SYDNEY: Pilbara Minerals Limited has completed the acquisition of the Altura Project, a news release said.
Pilbara Minerals has acquired all of the shares in Altura Lithium Operations Pty Ltd (ALO), the entity which owns the Altura Lithium Project, in consideration for an upfront cash payment of $155 million (A$201million).
Deferred consideration is also payable up to 12 months after completion, comprising the issue of approximately 69 million Pilbara Minerals’ shares at a deemed issue price of A$0.4072.
Following completion of the acquisition, Pilbara Minerals now owns 100% of the Altura Project. This represents a cost-effective and highly strategic consolidation of the adjoining lithium mining and processing operations, to which Pilbara Minerals is uniquely placed to add value.
Commenting on the completion of this landmark acquisition, Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, said: “This is a historic day in Pilbara Minerals’ relatively short history as a lithium producer and marks an important moment, not just for our shareholders, but also for the lithium industry in Australia.
“The well-timed and cost-effective acquisition of our neighbouring operation is one of the most compelling transactions seen in the lithium sector in recent times. It represents a unique opportunity to realise tangible synergies from integrating two very similar mining and processing operations and adopting a holistic approach to extracting value from what is essentially the same ore body.
“This deal secures our position as the leading pure-play lithium company on the ASX, with ownership of the largest independent hard-rock lithium complex in the world. It provides for a larger, more resilient and flexible operation with available offtake, which is an important strategic advantage at a time when a turnaround in the lithium market appears to be upon us.
“Having ownership of two processing plants provides the flexibility to both blend products to suit customer/market requirements, as well as dial production up or down as required to meet customer needs and market conditions”.
Having completed the acquisition of ALO, Pilbara Minerals will now focus on the integration of the Altura Project, including a comprehensive evaluation of the combined lithium operations and the realisation of tangible synergies. While the evaluation is being conducted, the Company plans to keep the Altura Project on care and maintenance until an appropriate implementation and operational strategy has been determined.
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