Caerus Mineral Resources PLC (LSE:CMRS) announced a transformational change in its strategic alliance with EV Metals Group PLC following the planned acquisition by EV Metals of the majority of Johnson Matthey PLC (LSE:JMAT)’s Battery Materials business.
Johnson Matthey said today it had agreed to sell part of its Battery Materials business to Australia’s EV Metals for £50mln in cash and will also take a minority stake in EV Metals.
Shares in London-listed Caerus jumped as much as 25% on the expansion of the strategic alliance.
EV Metals, a cornerstone investor in Caerus, has approached Caerus to renew and expand their original strategic alliance to enable EV Metals to comply with the Rules of Origin (RoO) for electric automotive products under the EU-UK Trade and Co-operation Agreement (TCA) so that they qualify to be tariff- and quota-free.
Automotive products covered by the TCA include lithium, copper, cobalt, nickel, other metals and industrial minerals in the context of battery packs for electric vehicles and hybrids.
“Caerus thereby becomes a key component of the EV Metals business plan by virtue of having, from the outset, an emphasis on development and production of copper from its multiple opportunities in Cyprus,” Caerus said.
EV Metals has also agreed to use Caerus as its preferred vehicle to further its ambitions in the European raw materials market, enabling EV Metals to acquire advanced mining and production projects and still comply with the TCA.
Acquisitions and board appointments
EV Metals has agreed to make a substantial investment in Caerus by increasing its present shareholding, on terms to be agreed, and by providing expertise and guidance through new board appointments. These new appointments will help promote the next phase of growth in the company's business plan and advance expansion plans in Europe in co-operation with EV Metals.
Brian Rowbotham will step down as non-executive chairman of Caerus to be replaced by Christopher Lambert as executive chairman. Lambert has a background in financial services and commodity trading and has extensive experience in non-executive and executive chairman roles and of asset identification and acquisition in the natural resources sector.
Russell Thompson and Dominic Traynor, both with EV Metals, will also join the Caerus board.
Earlier this month, Caerus announced the appointment of Charles Long as chief executive and said Martyn Churchouse, the former CEO, will remain in a senior consulting role to advance the Troulli joint venture project with Bezant Resources PLC (AIM:BZT).
Shares in Caerus were up 15% at 11.50p in mid-morning trade.