Albemarle tick for Liontown’s ‘risky’ lithium project
New York-listed Albemarle has had its teams out on-site running the rule over Liontown Resources’ flagship lithium project and raised no red flags, according to sources close to a $6.6 billion takeover deal.
Albemarle’s time on-site as part of due diligence has coincided with mining billionaire Gina Rinehart bumping up her stake in Liontown to almost 10.7 per cent and making bombshell claims about “significant risks” hanging over the Kathleen Valley project in the northern Goldfields of Western Australia.
Gina Rinehart has bumped up her stake in Liontown. Trevor Collens
Mrs Rinehart’s Hancock Prospecting and Chris Ellison’s Mineral Resources have emerged as kingmakers in lithium consolidation in the region.
MinRes moved to boost its war chest for potential lithium deals and expansion on Tuesday, turning to the US bond market for $US850 million ($1.325 billion) in new debt funding.
It is understood Albemarle has had its M&A team, including engineering experts, out at Kathleen Valley and was satisfied with progress and planning for a mine slated to start producing spodumene concentrate in about nine months.
Kathleen Valley is considered half-built, with nearly all the major components required to complete the project on-site or landed in WA.
Albemarle did not comment on Tuesday, and it remains unclear if it has discussed with Hancock the future of its $6.6 billion bid for Liontown and plans for Kathleen Valley.
The Hancock move to increase its stake has further complicated the battery chemical giant’s takeover tilt at Liontown.
Hancock disclosed a 7.72 per cent stake on September 11, hot on the heels of the Tim Goyder-led Liontown board accepting a $3-a-share takeover offer from Albemarle.
Mrs Rinehart, Australia’s richest
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