Ashurst has advised Pengxin International Mining Co. Ltd ("Pengxin") on an initial private placement investment of approximately A$81 million in CleanTeq Holdings Limited ("Clean TeQ") in a deal signed 28 February 2017.

The Share Subscription Agreement comprises one of Clean TeQ's subsidiaries will subscribe for 92,518,888 ordinary shares in Clean TeQ at an issue price of A$0.88 per share. The issue price represented a 17% premium of the 20-day volume-weighted-average ASX quoted price of Clean TeQ shares up to and including 28 February 2017 of A$0.75 per share. Following completion of the share placement Pengxin will own approximately 16.2% of Clean TeQ. Settlement of the placement will be completed by the end of March 2017.
 
Following completion of the private placement, Mr. Jiang Zhaobai, Chairman of Pengxin, will be invited to join the Clean TeQ Board as non-executive, co-chairman alongside existing co-chairman Robert Friedland. Pengxin will also have the right to appoint a second nominee to join the Clean TeQ board as non-executive director.
 
Pengxin's strategic investment will facilitate the development of CleanTeQ’s Syerston Nickel Cobalt Scandium Project in New South Wales, Australia. The Syerston Project is one of the largest accumulations of cobalt outside of Africa, and one of the largest and highest-grade scandium deposits in the world.
 
The Ashurst team was led by partner Kylie Lane (Corporate). Kylie was assisted by senior associate Eliza Blandford and lawyer Tammy Kamil (Corporate). Partner Michael Sheng (Corporate) assisted from Ashurst Shanghai.