Greenwing Resources

Strategic Transaction With NIO Inc.

Greenwing Resources Ltd (Greenwing or the Company) (ASX: GW1) is pleased to announce a strategic funding transaction with NIO Inc. (through its wholly owned subsidiary, Blue Northstar Limited) (NIO), enabling Greenwing to accelerate its exploration program at San Jorge Lithium Project in Catamarca province, Argentina and aligning NIO as the Company’s potential joint venture and offtake partner.


NIO is a pioneer and a leading company in the premium smart electric vehicle market and is listed on the New York Stock Exchange, with secondary listings in Hong Kong and Singapore. NIO designs, develops, jointly manufactures and sells premium smart electric vehicles, driving innovations in next-generation technologies in autonomous driving, digital technologies, electric powertrains and batteries.

The key terms of the transaction are as follows:

  • NIO has agreed to pay A$12,000,000 to Greenwing to subscribe for 21,818,182 Greenwing shares at a deemed issue price of A$0.55 per share (Placement) and a call option to acquire, at NIO’s election, between 20% to 40% of the issued capital of Andes Litio SA (Andes Litio), which holds options rights over the San Jorge Lithium Project (Call Option). The terms of the Placement provide for a deposit of A$1 million, which is repayable to NIO within 5 business days if the agreement is terminated. The Call Option is exercisable (in Nio’s absolute discretion) within 365 days after a JORC report for the San Jorge Lithium Project has been issued or obtained, based on certain assumptions and outcomes being achieved, which, if realised, could result in an exercise price of between US$40 million and US$80 million. Together, the Placement and the grant of the Call Option comprise the Proposed Transaction.
  • Upon completion of the Placement NIO will hold a shareholding in the Company of approximately 12.16%, on a fully-diluted basis as of the date of issuance, and will have a right to a nominee on the board of the Company for so long as it continues to hold at least 10% of the shares.
  • Upon exercise of the Call Option, NIO will have direct rights to offtake production in the San Jorge Lithium Project based on its then-effective equity interest in Andes Litio and, subject to any necessary shareholder approvals under the ASX listing rules, will also have the right to match any offer to purchase the remaining offtake share. Greenwing has agreed to ensure that a JORC report on the San Jorge Lithium Project is issued by 31 December 2023.

Click here for the full ASX Release

This article includes content from Greenwing Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

GW1:AU
The Conversation (0)
Industrial Minerals Limited

IND Establishes HPQ Exploration Target at Pippingarra Project

Industrial Minerals Ltd (ASX: IND or the Company) is pleased to announce a Maiden Exploration Target for High Purity Quartz (HPQ) at its Pippingarra Quarry Project (Pippingarra) located 30km south-east of Port Hedland, in the Pilbara region of Western Australia (Figure 1).

Keep reading...Show less
Firebird Metals

China-Based Battery Grade High-Purity Manganese Production Strategy

Investor Site Visit Presentation - April 2024

Firebird Metals Limited (ASX:FRB) is pleased to present its investor presentation.
Keep reading...Show less
  Summit Minerals Limited

Summit to Acquire Transformational Brazilian Niobium, Rare Earth & Lithium Portfolio

Summit Minerals Limited (ASX: SUM) (“Summit” or the “Company”) is excited to announce that it has signed binding agreements (“Agreements”) to acquire tenement packages highly prospective for rare earth elements (REE), niobium, and lithium. Term sheets were signed with vendors RTB Geologia & Mineracao Ltda (RTB), Sandro Arruda Silva Ltda. (SAS), and Mineracao Paranal Ltda (MPL) to acquire legal ownership and title over certain Exploration Permits and Applications for Exploration covering an area of 29,267 hectares in Minas Gerais and Paraiba States, Brazil (Figure 1; Table 2).

Keep reading...Show less
West Cobar Metals Limited

Positive Findings from Newmont Ti Benchmarking Study

West Cobar Metals Limited (ASX:WC1) (“West Cobar”, “the Company”) is pleased to provide an update on activities at its Salazar critical minerals project in Western Australia.

Keep reading...Show less
Augustus Minerals

High Grade Copper Rock Chips to 18% on New Targets at Ti-Tree

Augustus Minerals (ASX: AUG; “Augustus” or the “Company”) is pleased to advise the results of recent reconnaissance mapping and sampling at the Ti-Tree Project, located 200kms east of Carnarvon in Western Australia. The mapping, supported by 26 rock chip samples, identified two areas containing mineralised veins and historic workings (Figure 1). Neither of these prospects are recorded on GSWA maps.

Keep reading...Show less
The Ngwenya mine in Swaziland.

From the Bronze Age to the Green Revolution: Mining's Timeless Role in Shaping Humanity's Future

Mining is one of the oldest industries on Earth. With activity stretching back as many as 40,000 years, human advancement is closely correlated to our relationship with metals and minerals.

Indeed, modern society has been made possible through the extraction of metals and the ages this work has ushered in, from the historic Bronze Age to the more recent Industrial Revolution.

Now, 54 years after the inaugural Earth Day, the world is preparing for the green energy transition. And as this essential shift moves forward, metals are again playing an integral role in achieving the ambitious goals set globally.

Keep reading...Show less

Latest Press Releases

Related News

×