Zijin agreed to acquire all of Neo Lithium’s outstanding shares for $6.50 per share in cash in October 2021. In December, Neo Lithium’s shareholders approved the transaction at a special meeting.
“Zijin is in the process of obtaining approval for the transaction from relevant authorities in the People’s Republic of China,” Neo Lithium stated in a press release.
The 35,000-hectare 3Q project has measured and indicated resources of 5.3 million tonnes LCE at an average grade of 636 mg/l lithium.
A feasibility study completed in October forecast a mine life of 50 years with average annual production in the first 20 years of 20,000 tonnes of battery grade LCE.
At an 8% discount rate, the project would generate a post-tax net present value (NPV) of US$1.13 billion and a post-tax internal rate of return (IRR) of 39.5%.
At presstime, Neo Lithium was trading at C$6.40 per share within a 52-week trading range of C$1.92 and C$6.45. The company has 141.3 million common shares outstanding for a market cap of C$904.6 million.
(This article first appeared in the Canadian Mining Journal)
