(Yicai Global) Feb. 20 -- Chengxin Lithium Group sold its entire stake in a Canadian miner after Canada’s government told the Chinese mineral resources developer and two peers to divest from Canadian miners due to national security concerns.

Chengxin Lithium International, an indirectly owned unit of Chengxin Lithium incorporated in Hong Kong, sold 19.4 percent of Toronto-based Lithium Chile to Canadian firm Gator Capital for CAD34.6 million (USD25.7 million), the Shenzhen-based firm announced on Feb. 18.

Canada’s ministry of innovation, science and economic development told Chengxin Lithium, Sinomine Resource Group, and Zangge Mining last November to pull their investments from Canadian miners within 90 days, as it brought in new restrictions on foreign investment in critical minerals, such as those used in phones, electric cars, solar cells, and other emerging technologies.

The sale will not materially impact Chengxin Lithium’s financial results and operating performance, the firm added.

Chengxin Lithium, which became Lithium Chile’s largest foreign shareholder last year, told Chinese media two weeks ago that it had held talks with the Canadian government several times and still believed there was room for mitigation, having no plans to sell its stake.

Sinomine Resource’s Hong Kong unit Sinomine Hong Kong Rare Metals Resource sold its 5.7 percent stake in Power Metals to Winsome Resources for CAD2 million (USD1.5 million), the parent company said in a statement, citing a deal signed on Dec. 2. Sinomine Hong Kong bought the stake for CAD1.5 million.

Zangge Mining’s unit Zangge Mining Investment has not yet sold its stake in Ultra Lithium, but the parent firm said on Feb. 16 that it was working on the disposal. Zangge Mining Investment paid CAD4.1 million for 14.2 percent of Ultra Lithium.

Editor: Futura Costaglione