European Green Transition (EGT), a company developing a portfolio of green economy assets in Europe which aims to capitalise on the opportunity created by the green energy transition, has announced its intention to conduct a fundraise and to list its ordinary shares on AIM, a market of the London Stock Exchange.
Panmure Gordon is acting as Nominated Adviser, sole bookrunner and broker to the Company on its proposed Fundraise and Admission. The Company also intends to launch a retail offering through the Bookbuild platform and a further announcement will be made in due course.
Developing a Portfolio of Green Economy Assets through a Disciplined M&A Focused Model
· EGT’s business model is to develop a portfolio of green economy assets in Europe, capitalising on Europe’s green energy transition. The Company intends to implement a disciplined M&A focused model and has already acquired a portfolio of assets, notably their principal Olserum Rare Earth Element (REE) project.
· The Company intends to utilise its experienced team and Board to acquire further green economy assets in Europe, with a particular focus on distressed and/or undervalued assets, which includes critical materials projects, solar projects, wind projects, rehabilitation projects and processing projects.
· EGT has already identified a pipeline of additional green economy assets, some of which the Directors believe could be acquired for a fraction of the capital that has previously been invested in them.
· Through capital-efficient investment and operational expertise, EGT intends to advance its projects to build a sustainable, profitable business with the optionality to sell or partner certain assets with large financial investors or industry players.
Experienced Leadership Team with Strong Track Record 1
· European Green Transition is managed by a highly qualified, experienced team with extensive small cap public company experience including Cathal Friel (co-founder, largest shareholder and Non-Executive Director), Aiden Lavelle (CEO and Chartered Geologist with 16 years’ industry experience) and Jack Kelly (CFO and Chartered Accountant with extensive experience in M&A).
· The EGT team and Board have a strong track record of establishing and scaling M&A focused companies in the public market, including:
o Cove Energy plc: IPO completed in 2009, acquired distressed asset from the Artumas Group, completed a trade sale in 2012 for US$1.9 billion.
o Amryt Pharma plc: IPO completed in 2016, acquired distressed and/or undervalued assets (Birken AG, Aegerion Pharmaceuticals Inc and Chiasma Inc), completed a trade sale in 2023 for US$1.48 billion.
o hVIVO plc (formerly named Open Orphan plc): IPO completed in 2019, acquired distressed assets Venn Life Sciences plc (c. £4 million) and hVIVO plc (c. £13 million), current market cap c. £197 million2.
Existing Portfolio of Assets in Europe 3
· The Company’s principal asset is the Olserum REE project in Sweden, which EGT aims to progress towards obtaining a 25-year exploitation permit.
· REEs are a set of 17 metallic elements which are crucial components to the green transition used in a range of high-tech devices including electric vehicles and wind turbines.
· The Olserum project is one of Sweden’s projects of “National Interest” as designated by the Swedish Geological Survey and the directors believe it has the potential to become Europe’s first operating rare earths mine.
· EGT will look to capitalise upon the significant forecast shortage of REEs4 by monetising the asset through sale or partnership with financial institutions and/or industry players. Therefore, crucially, EGT does not intend to develop a mine but is confident in its ability to find third parties to acquire or partner on the project.
· In addition, the Company owns copper and graphite assets in northern Sweden and critical mineral projects in Saxony, Germany, all of which have defined potential and tangible upside.
Strong Market Tailwinds and Focus on Environmental, Social & Governance Considerations
· EGT expects to benefit from the European Critical Raw Materials Act (CRMA), which has been established to address critical supply shortages in Europe. The CRMA sets clear objectives around extraction, refining and processing, recycling and external sourcing of critical minerals for the EU.
· The global market for REEs is forecast to more than double to $21 billion in the next 10 years.5 REEs are crucial components in the production of permanent magnets found in wind turbines, with each standard 3 MW direct drive wind turbine containing 2 tonnes of REEs.
· Maintaining high ESG standards is at the forefront of all of EGT’s activities and the Company intends to maintain its environmental and social practices across all projects, engaging with local communities and stakeholders throughout.
Use of Proceeds and Admission
· The net proceeds of the Fundraise will be used primarily to execute on EGT’s capital-efficient development programmes and to support the acquisition of additional green economy assets.
· Cathal Friel, Founder and Non-Executive Director of EGT, has notified the Board of his intention to participate in the Fundraise.
Aiden Lavelle, Chief Executive Officer of European Green Transition, said:
“We feel there is a significant opportunity to realise returns across Europe as part of the green economy transition. Through EGT’s disciplined M&A focused model, we have already acquired an exciting portfolio of assets, including the Olserum Rare Earth Element (REE) project in southern Sweden. Olserum has the potential to be progressed to become Europe’s first commercial stage rare earth mine and we will look to monetise this project with larger industry players or financial investors in the near future.
“Furthermore, we have built an M&A growth pipeline of opportunistic distressed and undervalued assets, which we believe we can acquire for a fraction of the capital that has previously been invested. With our expertise and through strategic, cost effective investment, we will aim to generate significant inflection points for these assets as we look to develop a profitable and sustainable business.”
Cathal Friel, Co-Founder & Non-Executive Director of European Green Transition, said:
“We are very excited by the scale of the opportunities created by the green economy transition in Europe. We are applying our M&A focused approach of targeting distressed and undervalued assets towards prospects in the green economy. This approach has already generated success, delivering value across a range of public companies, namely Cove Energy plc, Amryt Pharma plc and hVIVO plc. We aim to repeat this formula with EGT.
“We have chosen to list in London as we are very confident in its depth of capital and talent, and its unique understanding of green economy projects. London is a world leading capital market for small cap companies, and in particular for European-focused businesses with strong credentials to support the energy transition, such as European Green Transition.”
The Company’s existing portfolio of licences are summarised below:
| Asset | Project | Licence Number/ Reference | Holder | Company Interest | Status | Licence Expiry Date | Licence Area km2 | Comments |
| Olserum nr 21 | Olserum REE Project, Sweden | 2017:91 | European Mineral Exploration AB | 100% | Advanced Exploration | 08/06/2025 | 10.99 km² (1099 Ha) | Has Historical REE Mineral Resource |
| Olserum nr 2001 | Olserum REE Project, Sweden | 2017:90 | Olree AB | 100% | Advanced Exploration | 08/06/2025 | 2.72 km² (272 Ha) | Has Historical REE Mineral Resource |
| Olserum nr 22 | Olserum REE Project, Sweden | 2023:77 | European Green Metals Ltd | 100% | Early Stage Exploration | 5/29/2026 | 71.21 km² (7121.86 Ha) | New permit granted May 2023, prospective for REEs. |
| Olserum nr 23 | Olserum REE Project, Sweden | 2023:156 | European Green Metals Ltd | 100% | Early Stage Exploration | 25/10/2026 | 19.81 km² (1981.05 Ha) | New permit granted Oct 2023, prospective for REEs. |
| Liviövaara 101 | Pajala Project, Sweden | 2022:22 | Rockfleet Minerals Ltd | 100% | Early Stage Exploration | 09/03/2025 | 7.8 km² (780 Ha) | Prospective for graphite and copper-gold. Historic drill intersections for graphite and copper |
| Lehtosölkä 101 | Pajala Project, Sweden | 2022:21 | Rockfleet Minerals Ltd | 100% | Early Stage Exploration | 09/03/2025 | 7.235 km² (723.5 Ha) | Prospective for graphite and copper-gold. Historic drill intersections for graphite |
| Lehtosölkä 102 | Pajala Project, Sweden | 2023:76 | Rockfleet Minerals Ltd | 100% | Early Stage Exploration | 14/11/2025 | 36.132 km² (3613.2 Ha) | Prospective for Graphite and copper-gold |
| Eichigt II | Saxony Project, Germany | 1710 | European Green Metals Ltd | 100% | Early Stage Exploration | 15/04/2027 | 14.057 km² (1405.7 Ha) | Prospective for cobalt & REEs in veins and greisens at depth. Renewal submitted and pending. |
| Marienberg | Saxony Project, Germany | 1714 | European Green Metals Ltd | 100% | Early Stage Exploration | 15/07/2026 | 381.58 km² (38250 Ha) | Prospective for epithermal tin, lithium-tin-copper |
Important Notes & References
1. There can be no certainty that EGT will deliver similar shareholder returns to those described in the section ‘Experienced Leadership Team and Strong Track Record’ above in this announcement.
2. As at 15 March 2024.
3. There can be no guarantee that any potential pipeline acquisition as noted in the section ‘Developing a Portfolio of Green Economy Assets through a Disciplined M&A Focused Model’ above will proceed. Any potential pipeline acquisition, should it result in a transaction, may be material for the Company.
4. Source: The Financial Times, 20 September 2023.
5. Source: The Financial Times, 20 September 2023.
An investment in the Company’s ordinary shares is only suitable for investors capable of evaluating the risks (including the risk of capital loss) and merits of such investment and who have sufficient resources to sustain a total loss of their investment. An investment in the Company’s ordinary shares should be seen as long-term in nature and complementary to investments in a range of other financial assets and should only constitute part of a diversified investment portfolio. Accordingly, typical investors in the Company are expected to be institutional investors, private client fund managers and private client brokers, as well as private individuals who have received advice from their professional advisers regarding investment in the ordinary shares and/or who have sufficient experience to enable them to evaluate the risks and merits of such investment themselves. Potential investors should not purchase or subscribe for any transferable securities referred to in this announcement except on the basis of the information in the Admission Document, including the risk factors set out therein.
