On July 11, SQM made a great deal to acquire 50% of Kidman Resources Mt Holland project in Australia.
Details below in the Kidman Resources section.
On July 12, SQM released, "SQM’s CEO reaffirms the company’s strategy in the lithium business." Of interest was:
"Regarding Mount Holland, we expect to accelerate the significant exploration and technical studies already undertaken by Kidman to move into production of spodumene concentrate within the next 24 months. With regard to the refining plant, we will advance that in parallel, with the objective to start the production of lithium hydroxide and lithium carbonate on as short a timetable as possible after the concentrate operation is commissioned."
Kidman Resources [ASX:KDR]
On July 10, Kidman Resources announced: "Judgment in Kidman’s favour over Earl Grey lithium rights challenge." The company stated that it
"is pleased to advise that it has successfully defended the ownership of lithium rights to its Mt Holland project, including the Earl Grey deposit, with Supreme Court Justice Kenneth Martin handing down a judgment on Friday against the plaintiff, Marindi Metals Ltd [ASX:MZN]."
On July 12, Kidman Resources announced,
"Kidman and SQM to form a 50:50 joint venture to develop Mt Holland lithium project, as well as to develop a proposed downstream lithium refinery operation in Western Australia. In consideration for the acquisition of a 50% joint venture interest in the Mt Holland lithium project, SQM will make payments of US$110 million (A$146.67 million), comprising a cash payment of US$30 million (A$40 million) to Kidman, and a staged payment of US$80 million (A$106.67 million) to fund the initial costs of the development of the Mt Holland Lithium Project. Kidman will also have an option to participate for up to a 50% interest in a proposed refinery to produce lithium carbonate / hydroxide that will be underpinned by the Earl Grey resource at Mt Holland. Kidman will retain all gold rights at the Mt Holland project."
Kidman Resources shares sold off 12% on the day of the news, suggesting KDR investors don't think much of the deal.
You can view the February 2017 company presentation here.
Upcoming catalysts include:
H2 2017 - DFS release expected.
H1 2018 - Commence lithium production.
KDR Price at posting:
56.5¢ Sentiment: Buy Disclosure: Held
