The Asia Miner

OCT-DEC 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 15 • issue 4 15 REGIONAL FOCUS: China Chinese top lithium producer, Ganfeng Lithium, falls short of raising its anঞcipated US$676 million in its Hong Kong iniঞal public offering. According to the terms of the deal, the Jiangxi-based company was offering 200.2 million shares priced at between HK$16.50 to HK$26.50. Sources have, however, confirmed that Ganfeng had priced its offering at the boom end of the range: HK$16.50. Six cornerstone investors have commied to buy approximately US$230 million in stock, including Korean baery makers LG Chem and Samsung SDI, which have agreed to purchase US$50 million of shares each. Other cornerstone investors include the China Structure Reform Fund, Dong Feng asset management and GSR Capital. The Shenzhen-listed company will use part of the money for acquisiঞons, further exploraঞon and to expand capacity to meet rapidly growing demand from the electric vehicle sector. Some of the funds from the offering will also be used to further develop Ganfeng's partnership with Lithium Americas, which is developing the Cauchari-Olaroz project in Argenঞna. According to CRU Group, Ganfeng is the world's third- largest lithium compounds producer and the world's largest lithium metals producer in terms of producঞon capacity. The company has interests in six lithium resources in Australia, Argenঞna, China and Ireland, but its primary source of lithium raw materials is Mount Marion in Western Australia. In September of this year, the Chinese producer signed a deal to supply lithium hydroxide products for Tesla's baeries. The agreement is set to commence this year and run unঞl 2020, with the potenঞal of being extended by three years. Earlier in September, Ganfeng agreed a deal with baery maker LG Chem to almost double its supply of baery materials from 2019 to 2025. Tesla supplier Ganfeng Lithium prices its HK listing at bottom of marketed range In 2018, Barrick Gold is strengthening its relaঞonship with Shandong Gold by entering into a mutual investment agreement for up to US$300 million. Under the Agreement, Shandong Gold will purchase Barrick shares, with Barrick invesঞng an equivalent amount in shares of Shandong Gold Mining – a publicly listed company controlled by Shandong Gold. "This mutual investment is another reflecঞon of the deepening partnership between our two companies," said Barrick Execuঞve Chairman John L Thornton. "Barrick and Shandong both believe that by working in partnership, we can leverage our collecঞve strengths to unlock long-term value for our respecঞve shareholders." Yumin Chen, Chairman of Shandong Gold Group echoed the senঞment. "Through this mutual investment and cross shareholding iniঞaঞve, we will be able to capitalise on respecঞve strengths and realise long-term synergies and unlock long-term value for the respecঞve shareholders. Building on the excellent partnership at Veladero today, we believe addiঞonal long-term strategic value can be created by working closely together on other projects including Lama and El Indio Belt projects in the future." Shandong Gold is currently carrying out an independent evaluaঞon of Barrick's Lama project, including an analysis of potenঞal synergies between Lama and the nearby Veladero operaঞon. Barrick and Shandong Gold have also created internal working groups that are sharing technical experঞse and best pracঞces focused on best-in-class mining pracঞces and innovaঞon. On September 28, SD-Gold was successfully listed on the main board of The Stock Exchange of Hong Kong Limited, with the stock abbreviaঞon of "SD-Gold" and the stock code of 1787.HK. In his speech, Yumin Chen stated that the lisঞng in Hong Kong is the first step for SD-Gold to successfully enter the internaঞonal capital market, and is also an important milestone in the development history of SD-Gold. The company is offering 327.7 million H-shares at between HK$14.7 and HK$18.4 (US$1.87-2.34), according to its filing to the Hong Kong stock exchange. The state-owned domesঞc holding company of Shandong Gold is also listed in Shanghai with a market capitalisaঞon of 43.6 billion yuan (US$6.3 billion). The firm controls and operates 12 domesঞc gold mines, and accounted for 6.6 per cent of China's gold output in 2016. The country the world's largest producer of the yellow metal. Ganfeng Lithium lists its HK prices at boom of marketed ragnge

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