Australian lithium producer Pilbara Minerals has announced it inked a conditional agreement to buy local peer Altura Mining for about US$175 million, subject to the completion of the receivership process. The takeover is to be carried out through the purchase of shares in Altura Lithium Operations (ALO).
Under the deal, signed with a group of lenders, Pilbara Minerals agreed to “pay an upfront cash payment of US$155 million and deferred consideration of approximately US$20 million (total consideration of US$175 million) for the shares in ALO upon the successful completion of the transaction,” the Australian business said in a statement.
A producing hard rock spodumene concentrate operation, the Altura Project is “located on an adjoining tenement package immediately to the west of Pilbara Minerals’ Pilgangoora Lithium-Tantalum Project,” according to the statement.
Pilbara Minerals is listed on the Australian Securities Exchange (ASX).