China Natural Resources to acquire lithium mine in Zimbabwe
28/02/2023 15:13
Feb 28 (Reuters) - China Natural Resources Inc CHNR.O
said on Tuesday it would acquire Williams Minerals, the operator
of a lithium mine in Zimbabwe, amid surging demand for the metal
used in batteries for electric vehicles.
The company plans to issue restricted shares and promissory
notes to fund the acquisition for a maximum of $1.75 billion,
with $140 million as initial payment. It may also pay some of
the amount in cash.
Williams Minerals is owned by Top Pacific Ltd and Feishang
Group Ltd, the latter also being the controlling shareholder of
China Natural Resources.
Africa's lithium production is likely to soar this decade,
with bulk of that coming from Zimbabwe.
China Natural Resources, however, said there was no
guarantee that the transaction, expected to close in the second
fiscal quarter of 2023, would take place under the current
terms.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi
Majumdar)
((Sourasis.Bose@thomsonreuters.com;))