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 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.
Shares in the company were up 25 per cent at 11:54am to trade at $6.37.