PERTH (miningweekly.com) – Lithium company Sociedad Química y Minera de Chile S.A. has, through its wholly-owned subsidiary SQM Australia, completed a A$20-million investment in ASX-listed Azure Minerals.
The two companies earlier this year announced the deal which sees SQM holding a 19.99% stake in Azure.
SQM initially subscribed for more than 16.38-million shares in Azure at a price of 25.64c a share, raising an initial A$4.2-million for Azure and giving SQM a 4.99% shareholding in the Australian company.
The conditions precedent for the second tranche of the transaction have now been met, with SQM subscribing for an additional 61.62-million shares in Azure, raising a further A$15.8-million for the company.
SQM now has the right to appoint a director to the Azure board and to form a technical committee to assist and advise in the exploration and development of Azure’s lithium projects.
Azure said on Monday that it was using the funds raised under the transaction to undertake an accelerated growth strategy to advance the company’s multi-commodity opportunity on the Andover project. Lithium exploration is being fast-tracked with substantial diamond and reverse circulation drilling being carried out to determine the scale of the high-grade lithium mineralisation already mapped and sampled at surface. Nickel exploration and mine development studies on the Andover and Ridgeline deposits will also continue through 2023.