CHINA Natural Resources Inc has extended the deadline to complete its acquisition of a local lithium mine, valued at US$1,75 billion, to December 31, 2025, businessdigest can report.
CHNR disclosed in February 2023 that it would acquire Williams Minerals, the operator of a lithium mine in Zimbabwe, amid surging demand for the metal used in batteries for electric vehicles.
The company plans to issue restricted shares and promissory notes to fund the acquisition for a maximum of US$1,75 billion, with an initial payment of US$140 million.
Williams Minerals is owned by Top Pacific Ltd and Feishang Group Ltd, the latter also being the controlling shareholder of China Natural.
Feishang is domiciled in the British Virgin Islands, while Top Pacific (China) Limited is headquartered in Hong Kong.
According to a recent filing with the United States Securities and Exchange Commission, the multi-billion deal is currently under discussion.
“The company (China Natural) plans to issue restricted shares as 50% of the consideration for the acquisition, with the remaining 50% of the consideration comprised of a promissory note and/or cash, for maximum consideration of US$1,75 billion (3,5 million estimated tonnes of measured, indicated and inferred resources of lithium oxide, grade 1,06% or above in accordance with the standard under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves priced at US$500 per tonne),” China Natural said.
“The company may issue restricted CHNR shares at a discount to the market price to secure a portion of the required capital.”
To date, China Natural has paid US$35 million as a deposit to Feishang and Top Pacific and will pay another US$140 million by way of promissory notes and/or cash as an initial instalment.
China Natural said on December 31, 2024, it entered into an amendment agreement to further amend the sale and purchase agreement dated as of February 27, 2023.
The sale and purchase agreement was originally entered into for the purposes of acquiring 100% equity interests of Greatfame Investments Limited, which owns 100% equity interest in Williams Minerals.
China Natural said Feishang and Top Pacific were in the process of satisfying conditions precedent to the closing of the acquisition in accordance with the sale and purchase agreement.
“Including but not limited to obtaining requisite governmental approvals, the parties first entered into the Amendment Agreement to extend the long stop date for closing the acquisition (the long stop date) from December 31, 2023, to December 31, 2024, and entered into the amendment agreement II on December 31, 2024, to further extend the long stop date from December 31, 2024 to December 31, 2025,” China Natural added.
Once the deal is completed, China Natural will join other Chinese firms that have bought local lithium mines, including Sinomine Resource Group Co, Zhejiang Huayou Cobalt Company Ltd, and Suzhou TA&A Ultra Clean Technology Co Ltd.
Sinomine operates Bikita Minerals, Zhejiang (Arcadia Mine), and Suzhou (Premier African Minerals).
Last November, Chinese ambassador to Zimbabwe, Zhou Ding, told businessdigest that investments into Zimbabwe’s lithium mining sector from the Asian giant now exceeded US$1,5 billion.
Africa’s lithium production is likely to soar this decade, with the bulk of that coming from Zimbabwe.
