Zangge Mining drops Super Lithium investment after Canadian government order

Zangge Mining, through its subsidiary Zangge Mining Investment (Chengdu) Co., Ltd., has formally terminated its investment in Canada's Super Lithium Inc. This decision follows a November 3, 2022, notification from Innovation, Science and Economic Development Canada, requiring Zangge Mining Investment to abandon the investment. The termination also includes the final agreement for the Laguna Verde salt lake lithium project.

The company cited "unsatisfactory expected economic benefits" and "slower than anticipated project progress" as reasons for the withdrawal, aiming to prevent further resource expenditure and minimize potential economic losses. Zangge Mining Investment has completed the cancellation of its 23 million common shares and corresponding 11.5 million warrants in Super Lithium Inc., effectively relinquishing its stake.

Zangge Mining reported cumulative asset impairment and fair value change losses of CAD 2,005.46 million from its equity investment in Super Lithium Inc. The recent cancellation of shares resulted in an additional investment loss of CAD 120.42 million. The company stated that the termination of this project does not involve any breach of contract and will not materially impact its financial condition, operating results, or future development plans.