Attention is now turning to the next opportunity for Albemarle after the world’s largest lithium producer walked away from its $6.6bn buyout of Liontown Resources.
As Liontown on Thursday night announced an institutional placement of $365m at about $1.80 per share, and a further $11m raise from chairman Tim Goyder, the discussion moved to whether Patriot Battery Metals could be to its liking.
Albemarle also owns about 6 per cent of Patriot, which is based in Canada, but listed in Australia, but also shareholders are Pilbara Minerals, Mineral Resources and, once again, Gina Rinehart.
The $1.4bn company is 45 per cent owned by Australian shareholders who are unlikely to want cash for any deal, so they can get tax relief.
But lithium mining in Qubec, Canada, where Patriot operates, is not to everyone’s liking.
Another target now for Albemarle could be Sigma Lithium in Brazil, of which its 50 per cent shareholder is offloading its interest.
Patriot counts Macquarie Capital as its close adviser.
Pilbara Minerals and Rio Tinto have also been speculated as buyers of the company chaired by former Pilbara Minerals boss Ken Brinsden.
The hard rock lithium explorer is focused on advancing its Corvette Property, which ranks as the largest lithium pegmatite resource in the Americas and one of the top ten in the world.
The talk comes as Liontown on Thursday night announces a raise of $365m by way of an institutional placement at $1.80 a share and the securing of $760m in debt to refinance its $300m Ford facility.
The funds are being used to finance its Kathleen Valley lithium project in Western Australia after Albemarle this week backed out of its $3-a-share bid for the company.
Chairman Tim Goyder would also contribute $10.8m to the raise, taking the total amount secured to $376m.
The price is a 35 per cent discount to Liontown’s last traded price of $2.79, or a 40 per cent discount to Albemarle’s $3-a-share offer.
Liontown is working with UBS and Bell Potter to raise money.
The news Albemarle had walked away from Liontown came after the business interests of Rinehart amassed a 19.9 per cent stake.
Hedge funds like what they hear at Southern Cross
Triple M and Hit radio network owner Southern Cross Media Group may soon have some hedge funds on its share register.
More exposure to copper the prize for big miners
Moves by BHP and Rio Tinto to think about major transactions says a lot about their expectations for the country’s iron ore production.