Erris Resources Plc (AIM:ERIS) entered into an agreement to acquire 50% stake in Deutsche Lithium GmbH from Bacanora Lithium Plc (AIM:BCN) for £5.6 million on October 8, 2020. Under the terms, Bacanora, parent of Deutsche Lithium will be selling its 50% share in Deutsche Lithium plus €1.35 million (£0.91 million) cash in exchange for 90.6 million new shares in Erris. Erris has also agreed to conditionally place 75 million new shares. Upon completion of the Acquisition, Erris Gold Resources, holder of the Loch Tay Option Agreement, is to be spun out to the Existing Shareholders while future funding partners will be sought for Irish and Swedish projects of the transaction. The company will trade under the name of Zinnwald Lithium plc and its new ticker symbol will be ZNWD post the completion of the transaction. Bacanora will have the right to appoint two representatives to the board of Erris Resources. Post completion, Bacanora would own 44.3 percent of Erris Resources. Anton du Plessis has become the Chief Executive Officer and Jeremy Martin has become Non-Executive Chairman of Erris with immediate effect. On admission, Peter Secker, Chief Executive Officer of Bacanora will join the Board as Non-Executive Director. As on September 30, 2020, Jeremy Taylor-Firth, a non-executive director of Erris Resources, will be resigning from his position on the Erris Resources board. The transaction is subject to approval by the shareholders of Erris and placing agreement becoming unconditional in all respects. The Proposed Acquisition, the Divestment and the Placing are inter-conditional. The general meeting to approve the acquisition by the shareholders of Erris will be held on October 26, 2020. On October 26, 2020, the shareholders of Erris Resources Plc approved the transaction. The transaction is expected to close on October 29, 2020. Sandy Jamieson and Liam Murray of Cairn Financial Advisers LLP acted as financial advisor to Deutsche Lithium in the transaction. David Hart and Liz Kirchner of Allenby Capital Limited acted as financial advisor to Erris in the transaction.

Erris Resources Plc (AIM:ERIS) completed the acquisition of 50% stake in Deutsche Lithium GmbH from Bacanora Lithium Plc (AIM:BCN) on October 29, 2020.