Shengxin Lithium can increase the Capital of Shengtun Lithium Industry by 330 million to promote the Development of Lithium Salt Business

SMM: on the evening of November 17th, Shengxin Lithium Energy announced that the company increased its capital by RMB 330 million to the company's wholly-owned subsidiary Sichuan Shengtun Lithium Industry Co., Ltd. (hereinafter referred to as "Shengtun Lithium Industry"). After the completion of this capital increase, the registered capital of Shengtun Lithium Industry has increased from 220 million yuan to 550 million yuan.

Shengxin LiNeng said that the capital increase of Shengtun Lithium Industry, a wholly-owned subsidiary, is based on the daily business development needs of Shengtun Lithium Industry, which is conducive to promoting the development of the company's lithium salt business.

Data show that 100% equity in Shengtun Lithium Industry was transferred to Shengxin Lithium Energy on November 22, 2019 and became a wholly-owned subsidiary of the company.

Through Shengtun Lithium, Shengxin Lithium can indirectly hold a 75% stake in Oyino Mining. Longgou spodumene Mine, a subsidiary of Oyino Mining, obtained the mining license in November 2018 and began production in November 2019, with a production scale of 405000 tons per year (equivalent to 74500 tons of lithium concentrate).

According to the evaluation opinion of Sichuan Mineral Resources and reserves Evaluation Center, Yelonggou mining area has 6.54 million tons of ore, 8456 tons of Li-O resources (average grade 1.29%), 595 tons of associated Nb,O, resources and 451 tons of Ta-0J resources. Oyino Mining also has the right of detailed exploration of Lithium polymetallic deposits in the Taiyang Estuary, with an exploration area of 12.99 square kilometers, with 3 lithium ore bodies and 8 granite pegmatite dikes, which has a good prospecting prospect.