News: WES UPDATE 1-Australia's Azure Minerals rejects $585 mln takeover bid from Chile's SQM

(Recasts first paragraph, updates throughout with background and details)

Aug 15 (Reuters) - Lithium developer Azure Minerals (AZS) said on Tuesday it rejected a buyout bid from Sociedad Química y Minera de Chile (SQM) SQMA.SN valuing the Australian company at A$901.4 million ($584.74 million).

Azure, which owns around a 60% stake in the highly prospective Andover project in Australia's Pilbara region, said it decided to reject the offer in light of the increasing potential of the lithium project.

SQM, which is partnering with Australian firm Wesfarmers (WES) to build the A$1.9 billion Mt Holland lithium project in Western Australia, acquired an initial 19.99% stake in Azure for A$20 million in March.

Azure also flagged that the offer price of A$2.31 per share received from the world's second biggest lithium chemicals maker was lower than its Aug. 8 intraday high of A$2.96.

"Azure determined that the approaches did not warrant further engagement by the company and no further discussions have occurred," the company said in response to recent media speculation.

Global lithium giant SQM, whose biggest shareholder is China's Tianqi Lithium Corp 002466.SZ , did not immediately respond to a Reuters' request for comment.

($1 = 1.5415 Australian dollars)