(Alliance News) - Shares in Mila Resources PLC were suspended on the London Main Market on Thursday following the announcement of the proposed acquisition of E-Tech Metals Ltd.
E-Tech Metals develops projects in the critical and strategic metals industry, with its primary asset the Eureka rare earth project in Namibia.
Mila has signed a non-binding heads of terms to wholly acquire E-Tech Metals through the issue of new shares. The transaction is subject to due diligence and the relisting of the enlarged group. The transaction also requires shareholder approval at an upcoming general meeting.
"The critical and strategic metals industry represents an area of significant growth in the coming decades as international policy makers and manufacturers turn increasingly to electric vehicles and efficient energy storage," said Mila Executive Director Mark Stephenson.
"The Eureka project would provide Mila with a highly attractive entry point into this market as this asset not only combines high grade neodymium and praseodymium mineralisation, two of the most prized and high value elements in the rare earth group of metals, but also offers the potential for near-term, low capital expenditure, and low operational expenditure production," Stephenson added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Mila Resources (MILA)