Pilbara Minerals (ASX:PLS) has completed its acquisition of Latin Resources (ASX:LRS) by way of an all-share and option schemes of arrangement
The company yesterday (4 February) issued just over 205.5 million new shares to Latin Resources shareholders, and the appointed sale agent, representing 6.4% of Pilbara’s shares on issue.
The completion of the acquisition of Latin Resources and its flagship Salinas Project is consistent with Pilbara Minerals’ strategy to grow and diversify revenues beyond Pilgangoora, the acquirer says.
With the transaction complete, the Salinas Project will be renamed the Colina Project.
Pilbara Minerals CEO Dale Henderson Latin’s Salinas Project has the potential to become a leading hard rock lithium operation by production globally, located in the world-class mining jurisdiction of Minas Gerais, Brazil, with development flexibility to supply new markets (subject to market conditions).
“We are excited by the opportunities ahead at our Colina Project in Brazil. The (Pilbara Minerals) team is looking forward to working with our new colleagues in Brazil to advance project studies and resume drilling activities, which will support the future development of the Colina Project,” the CEO says.
“One of the attractions of Latin Resources was the strong foundation of community support that has been established. We look forward to continuing this collaboration with the community and all key stakeholders in Brazil.”
Henderson adds that the asset is expected to be low-cost and value-accretive, offering Pilbara Minerals the flexibility to sequence new supply and diversify into emerging growth markets for lithium, such as Europe and North America.
Late last month, the Supreme Court of Western Australia has approved the acquisition, as reported by Mining.com.au.
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.
Write to Adam Orlando at Mining.com.au
Images: Pilbara Minerals
