Jiangsu Lopal Tech Group Co., Ltd., through its wholly-owned overseas subsidiary Lopal Tech Perth Pty Ltd (hereinafter referred to as "GL1") and MB Lithium Pty Ltd (hereinafter referred to as "MB Lithium," together with "GL1" referred to as the "sellers"), entered into a Tenements and Mineral Rights Sale Agreement. The subject of this transaction comprised the exploration tenements for five lithium mines in Western Australia held collectively by the sellers, as well as lithium ore mineral rights interests in an additional 11 mining areas.
The transaction subject consisted of lithium mine exploration tenements located in the Pilbara region of Western Australia. The lithium mine project was situated in the Pilbara region of Western Australia, approximately 150 kilometers southeast of Port Hedland. Since acquiring the mineral rights in 2019, GL1 had continuously conducted exploration work on one of the core tenements, E45/4309, completing a cumulative total of 734 reverse circulation drill holes and 7 diamond drill holes, with drilling exceeding 102.5 kilometers. According to the Marble Bar Lithium Mine Project Mineral Resource Estimate Report prepared in 2022 in compliance with the JORC Code, the project had an ore resource of 18 million mt with an average lithium oxide grade of 1.0%.
According to relevant materials, the mining area still possessed favorable exploration potential. In December 2025, the company engaged the professional team of SRK Consulting (Hong Kong) Limited (SRK) to conduct an on-site field trip to the mining area and carry out due diligence on aspects including geological conditions, resource estimation, and exploration prospects. Concurrently, in December 2025, the company also engaged the Australian law firm Herbert Smith Freehills Kramer to provide legal services related to due diligence for the project.
Pursuant to the agreement, Lopal Tech Perth Pty Ltd acquired the lithium mine exploration tenements and related assets held by Global Lithium Resources Limited and MB Lithium Pty Ltd in Australia at a transaction consideration of A$14.85 million. The lithium mine project will require further exploration, mining license applications, mineral processing, and mining capacity construction, with an estimated investment exceeding $200 million and an expected construction-to-full-production cycle of 2–3 years. Through its wholly-owned overseas subsidiary Lopal Perth, the company entered into a Tenements and Mineral Rights Sale Agreement with the counterparties GL1 and MB Lithium to acquire the lithium mine exploration tenements and related assets held by them in Australia, at a transaction amount of A$14.85 million.
1. Transaction Counterparties
(1) Transaction Counterparty One
Name: Global Lithium Resources Limited
Registered Address: Level 1, 16 Ventnor Avenue, West Perth WA 6005
Date of Incorporation: May 11, 2018
Major Shareholders: As of April 20, 2026, MINERAL RESOURCES LIMITED held 9.85%, CANMAX TECHNOLOGIES CO LTD held 9.45%, SINCERITY DEVELOPMENT PTY LTD held 7.49%, YONGFANG GUO held 6.23%, and DIANMIN CHEN held 5.32%.
Main business: GL1 is a lithium resources exploration and development company listed on the Australian Securities Exchange, primarily engaged in the exploration, development, and future production of hard rock lithium ore resources.
(2) Counterparty Two
Name: MB Lithium Pty Ltd
Registered address: Level 1, 16 Ventnor Avenue, West Perth WA 6005
Date of incorporation: June 10, 2021
Major shareholder: GL1 holds 100.00% of the shares, and MB Lithium is a wholly-owned subsidiary of GL1.
Main business: MB Lithium holds the mining rights related to the Marble Bar lithium mine project.
2. Agreed products and technical specifications
Any spodumene concentrates produced from the Manna lithium mine project with a lithium oxide content of no less than 5% and meeting the specifications agreed upon by both parties. The Company has the right to reject products with a lithium oxide content below 4.5%.
3. Supply period
The initial term is 10 years from the date of the first supply of agreed products. Subject to the fulfillment of relevant conditions, the Company has the right to elect to extend the initial term by 4 years within one month prior to the expiration of the initial term.
4. Supply volume
GLR shall supply the Company with spodumene concentrates equivalent to 40% of the actual annual production of the Manna lithium mine project each year. GLR shall use its best efforts to ensure that the annual supply reaches at least 70,000 mt of agreed products per year.
5. Product pricing
The pricing of supplied products is based on the average of price indices published bySMM, Fastmarkets, Benchmark Minerals Intelligence, Asian Metal, and Platts S&P Global, with a certain price discount applied.
6. Supply deficit
In the event of a supply deficit during a contract year, GLR shall use reasonable efforts to make up the shortfall within three months after the end of the relevant contract year. If GLR fails to deliver the shortfall supply within the three-month period (the remediation period), GLR shall pay the full price difference to the Company within 30 days after the end of the remediation period.
7. Prepayment amount
Subject to the fulfillment of the conditions for the prepayment to take effect, the Company shall pay GLR a prepayment of no more than $75 million (hereinafter referred to as the "Maximum Amount"). The use of such prepayment is strictly limited to development expenditures for the Manna lithium mine project and the operations after the project is completed. When the Company accepts the agreed products, the prepayment will be offset against payable amounts on a batch-by-batch basis. In consideration of the extended period of prepayment utilization, GLR shall pay the Company a capital occupation fee at a compound annual rate of 5%.
8. Overview of the investment target
GL1 (Company No. ABN 58 626.0932 million) is a publicly listed firm in Australia, located in Western Australia, primarily engaged in lithium ore resources exploration and development. Its core asset, the Manna lithium mine project, is located 100 kilometers east of Kalgoorlie, Western Australia, and is the third-largest lithium ore resources project in the resource-rich Eastern Goldfields region. Its mineral resources amount to 51.6 million mt with an average lithium oxide grade of 1.0%. GL1 holds and operates the Manna lithium mine project through its wholly-owned subsidiary GLR (Company No. ACN 653 130,575). GL1 has obtained the mining lease for the lithium mine project and completed the project feasibility study report. GLR is expected to make the Final Investment Decision (FID) for the Manna lithium mine project by the end of 2026. After the FID is made, GLR will commence project construction, and the lithium mine project is expected to begin shipments in June 2028.
This transaction is an important measure for the Company to build on its core LFP cathode material business and deepen its upstream resource positioning along the industry chain. Currently, the Company's LFP business continues to expand in production and sales scale, with ex-China capacity progressing steadily, and the demand for stable upstream lithium resources supply and cost control is increasing. Through this transaction, the Company will further enhance its lithium resources security capability, strengthen raw material supply stability and resilience against cyclical fluctuations, and improve the level of industry chain integration and overall competitiveness, which is in line with the Company's long-term development strategy and the interests of all shareholders.
Source: China Securities Journal
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