Ganfeng is one of the world’s largest lithium compound producers and the leading producer in China operating across the entire lithium-ion battery supply chain, including lithium resource development, refining and processing, battery manufacturing and battery recycling. It operates its vertically-integrated business across China, Australia, Argentina, Mexico and Ireland with over 5,000 employees worldwide.
The bonds have a principal amount of US$15 million, with an interest rate of 7% per annum, to be paid annually in cash. GFL, at its sole option, has the right to exchange all of the exchangeable bonds for a 25% equity interest in FE Resources (FER), a wholly-owned subsidiary of Silkroad Nickel.
GFL has an additional option to purchase options shares at an aggregate consideration of US$15 million. Together with GFL’s exchange rights, the option allows GFL to have 50% of the total enlarged issued share capital of FER after the issuance of the new shares.
With the additional US$30m provided by GFL, our financial capabilities will be elevated to allow us to expand our existing operations, fund working capital and most importantly, invest in our downstream businesses, such as the RKEF projects. This allows us to transition into a fully-integrated nickel producer.
More information on our downstream plans can be found here.
Ganfeng Lithium has production expertise that spans across the entire lithium-ion battery supply chain. Thus, the expertise and knowledge provided by them through this partnership will be valuable in allowing us to better understand how we can be better involed in the EV lithium-ion battery supply chain.
To better understand why we are interested to be invoved in the EV battery space, click here.