Southern Gold Ltd (ASX:SAU) has cemented its expansion into the rapidly growing global energy storage market with the completion of the acquisition of battery technology company Iondrive Technologies Pty Ltd (IDT), alongside a A$2.5 million placement.
The acquisition, which received overwhelming shareholder approval, involved the issuance of Southern Gold shares valued at A$1.2 million.
IDT has exclusive worldwide licences for three next-generation battery material technologies developed by the University of Adelaide, namely water-based batteries, safe lithium metal batteries and a deep eutectic solvent for battery recycling.
The acquisition will allow Southern Gold to diversify from its existing exploration business while complementing its new lithium and rare earth elements exploration portfolio in South Korea.
Trialling technology
Southern Gold's two largest shareholders, Strata Investment Holdings PLC (ASX:SRT) and Ilwella Pty Ltd, participated in the share placement involving the issue of 126 million shares at $0.02 cents each.
The fund-raising exercise also welcomed new institutional and high net worth investors.
With the funds raised, IDT is now well-positioned to engage with battery and battery precursor material manufacturers.
The company aims to trial its proprietary technology and pursue potential revenue generation opportunities such as the sale of battery materials, licensing of intellectual property and commercialisation through joint ventures.
Over the next 12 months, IDT will further progress commercialisation efforts by funding research at the University of Adelaide to optimise the performance of the three technologies at a larger scale.