China Mineral Resources announced on the evening of February 13th that the company signed an investment framework Agreement with Lithium Century LLC (hereinafter referred to as "Century Lithium") and Mongolian natural persons Tsogbat Manj, Urnaa Manj and GanbaatarSamdan. The Company intends to acquire a 51% interest in the lithium URT project through acquisition and capital increase amounting to US $20 million.
Tsogbat Manj, Urnaa Manj and Ganbaatar Samdan together hold 100% interest in Century Lithium, which holds 100% interest in the lithium mine project in URT in Tuv province, Mongolia.
Century Lithium is mainly engaged in the exploration, development and mining of the lithium deposit in URT, which has an exploration right area of 332.02 hectares in Mongolia, according to the China Mineral Resources announcement. Based on the verification of the preliminary exploration results by the Company's professional geological team, the estimated resource capacity of the lithium URT project as of February 1, 2023 is 1.743 million tons ore capacity of the controlled + inferred class lithium mineral resources, with an average grade of about 0.9% lithium oxide (Li2O) (not reviewed by a third party).
At present, the exploration area accounts for 10.5% of the scope of exploration rights, and the remaining areas have been revealed by geophysical exploration and surface trough exploration. It has been confirmed that the surface outcrops and shallow parts of the dolomitic granite-pegmatite contain lithium between 0.1-0.8%, indicating that the area beyond the amount of resources discovered in the mining area still has a large prospecting potential.
The main business of China Mineral resources is the development and utilization of lithium electricity new energy raw materials, the development and utilization of rare light metals (cesium, rubidium) resources, solid mineral exploration and mineral rights development. The company is engaged in lithium mining, lithium salt research and development, production and sales worldwide; Cesium rubidium mine mining, cesium rubidium salt research and development, production and sales.
On the evening of February 8, 2022, China Minerals Resources announced that its wholly-owned subsidiary, Hong Kong China Minerals Rare, intends to acquire the combined 100% interest in Afminand 100% interest in AmZIMat held by AMMS and SAMM at the benchmark consideration of US $180 million in cash. Afmin and Amzim together hold a 74 per cent interest in Bikita, whose main asset is the Bikita lithium project in Zimbabwe. Bikita is in the process of internal restructuring and cancellation of share repurchase. If the final internal restructuring is approved by the government and the cancellation of share repurchase is completed, the company will hold 100% of Bikita's equity and related claims. The Bikita lithium mine project is in the production phase and its main products are technical grade dipolite and cesium garnet concentrates of high grade and low impurity.
After the completion of this transaction, the company's lithium mineral resource reserves can be increased, the company's raw material self-sufficiency rate of lithium salt business can be improved, the stable supply of raw materials for the company's lithium salt business can be guaranteed, and the profitability and sustainable development ability of the company's main business can be improved.
According to the announcement made by China Minerals Resources on July 19, 2022, as of the disclosure date of the announcement, Hong Kong Rare Minerals obtained the approval of the Zimbabwe competition authority on the approval of the transaction. The consideration of this transaction has been fully paid, and the 100% shares of Afminand 100% shares of Amzimhave been settled.
China Mineral Resources released a performance forecast on the evening of January 19 this year, it is expected that the net profit in 2022 will be 3.25 billion yuan to 3.75 billion yuan, with a year-on-year growth of 482.21% to 571.78%. When talking about the reasons for the pre-increase in performance, China Mineral Resources has said that the raw material end of the company's lithium salt production line has started to use lithium concentrate supplied by its own mines in 2022, and the proportion of its own mines is gradually increasing, and the advantages of the company's integrated industrial chain of mining, beneficiation and smelting have begun to show results. In the third quarter of 2022, 180,000 tons of ore per year production line was renovated and expanded at the Company's Tanco mine in Canada following the resumption of the spodumene extraction and separation system in October 2021. In 2022, the company acquired 100% interest in the Bikita lithium mine in Zimbabwe. While fully utilizing the existing 700,000-ton/year ore processing capacity of the Bikita lithium mine, the company accelerated the construction of new production capacity and further guaranteed the supply of its own lithium ore.
The acquisition of 51% interest in the lithium URT project will help the company continue to expand its advantage in mineral resources, further improve the self-sufficiency rate of raw materials for lithium salt business, guarantee the multi-channel supply of raw materials for lithium salt business, and enhance the profitability and sustainable development ability of the company's main business, the company said in a statement on the evening of February 13.
