Global Lithium Calls for Government Intervention in Alleged Chinese Takeover Attempt
Sydney, Australia - Ahead of a pivotal shareholder meeting, Global Lithium Resources (GLR) is urging the Australian government to intervene in an alleged takeover bid by Chinese investors targeting its Manna lithium project.
GLR management accuses Director Dianmin Chen of colluding with foreign-linked shareholders holding a substantial stake (30-40%) to seize board control and its primary asset. The company alleges that this undisclosed association may violate Australian takeover and foreign investment laws.
The Takeovers Panel has declined GLR's request for investigation, citing insufficient evidence of a formal combination to take control. Undeterred, GLR is now seeking the intervention of the Treasurer, who can block shareholders from voting at Thursday's meeting and compel them to divest their stakes.
GLR's campaign tests Australia's balancing act between promoting critical minerals projects for economic growth and maintaining good relations with China, its largest resources customer. The Treasurer has been advised by the Foreign Investment Review Board, which previously blocked a Chinese investment in a rare earths mining company in 2023.
Canmax Technologies, a significant shareholder controlled by Chinese billionaire Pei Zhenhua, and Australia's Mineral Resources hold 10% of GLR's shares. Canmax declined to comment on the allegations, while Mineral Resources remained silent.
Leon Zhu, the third largest shareholder, has advocated for board membership, arguing for a return to core lithium assets and a re-evaluation of the company's gold and copper exploration strategy.
With a lapsed 10-year supply deal with Canmax, GLR faces a critical moment as it seeks new sales agreements. The outcome of the shareholder meeting and any potential government intervention will determine the fate of the company and its highly valuable Manna lithium project.