A Chinese investment firm is buying a Frank Giustra-backed lithium exploration company run by a 29-year-old rookie CEO.
On Monday, Nextview New Energy Lion Hong Kong Ltd. announced it is paying $265-million for Lithium X Energy Corp. – the second investment by the Chinese investment firm in a Canadian-listed lithium company in the past few days.
The latest deal was announced in the midst of an ebullient market for battery metals such as cobalt and lithium, which have soared in price in recent years thanks to demand from the electric car industry.
Nextview is offering $2.61 a share for Vancouver-based Lithium X, a 22.5-per-cent premium to the Friday closing price. Shares in Lithium X rose by 17 per cent to close at $2.49 apiece on the TSX Venture Exchange on Monday.
Lithium X’s chief asset is the Sal de los Angeles lithium project in Argentina. According to a National Instrument 43-101 report, the project holds just more than one million tonnes of indicated reserves of lithium carbonate equivalent.