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Suvo Strategic Minerals Ltd completes Dingo Green HPA technology acquisition

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Suvo Strategic Minerals Ltd (ASX:SUV) has completed the acquisition of 26% interest in Dingo, an Australian proprietary company aiming to produce high purity alumina (HPA) from recycled feedstock.

The company acquired Dingo for a total of $220,000 through a private placement of 220,000 fully paid ordinary shares at an issue price of $1.00 per share.

This transaction provides the company with the opportunity to develop a novel, green HPA process, offering significant environmental benefits through closed loop recycling.

Moving forward, Suvo has a clear pathway to acquire up to 76% of the issued capital of Dingo, subject to various milestones being met.

HPA is a high-value (US$28,000 – US$40,000 per tonne), high-margin and high-demand critical mineral used in the production of lithium-ion batteries, portable electronics, electric vehicles and LED lights.

The global HPA market projected to reach US$4.8 billion by 2026 amid rising demand.

Critical mineral

Suvo executive chairman Henk Ludik said: “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.

“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.”

Forward plan

Dingo’s IP is currently at the concept study level and funds raised will assist Dingo in the advancement of a scoping study, in addition to providing working capital.

The scoping study has been designed to assess the techno-economic viability of Dingo’s proposed flowsheet to produce HPA and validate the feasibility of a near-term project.

At the end of the stage three earn-in agreement, Suvo will have an exclusive period to negotiate a share purchase acquisition of the remaining shares on issue in Dingo, subject to the listing rules and any further regulatory approvals.

Furthermore, Suvo has appointed one representative to the Dingo board as a director.

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