Welsbach Technology Metals Acquisition (“WTMAC”) announced that it has signed a non-binding letter of intent for a business combination with Evolution Metals.
The target is a trading company formed in January 2020 to counter the global critical mineral supply chain crisis. EMC has developed an alternative supply and value chain, including oxide beneficiation, for Technology Metals, including Rare Earths, utilizing the technical, marketing, and production resources in the United States, Korea, Australia, Vietnam, and the Democratic Republic of the Congo, exclusively outside of china.
In support of EMC, the U.S. Department of Energy, along with the Department of Commerce and the Department of Defense, have previously expressed the government's support and interest in entering into purchase agreements with EMC and its project partners, and recommends that all U.S. departments and state and federal agencies, “actively engage, expedite and facilitate mineral extraction, advanced materials qualification programs, pilot and commercial manufacturing facilities, and prioritize all requests, initiatives, projects, programs, proposals, applications and solicitations involving Evolution Metals…” according to a press release.
The transaction structure is yet to be determined based on the due diligence findings as well as business, legal, tax, accounting and other considerations.
If approval to proceed by the SPAC's board and Evolution Metals is obtained, the parties would announce any additional details regarding the transaction if they sign a definitive agreement for a deal.
Welsbach shareholders back in October approved a deadline extension up to June 30. There will be no additional contributions to the trust as part of the extension.
Welsbach last June called off a merger with WaveTech Group by mutual agreement.
Redemptions ahead of an extension vote in March wiped out more than half the SPAC's trust. Redemptions following the October extension vote left the SPAC with about $23.4 million in trust.