(Bloomberg) -- European Lithium Ltd. is in talks to merge with Sizzle Acquisition Corp., according to people with knowledge of the matter.

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A deal could value the combined entity at more than $500 million, said some of the people, all of whom requested anonymity discussing private information. Talks could still fall apart.

Australia-based European Lithium requested a trading halt Monday “pending an announcement regarding a proposed merger transaction.” Representatives for European Lithium didn’t immediately respond to a request for comment. Sizzle Chief Executive Officer Steve Salis declined to comment.

Sizzle is a blank-check company that raised $155 million in a November 2021 initial public offering.

European Lithium, led by CEO Dietrich Wanke, in August announced an agreement with BMW AG to supply battery-grade lithium hydroxide. Its key deposit, known as Wolfsberg, is based outside of Vienna, its website shows. The company has said it’s well located to service European consumers, the electric-vehicle industry and battery manufacturers in the region.

Australian-listed Security Matters Ltd. struck a deal with a US SPAC in July, in part to obtain a Nasdaq listing.

(Updates with Wolfsberg in fifth paragraph.)

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