Narrative
Full Description
Project narrative
On or around September 26, 2022, the Jiangxi Branch of the Industrial and Commercial Bank of China (ICBC) issued an M&A loan to GFL International Co., Ltd. to facilitate its acquisition of a 100% equity stake in Lithea Inc. from LSC Lithium BV for $962 million. The acquisition was completed on October 13, 2022. Lithea Inc. is a project company (special purpose vehicle) that owns and is responsible for the exploration and development of lithium mining rights of the Pozuelos and Pastos Grandes (PPG) lithium salt lake assets in Argentina's Salta province. The main product of the PPG salt lake assets is lithium carbonate produced by lithium salt lake brine, which is mainly used as the raw material for the production of lithium battery cathode materials. The mining area of Pozuelos and Pastos Grande are 10,787 hectares and 2,683 hectares, respectively. Pozuelos and Pastos Grandes are located in the Pastos Grandes Salt Lake area of Argentina, approximately 250 km and 230 km west of the city of Salta, respectively.
Staff comments
1. GFL International Co., Ltd. is a wholly-owned subsidiary of Ganfeng Lithium Group Co., Ltd. 2. The Chinese project title is 赣锋锂业收购阿根廷Lithea Inc.公司”项目. 3. The face value of the ICBC loan is unknown. However, given that the total cost of the acquisition was approximately $962 million and ICBC M&A loans often cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the ICBC loan was roughly equivalent to $673,400,000. This issue warrants further investigation. 4. Lithea Inc. is a company incorporated under the law of the British Virgin Islands. Lithea was established on July 27, 2009, with its registered address at Jayla Place, Wickhams Cay 1, Road Town, Tortola, VG1110, British Virgin Islands.