(Original title: Zangge Mining (000408.SZ) intends to participate in Ultra private placement to acquire equity in Laguna Verde Salt Lake Lithium Project)
Zhitong Finance APP News, Zangge Mining (000408.SZ) issued an announcement that the company intends to subscribe for 23 million units of additional shares of Ultra Lithium Inc. (referred to as “Ultra Company”) through the company or designated entities, each unit includes one common share and Half of the bank equity, namely 23 million common shares and 11.5 million bank equity, the total subscription price of 4.14 million Canadian dollars. Ultra will set the price at a discount of 75% of the market share price 20 trading days before the signing of the formal investment agreement, which is 0.18 Canadian dollars per share, and will hold 19.47% of Ultra’s shares after the additional issuance. The company indirectly holds shares in Ultra and its Laguna Verde salt lake lithium project in Argentina.
The announcement pointed out that Ultra’s Argentina Laguna Verde Salt Lake Lithium Project is located in the Argentine province of Catamarca, within the core area of the Lithium Triangle. It includes three mining licenses and covers an area of 75.69 square kilometers. The results of two rounds of surface sampling showed that the lithium ion grade was as high as 1270ppm. Drilling is currently underway and exploration is expected to be completed in the second quarter of this year.
In addition, Ultra owns two ore lithium projects in Ontario, Canada, the Georgia Lake and Forgan Lake ore lithium projects. The Georgia Lake project includes 16 exploration licenses with a total area of 24.16 square kilometers, and the Forgan Lake project includes a 2.56 square kilometers exploration license. Ultra also owns more than 2,000 square kilometers of copper and gold mining and exploration rights in various regions of Argentina.
Regarding the purpose of this transaction, the company stated that this transaction is to strengthen the company’s layout in the upstream lithium resource side, and also to better promote the future development, construction and commissioning of the Laguna Verde Salt Lake Lithium Project in Argentina, which is conducive to the company’s implementation of new energy The comprehensive industrial layout will further enhance the company’s core competitiveness and profitability, which is in line with the company’s development strategy.