Chinese lithium big-cap takes 10pc stake in EV Resources (ASX:EVR)
15 December 2021
China’s Yahua International Investment and Development Co has taken a 10-per-cent stake in ASX-listed lithium explorer EV Resources (EVR).
Today’s investment from Yahua follows a non-binding memorandum of understanding (MOU) signed between the two businesses in early December.
Yahua is a subsidiary of Sichuan Yahua Industrial Group, a $7.5-billion Chinese materials company focussed primarily on civil explosives and lithium salt products.
Yahua Group is one of China’s major lithium hydroxide and lithium carbonate producers and last year signed a deal to supply battery-grade lithium hydroxide to electric vehicle giant Tesla.
Under the Yahua MOU signed with EVR, the two companies now have six months to negotiate the terms of a strategic partnership, among which includes the 10-per-cent equity position in EVR taken up by Yahua.
Other terms will include an agreement by EVR to sell 100 per cent of the lithium concentrate it produces to Yahua and the potential establishment of a joint venture for the acquisition and development of lithium projects from the companies.
EVR Price at posting:
5.6¢ Sentiment: Buy Disclosure: Held
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