Nickel miner IGO has completed an equity raising associated with its 49 per cent acquisition of Tianqi Lithium, giving it a stake in the Greenbushes lithium mine and Kwinana refinery.
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Nickel miner IGO has completed an equity raising associated with its 49 per cent acquisition of Tianqi Lithium, giving it a stake in the Greenbushes lithium mine and Kwinana refinery.
Nickel miner IGO has completed an equity raising associated with its 49 per cent acquisition of Tianqi Lithium, giving it a stake in the Greenbushes lithium mine and Kwinana refinery.
IGO raised about $446 million from a share placement and $261 million from a rights issue, priced at $4.60 per share.
The retail component of the entitlement offer is fully underwritten and will raise a further $58 million. It remains open from December 15 to January 15.
Proceeds from the combined equity raising will total $766 million.
It forms part of IGO’s $1.9 billion acquisition of a 49 per cent non-controlling interest in Tianqi Lithium – the Australian subsidiary of China’s Tianqi Lithium Corporation.
It is one of the second-largest acquisition in WA this year, surpassed by the recently announced merger of Northern Star Resources and Saracen Mineral Holdings.
IGO will acquire a 24.99 per cent indirect interest in the Greenbushes mine and processing plant, which is the world’s largest and lowest cost producer of lithium concentrate.
Tianqi will retain a 26 per cent stake in Greenbushes while US company Albemarle Corporation will retain its 49 per cent holding.
IGO will also have a 49 per cent indirect interest in the Kwinana lithium hydroxide plant, with Tianqi retaining the balance.
Also part of that deal, IGO and Tianqi will form a global lithium partnership – Lithium HoldCo – to become the exclusive vehicle for any future lithium related investments outside of China.
IGO managing director Peter Bradford said the deal positioned IGO as a globally relevant supplier of clean energy metals.
Shares in the company were up 25 per cent at 11:54am to trade at $6.37.
Rank | Company | Revenue | |
---|---|---|---|
11th | ![]() | Regis Resources | $1,133.9m |
12th | ![]() | Resolute Mining | $1,079.4m |
13th | ![]() | IGO | $1,020.7m |
14th | ![]() | OM Holdings | $896.0m |
16th | ![]() | Westgold Resources | $661.9m |