Longbai Group: a joint venture with Open Source Mining to set up a joint venture in Tanzania on a hard rock lithium ore exploration right

Published: Apr 18, 2022 17:48

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[Longbai Group: with Open Source Mining to set up a joint venture company in Tanzania on a hard rock lithium exploration right] Longbai Group announced that in order to integrate domestic and foreign mineral resources such as titanium, zirconium, graphite, lithium and increase the self-sufficiency rate of raw materials, the company and Henan Yukuang Open Source Mining Co., Ltd. plan to set up a joint venture company in the United Republic of Tanzania (subject to the industrial and commercial approval and registration of Tanzania). Cooperation on a hard rock lithium exploration right held by Henan Asian-African Geological Engineering (Tanzania) Co., Ltd. ("Asian-African Geology"), an offshore subsidiary of Open Source Mining, in the province of Dorma, Tanzania.

Longbai Group (002601.SZ) announced that in order to integrate domestic and foreign mineral resources such as titanium, zirconium, graphite and lithium, and increase the self-sufficiency rate of raw materials, the company and Henan Yu Mining Open Source Mining Co., Ltd. ("open source mining") plan to set up a joint venture company in the United Republic of Tanzania ("Tanzania"). Cooperation on a hard rock lithium exploration right held by Henan Asian-African Geological Engineering (Tanzania) Co., Ltd. ("Asian-African Geology"), an offshore subsidiary of Open Source Mining, in the province of Dorma, Tanzania.

The registered capital of the joint venture company is 10 million yuan, and the open source mining industry contributes a total of 4 million yuan in cash (self-owned capital) and the underlying mining right, of which the underlying mining right is valued at 2.5251 million yuan, 1.4749 million yuan in cash, and holds a 40% stake in the joint venture company. The company contributes 6 million yuan in cash (self-owned capital) and holds 60% equity in the joint venture company. The above is provisional information and the final approval and registration of industry and commerce in Tanzania shall prevail.

The cooperation between the company and the open source mining industry is an important measure for the company to ensure the supply of raw materials and improve the self-sufficiency rate of raw materials, which is of positive significance to the strategic layout of the company in the new energy industry, and is conducive to further strengthening the company's vertical integration production mode. at the same time, it will promote the development of the mining industry and related industries, promote the sustained, rapid and healthy development of both parties, and enhance the core competitiveness of both sides.

Mining industry

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