Mineral Resources (MinRes) has entered into an implementation agreement to acquire the Bald Hill lithium mine in WA.
Bald Hill, located 50km south east of Kambalda, is owned by a subsidiary of Alita Resources. Alita went into administration in December 2020 and appointed McGrathNicol as administrators.
There is currently an application before the Supreme Court of Western Australia to allow Alita to be placed into liquidation, which would allow MinRes to implement its acquisition of Bald Hill.
If the court orders the liquidation, MinRes will pay out the secured debt and acquire Alita’s interest in Bald Hill.
“The outcome of applications in the Supreme Court is currently uncertain with no guarantee that the transaction will be able to proceed, and details are currently subject to commercial confidentiality between transaction parties,” MinRes said in an announcement.
MinRes expects to fund the potential acquisition without raising equity. The company is keen to acquire the mine to ensure profits stay in Australia.
“MinRes’ successful acquisition of the Bald Hill mine will ensure that the mine is being operated by an experienced Australian ASX listed lithium miner, and any profits are generated and taxes and royalties paid in Australia to the benefit of Australian taxpayers,” MinRes said.
“MinRes is the largest lithium miner in the Goldfields region of Western Australia, operating the world-class Mt Marion lithium mine, and is one of Australia’s largest diversified resources companies.”