Atlas Metals terminates UPSA acquisition as lithium and graphite deals take priority

Atlas Metals Group plc has terminated its proposed acquisition of Universal Pozzolanic Silica Alumina Ltd (UPSA), ending a transaction first announced in June 2025, as the company shifts its acquisition focus towards lithium and graphite assets in Africa and South America.

The natural resources and energy company said the decision followed recent due diligence difficulties and actions by UPSA representatives that it believes materially changed the merits and viability of the transaction. Atlas Metals is also seeking to recover material amounts owed to it by UPSA.

The proposed acquisition was initially announced on June 17, 2025, with the signing of a conditional share purchase agreement (SPA) disclosed on September 10, 2025. However, the company has now decided to terminate the agreement, stating that the move is in the best interests of its shareholders.

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Lithium and graphite opportunities under consideration

Following the termination, Atlas Metals said it is in advanced discussions regarding two potential acquisitions involving lithium and graphite assets in established mining jurisdictions in Africa and South America.

According to the company, both projects are well-funded, supported by existing technical reports and have the potential to generate revenue in the near term.

Atlas Metals expects to enter into exclusivity arrangements with the vendors of both assets shortly. This would allow the company to undertake detailed due diligence on the projects and the proposed transactions before making any further decisions.

However, the company cautioned that there is no certainty that either acquisition will proceed and said it would provide further updates as appropriate.

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Company shifts acquisition strategy

Commenting on the termination, Atlas Metals CEO Chris Chadwick said the Board considered ending the UPSA transaction to be the right decision for shareholders.

"Whilst we are disappointed that the proposed acquisition of UPSA has not proceeded, the Board believes that terminating the transaction is in the best interests of Atlas Metals shareholders," Chadwick stated.

He added that the company remains focused on identifying and securing opportunities capable of delivering meaningful value, highlighting the potential lithium and graphite acquisitions as particularly interesting because of their commodity exposure, established mining locations and prospects for near-term revenue generation.

"We look forward to progressing discussions and updating shareholders as matters progress," Chadwick said.

The termination marks a change in Atlas Metals' proposed acquisition direction, with the company now evaluating opportunities in two critical minerals markets. The next stage will depend on the outcome of due diligence and negotiations with the respective asset vendors, while its efforts to recover amounts owed by UPSA remain ongoing.

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