MinRes takes big stake in WA lithium play Wildcat
Billionaire Chris Ellison’s Mineral Resources has snared a 19.8 per cent stake in a new lithium target with links to MinRes chairman James McClements.
MinRes disclosed its shareholding in Wildcat Resources late on Tuesday, after The Australian Financial Review revealed ten days ago it was targeting the West Australian explorer with ground near the Wodgina lithium mine jointly owned by MinRes and Albemarle.
Falling prices have not deterred Chris Ellison.
MinRes paid $158.7 million for a block of shares traded by Mr McClements’ private equity firm, Resource Capital Funds, and RCF-controlled Global Advanced Metals.
The shares that changed hands were issued to RCF and Global Advanced as part of an agreement struck in May to sell the Tabba Tabba lithium project in WA’s Pilbara to Wildcat.
At the time, the shares were valued at about $6.5 million. Global Advanced also received performance share rights and a 0.75 per cent gross revenue royalty on any lithium sold from Tabba Tabba.
Wildcat’s market capitalisation was just $19 million in May, but excitement around Tabba Tabba exploration work and speculation about MinRes’ intentions took it to $900 million.
The Financial Review reported on October 22 that Mr Ellison was sounding out Wildcat investors about acquiring their shares off market.
Tabba Tabba is located about 87 kilometres from Wodgina, about 50 kilometres from Pilbara Minerals’ Pilgangoora mine, and just over 200 kilometres from Azure Minerals’ Andover project.
New York-listed SQM lobbed a $1.63 billion takeover offer for Azure last week, but the bid is now complicated by Gina Rinehart holding an 18 per cent stake in the target.
The SQM bid is part of a lithium land grab around established mines in WA that shows no
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