Tianqi's offer to acquire ESS, was a good one to test FIRB, but ESS shareholders voted NO.
FFX fiasco scares lots of prospective investors, if Ganfeng were going to buy a large stake in LLL, that would be welcome by the market, imo. Up to 10%, there won't require any FIRB approval, but if were after 17.6%, FIRB approval would be required.
Personally, I prefer Ganfeng to invest in a large stake in LLL, possibly jointly developing a downstream plant.
Ganfeng is a more international company, no China state ownership. They have been operating 50:50 JV with Mineral Resources successfully, Chris is a very astute businessman. Then JV with Lithium Americas.
Ganfeng's transactions with Lithium Americas:
- In May 2018, Ganfeng Lithium made an initial investment of $37.5 million in Lithium Americas' Cauchari-Olaroz lithium project in Argentina. As part of the deal, Ganfeng Lithium acquired a 37.5% stake in the project, with an option to increase its stake to 50% by making an additional investment of $62.5 million within 24 months.
- In July 2020, Ganfeng Lithium exercised its option to increase its stake in the Cauchari-Olaroz project to 50% by investing an additional $160 million. The deal also included a long-term offtake agreement for Ganfeng Lithium to purchase 100% of the lithium carbonate and hydroxide produced by the project.
- In November 2020, Ganfeng Lithium made another investment in Lithium Americas by acquiring a 19.9% stake in the company for $160 million.
JV with Ganfeng, allows Lithium Americas fast track building one of the world's largest scale brine plant, 40ktpa LCE. Just look at how long it took AKE/ORE to build their 18ktpa LCE, and AKE/GXY is still building their 17.5ktpa LCE. Also the JV hasn't seem have any negative effect on LAC. LAC Thacker Pass, Capex blowout, clay project sounds good, but massive capex, plus unproven commercial scale on extracting clay deposit, that would be challenging, imo.
All in all, I support Ganfeng to take a large stake, if could get ride of FFX, that would be better.
All imo.
(20min delay)