Askari Metals Limited (ASX: AS2) has satisfied the conditions precedent pursuant to the binding Subscription Agreement executed with Huayou International Resources (Hong Kong) Limited for the strategic investment by Huayou in the company of approximately A$2.5M.
The company will issue, upon completion, to Huayou 4,500,000 fully paid ordinary shares in the capital of the company at an issue price of A$0.55 per share and 1,500,000 free attaching AS2O listed options with an exercise price of A$0.25 cents and an expiry date of 31 October 2024.
Settlement of the Strategic Investment is expected to occur in the coming days.
Under the Agreement, Huayou will have the opportunity to participate in future equity issues by the company. Huayou intends to grow its equity position in the company to 9.9% and maintain its equity stake by participating in future security issues by the company.
Huayou will also support the company in areas of mutual strategic interest, including providing technical input and guidance for continued exploration, development and mine construction as well as downstream lithium processing.
“In conjunction with overseeing the company’s aggressive exploration drilling programme in Namibia at the Uis Lithium Project, we have diligently proceeded with the necessary steps to enable completion of the Strategic Investment with Huayou,” Executive Director, Gino D’Anna, said.
“The satisfaction of the conditions precedent mark the final step for the company before settlement can occur, which is expected to take place in the coming days.
“The name Huayou is synonymous with the cobalt and lithium sector not only in China, but globally, and we look forward to welcoming Huayou to the register.
“We continue to see tremendous upside in our Uis Lithium Project and we look forward to sharing the latest drilling results with our shareholders in the coming days.”
For further information please visit: https://www.askarimetals.com/
