The TSX Venture Exchange has accepted for filing documentation the joint venture (JV) agreement dated June 12, 2023, between the company and an arm's-length party. Pursuant to the terms of agreement, the company and the JV party have entered into a 50-50 joint venture interest to create a joint venture corporation under the name RecycLiCo Zenith Battery Materials Technology Co. (JVC), for the purposes of establishing of a commercial-scale recycling plant in Taiwan. At the request of the JVC, the company will provide design and engineering services, equipment procurement services, and personnel training in connection with the operation of the facility.

In consideration for entering into the joint venture, the company will remit to the JVC a cash payment of approximately $5-million (U.S.) within the first year, subject to certain credits of up to $1.25-million (U.S.) for the company's technology licence to the JVC, and 40 per cent of additional costs for construction of the facility. The company will also issue to the JV party: (i) four million common shares of the company at a deemed value of 33 cents per share; and (ii) six million share purchase warrants, with each warrant entitling the holder thereof to purchase an additional share at an exercise price of 35 cents for a period of five years from the date of issuance. The JVC will grant to the company a royalty of 1.5 per cent on the net sales of products sold by the JVC during an eight-year term starting at the commencement of commercial production of the facility.

For further details, please refer to the company's news releases dated June 12, 2023, and July 12, 2023.