China Natural Resources will pay half of the consideration in the form of restricted shares, a deposit of $35m in the form of promissory notes to Feishang Group and Top Pacific, and will pay $140m in the form of promissory notes and/or cash as the first instalment
China Natural Resources to proceed with acquisition of Williams Minerals. (Credit: Zac Edmonds on Unsplash)
China Natural Resources has completed the due diligence and is proceeding with the acquisition of Williams Minerals, which owns the mining permit for a lithium mine in Zimbabwe.
In February this year, the British Virgin Islands (BVI)-based company signed a definitive agreement with Feishang Group and Top Pacific (China) to indirectly acquire Williams Minerals.
It has agreed to issue restricted shares as half of the consideration and to pay a deposit of $35m in the form of promissory notes to Feishang Group and Top Pacific by 21 April 2023.
The company will indirectly purchase all interests in Williams Minerals for $140m in the form of promissory notes and/or cash as the first instalment.
The total consideration for the lithium mine will be calculated later, based on the issuance and results of independent technical reports, which would not exceed $1.75bn.
Until the consideration for each region of the lithium mine is paid, Feishang and Top Pacific will control the site, with rights to exploration, sales of lithium, and revenue generation.
The closing of the transaction is subject to satisfaction of certain customary closing conditions, including the issuance of independent technical reports, and full payment of the consideration.
China Natural Resources chairman Wong Wah On Edward said: “We are pleased with the favourable outcome of our due diligence investigation of this potentially high-value lithium mine.
“This payment of the deposit is a necessary step towards acquiring the exploration rights to the lithium mine, as all parties remain highly motivated to complete the transaction.
“We are excited to be moving forward and continue to see significant opportunities to leverage our mining expertise as we continue to execute our long-term business strategy.”
China Natural Resources is engaged in the acquisition and exploitation of mining rights in Inner Mongolia through its subsidiaries in China.
The company is in preliminary exploration for nickel, lead, silver, and other non-ferrous metals and has recently entered the wastewater treatment industry.