Chengdu Tianqi Lines-Up Financing for Talison

Chengdu Tianqi Industry Group Co Ltd of China has announced that it, along with its wholly-owned subsidiary Windfield Holdings Pty Ltd, have entered into agreement with Leader Investment Corp, a subsidiary of China Investment Corp (CIC) in relation to Windfield’s proposed acquisition of Talison Lithium Ltd. Under these agreements, CIC, through Leader, has committed to fund Windfield with approximately CDN$300 million of long-term equity in exchange for an approximate 35%, non-controlling equity interest in Windfield to support the transaction. Tianqi and a wholly-owned subsidiary have also entered into loan agreements for US$200 million from Credit Suisse AG, US$120 million from Industrial and Commercial Bank of China Ltd and US$50 million from Twenty Two Dragons Ltd in accordance with the funding obligations between Talison and Windfield. Tianqi currently holds approximately 19.9% of the issued share capital of Talison. The funding arrangements outlined above, together with the US$25 million deposit previously paid by Tianqi, are sufficient to fund Tianqi’s obligation to purchase the remaining approximately 80% of Talison shares and options. Canada Lithium Corp of Toronto, ON has entered into an agreement with a syndicate of underwriters led by Casimir Capital Ltd, and including Mackie Research Capital Corp, Scotia Bank Ltd, Dundee Securities Ltd, and Fraser Mackenzie Ltd to purchase common shares of Canada Lithium for aggregate proceeds of CDN$13 million. Initially, the company said it planned to raise CDN$20 million, but later revised it down. The proceeds will be used to fund initial stages of previously announced capital projects, including lithium hydroxide and sodium sulfate circuits, preliminary engineering/design of a lithium metal pilot plant, and a natural gas pipeline. Nemaska Lithium Inc of Quebec City, QC plans to raise up to CDN$100 million to fund the construction of a phase 1 processing plant in Valleyfield, QC, to make deposits for the acquisition of long lead items in connection with the construction of a mine and a concentrator on its Whabouchi property, for the completion of the feasibility study and other studies.

Volume 27 issue 5

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