Firms: Squire Patton Boggs (General Mining Corporation Ltd); Steinepreis Paganin (Galaxy Resources Ltd)
Deal: General Mining Corporation Ltd (General Mining) has merged with resources company Galaxy Resources Ltd (Galaxy).
Value: $700 million
Key players: The Squire Patton Boggs team advising General Mining was led by corporate partner Simon Rear, assisted by senior associate Chris Rosario and associate Chanelle Tong.
Deal significance: General Mining has merged with resources company Galaxy. The combined company will be "a leading global lithium producer with international assets and strong networks in the key Asian lithium markets".
Galaxy has executed an off-market takeover bid for all shares in General Mining, with General Mining shareholders receiving 1.65 new Galaxy shares for every one General Mining share held. The merged entity has an expected combined market capitalization in excess of $700 million.
Galaxy Resources is a lithium-focused resources company, with assets spanning Australia, Canada and Argentina.
General Mining is lithium production company. The company has the right to earn primary assets in 50 per cent of Galaxay’s Mt Cattlin spodumene project in Western Australia, and an option to earn 50 per cent of Galaxy’s James Bay spodumene exploration project in Canada.
Speaking to the deal, Squire Patton Boggs partner Simon Rear said the transaction was strategic.
"There is a compelling strategic rationale for the transaction, as it simplifies the ownership structure and operational management of both General Mining and Galaxy. It brings their jointly owned assets under a single ownership, which is supported by a highly credentialed management and board," Mr Rear said.
"We have been pleased to act for General Mining in such a significant transaction in the company’s journey."
General Mining also received financial advice from Canaccord Genuity in connection with the merger.
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