Pilbara Minerals’ acquisition of Latin Resources is now legally effective, following months of securing relevant regulatory approvals from entities such as the Supreme Court of Western Australia.
Pilbara Minerals is the owner of the Pilgangoora lithium operation in WA, one of the largest hard rock lithium deposits in the world.
Now joining its portfolio is Latin Resources’ Salinas lithium project in Minas Gerais, Brazil, signalling Pilbara Minerals’ entrance into the South American lithium market.
Salinas could contribute significantly to Pilbara Minerals’ future production, potentially adding up to 30 per cent to the company’s pro-forma steady state production at a competitive cost base.
“The acquisition will deliver our second 100 per cent-owned, Tier 1, hard rock lithium asset, which is expected to be low-cost and accretive for our shareholders,” Pilbara Minerals managing director and chief executive officer Dale Henderson said in August 2024, when the acquisition was first announced.
“It provides Pilbara Minerals with optionality to sequence new supply and diversify into new growth markets for lithium such as Europe and North America.
Pilbara Minerals acquired Latin Resources through a share scheme of arrangement and an option scheme of arrangement.
The all-share transaction offered Latin Resources shareholders a 57 per cent premium on the company’s 10-day volume-weighted average price, valuing each Latin share at approximately $0.20.
Now, Latin Resources has been suspended from the ASX and new Pilbara Minerals shares are set to commence trading on a deferred settlement basis today.
The schemes are scheduled to be implemented on February 4, with new Pilbara Minerals shares expected to commence trading on a normal settlement basis the following day.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
