Ya Hua’s transaction in Eastern Resources completed

According to the announcement filed with ASX on 27 Oct, Eastern Resources (ASX:EFE) $Eastern Resources Ltd(EFE.AU)$ said proceeds of $2 million from Ya Hua International $雅化集团(002497)$ via a placement in September have been received, meaning that transaction has been successfully completed and Ya Hua becomes a substantial shareholder with 10.28% interest in the company.Eastern Resources said it remained well funded and is ready for upcoming project exploration work.

Just days before the completion of this transaction, Ya Hua Group has made an announcement to end its acquisition of equities in a Canada based company Ultra Lithium Ltd (TSX.V:ULT) and two lithium projects owned by the company. Ya Hua explained the reason to this is due to “the global circumstances, which may significantly affect mine exploration and cause delays in overall delivery”. As per the investment agreement filed by Ultra Lithium, Ya Hua International agreed to pay C$0.235 per share for a total of C$5 million for equities in Ultra Lithium and 60% of its two lithium projects owned by a subsidiary of Ultra Lithium, Plus a further C$3 million to the joint venture company for future exploration work. However, after 6 months of signing the deal, Ya Hua chose to stop this investment and pause its strategic expansion in North America.

While Ya Hua claimed the end of the deal with Ultra Lithium was due to global downside uncertainty, its footprints in Australia seem not to worry at all. Ya Hua has put in a lot more effort in the upstream Aussie mining resources and made a great presence in the capital market. Early 2021, Ya Hua has bought stake in Core Lithium (ASX:CXO) $Core Exploration Ltd(CXO.AU)$ and meanwhile signed an offtake agreement for Core’s Finniss Project. In September, Ya Hua invested Eastern Resources (ASX:EFE) for $1 million, becoming a substantial holder of the company. Eastern Resources’ main asset Trigg Hill Lithium project locates in Plibara region, about 75km southeast from Pilbara Minerals (ASX:PLS) Pilgangoora project. Later in December Ya Hua signed MOU with EV Resources (ASX:EVR) for an investment of $3.6 million representing a stake of about 10% interest, which is still progressing and under discussion by now.

In February 2022, another investment made by Ya Hua was an equity subscription of $277 million for a 3.4% interest in Abyssinian Metals Company. Abyssinian’s primary asset Kenticha Lithium is located in Ethiopia in East Africa, with 51% interest controlled by the company. According to statement from Ya Hua, the key technical and operational personnel were from former Galax Lithium Industry in Australia, who had a long-term good business relationship with Ya Hua. Kenticha project is supposed to deliver lithium concentrate from the second quarter of
2023, and Ya Hua has signed agreement for a partial offtake till end of 2025.

Later in July Ya Hua participated in Oceana Lithium (ASX:OCN)$Oceana Lithium Limited(OCN.AU)$ IPO as a cornerstone investor for an investment of $2 million, holding 7.76% interest post-IPO. Oceana’s projects locate in Australia’s Northern Territory, Napperby Lithium, and Brazil,Solonopole Lithium. The company is still in its early stage and funds raised will be used for exploration work.

Then in September Ya Hua increased its stake in Eastern Resources (ASX:EFE) with $2 million, making its holding interest to 10.28%. The transaction has finalized last week.