- Pilbara Minerals (PLS) is hoping to snap up a neighbouring lithium project currently held by struggling ASX-listed Altura Mining (AJM)
- Altura entered into receivership earlier this week, after it failed to drum up capital to offset a spiralling debt sheet
- As a result, Pilbara Minerals has offered to purchase the project for US$175 million (approximately A$248 million)
- If successful, the deal will expand Pilbara Minerals’ neighbouring Pilgangoora lithium and tantalum project, combing the two sites into a single operation
- If the offer proves successful, pending the receivership process, Pilbara Minerals expects the deal to finalise in early December this year
- Pilbara Minerals closed in grey for $0.39 per share
Pilbara Minerals (PLS) is hoping to snap up a neighbouring lithium project currently held by struggling ASX-lister Altura Mining (AJM).
Altura slipped into receivership earlier this week after it failed to drum up the capital needed to offset its spiralling debt sheet. As a result, receivers from KordMentha are now fielding offers for the company’s assets, chief among them being its WA-based lithium operation.
In a deal struck with Altura noteholders, Pilbara Minerals has now offered to purchase the project for US$175 million (approximately A$248 million).
If successful, the deal will expand Pilbara Minerals’ Pilgangoora lithium and tantalum project, uniting the two sites into a single operation and transforming Pilbara into the ASX’s largest pure-play lithium producer.
Pilbara Minerals’ Managing Director, Ken Brinsden, believes the acquisition represents a logical consolidation of two neighbouring operations.
“If successful, the acquisition will cement Pilbara Minerals’ position as the largest pure-play ASX-listed lithium company by enterprise value and will provide strong leverage to the expected recovery in lithium prices, driven by the increasing demand for electric vehicles and energy storage applications evident across the world,” he said.
While the deal is not yet finalised, Pilbara Minerals retains the right to match any competing offer for the project, which could still come from within Altura Mining’s own management.
As Altura is still in the receivership process, it could theoretically bring forward its long-awaited capital raise, settle its financial troubles and retain the project in its name.
The likelihood of that, however, wanes with every day, as both KordaMentha and Pilbara Minerals will be eager to push the deal forward as quickly as possible.
Whether any buyout deal would trickle down to Altura Mining’s long-suffering shareholders remains unclear.
If the offer proves successful, pending the receivership process, Pilbara Minerals expects the deal to finalise in early December this year.
Pilbara Minerals closed in grey for $0.39 cents per share.