BLAKE Dawson has advised Salares Lithium on its $340 million merger with Talison Minerals, in what is expected to create the world’s largest lithium production company.
The companies announced last month that they had executed a binding letter agreement to combine their lithium assets and create the new company.
The merger will combine Talison’s lithium minerals production in Australia with Salares’ prospective, large-scale lithium brines exploration project in Chile.
It is expected that the combined entity will be well funded, allowing for immediate expansion of the producing Australian operations to run in parallel with an accelerated exploration program at the Salares brine projects.
The merger is taking place by way of a plan of arrangement under the British Columbia Business Corporations Act, Blakes said in a statement.
Under the proposed plan of arrangement common shares of Salares will be exchanged for ordinary shares of Talison 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 that controls the Salares 7 lithium project. 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.
Lead partner on the deal was Murray Wheater, who worked with Stuart James, both from the corporate practice. Len Hertzman and Ian Murray also worked on the deal, both from the tax practice of the firm.
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