Tianqi Lithium Energy Australia (TLEA) has proposed to acquire 100% of Western Australia-based Essential Metals by way of a scheme of arrangement. 

TLEA is a joint venture owned by Tianqi Lithium Corp. (51%) and IGO Ltd. (49%). The JV currently owns an integrated lithium business, including a 51% interest in the Greenbushes lithium operation and 100% of the Kwinana lithium hydroxide refinery, both located in Western Australia.

If the scheme is implemented, each Essential shareholder will receive a cash amount of A$0.50 per share (scheme consideration), implying a fully diluted equity value of A$136 million for the miner.

“We believe this transaction is a great outcome for Essential shareholders and for other stakeholders including employees, suppliers, the Ngadju people and the state of Western Australia, all of whom will benefit from the Pioneer Dome lithium project being developed by a large, well-financed and experienced lithium sector participant as is TLEA,” said Tim Spencer, managing director of Essential Metals.

“The board is extremely proud of the hard work and achievements of the Essential team and the significant progress made in advancing the Pioneer Dome lithium project to its current pre-development stage.”

The scheme is subject to various conditions including approval by Essential shareholders at a meeting proposed to be held in April 2023.

Source: Essential Metals