Photo by: Bloomberg
PERTH (miningweekly.com) – The Federal Court of Australia has approved ASX-listed Wesfarmer’s A$776-million takeover of lithium developer Kidman Resources.
Wesfarmers in May this year launched a A$1.90-a-share cash offer for the lithium junior, which holds a 50% interest in the Mt Holland lithium project, in Western Australia, which is jointly owned by Sociedad Quimica y Minera de Chile SA (SQM).
Kidman’s shareholders last week approved the takeover.
The two companies will now lodge the Court orders with the Australian Securities and Investment Commission, with Kidman shares to be suspended from trading on the close of Friday, as the takeover became effective.
Wesfarmers is expected to make the cash payment on September 23, with the transaction to be funded from the company’s existing bank facilities.
The integrated Mt Holland project is expected to produce spodumene concentrate from the mine and concentrator project, which will then be transported to the Kwinana lithium refinery and processed to produce some 45 254 t/y of battery grade lithium hydroxide.
Over an estimated project life of 47 years, the integrated Mt Holland project would deliver earnings before interest, taxes, depreciation and amortisation of $22-billion, and average revenues of $713-million a year.