Canada’s Neo Lithium Corp will be bought by China’s Zijin Mining Group Co Ltd for a high price of C$918.7 million ($737.14 million), according to news on Friday.
Neo Lithium Corp. has, in short order, become a conspicuous name in lithium brine development by ethicalness of its great 3Q project and experienced group. Neo Lithium is quickly propelling its 100% possessed 3Q project, which is a special high-grade lithium brackish water lake and solar complex in Latin America’s “Lithium Triangle.”
The organization said in a joint meeting that Zijin has consented to purchase Argentina-centered lithium organization Neo Lithium at the cost of C$6.50 per share in cash. The proposition addresses a premium of more than 18% to Neo Lithium’s ongoing deal of C$5.49 on Friday. Neo Lithium said that the arrangement had been collectively supported by the board.
The 3Q project is in the Catamarca Province, the biggest lithium-creating region in Argentina, covering around 35,000 ha, including a solar complex of roughly 16,000 ha.
In August, Chinese gold and copper digger Zijin said its deal on lithium and other new energy minerals was in a fundamental vital stage with no itemized time period or explicit projects yet.
The arrangement comes after Chinese battery producer Contemporary Amperex Technology Co Ltd (CATL) last month consented to get Canada’s Millennial Lithium Corp in an all-stock money bargain with a huge worth of C$376.8 million.
Last year, CATL additionally bought in excess of 10 million portions of Neo Lithium Corp and turned into the organization’s third-biggest investor.
Zijin is focused on holding the current administration and expert group at LIEX S.A., Neo Lithium’s neighborhood working auxiliary, just as making commitments to monetary and social improvements for Catamarca territory, Argentina, as it pushes ahead to propel the arrangement of the 3Q Project.
Advantages to Neo Lithium Shareholders
- All-cash offer that isn’t dependent upon a financing condition
- Strong bargain sureness with an exceptionally believable and driving worldwide mining organization as a buyer
- Immediate and critical premium of around 36% to the 20-day VWAP on the TSXV
- Voting support deals went into with all chiefs and senior officials of Neo Lithium who hold shares
- Removes future weakening, item, development, creation, and execution hazard with next period of 3Q project
The Transaction will be finished as per a Plan of Deal under the Business Corporations Act (Ontario). The Transaction will be dependent upon the endorsement of no less than 66-⅔% of the votes cast by investors.
Notwithstanding investor approvals, the Transaction is dependent upon the receipt of specific government, administrative, court, and stock trade approvals by significant experts for the People’s Republic of China and Investment Canada Act endorsement and other shutting conditions standard in exchanges of this nature.
Full details of the Transaction will be remembered for Neo Lithium’s administration data round, which is relied upon to be sent to investors in November 2021, with the investors meeting expected to happen in December 2021.