Aim at new energy minerals! Zijin Mining spends 5 billion to acquire Canadian lithium salt company Neo Lithium

SMM Oct. 9: Zijin Mining acquired all outstanding shares of Canadian lithium salt company Neo Lithium for a total consideration of about C $960 million (about 4.96 billion yuan) in cash at C $6.50 per share. It is reported that the price of this transaction is about 36 per cent higher than the 20-day average price of Neo Lithium.

As a prerequisite to the transaction, the transaction will be completed in accordance with arrangements under the Business companies Act of Ontario, subject to the approval of at least 66 per cent of shareholders, as well as approval from certain governments, regulators, courts and stock exchanges, including approval by the relevant Chinese authorities and the Canadian Investment Law, as well as the usual closing conditions in other transactions of this nature.

It is reported that the shareholders' meeting will be held in December this year and is expected to be completed in the first half of 2022.

The chairman of Zijin Mining said that, Neo Lithium's 3Q Lithium Salt Lake project in Catamaka, Argentina is one of the largest and highest-grade projects of its kind in the world. The 3Q project is an important complement to Zijin's growing global portfolio, and it is a good choice for Zijin to enter the field of new energy minerals.

According to public data, the 3Q project is located in the Latin American Lithium Triangle and covers an area of about 35000 hectares, including about 16000 hectares of salt lakes, in Argentina's largest lithium-producing province, Catamaca.

Despite the deal, Zijin said it would retain Neo Lithium's local operating subsidiary LIEX S.A. Existing management and professional team, and contribute to the economic and social development of Katamaka province in the process of promoting the development of the 3Q project.