(Yicai Global) Aug. 14 -- Chinese non-ferrous metal producer Zhejiang Huayou Cobalt Co. [SHA:603799] will acquire an 11.2-percent stake in AVZ Minerals Ltd. [ASX:AVZ] for USD10.2 million (AUD13.0 million).
Zhejiang Huayou Cobalt said yesterday that its wholly-owned subsidiary, Huayou International Mining (Hong Kong) Ltd., has signed an equity purchase agreement with AVZ to buy 186 million new AVZ shares for AUD0.07 apiece. The deal includes an option to buy an additional 186 million shares at a strike price of AUD0.1 in 20 months.
AVZ floated on the Australian Securities Exchange in September 2007 and is mainly engaged in mineral exploration in Africa, Zhejiang Huayou Cobalt said. AVZ owns a 60-percent interest in the Congo's Manono lithium mine project, which is in the exploration phase and may contain lithium resources.
Zhejiang Huayou Cobalt said it will focus on lithium new energy materials as a core business and that the purchase of AVZ shares will help it promote its resource development strategy in Africa and secure materials for advancing its lithium new energy material business.