Avchem Group To Buy Lithium Rights in Africa For $145 Million

Recently, Sichuan Yahua Industrial Group Co., Ltd. announced that its wholly-owned subsidiary intends to acquire 70% of two wholly-owned subsidiaries of China-Africa Industrial (Hong Kong) Co., LTD. (hereinafter referred to as "China-Africa Industrial") for $145 million, thus obtaining 70% control of four lithium mines in Namibia, Africa.

After the deal, Avchem will indirectly control 70 per cent of four lithium deposits in Namibia's Damalalan deposit, covering an area of 720 sq km, the statement said. According to the announcement, the Damalalan lithium mining area is still in the preliminary exploration stage. The new borehole guided by the Australian lithium mining experts has found a good pegmatite rock formation. The specific resources need to be further determined according to the subsequent exploration. The mine has good power and road conditions, about 229 km from the port.

It is reported that as the seller of the transaction, Sino-African Industry is mainly engaged in the development of mineral resources in Africa, agriculture and animal husbandry, new energy and other industrial investment, its main business is non-metallic mining and lithium exploration and development in South Africa and Namibia.