The Supreme Court of Western Australia has approved Pilbara Minerals’ (ASX:PLS) proposed acquisition of Latin Resources (ASX:LRS) by way of an all-share and option schemes of arrangement.
Latin Resources expects to lodge an office copy of the court orders with the Australian Securities and Investments Commission (ASIC) Wednesday 22 January, at which time the schemes will become legally effective.
The company is set to also request to be suspended from close of trading today also.
The schemes of arrangement are scheduled to be implemented on 4 February 2025.
Pilbara Minerals had retained Barrenjoey as financial advisor and Corrs Chambers Westgarth as legal advisor in relation to the scheme. Latin Resources appointed Macquarie Capital (Australia) as its financial advisor and King & Wood Mallesons as its legal advisor.
Through the acquisition, Pilbara Minerals secures Latin Resources’ flagship Salinas Lithium Project, which the suitor says has potential to become a top 10 hard rock lithium operation by production globally (excluding Africa), located in Minas Gerais, Brazil.
Latin Resources has been progressing a Definitive Feasibility Study (DFS) for Salinas which had been anticipated to be completed by the end of the September quarter 2024 based on a standalone development of Salinas.
Upon implementation of the scheme, Pilbara Minerals will continue to progress and optimise the DFS towards completion, building on the work undertaken by the two companies between now and then.
Pilbara Minerals has been seeking to further optimise the mine plan, project flowsheet and design incorporating the learnings from Pilgangoora and other producers in the region using a combination of Pilbara Minerals’ projects engineering team and the in-country Latin Resources study team.
Once the DFS is completed, Pilbara Minerals has the optionality to consider a final investment decision (FID). Pilbara Minerals will consider any project development and FID timing against the prevailing lithium market conditions and customer requirements, consistent with previous Pilbara Minerals production expansions.
Write to Adam Orlando at Mining.com.au
Images: Latin Resources
