PERTH (miningweekly.com) – Battery metals miner Independence Group (IGO) has completed the acquisition of nickel miner Western Areas.
IGO had offered Western Areas shareholders A$3.87 a share for their stake in the Western Australian nickel miner.
“The acquisition of Western Areas marks another important milestone for IGO as we continue to grow. Completion of this transaction enhances our position as a leading independent producer of products critical for a clean energy future,” said IGO MD and CEO Peter Bradford.
“I am also delighted to welcome the Western Areas team to the IGO family and am looking forward to working together as part of a strengthened IGO.”
IGO previously said that the acquisition of Western Areas aligned with the company’s strategic commitment to discovering, developing and operating projects that will deliver products critical to clean energy generation and storage, enhancing its nickel portfolio and diversifying its asset base.
The acquisition is expected to be free cash flow accretive from 2024, once the ramp-up of the Odysseus underground mine development has been completed.
IGO said that its strong balance sheet would help to derisk and fund the development of Odysseus, while also progressing the Mt Goode prefeasibility study, and to fund the continued exploration of the Western Areas assets.
Western Areas ceased share trading earlier this month. An application has been made to remove Western Areas from the ASX’s official list, and the company is expected to delist at the close of business on June 21.