The Australian hydrous kaolin producer and exploration company Suvo Strategic Minerals has finally completed the acquisition of a 26 per cent stake in Dingo, an Australian-owned business that plans to make high-purity alumina (HPA) using recycled feedstock. Through a private placement of 220,000 fully paid ordinary shares at an issue price of $1 per share, the firm purchased Dingo for a total of $220,000.
“Australia’s Federal Government recently added HPA to the critical minerals list as part of the 2022 Critical Minerals Strategy, citing broad-ranging economic and strategic importance. The global demand for HPA in powder form is expected to grow to 187,000 tonnes per annum by 2028, this growth is likely to be stemmed by supply limitations leading to a potential spike in prices as supply struggles to keep up with demand,” said Henk Ludik, Executive Chairman at Suvo.
Through the use of closed-loop recycling, this transaction gives the corporation a chance to create an innovative, environmentally friendly HPA process. Suvo now has a clear route to acquiring up to 76 per cent of Dingo’s issued capital, pending the achievement of many milestones.
Dingo’s intellectual property (IP) is now in the concept research stage, and the money received will help the company undertake a scoping study and give it operational cash. The suggested flowsheet to generate HPA has been evaluated for its techno-economic viability, and the scoping study has been created to confirm the viability of a short-term operation.
A crucial mineral known as HPA is very valuable (US$28,000 to US$40,000 per tonne), highly profitable, and in great demand. It makes lithium-ion batteries, portable gadgets, electric cars, and LED lighting. Due to increasing demand, the worldwide HPA market is anticipated to reach US$4.8 billion by 2026.
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“With the settlement now complete, Dingo is primed to advance the technologies scoping study, stepping closer to developing the novel HPA production process. The bespoke IP and structured pathway to increase Suvo’s interest offers a potential pathway for the company to take advantage of rising demand and market opportunity. We look forward to providing shareholders additional updates on this unique opportunity in due course,” added Henk Ludik.
source https://www.alcircle.com/news/suvo-strategic-minerals-acquires-26-stake-in-sustainable-hpa-production-company-dingo-87238
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