korea. Both the Acquisition and the Placement are subject to shareholder approval.
Southern Gold’s exploration business will continue to be its core focus, with this Acquisition providing an exciting strategic investment opportunity in the rapidly growing global energy storage market. IDT holds the first right to acquire or enter exclusive world-wide licences across patent protected battery technologies being developed by the University. The technologies are grouped into three commercialisation ready projects: 1) enhanced performance non-flammable lithium-ion based batteries, 2) a low-cost, environmentally sustainable method for recycling lithium batteries, and 3) low-cost, safe, high cycle life aqueous based batteries, with the potential to be the next generation of batteries, particularly suited to grid storage.
Commercialisation over the next 12 months will be progressed through IDT’s funding of the University’s research to optimise performance at a larger scale, whilst in parallel, the IDT team engages with potential battery industry partners in the key markets of China, the US, the EU, South Korea and Japan.
The Acquisition also diversifies the existing exploration business and builds on Southern Gold’s recent move into lithium and rare earth element exploration in South Korea. It provides an opportunity to be involved in downstream processing and future applications for lithium. In particular, the lithium battery recycling project provides an alternate source for scarce resources that compliments the potential sourcing of these critical minerals from exploration (whilst also solving a growing environmental issue). Further, it provides an opportunity to leverage recently established relationships in the government and private sector within the battery materials industry in South Korea.
Whilst IDT will be resourced as a separate and focussed business unit, there are existing complementary skills within Southern Gold. Prior to joining Southern Gold in 2021, the Company’s CEO and Managing Director, Mr Smillie, gained valuable experience overseeing battery materials research & commercialisation as the Resources and Materials Manager at GNS Science (New Zealand’s world-class clean-energy research institute). Southern Gold’s CFO and Company Secretary, Ray Ridge, has experience with ASX-listed companies commercialising technologies originating from university research. Mr Ridge is based in Adelaide and will work closely with IDT and its collaboration with the University of Adelaide.
A General Meeting will be held on 28 June 2023. The Notice of Meeting will be lodged following this announcement.
Southern Gold Managing Director Robert Smillie said: “This acquisition is an exciting strategic investment for Southern Gold, with the global push to net zero emissions by 2050 driving significant demand for both electric vehicles and grid energy storage. IDT is well positioned to participate in this growing industry with access to technologies across three key areas and a collaboration agreement that leverages the University of Adelaide’s considerable investment in the School of Chemical Engineering and Advanced Materials.
While exploration in South Korea will continue to be our core business, we see this as an opportunity with the potential to add shareholder value and diversify Southern Gold’s business.”
University of Adelaide Chief Innovation and Commercialisation Officer, Dr Stephen Rodda said: “This transaction is a testament to the calibre of research being undertaken by our world class researchers at the University of Adelaide, in the field of energy storage and battery technology.
Our researchers now have a platform to access a pool of like-minded investors and the corporate skillset to accelerate the translation of our research to industry.
“This is another wonderful example of the University of Adelaide partnering with industry to support the transfer and development of new technologies.”
Source: Company Press Release