Photo by: Reuters
PERTH (miningweekly.com) – The shareholders of ASX-listed Kidman Resources have backed a A$776-million takeover offer from fellow-listed Wesfarmers.
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 the Sociedad Quimica y Minera de Chile SA (SQM).
The integrated Mt Holland project is expected to produce spodumene concentrate from the mine and concentrator project, which would 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.
Wesfarmers MD Rob Scott on Thursday said the approval by Kidman shareholders was an important milestone for the proposed acquisition, and the subsequent participation in the development of Mt Holland.
“Subject to final court approval, completion of the transaction is expected to take place later this month,” Scott said.