Sichuan Yahua Industrial Group Co.Ltd(002497) 4 disclosed on the evening of April 17 that Yahua international, a wholly-owned subsidiary of the company, signed the equity subscription agreement with ultra lithium Inc. (English Name: Ultra lithium Inc., hereinafter referred to as “ultra lithium company”) of Canada on April 17, and planned to invest CAD 5 million to subscribe for 21276596 million units of shares of ultra lithium company at the price of CAD 0.235 per share, accounting for 13.23% of its current total share capital. At the same time, Yahua international invested in cash to acquire 60% of the equity of the wholly-owned subsidiary of super lithium company, and controlled its Fugen lake hard rock spodumene lithium mine project and Georgia lake hard rock spodumene lithium mine project. On the same day, the two sides signed the sales and joint venture agreement.
The disclosure shows that super lithium company is an exploration and development company listed on the gem of Toronto Stock Exchange, Canada. The company’s stock code is tsxv: ult, focusing on the exploration and development of lithium, gold and copper resources. Super lithium owns brine lithium mines in Argentina, hard rock spodumene lithium mines in Lake Georgia and lake Fugen in Northern Ontario, Canada, and copper and gold mining and exploration rights in many regions of Argentina.
The Fugen lake hard rock spodumene lithium project and Georgia lake hard rock spodumene lithium project controlled by Yahua international through cash acquisition are located in Ontario, Canada, with a total mining right area of 26.72 square kilometers, convenient transportation in the mining area and complete infrastructure such as hydropower. According to the surface outcrop area, the estimated resource of Fugen Lake project is 6.4 million tons, and the average grade of lithium oxide is 2.2%. It is preliminarily estimated that the equivalent of lithium oxide is about 140000 tons; According to the surface outcrop area, the estimated resource of the Georgia Lake project mine is 5.4 million tons, and the average grade of lithium oxide is 1.2%. It is preliminarily estimated that the equivalent of lithium oxide is about 65000 tons. According to the preliminary results, a lithium concentrate mining and dressing plant with 6% lithium oxide of 200000 tons / year will be designed and built in the first phase, and the continuous operation time will not be less than 10 years. In the later stage, according to the further detailed exploration, the capacity of the second phase will be expanded to 400000 tons.
In addition, super lithium’s Salt Lake project in Laguna, Catamarca Province, Argentina consists of three mining licenses, with a mining right area of 117 square kilometers and a lithium ion grade of up to 1270mg / L.
According to the sales and joint venture agreement signed by both parties, after Yahua international acquired 60% of the equity of the wholly-owned subsidiary of ultra lithium company in cash, the wholly-owned subsidiary of ultra lithium company became the joint venture between Yahua international and ultra lithium company. Ultra lithium will continue to seek acquisition opportunities for high-quality hard rock lithium resources for the joint venture, lithium bearing pegmatite resources with an average grade of lithium oxide (Li2O) of 1.0-1.2% or higher, and continue to specifically explore, discover and acquire more Canadian lithium resources for the joint venture.
Sichuan Yahua Industrial Group Co.Ltd(002497) said that this investment is the company’s further layout in the upstream resources of the lithium industry. It will invest and promote the exploration, development, construction and operation of Fugen lake lithium mine project and Georgia lake lithium mine project as soon as possible, which will help enrich the company’s upstream lithium resources in the future and improve the company’s independent and controllable ability of lithium mine.
At present, the comprehensive design capacity of Sichuan Yahua Industrial Group Co.Ltd(002497) lithium salt is about 43000 tons. In addition, the project of 50000 tons of battery grade lithium hydroxide, 11000 tons of lithium chloride and their products has been constructed with the funds raised from non-public offering. The construction of the project has been started, of which the 30000 tons of battery grade lithium hydroxide production line will be completed and put into operation by the end of this year. By 2025, the company’s comprehensive capacity of lithium salt products will reach more than 100000 tons. In recent years, the company has reserved lithium resources through various channels, actively distributed upstream lithium resources, mastered the control of lithium resources, and established a rich and stable lithium resource guarantee system for the future expansion of lithium salt production capacity of the company.
