Hannans Ltd (ASX: HNR) signed a memorandum of agreement (MoA) with unrelated private Irish company Greenhouse Investment Group Limited (Greenhouse) to complete exclusive due diligence on Greenhouse, the LiB recycling technology (Technology) and business development opportunities generated by Greenhouse in the UK and Ireland (the Territories).

By way of introduction the growth profile of electric vehicles (EV) in the UK is anticipated to follow a similar upwards trajectory to that being experienced in continental Europe. The British government plans to ban the sale of new petrol and diesel cars by 2030, is in talks with six companies to build Giga factories to produce LiBs and will require existing vehicle plants to shift to producing electric models.

1 It is imperative for the environment that scrap and spent2 LiBs are recycled, and the valuable metals recovered for reuse3. The LiB recycling narrative is highly compelling and Hannans was therefore preparing to investigate an opportunity to expand its planned LiB recycling activities beyond the Nordic region into the UK and Ireland. 4

MoA with Greenhouse

By way of background the MoA signed with Greenhouse (greenhouse-investments.com) after market close on 24 September 2021 provided that, subject to successful completion of due diligence Hannans and Greenhouse would negotiate a formal agreement. There was no certainty that a formal agreement would have been reached with Greenhouse on acceptable terms, and any formal agreement wouldultimately have been subject to Hannans obtaining all necessary regulatory and shareholder approvals for the purposes of complying with the Corporations Act, the ASX Listing Rules and any other applicable law.

Hannans planned to focus its due diligence on Greenhouse and potential business development opportunities generated by Greenhouse in the Territories. Greenhouse signed its non-exclusive Technology license with respect to the Territories in April 2019.5 The Technology enables the recovery of high purity metals from scrap and spent LiB using a process that is safe, sustainable, low energy and low CO2 when compared to incumbent technologies.

6 ASX considered the MoA likely constituted a change in the nature and scale of Hannans activities in terms of Listing Rule 11.1. Hannans considered it more important for trading in its share to recommence immediately. The MoA was therefore terminated by mutual agreement on 2 October 2021.

This announcement has been authorised for release by the Hannans Board of Directors.

Contact:

Damian Hicks

Tel: +61 8 9324 3388

Email: info@hannans.com

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