China Natural Resources acquires lithium mine in Zimbabwe

China Natural Resources has entered into a definitive agreement with Feishang Group and Top Pacific China and Li Feilie and Yao Yuguang, to acquire Williams Minerals, which owns the mining permit for a Zimbabwean lithium mine. Feishang Group, CHNR‘s controlling shareholder, owns 70% of Williams Minerals and Top Pacific China, a non-affiliate, owns the remaining 30%. It is expected that the company will indirectly acquire all interests in Williams Minerals in Q2, and that the company’s "ownership" of the Zimbabwean lithium mine will vest cumulatively, region by region from 2024 through 2026. For each region of the lithium mine, until the company’s ownership vests, the sellers will maintain legal possession and control. The company 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 $1.75B – 3.5 million estimated tons of measured, indicated and inferred resources of lithium oxide priced at $500 per ton -. The company will pay an aggregate of $35M by way of promissory notes and/or cash as a deposit if it chooses to proceed with the Acquisition after completion of due diligence, and an aggregate of $140M by way of promissory notes and/or cash as an initial installment. Completion of the Acquisition is contingent upon the satisfaction of a number of conditions.