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I’m a bit confused/concerned about the second last paragraph,...

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mattycee1

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21/07/23

21:00

Post #: 68918893
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Originally posted by sabine ↑

https://thewest.com.au/business/lit...ack-on-market-after-firb-buyer-ban-c-11346252

Collapsed Alita Resources’ Bald Hill mine could be back on market after FIRB buyer ban

Sean SmithThe West Australian
Fri, 21 July 2023 5:15PM

A worker walks down stairs at the Bald Hill treatment plant Credit: Bloomberg

One of WA’s first lithium mines could be back up for grabs in a month after the Federal Government blocked a buyer with Chinese links, the latest hurdle in a protracted sale process that has been challenged by Canaccord Genuity.

Federal Treasurer Jim Chalmers has barred Austroid’s purchase of the collapsed Alita Resources’ Bald Hill mine, 60km south-east of Kambalda, on advice from the Foreign Investment Review Board.

While Dr Chalmers has declined to comment on the decision, the rejection won’t come as surprise given the Government’s tightening scrutiny of Chinese investment in Australia’s critical minerals industry.
Australia and the US have pursuing a push for new supply chains in order to reduce China’s dominance in the supply of critical minerals needed for the energy transition, with Dr Chalmers previously suggesting the Government would be “more assertive about encouraging investment that clearly aligns with our national interest in the longer term

A spokesperson for Dr Chalmers confirmed the purchase prohibition order, saying it was “consistent with advice from the Foreign Investment Review Board” but declining to comment on the reasons.
“The Government doesn’t comment on the application of foreign investment screening arrangements,” the spokesperson said.

Singapore-listed Alita was forced into administration and receivership nearly four years ago because of weak lithium prices.

However, the market’s recovery on the back of demand for electric batteries sets up the next owner of Bald Hill to capitalise on substantially better prices for lithium.
Nevada-registered Austroid agreed a deal with administrators from McGrathNicol to buy Bald Hill in late 2020 via a deed of company arrangement after an earlier agreement with a Cayman Islands-registered company China Hydrogen Energy Corp was not finalised.
However, questions have been raised about the ultimate owners of Austroid - Alita’s biggest creditor - given it and China Hydrogen Energy share a common director, who is also a director of the Alita subsidiary operating Bald Hill.
Also, the WA Department of Mines, Industry Regulation and Safety has been looking into claims Alita has underpaid royalties because of the discounted sale of its lithium to China.

McGrathNicol has told Alita’s investors that Austroid intends to file a new submission to FIRB but notes the conditions of the DOCA have to be met by August 17.

A collapse of the deal would be welcomed by some Alita shareholders, including Canaccord, who will see it as an opportunity to realise more for Bald Hill by tapping booming demand for lithium.
The Canadian owned stockbroker and corporate adviser claims that the value of the mine, which returned to production last year, has increased significantly during the delayed sale process to as much as $1.5 billion, from valuations of less than $100 million in 2021.

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I’m a bit confused/concerned about the second last paragraph, quote;the deal would be welcomed by some of the shareholders including Canaccord, why would they not include all shareholders? Are they suggesting just austroid being the disappointed holders

A40 Price at posting: 8.2¢ Sentiment: Hold Disclosure: Held
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