Global lithium company Sociedad Quimica y Minera de Chile SA (SQM) is to make a major cornerstone investment of up to $20 million to acquire a 19.99 per cent interest in Azure Minerals Limited (ASX:AZS) through a two-stage transaction.
The strategic investment by SQM is a strong endorsement of the lithium potential of the Andover project (60 per cent Azure, 40 per cent Creasy Group) and highlights the upside potential for Andover to grow into a globally significant lithium mining and processing operation.
SQM has made an initial $4.2 million investment in Azure and subject the satisfaction of certain condition, will invest a further $15.8 million to hold the full 19.99 per cent interest in Azure.
SQM will invest at a price of $0.2564 per share, which represents premiums of 13.9 per cent to Azure’s last traded price of $0.225 per share on 6 January 2023; and 12.4 per cent to Azure’s ten-day volume weighted average price of $0.228 up to and including 6 January 2023.
Azure’s Managing Director Tony Rovira said the company was very pleased to welcome SQM as a substantial and strategic investor in Azure, which demonstrated their strong interest and belief in the lithium potential of the Andover project.
Rovira continued: “This is a significant milestone event and is a strong endorsement of Azure and our projects by one of the world’s leading lithium producers.
“The new relationship will allow Azure to draw upon SQM’s technical expertise in pegmatite-hosted lithium exploration, project development, production and marketing, providing Azure with strong support as we look to develop the Andover lithium assets.
“Azure is now in a very strong financial position and, following completion of both tranches of the transaction with SQM, Azure will have a cash balance of more than $25 million which will be used to accelerate lithium exploration through a program of intensive drilling across the Andover Project.”
