Mineral Resources (MinRes) is set to pay $260 million to acquire the Bald Hill lithium mine in a move that has left some investors with questions.
Located in WA, Bald Hill is one of the last operating lithium mines in the state. Formerly owned by an Alita Resources subsidiary, MinRes has been in talks to acquire the site since September.
In late September, a court hearing in Perth approved the acquisition and the $260 million price tag was revealed by administrators McGrathNicol on Tuesday.
But the price has left some shareholders with more questions than answers after being told that more than 10 buyers were interested in the mine.
This could have resulted in an eventual bidding war amid the myriad lithium moves currently taking place in WA.
In its 2023 annual general meeting presentation, MinRes said it is committed to growing its lithium presence and is looking to double production at Bald Hill to 300,000 tonnes per annum.
However, McGrathNicol said that Bald Hill could be worth between $0–$94.2 million, meaning the eventual $100 million sale price (and associated debt payments) was above the estimate.
“This year is all about delivery,” MinRes managing director Chris Ellison said. “We’ll have three lithium mines that we’re ramping up now through to the middle of next year.
“Mining services is a great story – it just gets stronger and the relationships get better with our customers – and we’ll be delivering gas by 2025.”
