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Friday, Sep 22, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Albermarle places AUD$6.6B bid for Australian battery producer Liontown Resources

Liontown will grant Albemarle a chance to perform due diligence towards making a binding proposal

Albemarle makes opening bid for Australia-lithium acquisition
Image via Albemarle Corporation.

Albemarle Corporation (NYSE: ALB) has taken a significant step in the energy and minerals sector by announcing a bold bid to acquire Liontown Resources Limited (ASX: LTR), a prominent battery-mineral producer, in a landmark deal valued at AUD$6.6 billion (US$4.3 billion).

Announced on Tuesday, the specialty metals manufacturing giant submitted a non-binding proposal which if accepted would boost Albermarle’s existing energy storage business, help to grow its resources base, and reinforce its presence in Australia.

Liontown Resources owns and operates two different lithium projects in Western Australia. These include the Kathleen Valley Lithium Project, which hosts a substantial lithium resource. The project aims to explore and develop high-quality lithium resources to cater to the growing demand for lithium-ion batteries, particularly in electric vehicles and energy storage systems.

Additionally, the company owns and operates the Buldania Project in the Eastern Goldfields, which displays similar geology to Mount Marion and Bald Hill lithium deposits.

Conditions for the revised proposal include the successful completion of due diligence by Albemarle, as well as the establishment of a legally binding framework for implementation. This framework includes meeting close requirements, such as regulatory approvals from both the Australian authorities and Liontown shareholders.

The Liontown board will grant Albemarle a chance to perform due diligence to satisfy shareholder conditions towards making a binding proposal, and also stated that if Albemarle were to make a binding proposal at AUD$3 per share, it would recommend its shareholders to vote in favour of the proposal.

Albemarle shares rose 0.3 per cent to $200.84 on Tuesday on the New York Stock Exchange.

Read more: Calibre Mining reports record breaking sales and increased net income in Q2

Read more: Calibre Mining expands resources from open pit at Nevada’s Pan Gold Mine

Australia is one of the world’s leading lithium producers

Australia is one of the world’s leading producers of lithium, and it has a significant presence in the global lithium mining industry. The country is known for its abundant lithium resources, primarily extracted from spodumene-rich mineral deposits.

One of the major lithium mining operations in Australia include Greenbushes, which is a joint operation between Albemarle and Talison Lithium Pty Ltd (ASX: TLH).

Pilgangoora is another important lithium mining operation in Western Australia, hosting substantial spodumene resources and has become a significant source of lithium concentrates. The operation is owned and operated by Pilbara Minerals (ASX: PLS).

Other lithium companies doing business extracting lithium from Australian soil include Mineral Resources Limited (ASX: MIN), which operates two hard rock lithium mines in Western Australia. Also, Galaxy Resources Limited (ASX: GXY) is actively involved in lithium mining and exploration projects in Western Australia. It has operations at the Mount Cattlin lithium mine.


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