On the evening of April 17, Yahua Group (002497.SZ) announced that Yahua International, a wholly-owned subsidiary of the company, signed an “Equity Subscription Agreement” with Canada Ultra Lithium Company, and planned to invest 5 million Canadian dollars (about 25.403 million yuan). RMB), subscribed for about 21.2766 million shares of Ultra Lithium at a price of 0.235 Canadian dollars per share, accounting for 13.23% of the total share capital of Ultra Lithium.
At the same time, Yahua International purchased a 60% stake in a wholly-owned subsidiary of Ultra Lithium Corporation with cash, and controlled its Forgan Lake hard rock spodumene lithium ore project and Georgia Lake hard rock spodumene lithium ore project. On the same day, the two parties signed the “Sale and Joint Venture Agreement”.
The announcement shows that Canada Ultra Lithium is an exploration and development company listed on the GEM of the Toronto Stock Exchange in Canada, focusing on the exploration and development of lithium, gold and copper resources. Ultra Lithium owns brine lithium mines in Argentina, hard rock spodumene-type lithium mines in the Georgia and Forgan Lakes regions of northern Ontario, Canada, and copper and gold mining rights and exploration rights in many areas of Argentina.
The Forgan Lake hard rock spodumene-type lithium ore project and Georgia Lake hard rock spodumene-type lithium ore project of Ultra Lithium Company are located in Ontario, Canada, with a total mining area of 26.72 square kilometers. The mining area is supported by good infrastructure and convenient transportation. , water and electricity and other infrastructure are complete, the nearby highway can directly lead to the port, about 145 kilometers.
According to the surface outcrop area of the Forgan Lake project, the estimated resource is 6.4 million tons, the average grade of lithium oxide is 2.2%, and the estimated lithium oxide equivalent is about 140,000 tons; the Georgia Lake project mine has an estimated resource of 5.4 million tons, and the average lithium oxide The grade is 1.2%, and the preliminary estimate is about 65,000 tons of lithium oxide equivalent.
According to the preliminary exploration results, the first phase of Ultra Lithium Company will design and build a lithium concentrate mining and processing plant with a capacity of 200,000 tons/year of 6% lithium oxide, and the continuous operation time is not less than 10 years. Expand production capacity to 400,000 tons.
The Laguna Salt Lake Project in Catamarca Province, Argentina consists of three mining licenses, with a mining rights area of 117 square kilometers and a lithium ion grade of up to 1270mg/L.
In terms of finance, as of October 31, 2021 (audited), Ultra Lithium has total assets of approximately CAD 3.17 million, liabilities of approximately CAD 140,000, net assets of approximately CAD 3.03 million, operating income of 0, and net profit of -C$740,000.
As of January 31, 2022 (unaudited), Ultra Lithium has total assets of approximately CAD 6.16 million, liabilities of approximately CAD 280,000, net assets of approximately CAD 5.88 million, operating income of 0, and net profit of -15 million Canadian dollars.
In addition, according to the “Sale and Joint Venture Agreement”, Yahua International acquired a 60% stake in a wholly-owned subsidiary of Ultra Lithium Corporation in cash, and the wholly-owned subsidiary of Ultra Lithium Corporation became a joint venture between Yahua International and Ultra Lithium Corporation.
Ultra Lithium will continue to seek acquisition opportunities for high-quality hard rock lithium resources for the joint venture company, lithium-bearing pegmatite resources with an average grade of 1.0-1.2% or higher lithium oxide (Li2O), and continue to explore and discover exclusively for the joint venture company and acquiring more Canadian lithium resources.
Yahua Group said that the subscription of the shares of Canada Ultra Lithium Company and the investment in the mining rights of spodumene mine is the company’s further layout in the upstream resource end of the lithium industry. It will invest in the Forgan Lake lithium mine project and the Georgia Lake lithium mine as soon as possible The exploration, development, construction and commissioning of the project will help enrich the company’s future upstream lithium resources, improve the company’s independent and controllable lithium mine capabilities, and further enhance the company’s profitability and comprehensive competitiveness, which is in line with the company’s lithium industry strategic development plan. The equity subscription and mining rights investment will have a positive impact on the company’s future financial position and operating results.