Upon completion of two-stage transaction, SQM will change into Azure Minerals’ largest shareholder.
Lithium firm Sociedad Química y Minera de Chile is ready to accumulate a 19.99% curiosity in Azure Minerals by investing as much as A$20m ($13.8m), by means of the previous’s wholly owned subsidiary SQM Australia.
Beneath the two-stage transaction, SQM initially subscribed for 16,381,720 bizarre shares of Azure at A$0.2564 apiece, permitting Azure to lift A$4.2m.
The second tranche is topic to sure circumstances, together with the completion of due diligence investigations, and Azure signing an offtake settlement SQM.
In response to the offtake settlement, SQM is permitted to offtake 25% of all lithium merchandise owned by Azure.
The strategic funding by SQM will help the lithium mining and processing operation at its majority-owned Andover undertaking, stated Azure.
Following the completion of the second tranche, SQM will subscribe for a further 61,626,471 shares in Azure, every priced at A$0.2564. It will enable Azure to lift A$15.8m.
Azure managing director Tony Rovira stated: “It is a important milestone occasion and is a powerful endorsement of Azure and our initiatives by one of many world’s main lithium producers.”
Upon completion of each tranches, SQM will change into Azure’s largest shareholder.
SQM will even maintain the suitable to nominate a director to Azure’s board of administrators. It should even have the suitable to type a technical committee to advise on the exploration.
Azure will use the deal proceeds to fast-track lithium exploration on its 60%-owned Andover Undertaking within the West Pilbara area of Western Australia.
Rovira added: “The brand new relationship will enable Azure to attract upon SQM’s technical experience in pegmatite-hosted lithium exploration, undertaking growth, manufacturing and advertising, offering Azure with sturdy help as we glance to develop the Andover lithium property.
“Azure is now in a really sturdy monetary place and, following completion of each tranches of the transaction with SQM, Azure may have a money stability of greater than $25m, which can be used to speed up lithium exploration by means of a programme of intensive drilling throughout the Andover Undertaking.”
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