MinRes makes down payment in billion-dollar lithium blitz
Chris Ellison’s Mineral Resources made a down payment on the Bald Hill lithium mine as he advances a billion-dollar spending spree in the West Australian lithium sector, and mounts a potential challenge to SQM’s takeover of Azure Minerals.
Singapore-listed Alita Resources said MinRes made an initial payment of $123.9 million on Bald Hill, with an independent expert to determine the final price.
Alita shareholders aggrieved about the sale process said anything less than $1 billion for the operating mine and processing infrastructure would be too low given the takeover frenzy over lithium explorers in WA. That now extends to SQM’s $1.66 billion bid for Azure and its early-stage Andover project.
Fingers were pointed at MinRes as the Azure share price soared past SQM’s offer price of $3.52 on Wednesday. Azure closed at $3.65.
Gina Rinehart’s Hancock Prospecting has separately increased its stake in Azure to 18.9 per cent, on the cusp of the 19 per cent trigger whereby SQM can abandon its agreed deal with the Azure board.
Should any single shareholder accumulate a 19 per cent Azure stake, SQM may elect to make an off-market offer at $3.50 a share, rather than pursue a scheme of arrangement.
The acquisition of Bald Hill will give MinRes three operational lithium mines and associated processing infrastructure in WA. Its parent, Alita, was tipped into administration in 2019.
“Given the activity in the lithium space more recently, I am sure there would be many more interested parties in acquiring Bald Hill if there was an open sale process,” one Alita shareholder, who would not be named, said.
MinRes swooped on Bald Hill via Alita-appointed administrators McGrathNicol after Treasurer Jim Chalmers blocked a sale to China-linked
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