The deal adds to an asset portfolio which already includes the world's largest lithium mine
Clayton Utz has advised Tianqi Lithium Energy Australia on a scheme of agreement that would allow Tianqi to acquire all shares in Essential Metals. Clayton Utz’s Perth-based corporate partner Liz Humphry led the advising team, of which senior associate Georgia Mazzega and lawyers Tess Dillon and Tashreen Tourabaly were part.
Tiangi will pay $0.50 cash per share of Essential Metals under the scheme, valuing the Australia-based mining exploration company at around $136m. The scheme augments Tianqi Lithium Energy Australia’s strategic focus on WA-based lithium projects and a world-class asset portfolio, including the largest lithium mine in the world.
Tianqi Lithium Energy Australia is an incorporated joint venture owned by global energy materials company Tiangi Lithium Corporation (51%) and mining and processing company IGO Limited (49%), which produces metals needed for clean energy.
Among other projects and businesses, the joint venture owns the Pioneer Dome Lithium Project, as well as Kwinana Lithium Hydroxide Refinery and majority of Greenbushes Lithium Operation. Both Kwinana and Greenbushes operate in Western Australia.
Tianqi Lithium Energy Australia’s latest transaction with Essential Metals was announced on 9 January and is still subject to conditions. Among others, Essential Metals shareholders must approve of it at a general meeting, currently expected to occur in April this year.
"We are very pleased to have advised our long-term client Tianqi on this exciting acquisition, which highlights [Tianqi’s] strategic focus on lithium projects in Western Australia, bringing new resources to production,” Humphry said of Clayton Utz’s role in the deal. “It is fantastic to continue to work with Tianqi and we extend our congratulations to them on this transaction.”
The announcement followed a few months after Clayton Utz played a major role in the sale of the Australian Lamb Company to joint venture Minerva Foods Australia, and in MotorCycle Holdings’ acquisition of 100% of shares of Mojo Motorcycles and Mojo Electric Vehicles.
