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Zijin Mining makes C$960m all-cash offer for Neo Lithium Corp

10th October 2021

By: Creamer Media Reporter

     

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Chinese multinational Zijin Mining Group has made an all-cash offer to buy out TSX-listed Neo Lithium Corp for C$6.50 a share, or about C$960-million.

Neo Lithium holds a 100% interest in the 3Q lithium brine lake project in Argentina. The project comprises 13 mining claims over a 353 km2 area.

Zijin reports that Neo Lithium had completed a prefeasibility study (PFS) on the project in 2019. The PFS was updated in April this year.

According to the PFS, the project is expected to produce about 20 000 t/y of battery-grade lithium carbonate over a 35-year mine life.

The project will require an estimated $319-million in capital expenditure. The PFS estimates an net present value of $1.14-billion, an internal rate of return of 49.9% and a 1.7-year payback period.

Zijin notes that Neo Lithium is working with engineering company Worley on a definitive feasibility study for the 3Q project, which is expected to be completed in the fourth quarter.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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