14/12/2009 - 09:36

Talison Lithium pulls $196m IPO

14/12/2009 - 09:36

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Talison Lithium's $196 million initial public offer has been withdrawn, days before it was due to list on the local stock exchange, making it the second major resources float in less than a week to suffer an eleventh hour setback.

Talison Lithium's $196 million initial public offer has been withdrawn, days before it was due to list on the local stock exchange, making it the second major resources float in less than a week to suffer an eleventh hour setback.

In a statement today, Talison Lithium chairman Peter Robinson said investors refused to support the float at the price offered, but existing shareholders remained committed and supportive of the company.

"We have an established operation based on a unique, long life, high grade lithium deposit at Greenbushes, and a track record of successfully increasing capacity as the lithium market has expanded," he said.

"Talison Lithium is ideally positioned to take advantage of the attractive market dynamics forecast for lithium in the future by leveraging off the strengths of our skilled workforce, long-term relationships with customers and suppliers and the experience of our management team to pursue our growth strategies."

Talison Lithium had last month announced plans to raise between $143.5 million and $196.4 million through the issue of up to 35 million new shares, while existing major shareholder Resource Capital Fund IV had the option to sell an additional 3.5 million of its shares.

Shares were to be priced between $4.10 and $5.10.

Talison, which bought assets from the administrators of Sons of Gwalia in 2007, had planned to dual list on the Australian Securities Exchange and Toronto Stock Exchange this week.

Its flagship Greenbushes mine near Perth is the only operating lithium mine in Western Australia.

The Talison development follows news last week that Cape Lambert Resources had to delay the $203 million Q Copper float after a UK investor pulled out.


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