Australian European Lithium acquires American Velta Holding with mining, production in Ukraine

Australian company European Lithium Limited, listed on the Australian Securities Exchange (ASX) under the ticker "EUR," announced Tuesday that it has entered into a binding agreement to acquire 100% of Velta Holding, a U.S.-based titanium company that owns the eponymous production and mining assets in Ukraine.

"Under a binding agreement announced on Tuesday, European Lithium will acquire 100% of Velta for consideration of about 173 million fully paid ordinary shares, subject to final due diligence and the satisfaction of customary conditions precedent," according to the exchange announcement.

European Lithium shares fell 6.56% to AUD 0.28 per share (about $0.19) following Tuesday’s market open, ASX data show.

Once the conditions are satisfied, the shares will be issued and transferred to the existing shareholders of Velta.

Velta chief executive Andriy Brodsky said the transaction would support a long-term shift towards value-added production in both Ukraine and the United States. "These initiatives are focused on both horizontal and vertical integration, supporting a transition from a raw materials-based model to the production of titanium metal and other value-added critical materials," Brodsky said.