(Yicai Global) Feb. 10 -- Shares in Zangge Mining soared as much as 5 percent today after the Chinese lithium and potassium producer said that it is teaming up with Canadian mining company Ultra Resources to develop the Laguna Verde salt lake lithium project in Argentina.
Zangge Mining’s share price [SHE:000408] closed up 2.81 percent at CNY34.41 (USD5.41). Earlier in the day it had hit CNY35.13. The Shenzhen Stock Exchange’s benchmark index fell 0.8 percent.
Vancouver-based Ultra Resources holds the mining rights to the Laguna Verde salt lake, which is located in Argentina's lithium-rich Catamarca province and has a lithium ion grade of up to 1,270 parts per million, Zangge Mining said yesterday. Golmud, western Qinghai province-based Zangge Mining, meanwhile, will invest cash.
The two parties will set up a joint venture to develop and operate the mine and the respective shareholding ratios will be determined once the salt lake exploration report and the performance test results of its lithium salt products are released, it added. The reports should be ready by June.
Editor: Kim Taylor