Chinese group bids for lithium miner

Collapsed lithium miner Alita Resources has entered a binding $70 million loan agreement with China Hydrogen Energy, three months after the company went into administration.

KordaMentha, appointed as administators to Alita, said today it would use most of the funds from the loan agreement to repay all amounts outstanding under the $42 million secured debt facility with Alita's creditor and major shareholder, Galaxy Resources.

The balance of the loan (about $20 million) is available for draw down for working capital purposes, subject to the consent of CHE.

The administrators are currently in discussions with CHE about the final terms of the Deed of Company Arrangement (DoCA) proposal and have asked CHE to provide an unconditional DoCA in the next two days.

Alita said today the operations of its business will continue on a care and maintenance basis.