SYDNEY, AUSTRALIA: Southern Hemisphere Mining Limited (ASX: SUH, FWB: NK4) has announced that it has incorporated Titan Battery Minerals Technology Pty Ltd (Titan BMT), a wholly owned subsidiary that will acquire 100% of the shares in Minera Panamericana SCM, which owns 100% of the Los Pumas Battery Metals Manganese Project (“Los Pumas Project”) in Chile.
Titan BMT will be a dedicated, globally focused battery minerals and technology company, with a flagship project to produce High-Purity Manganese Sulphate Monohydrate (“HPMSM”) from the Los Pumas Project to supply the Electric Vehicle (“EV”) and battery energy storage markets. The company will also explore purifying technologies specific to the battery metals industry and pursue other opportunities in lithium, manganese and cobalt.
The demerger will create value for Southern Hemisphere shareholders by unlocking the potential of the Los Pumas Project, which has a significant manganese mineral resource and is well positioned to serve the emerging technologies for energy storage, especially in the US. Manganese is a key component of lithium battery technologies, as it enhances stability, density and driving range. Manganese-based cathode technology is also expected to lower the unit cost per kWh of energy storage for existing and new battery technologies.
Lead Director of The Los Pumas Battery Metals Manganese Project, Natalie Dawson, said: “This is a significant opportunity for Southern Hemisphere.
The Los Pumas manganese deposit is substantial, high quality and geopolitically well suited to serve emerging technologies for energy storage, particularly in the US. Manganese has historically been used in lithium battery technologies principally as o stabiliser to decrease battery combustibility and increase density which assists with increasing El/ driving range.
Going forward, we expect low-cost manganese cothode technology to significantly contribute to lowering the unit cost per kWh of energy storage both for existing lithium-ion batteries but also for newer battery technologies such as sodium manganese batteries.
The expected increase in demand should hove a positive impact on the price of high purity manganese as we progress development ” Pricing for manganese is currently -US$150 per tonne at 38% concentrate, and HPMSM is -US$1,000 per tonne.
Shipping an end product from Los Pumas amplifies the business case for Titan BMT as well as the substantial carbon footprint reduction by downstream manufacture at the mine.
The details of the spin-out, including the amount to be raised, the issue price per share, the consideration, structure and timeframe of the transaction, are yet to be determined and subject to regulatory and shareholder approvals. Titan BMT intends to apply for listing on a suitable exchange in due course.
Southern Hemisphere will remain a major shareholder of Titan BMT and provide administrative and geological support in Chile. The demerger will allow Southern Hemisphere to focus on expanding its Llahuin Copper Project to take advantage of the expected copper supply gap in 2025/26.
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