The AustralianSpeculation is mounting that Chilean lithium...

The Australian

Speculation is mounting that Chilean lithium heavyweight SQM is back for another attempt to buy the $1.1bn Australian listed Azure Minerals after the stock entered a trading halt on Monday pending the announcement of a change in control transaction.

Shares in Azure Minerals last traded at $2.44.

The Western Australia lithium producer in August said it had rejected an offer from SQM on July 12 that valued the group at $901m or $2.31 per share.

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Billionaires Gina Rinehart and Chris Ellison are understood to be shareholders in the mining company, while Yandal Investments, the company of high profile mining identity, West Australian propsector Mark Creasy, lifted his stake in the business this month to 13.21 per cent from 12.08 per cent.

The development comes after the world’s largest lithium producer Albemarle walked away from a $6.6bn buyout plan for Australian lithium producer Liontown Resources last week after Mrs Rinehart amassed a blocking stake in that company.

Following that, Liontown launched an equity raising to secure $365m at $1.80 per share, below Albemarle’s $3 a share offer.

A lithium land grab is on amid surging demand for materials used to make batteries ahead of the anticipated move towards electric vehicles, although the lithium price has recently sold off.

Azure Minerals is close to investment bank Barrenjoey, while SQM worked with Macquarie Capital when it bid for Azure in recent months.

The last offer for Azure was rejected due to the potential of its Andover Lithium Project in the West Pilbara region of Western Australia and the company determined that the approaches did not warrant further engagement by the company, saying no further discussions had occurred.

As previously announced, Azure Minerals is targeting a maiden Mineral Resource Estimate for Andover in the first quarter of 2024.

SQM owns just under 20 per cent of Azure’s register.

Azure’s exploration target released estimates a potential mineralisation of 100 to 240 million tonnes per annum at 1 to 1.5 per cent lithium.

The challenge for any buyer is that Mr Creasy owns 40 per cent of the underlying lithium asset.

Azure owns 60 per cent of its deposit at its Andover Project.

After announcing the earlier interest from SQM, Azure Minerals raised $120m of equity at $2.40 per share in August.

For the year to June, Azure Minerals reported a $21.2m loss.