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Azure rises on SQM overture

The Andover lithium project area in Western Australia.

Photo by Bloomberg

15th August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The share price of junior Azure Minerals surged on Tuesday after the company confirmed it had received expressions of interest from Chile’s Sociedad Química y Minera de Chile S.A. (SQM) regarding a possible change of control transaction.

Azure told shareholders that the most recent offer, received in July this year, had an indicative price of A$2.31 a share in cash.

The company noted, however, that the approaches had been non-binding and highly conditional and following careful consideration of the content of the approaches and the potential of the company’s Andover lithium project, in Western Australia, the company had determined that the approaches did not warrant further engagement.

“The relationship with SQM remains both supportive and constructive as Azure continues to work towards further delineating the lithium potential of Andover. As previously announced, the company is targeting a maiden mineral resource estimate for Andover in the first quarter of 2024,” Azure said in a statement on Tuesday.

An exploration target of between 100-million and 240-million tonnes, grading between 1% and 1.5% lithium oxide has previously been estimated.

SQM earlier this year invested A$20-million in Azure, taking a 19.99% stake in the company.

Azure was trading at A$2.58 a share at the time of writing.

Edited by Creamer Media Reporter

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