Australian mineral exploration firm, Azure Minerals, has opted to reject a takeover proposition worth A$901 million ($583.4 million) made by Chilean chemicals company Sociedad Química y Minera de Chile (SQM).
In a non-binding and condition-laden proposal, SQM entered confidential negotiations with Azure, offering A$2.31 per share as a takeover bid.
Despite the offer, Azure Minerals declined the proposal, citing the growing potential of its Andover project as a key factor. This decision was reinforced by the company’s stock price surpassing the offer price. Following the release of lithium results and exploration targets, Azure’s stock reached an intraday peak of $2.96 on August 8.
Notably, SQM already holds a substantial 19.99% stake in Azure, positioning itself as the largest shareholder in the company. It remains committed to aiding Azure in realizing the lithium potential within the Andover project situated in Australia.
Andover Project Details
Azure’s Andover project is situated in the West Pilbara region of Western Australia and centers around nickel, copper, and cobalt exploration. The project spans an area of 70km², with 60% ownership attributed to Azure and the remaining 40% owned by Creasy Group.
Recent developments at the Andover project revealed significant lithium mineralization. The company reported lithium oxide grades ranging from 1.0% to 1.5% across three target zones, totaling between 100 and 240 million tonnes of mineralized material.
The exploration targets are concentrated within the Andover pegmatite swarm, an expanse covering 9km. Lithium mineralization in these target areas is primarily found within the pegmatites’ spodumene component.
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