Atlantic Lithium (AIM: ALL, ASX: A11, US-OTC: ALLIF) is once again turning down a proposed takeover by 24.5% shareholder Assore International Holdings, which has offered to acquire the remainder of the company’s shares for £0.33 per share (A63¢).
In an announcement Wednesday morning, the Africa-focused lithium developer said it rejected the non-binding offer, the second presented by Assore over the past six weeks. In early October, Assore made an identical offer to buy the company.
Atlantic Lithium’s stock is currently trading at A56¢ apiece in Australia, with a market capitalization of A$345.9 million.
The offer values Atlantic’s equity at £222 million (A$420 million).
“Assore, a major African mining company, has been a leading investor and key contributor to the company’s success since its listing in London in 2015,” Neil Herbert, executive chairman of Atlantic Lithium, stated in a news release. “We look forward to maintaining our strong relationship with Assore as we progress Ewoyaa towards production.”
Atlantic is focused on delivering the first lithium mine in Ghana. Last month, it was granted a 15-year mining permit for its Ewoyaa project, located 100 km southwest of capital city Accra.
The decision comes after almost six years of exploration by Atlantic. Ghana’s sovereign wealth fund has acquired a 6% stake in Ewoyaa and 3.06% in Atlantic Lithium.
Assore is a South African-based, privately held company that owns stakes in manganese, iron ore, chrome mines in South Africa and interests in Gemfields Group and Mick Davis’s Vision Blue Resources.
In a budget speech on Wednesday, Ghana’s finance minister said the project is expected to be a major contributor to the country’s gross domestic product. The aim is to produce some 360,000 tonnes of lithium a year over a 12-year mine life.
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