PLZ is an 87% owned subsidiary of Prospect Resources Ltd (" Prospect "or" PSC "), an Australian-listed company. Previously, Sinomineral Resources Subsidiary (hereinafter referred to as "Hong Kong Sinomineral Holdings") had signed the "Shareholding Framework Agreement" and "Underwriting Agreement" with PSC, and was the minority shareholder of Foreview And obtained the exclusive rights of some concentrates in PLZ.
On January 17, Sinomineral Resources (Hong Kong) International Trading Co., LTD. (hereinafter referred to as "Hong Kong Sinomineral Trading"), a wholly-owned subsidiary of SINOmineral Resources, signed the "Termination and Rescission Contract Agreement" with PSC and PLZ, further enhancing the acquisition of PLZ by Huayou Cobalt.
According to the announcement of China Mineral Resources, In November 2017 and March 2018, China Mineral International Exploration (Hong Kong) Holding Co., Ltd. and PSC signed the "Shareholding Framework Agreement" and the "Shareholding Framework Agreement Supplement" respectively, and subscribed for the additional shares issued by PSC, accounting for about 8.41% of the total share capital of PSC after the completion of this additional issue. At the same time, Hong Kong Medium minerals Trade signed the "exclusive sales Agreement" with PSC and PLZ, Hong Kong medium minerals Trade obtained the exclusive sales right of part of PLZ spodumene concentrate and through spodumene concentrate.
Recently, Hong Kong China Minerals Trading has been informed by PSC that the latter intends to sell its stake in PLZ, which is related to the termination of the existing purchase and sale contract of the Arcadia lithium project. Through friendly negotiation, HKMCT, PSC and PLZ have signed the Conditional Termination and Rescission Contract Agreement (the "Agreement"), and both parties agree to conditionally terminate the Exclusive Sales Agreement. The Termination and Rescission Deed Agreement will take effect as of the completion date of PSC's PLZ Share sale. The exclusive rights of spospoxene concentrate and transspospoxite concentrate obtained by Hong Kong Mineral Trading under the Exclusive Rights Agreement will terminate, and PSC will be obligated to pay US $8 million to Hong Kong Mineral Trading. If the sale of PLZ shares by PSC is not completed, the Underwriting Agreement will remain as it is.
'The Arcadia lithium mine has not yet entered the construction period, and the underwriting rights have not been implemented, which will not affect the company's production operations and financial conditions,' The company said. If the Termination and Rescission Agreement becomes effective, the Company will receive $8 million. According to PSC's announcement, PSC will distribute a portion of the net proceeds of the transaction to PSC shareholders after the sale of PLZ shares. PSC currently holds 4.86 percent of PSC shares and will benefit as PSC shareholders. The signing of the agreement does not damage the interests of the Company and minority shareholders.
