Lithium ION Energy Ltd. (TSX-V:ION, OTCQB:IONGF) announced that it has signed a Letter of Intent (LOI) with United Rare Earths, a US-based firm focused on rare earths recycling and refining, to pursue a business combination.
The company said the partnership aims to enhance the domestic supply of rare earths, which are crucial for military applications and the energy transition.
“We believe completion of the proposed business combination will catapult ION Energy into a diversified battery and critical metals player on the global market,” Lithium ION Energy CEO Ali Haji commented.
“We believe strongly in our lithium assets and the sheer scale and potential UnitedRE brings is compelling to achieve the vital objective of a cleaner, secure, traceable future for humanity.”
Jeffrey Willis, UnitedRE chairman, added that by aligning their resources and expertise, the two companies can achieve accelerated growth and innovation.
“This partnership enhances our capability to deliver on our shared mission to establish a sustainable, resilient supply chain to power renewable technologies and the electrification movement,” Willis said.
“Our collective efforts, grounded in a shared vision, will empower us to meet the growing demand for rare earth materials, securing the supply chain for America's future."
In connection with the business combination, Lithium ION Energy plans to conduct a non-brokered private placement offering of convertible debentures, aiming to raise $2 million.
The debentures will have a maturity of 24 months, an 8% annual interest rate, and a conversion price of $0.10 per share.
The proceeds will be allocated to completing the business combination, advancing rare earth technology, and furthering Lithium ION Energy's lithium exploration efforts.