MinRes set to buy WA lithium mine Bald Hill
Chris Ellison’s Mineral Resources is the mystery bidder that has signed an implementation deed to buy West Australian lithium mine Bald Hill out of administration.
Street Talk understands MinRes has agreed to a period of exclusivity with Bald Hill’s administrators, McGrathNicol, and is expected to complete the deal in coming weeks. It would pay several hundred million dollars to buy the asset, sources said.
A spokesperson for MinRes declined to comment.
Billionaire Chris Ellison’s Mineral Resources is in advanced negotiations to purchase the Bald Hill lithium mine.
An implementation agreement was signed on August 30. The next step is for the share sale agreement to come into effect. Currently, it is facing some opposition from KordaMentha – the receivers and managers for Bald Hill’s owner, Alita Resources – which has questioned McGrathNicol’s authority in leading the sale.
The mooted deal comes amid a flurry of M&A activity in the lithium sector, both locally and offshore. Liontown Resources’ suitor Albemarle returned with a friendly $3 a share bid on Monday after being spurned by the target earlier in the year. Allkem is due to merge with Livent in a $15.7 billion deal, and Pilbara Minerals and Patriot Battery Metals have both been seeking partners.
Bald Hill’s lithium and tantalum mine is located in WA’s Eastern Goldfields, and was hit by liquidity issues amid a commodity price slump in 2019. It was the primary asset of Alita Resources, which has been in administration for nearly four years, first via KordaMentha and then – starting in December 2020 – via McGrathNicol. Alita, which was previously called Alliance Mineral Assets Pty Ltd, was once listed on the ASX. (KordaMentha is currently the receiver and manager).
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