Diversified mining company Sibanye-Stillwater has increased its effective shareholding in Finnish company Keliber to 85.96%, as part of financing arrangement that enables the lithium project to progress to the construction phase.
In the first stage of the financing arrangement - announced in June - Sibanye exercised its pre-emptive right to increase its shareholding in Keliber to 50% plus one share, investing €146-million in the lithium development company.
Sibanye also made a voluntary cash offer to minority shareholders, other than Finnish Minerals Group, which has resulted in the South Africa-based major increasing its shareholding in Keliber an effective 84.96% for a further cash consideration of €190-million.
Finnish Minerals Group currently holds an effective 13.90% of Keliber and other remaining minority shareholders, which elected not to accept the voluntary cash offer, holding an effective 1.14%.
The second stage of the financing arrangement will involve a capital raise, which will be fully underwritten by Sibanye, of about €104-million.
Keliber says conventional debt facilities to at least match the €250-million equity contribution, are currently being negotiated with third party lenders to fund construction of the project.
Keliber is aiming to be the first fully integrated lithium producer in Europe with full production of about 15 000 t/y of lithium hydroxide and direct market access to European markets from the Port of Kokkola where its lithium chemical plant is based.
The company aims to start lithium hydroxide production in 2024.