Singapore-listed Alliance Mineral Assets and its JV partner, Tawana Resources, signed an offtake agreement with Hong Kong-listco Burwill Holdings on 20 April 2017.
|
Raining cash on Bald Hill
|
|
Amount
|
When
|
|
1. Burwill
pays
|
A$7.5 m prepayment
|
Done (April 2017)
|
|
A$8.75 m prepayment
|
15 July 2017
|
|
A$8.75 m prepayment
|
15 Sept 2017
|
|
|
|
|
2. Tawana capital raising#
|
A$15 m
|
Done (April 2017)
|
| Total |
A$40 m |
|
| # See announcement |
|
|
Some investors wondered how Burwill, which has been loss-making for a few years, would be able to fulfill its commitment to purchase US$200 million worth of lithium concentrate from Alliance Mineral Assets over two years (2018 and 2019).
The answer has become clearer: Fund-raising.
♦ On 17 May 2017, Burwill said it had engaged an agent to place out, over the next six months, 7% notes with an aggregate principal amount of up to HK$200 million.
♦ On 31 May 2017, Burwill announced that GO Scale Capital, L.P. had agreed to subscribe 876 million new shares of Burwill at HKD0.18 per share.
Go Scale Capital, L.P. would become the No.2 largest shareholder of Burwill with 15% of the enlarged share capital of Burwill.
The net proceeds of HKD157 million will be used for the procurement and processing of lithium concentrates business, it said.
 This camp will house up to 150 men who will construct infrastructure for mining lithium concentrate at Bald Hill. Photo: CompanyGO Scale Capital, L.P. is an emerging industry growth foundation fund of GSR Capital.
GSR Capital is a giant: It's a Chinese private equity firm with backing from the Hubei provincial government, and it is nearing a deal to acquire control of a Nissan Motor Co. rechargeable battery unit for about US$1 billion, according to a Bloomberg report.
|
 "We are bullish on the prospect of Burwill's lithium resources business. With GSR Capital's rich investment experiences in the energy sector and overseas advanced technology, together with Burwill's profession in metal trading and processing, we believe the co-operation will allow us to give full play to our strengths and maximize the synergistic effect."
-- Sonny Wu (photo),
Chairman, GSR Capital
|
GSR Capital has been in the electric vehicle industry for more than 10 years.
It possesses strong market resources and integration capabilities through its investments in manufacturers that cover upstream materials, power batteries, wheel motors and vehicle designs, such as Boston Battery, XDY Zhidou, Fisko Electric Vehicles and Taiwan Aleees Lithium Iron Phosphate.
|
Uni-Asia operates a fleet of dry-bulk carriers. Photo: Company
Comments
西特種電機股份有限公司) ("JSMC"), a company listed on the Shenzhen Stock Exchange. The JV will principally engage in the processing of lithium concentrates and sales
of lithium carbonate and lithium hydroxide.
JSMC already owns an existing plant for producing lithium carbonate. Not clear from announcement how the JV will stand in relation to the existing plant.
http://www.hkexnews.hk/listedco/listconews/sehk/2017/0710/LTN20170710229.pdf
http://www.hkexnews.hk/listedco/listconews/sehk/2017/0926/LTN20170926269.pdf