Explorex Resources Inc. (CSE: EX) has signed a Letter of Intent (LOI) with Jiangxi Ganfeng Lithium Co., Ltd. 江西赣锋锂业股份有限公司 (SHE: 002460) for a $1 million strategic investment. The investment will consist of an initial investment of $500,000 and a commitment to invest additional $500,000 in subsequent financing within two years.
Following the closing of Explorex expanding $1 million financing and its initial investment, Ganfeng will have a non-diluted 16.55% equity stake in Explorex.
Subject to Gangen maintaining at least a 15% equity interest, Ganfeng will have 1) the rights to all potential production of cobalt and lithium; 2) a Right of First Offer on any joint venture or sale of all cobalt and lithium properties that Explorex now has or acquires; 3) the right to nominate one member to the Explorex board.
Jiangxi Ganfeng Lithium Co., Ltd. is one of the world’s leading Lithium manufacturers. Ganfeng is a JV partner and the largest shareholder (17.2%) in Lithium Americas Corp. (TSX: LAC; OTCQX: LACDF) and a JV partner and second largest shareholder (15.77%) in International Lithium Corp. (TSX-V: ILC).
photo credit: Explorex Resources