Southern Gold inks deal to buy battery technology firm IDT

Australian mineral explorer Southern Gold Limited (ASX:SAU) unveiled a deal to acquire battery technology company Iondrive Technologies Pty Ltd (IDT) which has a strategic partnership with the University of Adelaide to commercialise energy storage technologies.

The value of the deal stands at AUD 1.2 million (USD 0.78m/EUR 0.73m), payable in SAU stock, a statement said on Monday.

IDT is a battery materials commercialisation company that holds the first right to acquire or enter exclusive worldwide licences across patent-protected battery technologies being developed by the University of Adelaide. These technologies are grouped into three commercialisation ready projects, including water based batteries to be used in renewable energy settings; enhanced performance non-flammable lithium-ion based batteries; and a low-cost, environmentally sustainable method for recycling lithium batteries.

Upon completion, IDT will be resourced as a separate and focused business unit. In the first 12 months after the acquisition, the company will be focused on progressing translation of all three technologies from the laboratory to application.

The Australian mineral explorer, which recently diversified its business to include lithium and rare earth elements, said that while the exploration business will continue to be its core focus, the acquisition provides an exciting strategic investment opportunity in the rapidly growing global energy storage market.

SAU further announced that it plans an AUD-2.5-million share issue with a portion of the proceeds to be used to finance the acquisition, while the remainder will be spent on continued exploration activities in South Korea.

The acquisition and the share placement are subject to shareholder approval with completion expected soon after the nod.

(AUD 1 = USD 0.654/EUR 0.610)

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