Suvo Strategic Metals (ASX:SUV) reports it has completed the acquisition of its 26% interest in Dingo, a company aiming to produce high purity alumina (HPA) from recycled aluminium feedstock, through a private placement.
The company says it has acquired 220,000 fully paid ordinary shares in Dingo, at an issue price of $1 per share ($220,000).
Dingo’s IP is currently at the concept study level and funds raised will assist Dingo in the advancement of a scoping study, in addition to providing working capital.
The scoping study has been designed to assess the techno-economic viability of Dingo’s proposed flowsheet to produce HPA and validate the feasibility of a near-term project.
Suvo Strategic Metals Executive Chairman Henk Ludik said: “Australia’s Federal Government recently added HPA to the critical minerals list as part of the 2022 Critical Minerals Strategy, citing broad-ranging economic and strategic importance.
The global demand for HPA in powder form is expected to grow 187,000 tonnes per annum by 2028, this growth is likely to be stemmed by supply limitations leading to a potential strike in prices as supply struggles to keep up with demand.
“With the settlement now complete, Dingo is primed to advance the technologies scoping study, stepping closer to developing the novel HPA production process”
With the settlement now complete, Dingo is primed to advance the technologies scoping study, stepping closer to developing the novel HPA production process.
The bespoke IP and structured pathways to increase Suvo’s interest offers a potential pathway for the company to take advantage of rising demand and market opportunity.
We look forward to providing shareholders additional updates on this unique opportunity in due course.”
The company reports it has a clear pathway to acquire up to 76% of the issued capital Dingo, subject to various milestones being met.
At the end of the stage three earn-in agreement, Suvo will have an exclusive period to negotiate a share purchase acquisition of the remaining shares on issue in Dingo, subject to the listing rules and any further regulatory approvals, and the company has appointed 1 representative to the Dingo board as a director.
Suvo Strategic Minerals is an Australian hydrous kaolin producer and exploration company listed on the ASX focused on its near-term kaolin and ‘high purity’ silica assets with its wholly owned Gabbin (kaolin), Eneabba and Murchea (silica sands) projects located in Western Australia.
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