DEEP SOURCE (00990) intends to acquire 100% of the issued share capital of Tortuga de Oro S.A.

DEEP SOURCE (00990) announces that on April 24, 2026, the company (as the buyer) entered into a stock purchase agreement with the seller XIZANG ZHUFENG RESOURCES (HONG KONG) LIMITED, agreeing to acquire 100% of the issued share capital of the target company Tortuga de Oro S.A. for a total consideration of $70 million (approximately HK$546 million). The company plans to initiate and build an integrated lithium value chain, with products covering lithium spodumene ore, lithium spodumene concentrate, and lithium carbonate. The business will extend to distribution, beneficiation, and toll processing; through equity investments in lithium brine and lithium spodumene resources (including projects in Tibet, Australia, and Argentina) to ensure upstream supply; and to establish processing and manufacturing bases in Malaysia to convert lithium spodumene ore into lithium spodumene concentrate and build lithium carbonate production capacity (collectively referred to as the "lithium business"). The company will primarily develop its lithium business through investments in companies with lithium-related projects and assets (including but not limited to companies in Tibet, Australia, and Argentina) and through the acquisition of equity in such companies. Through the acquisition, the company will acquire a lithium carbonate production project in Argentina, thus ensuring upstream supply of lithium carbonate to support downstream operations and business development. The Board of Directors believes that the acquisition aligns with the group's new strategic direction of building an integrated lithium value chain. Argentina is an important lithium producing region, and the acquisition will provide the group with a direct foothold in the region and is expected to ensure upstream supply of lithium spodumene concentrate and lithium carbonate. By integrating the target company into the group, the Board expects to enhance supply chain control capabilities, potential cost benefits, and synergies with the group's existing trading business. Therefore, the Board believes that the acquisition represents an opportunity to expand the lithium business segment, create new sources of income, and maximize long-term returns for the company and its shareholders.