Askari Metals (ASX:AS2) has entered into a subscription agreement with a subsidiary of Zhejiang Huayou Cobalt Co., Ltd – a tier-1 global lithium battery materials and cobalt materials supplier, listed on the Shanghai Stock Exchange with a market cap of roughly US$12.8B.
The ~A$2.5M strategic investment by Huayou will be used to help accelerate the aggressive exploration program Askari is currently carrying out at the Uis lithium project in Namibia.
Huayou will also support Askari in areas of mutual strategic interest with respect to its Namibian assets, including providing technical input and guidance on design parameters of the company’s exploration campaigns and downstream lithium processing techniques.
Askari has also completed an additional equity capital raise of approximately A$3.25M via the issue of 6.5 million fully paid ordinary shares.
“We look forward to completing the Strategic Investment and welcoming Huayou onto the register. Having a tier-1 strategic investor such as Huayou not only adds credibility to our strategy in Namibia, but also supports our vision to identify a major exploration discovery,” Askari Executive Director, Gino D’Anna, said.
“The name Huayou is synonymous with the cobalt and lithium sector not only in China, but globally. Huayou has demonstrated a willingness to invest in Africa, which is highlighted by its recent acquisition of the Arcadia Lithium Mine in Zimbabwe for US$422M.
It is a significant achievement for Askari to attract the interest of such a tier-1 strategic investor.
“Project, launching a three-phase RC Drilling program across the two projects since November 2022 and the start of 2023. We’re aiming to demonstrate the potential scale of mineralization at the Uis Lithium Project through drilling and exploration campaigns and lead the lithium charge in Namibia.
“Accelerating our exploration efforts at the Uis Project supports our goal to deliver a maiden resource as quickly as possible. The Company looks forward to updating shareholders as exploration activities continue.”
Huayou is a leading manufacturer of new energy battery materials in China, listed on the Shanghai Stock Exchange with a current market capitalization of around US$12.8B. Huayou operates four major business segments, including the development and refining of battery metal resources (nickel, cobalt, lithium), production of precursors and ternary cathode materials, and recycling of battery materials.
Huayou has rich experience in mine construction and operation with a well-established team of professionals, including two copper and cobalt projects in the DRC with an annual production of 100kt cathode copper and 10kt cobalt.
Additionally, Huayou has invested in three nickel and cobalt projects in Indonesia, with an expected annual production of 225kt of nickel and 23kt of cobalt contained in products by 2024. In April 2022, Huayou acquired the Arcadia lithium project for US$422M. The designed annual processing capacity of the project is 4.5 million tons of ore, and the first batch of product was successfully produced on March 20, 2023.
For further information please visit: https://www.askarimetals.com/
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