Synergy Group (01539.HK) announces US$ 3.2 Million Expansion to the Vanadium and Energy Storage Industry
Date: May 7, 2018
Synergy Group Holdings International Limited (“Synergy Group” or the “Company”, together with its subsidiaries, the “Group”; stock code: 01539.HK), a leading integrated energy saving and management solutions provider, announced that Synergy Group Worldwide Limited, a wholly-owned subsidiary of the Company, entered into the subscription agreement to acquire 23.6% of equity interest in Invinity Energy Group Limited (“Invinity”) at the consideration of US$ 3,200,000.
Invinity Energy Limited (“Invinity HK”), a wholly-owned subsidiary of Invinity, is principally engaged in investing in vanadium mining and processing assets including exploration, development, mining and extraction of vanadium as well as production and financing of various vanadium products and battery-grade vanadium electrolyte to support the Vanadium Flow Batteries (VFBs) energy storage industry. Invinity HK has 70% of the equity interest in Gu Zhang County Vanadium Industry Company Limited (?????????????) (together with its subsidiaries, the “Guzhang”). Guzhang is principally engaged in the exploration and mining of vanadium-containing stone coals, mineral processing, production and sale of vanadium-related products including vanadium pentoxide (V2O5), vanadium alloys and other metallurgical products in China. The main asset of Guzhang is a stone coal mine covering area of approximately 0.98727 km2 located in Hunan Province in China. It is estimated by a geological team under the state bureau that the mine has vanadium-containing stone coal of 30,126,900 tonnes with V2O5 at a general grade in the range of 1.1% to 1.63%, which is of a relatively high grade as compared to other stone coal mines in China. Guzhang also possesses the capability to mine, extract and process the minerals in its facility (with a potential production capacity of up to 10,000 tonnes per year) close to the mine to produce various vanadium products.
According to the market data on vanadium, the price of vanadium has surged over 130% in 2017, outperforming other battery metals such as lithium and cobalt, and the 98%V2O5 price continued to stay at a high price of approximately US$ 13 – 16 /pound (i.e. RMB 183,000 – 225,000 /tonne) in the past three months.
