Gina Rinehart’s Hancock Prospecting Acquires stake in Liontown Resources. Gina Rinehart, Australia’s wealthiest individual, has confirmed her purchase of a portion in Liontown Resources. This move comes amidst a $6.6bn bid for the lithium contender. On Monday, it was announced that Hancock Prospecting, owned by Rinehart, secured a 7.7% share in Liontown Resources.
Last week, as highlighted in The Australian’s DataRoom segment, Hancock made a significant move against Albemarle’s $3 per share bid for Liontown. They acquired a substantial portion of the company’s shares at the proposed price.
On Monday, Hancock Prospecting announced its 7.7% stake in Liontown, following its recent acquisitions. Before this, it’s believed that Rinehart’s firm held just below a 5% stake.
The Australian has indicated that Hancock Prospecting doesn’t intend to compete with Albemarle in a bidding contest. Instead, they’ve expressed interest in joining discussions about Liontown’s future. This includes potential refining opportunities for lithium from Liontown’s WA lithium projects. They’ve also hinted at possible resistance to an Albemarle acquisition.
As reported by the Australian newspaper, Hancock’s shareholding in Liontown provides them with a strategic advantage. This position enables Liontown to benefit from Hancock’s expertise, promoting the project’s development and its subsequent operations. Hancock is keen on playing a significant role in Liontown’s future, in collaboration with other shareholders. This collaboration might encompass potential investment opportunities in Western Australia, adding further value. There’s also speculation that Hancock may seek a position on Liontown’s board at some stage in the future.
Following Hancock’s significant stake in the WA lithium firm, Liontown’s board announced its agreement with Albemarle for an exclusive period. This period will allow the global lithium giant to carry out thorough investigations.
Liontown mentioned, “Albemarle will soon begin its investigation & expected to last around four weeks. The investigation will be exclusive, with standard fiduciary exceptions.”
Situated in Perth, Liontown oversees two primary lithium reserves in Western Australia. These include the Kathleen Valley project in the northern goldfields and Buldania in the eastern goldfields. The firm’s 15% ownership lies with chairman Tim Goyder.
Projected by 2024, to supply 500,000 tonnes of 6% lithium oxide concentrate annually. This would have Kathleen Valley one of the globe’s premier lithium mines.
Earlier in the year, Liontown declined Albemarle’s $3 per share in early September, placing Liontown’s valuation at 200m. This is due to increased confidence in Kathleen Valley and the rising lithium market price. On Monday, Liontown shares saw a decrease of 4c, closing at $3.01.
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