China’s Jiangxi Ganfeng takes 10% stake in Canadian lithium firm

01 June 2011 17:56  [Source: ICIS news]

TORONTO (ICIS)--China’s Jiangxi Ganfeng Lithium has completed the acquisition of a 9.99% stake in Canadian-listed International Lithium Corp (ILC), officials said on Wednesday.

As part of a strategic investment, Ganfeng Lithium will have certain marketing and off-take rights and the right to increase its ownership in the Canadian firm, Shanghai-based merchant bank SinoLatin Capital said. The bank advised ILC on the transaction.

Erik Bethel, managing partner of SinoLatin Capital, said the deal comes as Chinese firms try to secure lithium supplies, particularly from South America, to support China’s role in the global electric vehicles market.

ICL, which listed last month on Canada’s TSX Venture Exchange, is working on a number of lithium projects in the Americas, according to information on its website.

Ganfeng Lithium is a Chinese lithium firm based in Xinyu, Jiangxi province.

Financial details were not disclosed.

By: Stefan Baumgarten
+1 713 525 2653

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