Zhitong Financial App News, Hongqiao Group (08137) issued an announcement on matters relating to the announcement of a letter of intent to invest in the lithium salt lake project with Tibet Everest Resources Co., Ltd. (Tibet Everest) (600338.SH).
The exclusive period for the letter of intent expired on August 22, 2023. The company and Tibet Everest have yet to reach a formal agreement on the investment and cooperation plan for Mount Everest and Hong Kong, but the two sides are still continuing discussions. Furthermore, the company has basically completed the business and financial due diligence review of Everest Hong Kong and its subsidiaries, and is in the process of finalizing legal due diligence procedures in Argentina.
Furthermore, according to the announcement issued by Mount Everest in Tibet on August 2, 2023, the Argentine Lithium Potassium Company has officially submitted supplementary EIA information to the Argentine authorities for a project with an annual output of 50,000 tons of lithium carbonate equivalent. If the environmental permit is approved, direct financing channels for the project will be broadened, and the company may not need to separately provide a shareholder loan of 600 million dollars for the project. The company is currently in discussions with Everest, Tibet on a potential new plan to occupy 49.9% of Everest Hong Kong's interests through the acquisition of old shares and the subscription of new shares at an appropriate valuation. Under this plan, Everest Hong Kong's internal capital can complete the construction of part of the annual production capacity. The remaining annual production capacity construction funds can be financed by bank project loans or other means, or the construction of the second phase of the project can be started later.