Ganfeng Lithium (01772) issued an announcement. Recently, the company and Australian Pilbara Mineral...
Zhitong Finance App News, Ganfeng Lithium (01772) issued an announcement. Recently, the company and Australia's Pilbara Minerals Limited (“Pilbara”) signed a “Cooperation Agreement”. The two parties each invested 50% to carry out the feasibility study of the lithium chemical plant project, and the two parties jointly approved the final investment decision and the establishment of a joint venture based on the results of the feasibility study.
If both parties approve the final investment decision, Ganfeng Lithium and Pilbara will each hold 50% of the joint venture's shares (without introducing a third party investor). One party has the right to appoint the CEO of the joint venture, and the other party has the right to appoint the chief financial officer. Pilbara will sign an underwriting agreement with the joint venture to supply 300,000 tons of lithium concentrate to the joint venture for a period of 15 years.
If the final investment decision is not approved, Pilbara will supply an additional 100,000 tons of spodumene concentrate to Ganfeng Lithium from 2027 to 2030 based on the existing underwriting agreement, while also exempting the underwriting obligation for the Pilgangoora Phase II expansion previously agreed by the two parties.
According to reports, Pilbara is an Australian lithium resources company. The Australian Stock Exchange code is PLS, and it was founded on January 10, 2005. As of the disclosure date of this announcement, the number of common shares outstanding was 3.09 billion. Its largest shareholder, HSBC CUSTODYMINEES (AUSTRALIA) Limited, held approximately 649 million shares of Pilbara, with a shareholding ratio of 21.56%.
According to the announcement, the company signed a cooperation agreement with Pilbara this time, which is conducive to deepening the cooperative relationship with supplier Pilbara, ensuring the stable supply of raw materials, increasing the company's lithium compound production capacity, improving the diversified layout of the company's lithium compound production capacity, improving the company's lithium compound supply capacity, enhancing the company's sustainable profitability, and promoting the company's long-term development.