IGO raises $727m for Tianqi deal

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.