PERTH (miningweekly.com) – The share price of ASX-listed Altura Mining climbed by more than 5.5% on Thursday on news that the company had walked away from a potential control transaction.
Altura in March confirmed speculation that it was in discussions with Shaanxi J&R Optimum Energy Company regarding a potential control transaction.
The lithium miner said on Thursday that as a result of the approach, the company decided to undertake an evaluation to determine if shareholder value was best served through a potential control transaction, or by continuing to focus on the commissioning and development of its Pilgangoora project, under the existing ownership structure.
The board has determined that on account of the prevailing market sentiment towards listed lithium companies, and the fact that the company is commissioning the Pilgangoora project and transitioning from a developer to a producer, any change of control transaction would be unlikely to deliver an ‘appropriate’ valuation outcome for shareholders.
As a result, the company has now suspended activity regarding the control transaction, with management now focused on ramping-up the Pilgangoora project to full production.
The first lithium concentrate from Altura’s flagship project was hauled to port this week, after first concentrate production in July.
Altura shares were trading at a high of 29c a share on Thursday, up from a low of 27.2c each.