On the evening of May 9, China Mineral Resources Group Co., Ltd. and Shengxin Lithium Energy Group Co., Ltd. announced that, in order to give full play to their respective advantages, to promote their cooperation in Lithium projects in Zimbabwe, and continue to look for other lithium projects in Zimbabwe, On the same day, the subsidiaries of both parties signed a Shareholder Agreement for the Co-initiation of Harare Lithium (Zimbabwe) (Private) Limited to set up a joint venture in Zimbabwe with a registered capital of US $5,000,000 and a 50% shareholding in the joint venture.
The parties to the agreement are China Mineral Resources International Exploration (Hong Kong) Holding Co., LTD. (hereinafter referred to as "China Mineral Resources"), a wholly-owned subsidiary of China Mineral Resources Group, and Shengyi Lithium International Co., LTD. (hereinafter referred to as "Shengxin Lithium"), a wholly-owned sun company of Shengxin Lithium Group Co., LTD. The main provisions include:
(1) Name of the Joint venture company: Harare Lithium (Zimbabwe) (Private) Limited, English name: Harare Lithium (Zimbabwe) (Private) Limited (tentative name, subject to the name approved by the Registration Authority of Zimbabwe Companies).
(2) Registered address: Harare, capital of Zimbabwe
(3) Registered capital: US $5 million only. The capital contribution subscribed by China Mineral Resources is usd 2.5 million, accounting for 50% of the registered capital of the joint venture company. The capital contribution method is currency, and the capital source is its own capital. Shengxin Lithium energy subscribed to contribute $2.5 million, accounting for 50% of the registered capital of the joint venture company. The way of capital contribution is currency, and the source of capital is its own capital. The joint venture company shall be established and completed before the end of May 2022. The parties agree that the initial capital contribution is USD 2 million, which shall be paid within 30 days after the establishment of the joint venture company. Among them, China Mineral Resources shall pay USD 1 million and Shengxin Lithium shall pay USD 1 million.
(4) Business scope: Exploration and development of lithium and platinum ore projects in Zimbabwe.
(5) The board of directors is composed of four directors, including two recommended by China Mineral Resources and two recommended by Shengxin Lithium. The term of office of each director is 3 years. The chairman of the first board of directors is the director recommended by Shengxin Lithium, and the chairman of the second board of directors is the director recommended by China Mineral Resources. The candidates recommended by the chairman of the third board of directors shall refer to the first board of directors and be rotated in turn, and so on.
(6) The Joint venture company shall have one general manager, one deputy general manager and one financial officer, who shall be appointed by the board of directors for a term of 3 years. In the first session, General Manager nominated by China Mineral Resources, Deputy General Manager and financial officer nominated by Shengxin Lithium Energy, and in the second session, General manager nominated by Shengxin Lithium Energy, deputy general manager and financial officer nominated by China Mineral Resources. Rotate, and so on.
(7) Registration and acquisition of early mining rights of the joint venture, including the acquisition of 7 new lithium mining rights by Sinomineral Resources in December 2021 and January 2022 (The license numbers are: ME624BM, ME625BM, ME975BM, ME976BM, ME977BM, ME1038BM, ME1039BM) at actual cost.
(8) For the exploration and prospecting work of the early exploration right organization, under the same conditions and in accordance with the required review procedures, China Mineral Resources shall provide geological exploration technical services to the joint venture Company.
(9) The lithium ore project invested by the joint venture company shall be directly developed by the joint venture company after reaching the mature stage of exploration. The funds needed for project development shall be raised by increasing capital or borrowing money at the same rate from the joint venture company by both parties.
(10) Products produced by the Joint venture company shall be sold exclusively according to the proportion of the registered capital actually paid by both parties.
This Agreement shall come into force upon being signed by the legal representatives or authorized representatives of each party and affixed with the official seals of each party.
Both sides of the agreement indicated that, in order to strengthen the alliance and give full play to their respective advantages, China Mineral Resources and Shengxin Lithium Energy set up a joint venture, Zimbabwe will continue to look for other lithium mining projects, and accelerate the development of the mid-to-early lithium mining rights projects of both sides in Zimbabwe, which is in line with the main business development direction of both sides. This cooperation is conducive to accelerating the development of mid-early lithium mining rights, enhancing the competitiveness of the company in the field of lithium new energy, enhancing the profitability of the company, which is in line with the company's development strategy and the interests of all shareholders.
