Article here says that they have proposed a DoCA to restructure Alita. No idea what that entails but it appears they need to win approval from the new VA.
Austroid to inject $60M to resume lithium operations at Bald Hill
US lithium products group, Austroid Corporation (Austroid), has announced that it is in the progress of securing ownership of the Bald Hill hardrock lithium mine (Bald Hill) in Western Australia’s Goldfields region.
Subject to regulatory approvals, Austroid intends to immediately invest $60 million in new equipment, processing and construction at Bald Hill to enable the resumption of lithium concentrate production.
It is estimated that restarting Bald Hill, which has been on care and maintenance since the previous owner Alita Resources Limited (Alita) fell into administration in 2019, will create at least 150 jobs in regional Western Australia, across Bald Hill and at the Port of Esperance.
As part of the arrangement to secure ownership of Bald Hill, Austroid has agreed to purchase a $70 million loan facility agreement between Alita and China Hydrogen Energy Limited (CHEL).
CHEL had lent Alita the money in 2019 as part of a Deed of Company Arrangement (DoCA) to restructure Alita’s affairs.
Austroid Director, Mike Que, a US resident who also worked with CHEL, said Austroid’s decision to secure ownership of Bald Hill was driven by a desire to become a reliable and secure supplier of lithium concentrate into the North American market.
“Bald Hill is a quality asset that fits Austroid’s integrated lithium supply strategy to supply our own proposed lithium refinery in Nevada as well as third-party customers in the US,” Mr Que said.
“Importantly, Bald Hill’s location in a global Tier 1 mining jurisdiction, with ready access to a highly-skilled local workforce and suppliers, gives us the comfort to invest significant sums into resuming mining operations.”
Austroid outlined that the feedback from Bald Hill’s stakeholders and the broader communities in the Goldfields and Esperance regions to its investment proposal has been ‘overwhelmingly positive because they recognise the regional benefits and job opportunities – particularly as part of the post-pandemic economic recovery process’.
“We look forward to completing the approvals process, including sign-off from the West Australian and Federal Governments, before we set about resuming operations at Bald Hill as early as the first half of 2021,” Mr Que added.
Austroid has proposed a DoCA to restructure Alita which it hopes will win support of Alita’s administrators from McGrathNicol.
Austroid is also in the process of applying to the Foreign investment Review Board (FIRB) for approval as part of the regulatory process.
Australian resources advisory firm, PCF Capital, is acting as corporate adviser to Austroid.
