RE: Canmax quandary!1 Apr 2025 11:42
Steward1, I'm a bit out of it here, as not bothered with looking at Prem for a long time, but looking at this article from early Feb 2025, I think you could be right, and Canmax will take a massive stake.
"Following the "trend," Canmax (300390.SZ) plans to invest in the development of African lithium resources.
Canmax announced today that the company has signed the "Kebbi State Lithium Resource Development Investment Agreement" with the Kebbi State Government of Nigeria and Three Crown Mines Limited (hereinafter referred to as "Three Crown Mines"). The parties intend to jointly invest in, develop, and operate the targeted mining rights. Canmax will hold an 85% stake in the joint venture, while Three Crown Mines will hold 15%. The company expects to invest over $200 million (approximately 1.457 billion yuan) in Kebbi State.
Through the joint venture, Canmax will establish a modernized plant in Nigeria for lithium ore mining, beneficiation, and tailings processing, and will be responsible for its management and operations. During the project's life cycle, the company will underwrite all products of the joint venture.
According to the announcement, Three Crown Mines is a Nigerian mining company whose lithium ore exploration work has been largely completed. Drilling results indicate promising prospects for lithium resource development, necessitating the introduction of strategic investors for joint development.
Canmax primarily engages in the lithium battery materials business, with its main products being battery-grade lithium hydroxide and battery-grade lithium carbonate. In H1 2024, this segment accounted for 89.29% of the company's revenue.
In terms of lithium carbonate raw material sourcing, Canmax relies heavily on long-term offtake agreements with upstream suppliers, such as Pilgangoora, AMG, AVZ, and Global Lithium Resources.
This investment in Kebbi State, Nigeria, will also mark Canmax's first overseas plant for lithium ore resources. Canmax's "thirst" for lithium ore resources has long been evident.
Previously, Canmax had repeatedly participated in domestic lithium ore resource auctions. For instance, in 2022, it announced its participation in the auction for Snowway's equity, which owns the Dechenongba lithium mine. In 2023, it participated in the auction for the exploration rights of the "sky-high-priced" Markang Gada lithium mine. In 2024, it bid for the highly sought-after exploration rights of the Maijitan lithium mine in Ganzi Prefecture, Sichuan Province, but none were successful.
However, in November last year, Canmax's wholly-owned subsidiary successfully acquired the Yichun porcelain clay (lithium-containing) mine for 2.51 billion yuan. Reportedly, the mine contains 2.06257 billion mt of porcelain clay (lithium-containing) ore within the open-pit mining boundary, with an associated Li2O content of 638,769 mt and an average grade of 0.31%.
In recent years, Africa, with its abundant