The overseas lithium resource layout of lithium enterprises with a market value of more than 30 billion is the next city.
On April 17, Sichuan Yahua Industrial Group Co.Ltd(002497) ( Sichuan Yahua Industrial Group Co.Ltd(002497) , SZ; yesterday’s closing price of 30.6 yuan) announced that the wholly-owned subsidiary Yahua International Investment Development Co., Ltd. (hereinafter referred to as Yahua International) and ultra lithium Inc. (hereinafter referred to as ultra lithium company) of Canada signed the equity subscription agreement, and planned to invest 5 million Canadian dollars to subscribe 21.277 million shares of ultra lithium company at the price of 235 Canadian dollars per share, Accounting for 13.23% of the total share capital of super lithium company as of the announcement date. 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. According to Sichuan Yahua Industrial Group Co.Ltd(002497) introduction, the lithium project has the potential to explore and discover super large spodumene reserves.
Sichuan Yahua Industrial Group Co.Ltd(002497) relevant persons also told the reporter of daily economic news that Sichuan Yahua Industrial Group Co.Ltd(002497) will explore and develop the matching team for the construction of the target concentrator.
ultra lithium company engaged in exploration and development
On April 17, Sichuan Yahua Industrial Group Co.Ltd(002497) announced that Yahua international, a wholly-owned subsidiary, had signed an equity subscription agreement with Canada super lithium company, and planned to invest $5 million to subscribe for 21.277 million shares of super lithium company at the price of $0.235 per share (the final subscription quantity and unit price shall be subject to the approval of the multiple stock exchange), accounting for 13.23% of the total share capital of super lithium company as of the announcement date. 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.
According to the exchange rate ratio on April 18, 5 million Canadian dollars is about 25.403 million yuan.
Super lithium Corporation of Canada is an exploration and development company listed on the growth enterprise market of Toronto Stock Exchange of Canada. Its 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 the Georgia lake hard rock spodumene lithium project are located in Ontario, Canada, with a total mining right area of 26.72 square kilometers. The mining area has good infrastructure support, convenient transportation, complete hydropower and other infrastructure, and the nearby expressway can directly reach the port, about 145 kilometers. 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. The geological and metallogenic background of the Canadian lithium project is similar to that of the methylka project. It is located in the distribution area of lithium bearing granite pegmatite veins in the contact zone between granite and surrounding rock. According to the judgment of the core members of the senior expert group for exploration of methylka and X03 veins in China, the lithium project has the potential of high probability exploration and discovery of super large spodumene reserves. 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.
Laguna Salt Lake project in 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.
From the financial data, as of October 31, 2021 (audited), the total assets of super lithium company were about $3.17 million, liabilities were about $140000, net assets were about $3.03 million, operating revenue was 0 and net profit was – 740000. As of January 31, 2022 (Unaudited), the total assets of super lithium company are about $6.16 million, liabilities are about $280000, net assets are about $5.88 million, operating revenue is 0 and net profit is – 150000.
company said it would obtain mining license as soon as possible
Sichuan Yahua Industrial Group Co.Ltd(002497) said that this subscription for the equity of Canada super lithium company and the investment in the mining right of spodumene ore is the company’s further layout in the upstream resource side of the lithium industry. It will invest and promote the exploration, development, construction and operation of the Fugen lake lithium mine project and the Georgia lake lithium mine project as soon as possible, which is conducive to enriching the company’s upstream lithium resources in the future and improving the company’s ability to independently control lithium mines, Further improve the company’s profitability and comprehensive competitive strength, in line with the company’s lithium industry strategic development plan.
The reporter of “daily economic news” noted that at the moment of high popularity of lithium salt, Sichuan Yahua Industrial Group Co.Ltd(002497) is also actively expanding the production of lithium salt. The company is actively promoting the construction of 30000 tons of battery grade lithium hydroxide production line in Ya’an phase II and 50000 tons of battery grade lithium hydroxide production line in phase III. By 2025, the company’s comprehensive capacity of lithium salt products will exceed 100000 tons. In this context, it is easy to understand that the company strengthens the layout of upstream resources.
However, ultra lithium company is an exploration company. Does the above lithium resources still need to complete the work of “exploration and mining”?
On April 18, the reporter contacted Sichuan Yahua Industrial Group Co.Ltd(002497) relevant persons, and the other party said: “we will obtain the mining license as soon as possible.” The other party also added that Sichuan Yahua Industrial Group Co.Ltd(002497) will explore and develop the matching team for the construction of the target concentrator.
Another A-share lithium enterprise executive told reporters that the process of “exploration to mining” is different in every country. For example, after having exploration rights in Africa, it can be mined and constructed directly. However, some countries cannot, “however, the handling process of foreign exploration to mining is not so complex”.
Sichuan Yahua Industrial Group Co.Ltd(002497) also said in the announcement that it is necessary to carry out preliminary exploration for the Fugen lake lithium project and the Georgia lake lithium project, and there may be a risk that the actual total resources, reserves and actual recoverable reserves are inconsistent with expectations.
Sichuan Yahua Industrial Group Co.Ltd(002497) ‘s acquisition is also the epitome of A-share lithium enterprises’ “going out” to collect resources – the transformation from high-priced finished ore to low-cost exploration enterprises. In March, the reporter had an exchange with the directors of A-share lithium enterprise. The other party said that with the rise of lithium price, the valuation of lithium resource mines has also increased. “Now we need to think twice to get mines at high prices”.
Now, lithium enterprises tend to invest in some exploration companies, “spend a little money and account for part of the equity of the exploration company. After the exploration, I have equity or can underwrite”.
