Develop Global to Acquire Essential Metals in A$48.8 Million Scheme Develop Global Limited

Develop Global to Acquire Essential Metals in A$48.8 Million Scheme

Mineral exploration and development company, Develop Global Limited (DVP), has entered into a scheme implementation deed with Essential Metals Limited (ESS), an ASX-listed company focused on battery metals projects in Western Australia. The scheme involves Develop Global acquiring 100% of the issued share capital of Essential Metals by issuing 0. 5 Develop Global shares for every 1 Essential Metals share held. This values Essential Metals at A$0. 20 per share or A$48. 8 million in total.

The proposed scheme aims to create a diversified battery metals company with a combined market capitalisation of A$150 million and a pro forma cash balance of A$23.

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5 million. The newly formed entity will possess a portfolio of advanced projects encompassing copper, zinc, nickel, cobalt, lithium, and tin, including notable projects like the Sulphur Springs copper-zinc project and the Pioneer Dome lithium-caesium-tantalum project.

In addition to the financial benefits, the proposed scheme is expected to deliver operational and strategic advantages such as increased scale and liquidity, enhanced funding capacity, diversified commodity exposure, reduced risk profile, and the potential for re-rating. Notably, the scheme has received unanimous support from the boards of both Develop Global and Essential Metals, though it is still subject to customary conditions including shareholder, court, and regulatory approvals.

Assuming the satisfaction or waiver of all conditions, the scheme is projected to be implemented in November 2023. This acquisition represents a significant move for Develop Global as they focus on producing clean metals essential for sustainable energy generation and storage.

Disclaimer: This article provides a summary of the original announcement by Develop Global Limited and Essential Metals Limited and is not a substitute for the full text of the announcement.

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#ASX:DVP Develop Global to Acquire Essential Metals in A$48.8 Million Scheme

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