Allkem completes acquisition of strategic lithium tenement and the sale of Borax
16 December 2022 - 3:07PM
Allkem Limited (ASX|TSX: “
Allkem,” the
Company”) has completed the sale of Borax
Argentina S.A (“
Borax”) to Golden Wattle Springs
Pty Ltd (“
Golden Wattle”) and has acquired the
María Victoria lithium tenement from Minera Santa Rita S.R.L
(“
MSR”) (the “
Transactions”).
Under the Transactions:
- Allkem
transferred to Golden Wattle (a group associated with MSR) all of
the issued shares in the two Borax holding companies and US$14
million cash for employee and rehabilitation liabilities; and
- MSR has sold to
an Allkem subsidiary 100% ownership of the Maria Victoria Tenement,
as described in more detail below. The transfer deed recording this
sale is in the process of being registered by the Jujuy mining
court.
Existing employees of Borax will continue to be
employed by Borax following the sale.
Following completion of the Transactions:
- Borax will,
subject to receipt of third-party consents and governmental
authorisations, transfer to Allkem subsidiaries certain properties,
lithium tenements and associated lithium royalties held in the
Cauchari, Olaroz and Hombre Muerto salars (“Allkem Property
Transfers”); and
- Allkem
subsidiaries will grant to Borax certain borate extraction rights
over the properties the subject of the Allkem Property Transfers
(on customary industry terms), with those subsidiaries retaining
the ability to repurchase those extraction rights in the
future.
Allkem will also retain a portion of the Borax
gas capacity in the Fenix and La Puna gas pipelines which it will
make available to its Sal de Vida project.
Managing Director and CEO Martin Perez de Solay
said, “The Maria Victoria tenement is expected to add resource
tonnes to the already substantial lithium brine resource defined at
Olaroz. Control of this tenement will enable the more efficient
development of the Olaroz salar as we consider the long term
expansion of production.”
María Victoria Tenement
The Maria Victoria Tenement covers approximately
1,800 ha and is located in the northern part of the Salar de
Olaroz, approximately 10km from Allkem’s Olaroz Lithium Facility in
the Jujuy Province (Figure 1).
Figure 1: Olaroz and Cauchari showing
Maria Victoria tenement
This release was authorised by Mr Martin Perez de
Solay, CEO and Managing Director of Allkem Limited.
Allkem
LimitedABN 31 112 589 910 Level 35, 71 Eagle StBrisbane,
QLD 4000 |
Investor Relations & Media EnquiriesAndrew
Barber M: +61 418 783 701 E:
Andrew.Barber@allkem.coPhoebe LeeP: +61 7 3064
3600 E: Phoebe.Lee@allkem.co |
Connect info@allkem.co+61 7 3064
3600www.allkem.co |
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112 589 910) (the Company or
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