On June 22, Yongxing Materials announced that its holding subsidiary Huachuan Yongtuo and Huachuan Yongtuo's wholly-owned subsidiary Huachuan Mining have signed a Capital Increase and Cooperation Agreement with Shengyuan Lithium. Shengyuan Lithium contributed its Jinzifeng Mine, valued at Yuan 2.692 billion, as capital to Huachuan Mining, subscribing for an additional registered capital of Yuan 200 million, thereby acquiring a 50% equity stake post-increase.
The two parties will integrate the Huashan Mine and the Jinzifeng Mine into a single mining right, aiming to enhance resource utilization efficiency and lay the foundation for future increases in lithium carbonate production and sales. The consolidation of the mines will fully unlock the mineral resource potential within the mining area, increase the total recoverable resources, and improve the comprehensive utilization rate of mineral resources.
Edited by Cassie Li, lixiangying@mysteel.com
