PERTH (miningweekly.com) – The shareholders of Canadian takeover target Advantage Lithium have overwhelmingly voted in favour of a takeover from dual-listed lithium miner Orocobre.
Orocobre in February inked a definitive agreement to acquire Advantage, offering that company’s shareholders 0.142 Orocobre shares for every one Advantage share held, valuing the takeover target’s shares at 42c each, based on Orocobre’s last closing price of A$3.29 a share.
Orocobre will issue some 15.1-million shares under the transaction, which will increase its total issued shares by 5.8%, with the miner saying it would issue the shares under its existing placement capacity, which would not require shareholder approval.
Prior to the takeover offer, Orocobre held a 34.7% interest in Advantage.
Orocobre said on Wednesday that the arrangement remained subject to the approval of the Supreme Court of British Columbia, which is scheduled to hear an application to approve the transaction on April 16.
With the acquisition of Advantage, Orocobre will gain exposure to 4.8-million tonnes of measured and indicated resources, and 1.5-million tonnes of inferred resources at Advantage’s Cauchari development, in Argentina, where Orocobre currently holds a 25% interest with Advantage holding the balance.