Chinese outdoor lighting manufacturer Sichuan Huati Lighting Technology saw a surge in stock value following its announcement of acquiring an 85 percent stake in Kyushu Resources, a Mozambique-based lithium mining firm, for USD3 million.
Closing at CNY14.30 (USD2) a share in Shanghai on December 27, Huati Lighting [SHA: 603679] experienced a 2.6 percent increase, marking nearly a 20 percent gain for the year.
The parent company, based in Chengdu, revealed that Kyushu Resources, established in August, holds exploration right No. 11,682 in Mozambique’s Gilé district within the Alto Ligonha pegmatite belt, known for large rare metal deposits.
With plans to mine and extract lithium ores independently or with specialized partners, Huati Lighting will transport the processed lithium concentrates from the port of Nacala to Shanghai for sale in China.
Anticipating an investment of up to USD10 million in fixed assets and operational capital, the project foresees an estimated annual revenue of USD103.6 million, projecting a profit of USD45.6 million once operating at full capacity, considering stable lithium carbonate prices.
