Interesting part of announcement
Who are the NEW investors
Chinese companies have been active recently with shareholding in TON (Shandong Tianye now just under 20%) an MNS (through Aqualand a subsidiary of the Shenglong Group)
Aqualand buys stake in battery partner Magnis
Aggressive Chinese developer Aqualand has taken a near 5 per cent stake in listed junior miner Magnis Resources — a consortium member of Bill Moss’s proposed $2 billion Townsville battery factory — as it moves to tap new energy supplies for a future $5bn residential development pipeline.
Aqualand investment arm AL Capital has made an $11.1 million cornerstone investment in Magnis through a placement of 30 million shares.
Aqualand chief executive Wayne Mo said the group believed Magnis’s battery projects and technology were well advanced and capable of “global scaling”.
“The innovation of these batteries and technologies will support advances in multiple broad applications in society for the future,” Mr Mo said.
“ALC is closely assessing the energy requirements of current and future communities and it regards lithium-ion battery technology as an energy source that has the capacity to deliver lower cost energy to these sites,” the company said.
In June, AL Capital made a similar scale investment in troubled listed real estate agent McGrath. ALC invested $10.7m to take a 15 per cent stake in the company floated by high-profile Sydney agent John McGrath with the agency to hold first right to discuss sales and leasing agency agreements on Aqualand’s projects over the next five years.
Aqualand is a subsidiary of the Shenglong Group, which has $20bn worth of international assets and is led in Australia by Jin Lin, the son of the Chinese group’s founder, Yi Lin. The company is also part of the winning consortium with Scentre Group and Grocon to develop apartments, retail and offices at Sydney’s Barangaroo Central.
Magnis, which has a market value of $223m, issued 30 million shares to Aqualand’s private investment arm AL Capital at 37c a share for the 4.98 per cent stake. The placement was struck at a 4 per cent premium to the 15-day volume-weighted average price. ALC will gain a seat on the Magnis board.
The funds will be used to strengthen Magnis’s balance sheet and fund investment in the company’s Nachu Graphite project in Tanzania.
The battery plant consortium led by Mr Moss, a former Macquarie Group head of property, recently won a $3.1m grant from the Queensland government for a feasibility into a lithium-ion battery manufacturing plant in Townsville.
Magnis chairman Frank Poullas said Aqualand had an interest in batteries for its own residential projects but had not struck any supply agreement as yet with Magnis, nor had there been talks on the Townsville battery project.
The feasibility study for the massive Townsville manufacturing plant on a former council-owned CSIRO site was progressing with Magnis chief executive Frank Houllis in the US working on the study, Mr Poullas said.
Magnis, which has plans for a $US270m ($375m) graphite mine in Tanzania, is part of Mr Moss’s Imperium3 consortium, which is building a plant in upstate New York as its first factory. Production was expected early next year, Mr Poullas said.
Interesting part as I see it is both companies are heavily into real estate and may be positioning themselves for access to product for home storage as well as EV
Who are the new investors??
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