Neo Lithium Corp. (TSXV: NLC) announced on Friday night that it has entered into a definitive agreement with Chinese mining company Zijin Mining Group Co. (SSE: 601899) in which the latter is set to acquire the Canadian firm. The acquisition deal is reported to be for a total consideration of approximately $960 million.
Under the agreement, the Fujian-based mining firm agreed to acquire all of the outstanding Neo Lithium shares at $6.50 per share, which represents a 36% premium over the company’s average price as of Friday.
“After a thorough strategic process, we are very pleased to provide this all-cash premium offer to our shareholders from a leading global mining company,” said Neo Lithium CEO Waldo Perez.
The Chinese mining firm specified that Neo Lithium’s 100%-owned 3Q lithium brine project in Catamarca, Argentina will represent “an important addition to [its] global asset mix” and “a good choice for [entering] the field of new energy minerals”. It has also committed to retaining the team at LIEX S.A., Neo Lithium’s local operating subsidiary.
The transaction already scored the approval of Neo Lithium’s board and will now be up for the approval of the shareholders. The next shareholders’ meeting is expected to happen in December 2021.
Neo Lithium last traded at $5.49 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.