Highlights
- Acquisition of a 95% interest in joint venture partner Ziron Tech
- Acquisition delivers the ownership of all associated intellectual property including patented metal-refining technology
- Ziron Tech team integrated into ASM
ASM has successfully completed the acquisition of 95% of its joint venture partner Ziron Tech, and through the acquisition now owns Ziron Tech’s patented low emission, high purity metal-refining technology and the pilot plant in Korea.
ASM Managing Director, David Woodall said: “We welcome the Ziron Tech team to ASM. This talented team, led by Professor Jonghyeon Lee, has successfully produced metal from all products of our Dubbo Project in central west NSW. Having the Ziron Tech team continue the innovative work on a range of high-purity and value-added critical metals used in advanced technologies, including electric vehicles and clean energy, gives ASM a strong foundation for success.
“With the recently announced development of our first commercial metallisation plant in South Korea, the Ziron Tech team is now progressing towards a continuous production process at scale in Korea where there is an established tech manufacturing industry and market for these metals. With the changing dynamics of the critical metals supply chain, ASM is well placed to play a significant role in the global critical metals market, with significant benefits for both Australia and Korea.”
Key terms of the restructured arrangements relating to Ziron Tech are as follows:
- ASM has acquired 100% of the current joint venture company RMR Tech Corporation (“RMR Tech”) (increased from its previous holding of 10%).
- RMR Tech has completed the acquisition of 95% of the shares in Ziron Tech.
- As consideration for the transaction, ASM will in due course:
- issue 1,306,417 ASM shares for consideration of USD 2 million to current Ziron Tech shareholders (via a holding entity) at an issue price of AUD 2.068 per share based on a 10-trading day VWAP to 2 September 2020 and using an AUD:USD exchange rate of 0.74. These shares will be subject to voluntary escrow for 12 months; and
- grant existing Ziron Tech shareholders (via a holding entity) a Net Smelter Return of 5% from any global commercial metallisation facility established using the technology, subject to a 50% step-down of the royalty after payments of USD 20 million have been made.
- The ASM group now owns all of Ziron Tech’s patents and related intellectual property and technology that were the subject of the RMR Tech joint venture, as well as any intellectual property rights or interests that may be developed by Ziron Tech in the future.