Battle for Lithium Mine intensifies Huayou Cobalt Co., Ltd. plans to acquire 100% stake in Zimbabwe Prospect Lithium Mining Company for US $422 million.

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603799.SH announced that on December 22nd, Huayou International Mining, a subsidiary of the company, signed the "PMPL share Sale and purchase Agreement" and the "Minority shareholder share Sale and purchase Agreement" with PMPL, Mr. Kingston Kajese, the natural person, Tamari Trust and other relevant parties, respectively.

Through its subsidiary, Huayou International Mining (Hong Kong) Co., Ltd. (hereinafter referred to as "Huayou International Mining"), the company intends to acquire for US $378 million the Zimbabwe Prospect Lithium Zimbabwe (Pvt) Ltd (held by Australian listed company Prospect Resources Ltd (referred to as "Prospect Company" or "seller guarantor") wholly owned subsidiary Singapore Prospect Minerals Pte Ltd (referred to as "PMPL") 87% of Zimbabwe Prospect Lithium Zimbabwe (Pvt) Ltd ((referred to as "Prospect Lithium Mining Company"). Equity and the related claims of Prospect Company against Prospect Lithium Mining Company under the Inter-Company loan Agreement (referred to as "related claims").

At the same time, through Huayou International Mining, the company plans to acquire the 6 per cent stake in Prospect Lithium held by the natural person Mr. Kingston Kajese and the 7 per cent stake in Prospect Lithium held by the Tamari Trust family trust for $44.2447 million. The total value of the deal is US $422 million, and upon completion of the acquisition, Huayou International Mining will hold a 100% stake in Prospect Lithium Mining and related claims under the Inter-Company loan Agreement.

It is reported that Prospect Lithium Mine owns 100% interest in Arcadia Lithium Mine in Zimbabwe. The company's acquisition of equity in Zimbabwe Prospect Lithium Mining Company is an important measure for the company to broaden its business layout, build an integrated industrial chain of lithium power, new energy and materials, enhance the ability of self-supply of resources, and enhance the company's comprehensive competitive strength, which is in line with the company's business development strategy.