Codelco, the world’s biggest copper producer, is set to take over Lithium Power International, an Australian junior mining company that owns a lithium project in northern Chile.
The Australian company's shareholders almost unanimously voted in favor of a takeover. The company would be valued at AUD385 million ($254 million). The purchase is Codelco’s first in lithium segment as the state-owned firm targets Lithium Power’s project in the Maricunga salt flat of northern Chile.
A total of 99.5% of Lithium Power shareholders were in favor of the takeover, the company said a statement on Tuesday. Owners of the company’s stock will receive A$0.57 in cash per share, a premium of 119% over the closing share price on Sept. 26.
The takeover faces a final confirmation at a court hearing scheduled for next month.
According to Bloomberg, Codelco has been tapped to represent the Chilean state in a new public-private model for lithium as President Gabriel Boric looks to open up new areas for production to meet growing demand from the EV boom. The South American nation is the biggest lithium supplier after Australia but has lost market share.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
