Azure Minerals signed a binding Transaction Implementation Deed with SQM’s wholly owned Australian subsidiary in which SQM would acquire 100% shareholding in the company.

In a continuation of the M&A activity occurring in the Australian lithium market in Q3 2023, SQM announced it has signed a binding Transaction Implementation Deed with Azure Minerals to acquire 100% shareholding in the company via its Australian subsidiary SQM Australia. The agreement values Azure at A$1.63Bn (US$1.03Bn) or A$3.52/share, though a simultaneous conditional off-market takeover offer of A$3.50/share has also been made by SQM should the on-market approach not be successful. The acquisition remains reliant upon approval from the Australian Foreign Investment Review Board, though Azure states that the agreement is not subject to any financing or due diligence conditions. Any agreement would build on SQM’s existing 19.99% stake holding in Azure Mineral purchased in January 2023, which was secured for an A$20M (US13.9M) investment in a two-stage transaction.

The deal would give SQM a controlling shareholding over the Andover lithium project located in Western Australia, which is 60% held by Azure Minerals, with the remaining 40% held by the Creasy Group which is free carried to final investment decision. A maiden lithium mineral resource for the Andover project is expected in Q1 2024, though an exploration target of 100-240Mt grading 1-1.5% Li2O has been announced. Initial production at the operation is not targeted until 2030 under the current development plan, though this could be accelerated if the agreement with SQM is successful.