PERTH (miningweekly.com) – The shareholders of ASX-listed Galaxy Resources have voted in favour of a proposed merger of dual listed lithium miner Orocobre.
The two companies in April struck a merger of equals agreement to create the fifth largest global lithium chemicals company.
Under the terms of the proposed A$4-billion merger, Galaxy shareholders would receive 0.569 Orocobre shares for each share held, with Orocobre shareholders to own a 54.2% of the fully diluted share capital of the combined entity, while Galaxy shareholders would own the remaining 45.8%.
Galaxy said on Friday that some 98.69% of the votes cast by shareholders had been in favour of the merger agreement.
The company will now seek Supreme Court approval of the merger, at a hearing scheduled for August 13. Implementation of the scheme is targeted for August 25.
The merger is expected to create a top five global lithium chemicals company with assets across a diversified geography, lithium sources and end products, and will combine two complementary, large scale tier-one assets in the form of Orocobre’s Olaroz mine, in Argentina, and Galaxy’s Mt Cattlin mine, in Western Australia.
The combined company will also have a significant portfolio of upstream and downstream growth projects, with the growth pipeline evenly balanced between production optimisation, construction, advanced projects, brownfield expansions and early-stage projects.