Chinese mining firm Zhejiang Huayou Cobalt (SSE: 603799) announced on Wednesday that it is looking to acquire a 100% stake in the Arcadia lithium mine in Zimbabwe. The acquisition’s total consideration is reportedly US$422 million.
The Zhejiang-based company intends to acquire the property from Prospect Lithium Zimbabwe. According to its filing, it is willing to pay US$377.8 million for the 87% stake held by Australia-based firm Prospect Resources.
The firm also agrees to pay US$44.2 million for the remaining equity held by Tamari Trust (7%) and Zimbabwean professor Kingston Kajese (6%).
“We look forward to working with Huayou and relevant stakeholders within the Government of Zimbabwe to satisfying the conditions precedent, with a view to closing the Transaction in late in Q1 or early in Q2 of 2022,” said Prospect CEO Sam Hosack.
Just a few weeks ago, the Chinese firm also announced that its joint venture in Indonesia has started a trial production for cobalt and nickel aimed to be used for electric vehicle battery supply chain.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
