On the evening of July 17, Jinyuan, Xinwangda and Chuanheng announced that their joint venture, Zhejiang Jinhengwang Lithium Co., LTD. (hereinafter referred to as "Jinhengwang"), is in the process of establishing a partnership with Goldinka Energy S.A. Goldinka (" Goldinka ") entered into negotiations to acquire the Laguna Caro mineral rights project for $27 million ($182 million).
Jinhengwang was established in April this year with a registered capital of 350,000 Yuan. Jinyuan, Xinwangda and Chuanheng hold 51%, 35% and 14% of the shares respectively. World Mining has made an introduction:
The announcement said that in order to comply with Argentine policies and regulations, to improve the efficiency of the acquisition, Jin hengwang has identified Ms. Zhang xiao, chairman of the supervisory board of jinyuan environmental protection co., LTD., and Mr. Li tingwei (collectively, the "agents"), each holding 50% of COPELIA LITIO S.A. (" brilliant lithium "), as agents for the purchase of the Laguna Caro mining rights project.
Based on the previous due diligence to Goldinka and the results of negotiations between the parties, and upon consensus, the parties have entered into an Asset Purchase Agreement with Goldinka, whereby Brilliant Lithium and Goldinka are agreed to purchase the Laguna Caro mineral rights project under Goldinka's name at a price of USD 27 million. At the same time, Jin Hengwang enters into the Agency Agreement with the agent and HualiumLithium, in which Jin Hengwang makes the relevant payment for the transaction and agrees that HualiumLithium will convert the creditor's rights of Jin Hengwang in HualiumLithium into the equity rights of Jin Hengwang in HualiumLithium within the specified time. Upon completion of the transaction, Jinhengwang will own the Laguna Caro mineral rights project through Huiliang Lithium.
The Laguna Caro project is located in the province of Catamaca, Argentina, near the salt marsh of Hombre Muerto, covering an area of 4,514 hectares. The preliminary exploration permit has been obtained and preliminary geological work has been completed, such as site survey, geological physical exploration and other preliminary geological work. The specific reserve report has not yet been issued. Investment plans and environmental impact statements are being submitted and an application is being made to proceed with further exploration. The Laguna Caro mineral rights project has not yet been awarded the mineral rights, and the Company will push forward the relevant matters of mineral rights in accordance with local policies as soon as possible, so as to promote the construction of the relevant project as soon as possible.
According to the introduction, the transaction price was determined by the two parties based on the transaction price of Brilliant Lithium and Goldinka. Huangronglithium has engaged relevant experts to conduct sampling evaluation of Laguna Caro mineral right. Based on the sampling results, it is estimated that the lithium resource content of Laguna Caro mineral right is 500,000 tons to 1 million tons using a cautious method. Based on the comparison of the international purchase price in the same industry and the current price of lithium resources, the two parties agreed to purchase the Laguna Caro mineral rights at a price of $27 million through mutual negotiation based on the principles of fairness, impartiality, voluntariness and equality.
Jinyuan Shares said that this transaction is conducive to strengthen the company's strategic layout of upstream lithium resources, to better promote the future development, construction and production of Argentina lithium lake project, to help the company implement the new energy 515 plan, and further improve the company's core competitiveness and sustainable profitability. In line with the company's development strategy in line with the company's long-term development strategy and the interests of all shareholders.
