Salares Lithium Inc and Talison Lithium Limited have agreed to combine their lithium assets, valued at CAD$340 million ($365 million), and undertake a merger by way of a plan of arrangement under the British Columbia Business Corporations Act.
According to Blake Dawson, who is acting for Salares, the merger will create the world's largest lithium production company.
Under the proposed plan of arrangement, common shares of Salares will be exchanged for ordinary shares of Talison (advised by Clayton Utz) so that on completion, Salares will become a wholly owned subsidiary of Talison and existing Salares and Talison shareholders will hold 20 per cent and 80 per cent of Talison respectively.
Salares is a lithium explorer in Chile which controls the Salares 7 lithium project, while Talison is the leading global producer of lithium.
Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia.
The Blake Dawson team is being led by Murray Wheater, with the assistance of Stuart James, Len Hertzman and Ian Murray.