Africa-Press – Namibia. AUSTRALIAN company Askari Metals, which last year announced it has discovered high-grade lithium-caesium-tantalum-rubidium-type rocks at its Uis Lithium Project, is selling 6% to a Chinese company, Huayou International Resources Limited.
The deal is worth N$30 million, which will be used to accelerate continued exploration of those tenements relating to the Uis Lithium Project in Namibia.
Huayou International Resources Limited is a subsidiary of Zhejiang Huayou Cobalt Co Ltd.
Huayou is a Shanghai Stock Exchange-listed manufacturer of new energy battery materials in China, with a current market capitalisation of around US$12,8 billion.
It operates four major business segments, including the development and refining of battery metal resources (nickel, cobalt, lithium), the production of precursors and ternary cathode materials, and the recycling of battery materials.
The company also has operations in the Democratic Republic of Congo.
This deal is, however, subject to Askari acquiring the indirect interests in EPL 7345 (LexRox Exploration Pty Ltd) and EPL 8535 (Earth Dimensions Consulting Pty Ltd).
Huayou says it will not stop at owning 6%, but intends to grow its equity in the company to 9,9%, and maintain its stake by participating in future security issues by Askari.
It says it will also support Askari in areas of mutual strategic interest with respect to the company’s Namibian assets, including providing technical input and guidance on design parameters of the company’s exploration campaigns and downstream lithium processing techniques.
This deal, although negotiated outside Namibian borders, is subject to taxation in the country, and Namibia could get millions from this sale.
Commenting on the deal, Askari’s executive director Gino D’Anna said he was looking forward to completing the deal and welcoming Huayou onto the owners’ register.
“Having a tier-1 strategic investor such as Huayou not only adds credibility to our strategy in Namibia, but also supports our vision to identify a major exploration discovery,” he said.
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