Other Investment

In October 2020, Bacanora sold its 50% shareholding in Deutsche Lithium GmbH ("DL" or "Deutsche Lithium") to Zinnwald Lithium plc (“Zinnwald"), in exchange for 44.3% of Zinnwald Lithium plc and a net profit royalty of 2%. In June 2021. Zinnwald completed the acquisition of the remaining 50% of Deutsche Lithium to consolidate full ownership of DL and its Zinnwald Lithium Project. As a result, Bacanora’s shareholding in Zinnwald decreased to 35.5%. The royalty agreement provides that the royalty will be paid to Bacanora for an initial 40-year term and Zinnwald has the right to extinguish the agreement by paying Bacanora a one-off payment of €2m.