Hydromets new Chinese partner HydroMet announces the forging of a new and exciting partnership with one of the world’s leading Used Lead Acid Battery (“ULAB”) recycling companies, Jiangsu Chunxing Alloy Co Ltd (Chunxing) of Nanjing, People’s Republic of China. The company has entered into a binding agreement with Chunxing for the placement of new shares in Hydromet as outlined below. The placement has been approved by the government of the Peoples Republic of China. In addition a commercial agreement for the supply of lead products to Chunxing along with a technical co – operation agreement has been signed. After discussions regarding the relative merits of a close association between the parties conducted over the past nine months the Board of Hydromet has approved the issue of 49,924,000 ordinary shares (approximately 15% of Hydromet’s issued capital) in a private placement at 6 cents per share to Chunxing. The share placement is now completed. Chunxing is the largest lead recycling company in China with four operating plants.The Board believes that the following benefits of the involvement with Chunxing will place Hydromet in a much stronger position within the ULAB recycling and secondary lead production markets within Australia and the Pacific. Chunxing’s secondary smelter experience will be invaluable in the development and expansion of Hydromet’s secondary smelter project. The joint experience of both organisations will facilitate the exchange of important information and process practices to the benefit of both parties. Chunxing has extensive lead smelter equipment design and technology expertise which will complement our own resources and knowledge.
This will now put HMC in a stronger position and enable the construction of the smelter .
HMC Price at posting:
4.8¢ Sentiment: None Disclosure: Held
