A Chinese firm that specializes in industrial explosives is planning to acquire an over 10 percent stake in a Canadian lithium company for $5 million.
On April 17, China-based company Sichuan Yahua Industrial Group Co. Ltd announced its plan to acquire 13.2 percent of Ultra Lithium Inc., a Vancouver-based lithium and gold exploration firm, through its wholly-owned subsidiary Yahua International Investment and Development Co. Ltd.
The deal signed between the two companies will also see Yahua International paying cash to acquire a 60 percent stake in a wholly-owned subsidiary of Ultra Lithium, which has two lithium projects in Forgan Lake and Georgia Lake in Ontario.
Due to the local geology, Yahua Group said the two projects offer high potential for the discovery of super-large spodumene deposits. Spodumene is an essential supply of lithium to be used in ceramics, cell phones, and car batteries, among several uses.
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