China Natural Resources to acquire Zimbabwe lithiu...

China Natural Resources to acquire Zimbabwe lithium mine

China Natural Resources this Tuesday indicated intent to acquire Williams Minerals, the operator of a lithium mine in Zimbabwe, from Feishang Group and Top Pacific (China).

Feishang Group which holds a controlling stake in China Natural Resources owns a 70% stake in Williams Minerals while Top Pacific (China) holds a 30% interest.

Under the pending agreement, China Natural Resources will indirectly acquire all interests in Williams Minerals in the second quarter of this fiscal year.

China Natural Resources says it is planning to issue restricted shares as 50% of the deal consideration. The remaining 50% of the consideration includes a promissory note and/or cash, for a maximum consideration of $1.75bn.

In a press statement, China Natural Resources said: “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 instalment.”

From 2024 through 2026, China Natural Resources’ ownership of the lithium mine in Zimbabwe will vest cumulatively, region by region.

However, China Natural Resources said there was no certainty under the current terms for the deal planned to be closed in the second fiscal quarter of 2023.