IGO Limited, a joint venture between Tianqi Lithium Corporation and IGO, has entered into a Scheme Implementation Agreement to acquire 100% of Essential Metals Limited for A$0.50/share.

The transaction is a 36.3% premium to ESS' 30-day VWAP.

The project covers an area of 450 km2 and is in close proximity to the Mount Marion and Bald Hill lithium projects.

The Board of Directors of ESS has unanimously recommended that ESS shareholders vote in favour of the Scheme.

The Transaction will be funded using cash generated by the joint venture and IGO will manage the exploration and initial project studies on behalf of the joint venture.

The Transaction is expected to complete by May 2023.