https://www.miningweekly.com
Mining|PROJECT|Projects|System|Equipment|Maintenance|Operations
Mining|PROJECT|Projects|System|Equipment|Maintenance|Operations
mining|project|projects|system|equipment|maintenance|operations

Pilbara launches A$240m raise for Altura buy

14th December 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Lithium miner Pilbara Minerals has launched a A$240-million equity raising to fund the acquisition of fellow-listed Altura Mining’s lithium project in the Pilbara.

Pilbara Minerals earlier this month entered into a share sale agreement with the administrators of fellow listed Altura Mining to gain ownership of Altura’s Pilgangoora lithium project, in Western Australia, for $175-million.

The ASX-listed Pilbara Minerals has also proposed a deed of company arrangement (DOCA) under which it would contribute A$6-million to a DOCA fund, in support of entitlements owing to Altura employees who have been made redundant after the Pilgangoora project was placed on care and maintenance.

Altura’s creditors have approved DOCA, satisfying a precondition to the proposed acquisition of the Altura project, and prompting Pilbara Minerals to launch its A$240-million equity raise.

The equity raise will comprise a A$119-million placement to shareholders AustralianSuper and Resource Capital Fund VII. AustralianSuper has been allotted some 160-million new shares in the company while RCF has been allotted some 171-million new shares.

Pilbara Minerals will also undertake a 1-for-7.6 fully underwritten entitlement offer, priced at 36c a share, to raise a further A$121-million.

The company was expected to issue some 337-million new shares under the entitlement offer, which will open on December 16.

“We are pleased to confirm the successful completion of the placement and announce the formal launch of the entitlement offer to all eligible shareholders which represents the final step in acquiring the Altura project,” said MD Ken Brisden on Monday.

“The acquisition of the Altura project on an unencumbered basis provides us with maximum flexibility to operate on an enlarged Pilgangoora operation once both projects have been integrated and consolidated. The receiver placed the Altura project on care and maintenance in October 202, and since then, our technical team has been undertaking an evaluation of the operations, which when combined with an assessment of the prevailing market conditions, will ultimately help us decide when to recommence operations at the Altura project under a single unified operation.”

Brinsden said that the company was uniquely placed to realise the full value of benefits that should arise from acquiring the neighboring Altura project, which when combined with the additional production capacity and uncommitted offtake positions, meant that Pilbara was strongly placed to capitalise on improving lithium market conditions, and the expected long-term industry growth trend.

The Altura operation is part of the same mineralised system as Pilbara’s own Pilgangoora project, and uses similar openpit mining methods, processing flowsheets and mining equipment.

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.206 0.241s - 91pq - 2rq
Subscribe Now