JOHANNESBURG (miningweekly.com) – Aim-listed exploration company China Africa Resources (CAF) has signed an investment agreement with US Lithium (USL), a private Australian company, to acquire up to a 47.5% shareholding in USL.
USL has interests in lithium exploration licences in Arizona and New Mexico, held through a 100%-owned subsidiary company registered in the US.
Initially, CAF will acquire a 25% holding in USL for $100 000 in cash. This will be applied to cover the costs of USL's next stage exploration work programme, starting shortly.
CAF will also pay A$150 000 through the acquisition of new ordinary shares at 3p apiece.
Dependent on the results achieved during the exploration work programme, CAF has the right to acquire an additional 22.5% of USL, through the payment of A$150 000 to be applied to cover the auditable historic costs incurred to date.
A further A$225 000 will be invested in new ordinary shares.
"I am pleased to announce this second investment which continues to build the China Africa business model, this time with the addition of lithium exploration and development interests in the secure operating environment of the US,” CAF CEO Paul Johnson noted.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
EMAIL THIS ARTICLE SAVE THIS ARTICLE
ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
