- Wesfarmers has completed its $776 million acquisition of lithium explorer Kidman Resources
- Wesfarmers now holds a 50 per cent interest in the Mt Holland lithium project
- Kidman is expected to be removed from the ASX by tomorrow
Wesfarmers has informed the market it has completed its $776 million acquisition of lithium explorer Kidman Resources.
The announcement comes only a few weeks after the Federal Court gave the thumbs up for the deal to proceed.
Wesfarmers now holds a 50 per cent interest in the Mt Holland lithium project, Western Australia. Global leader in lithium production Sociedad Quimica y Minera de Chile (SQM) holds the additional half.
Wesfarmers’ Managing Director Rob Scott said purchasing Kidman puts the conglomerate giant in an attractive position to develop a large-scale, long-life and high-grade lithium hydroxide project.
“It leverages and builds on the existing strengths and chemical processing capabilities within our Chemicals, Energy and Fertilisers business, while supporting Western Australia’s ambition to become a global hub for downstream lithium processing,” Rob added.
In Mt Holland lies the Earl Grey Lithium Project which produces lithium and gold. It is estimated to contain 189 million tonnes at 1.5 per cent lithium oxide or 7.03 million tonnes of lithium carbonate equivalent.
The company believes Earl Grey is one of the world’s most significant hard rock lithium deposits.
Today, Kidman shareholders will receive a $1.90 payment per share, funded from Wesfarmers’ existing banking facilities.
Kidman will apply to be removed from the official list of the ASX and is expected to be removed by end of trade tomorrow.
Wesfarmers has gained 0.60 per cent on the ASX today and is currently selling shares at $39.91 apiece.