MinRes pays $260m for mine in WA lithium heartland

afr.com:

Chris Ellison’s Mineral Resources will pay just $260 million to complete the acquisition of one of Australia’s few operating lithium mines in Western Australia’s exploration heartland.

MinRes purchased Bald Hill via a deal with Singapore-listed Alita Resources and its administrator, McGrathNicol, that has upset some Alita shareholders.

The aggrieved shareholders had held out hope of a much higher sale price after being told in September that more than 10 potential buyers had shown interest in Bald Hill amid soaring valuations for lithium exploration companies in WA.

Potential buyers began circling Bald Hill after Treasurer Jim Chalmers blocked a sale to Austroid Corporation in July, on apparent links between US-based Austroid and Chinese lithium battery maker Sichuan.

The Australian Tax Office continues to investigate an offtake agreement involving Bald Hill and Hong-Kong registered Yihe Cleantech Material, according to McGrathNicol.

In an update to Alita shareholders, McGrathNicol said the independent expert’s work was complicated by the tax office investigation and the asset could be worth somewhere between zero and $94.2 million.

The nil valuation is based on the tax office ruling the offtake agreement is not struck at arm’s length.

The independent expert’s report noted that the outcome of the tax office review was likely to have a material impact on both the actual and future taxes payable in relation to Bald Hill mine.

Other lithium assets have attracted much loftier valuations. US lithium giant Albemarle abandoned a $6.6 billion takeover bid for WA developer Liontown Resources, MinRes-backed Wildcat Resources has tested a $1 billion valuation amid optimism around its Tabba Tabba project, and billionaire Gina