SQM and Hancock Prospecting to Acquire Azure Minerals in a Major Lithium Sector Deal

Chilean lithium giant SQM, in collaboration with Australian mining heavyweight Hancock Prospecting, has finalized an agreement to acquire 100% of Australian mining firm Azure Minerals. The deal is set at a purchase price of A$3.70 (€2.24) per share, totaling an investment of approximately 1.7 billion Australian dollars (around 1.03 billion euros), surpassing initial estimates.

This strategic acquisition will be facilitated through SH Mining, a joint venture between SQM's Australian subsidiary and Hancock Prospecting's Hanrine Future Metals subsidiary. Should the initial takeover plan encounter obstacles, an alternative conditional off-market takeover offer of A$3.65 (€2.21) per share has been prepared.

Azure Minerals' board has endorsed the acquisition, advising shareholders to accept the offer, which presents a premium compared to previous bids. The collaboration between SQM and Gina Rinehart's Hancock Prospecting, marking a significant alliance in the mining sector, follows initial competitive bids for Azure shares last October. The Australian Securities and Investments Commission (ASIC) approved the joint acquisition proposal in December, with the transaction concluding ahead of the anticipated April timeline.

The acquisition centers on Azure's principal asset, the Andover lithium project in Western Australia. This project boasts an exploration target ranging between 100 million and 240 million tonnes of ore, with lithium oxide grades between 1% and 1.5%, translating to 2.5 million to 9 million tonnes of lithium carbonate equivalent.