Shengxin Lithium Energy (002240.SZ) plans to acquire 30% of Kaicheng Mining's shares for 2.08 billion yuan

According to Zhitong Finance App, Shengxin Lithium Energy (002240.SZ) announced that the company plans to acquire 30% of the shares of Sichuan Qicheng Mining Co., Ltd. (hereinafter referred to as “Qicheng Mining” or the “target company”) through its wholly-owned subsidiary Sichuan Shengtun Lithium Co., Ltd. (hereinafter referred to as “Shengtun Lithium”) in cash for RMB 2.08 billion. After the transaction is completed, the company will hold 100% of the shares in Qicheng Mining.

Qicheng Mining is a holding subsidiary of Shengtun Lithium, a wholly-owned subsidiary of the company. Shengtun Lithium and Taichen Mining hold 70% and 30% of Qicheng Mining's shares respectively. Huirong Mining, a subsidiary of Qicheng Mining Holdings, has a mining license for woodvelvet lithium ore. The woodwool lithium mine has identified 989,600 tons of Li2O resources, with an average grade of 1.62%. It is one of the highest grade lithium mines in Sichuan. The production scale is 3 million tons/year, and is currently actively promoting mine development and construction.