Greenwing Resources jumps 75% on the back of a pivotal deal with NIO

Nick Sundich Nick Sundich, September 26, 2022

The ASX may have lost 2% today, but that did not stop Greenwing Resources (ASX:GW1) gaining more than 75% this morning. The catalyst was a $12m investment deal with NYSE-listed EV company NIO that will see it obtain a 12.16% stake and a seat on the board.

 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

 

Greenwing Resources becomes the latest lithium play to win a new partner

Lithium is an exciting commodity to be in right now because of the growing demand for electric vehicles. But as good as it is to have a decent project, you need partners to sell the finished product and not all companies have one.

Liontown Resources (ASX: LTR), Piedmont Lithium (ASX: PLL) and Core Lithium (ASX: CXO) all have offtakes deals with industry leader Tesla. 

 

Chinese EV firm NIO wants to play ball

Greenwing Resources now has a deal with US$29bn EV company NIO. NIO has direct rights to take 20-40% of production from Greenwing’s San Jorge project and the right to match any offer to purchase the remaining offtake share.

Australian investors could be forgiven for not knowing about NIO. While it is no Tesla, it is not an industry nobody either, selling 20,059 vehicles in the June quarter. 

 

And a new investor

The deal between Greenwing Resources and NIO did not stop at offtake arrangements. NIO will pay $12m for a 12.16% stake in the company and a call option to acquire 20-40% of the issued capital of Andes Litio, a company with option rights over San Jorge. Greenwing has promised at least 80% of the proceeds will be used for the project. 

The deal is subject to a number of terms, including the issuing of a JORC report by the end of 2023. But if it follows through, then this will be a company-making deal for Greenwing Resources, so far as getting its project off the ground is concerned. 

But on a day when the ASX 200 is down by 2%, investors in Greenwing Resources are probably just happy that their company is one of today’s biggest winners.

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

No credit card needed and the trial expires automatically.

 

 

Blog Categories

Get Our Top 5 ASX Stocks for FY25

Recent Posts

Here’s why Proteomics (ASX:PIQ) shareholders should brace themselves for a big 2025!

Proteomics (ASX:PIQ) is one of the healthcare stocks to watch in CY25, because it has not one, not two, but…

Can companies face criminal charges

Can companies face criminal charges? Yes they can!

Can companies face criminal charges? It is a complicated question, but not one that can be answered with a flat…

Gallium Metal

Why Gallium is Important and Which Stocks Are in It

Did you know that there are ASX explorers searching for Gallium? Did you even know this element existed? It is…