23/01/2017 - 10:09

$107m Birimian deal falls over

23/01/2017 - 10:09

Bookmark

Save articles for future reference.

Subiaco-based lithium explorer Birimian has terminated a $107.5 million cash offer for its Bougouni project in Mali after the Chinese bidder failed to make a deposit in time.

$107m Birimian deal falls over
Site work at Birimian's Bougouni lithium project in Mali.

Subiaco-based lithium explorer Birimian has terminated a $107.5 million cash offer for its Bougouni project in Mali after the Chinese bidder failed to make a deposit in time.

Birimian told the market this morning that the offer, which was received from Chinese chemical company Shandong Mingrui Group earlier this month, was subject to a number of conditions including the provision of a $10.7 million deposit due last Friday.

That deadline was not met, and Birimian subsequently ended the deal.

“It is in the best interests of all our shareholders to consider offers for our assets, and assess the veracity of any reasonable offers that are presented,” Birimian managing director Kevin Joyce said.

“In good faith, this process was followed by the company with regards to the Mingrui letter of intent.”

Mr Joyce maintained the lithium project was a high-quality, ‘company-making’ asset.

“We have made great progress over the past 10 months advancing the project from greenfields discovery,” he said.

“We are very keen to accelerate development towards commercialisation in the year ahead and will continue to assess development options in this regard.

“We have a very busy development period ahead of us.”

Birimian has three drill rigs operating at Bougouni, and plans to complete a scoping study on the project ahead of a pre-feasibility study, which has been pencilled in for the June quarter.

It follows news in December that Birimian had signed a memorandum of understanding with Chinese company Far East First New Energy for development of Bougouni, including a potential offtake agreement.

Birimian shares were 4.6 per cent lower to 31 cents each at 10am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options