M&As this week: South32, OZ Minerals, Osisko Mining

17 August 2018 (Last Updated August 17th, 2018 12:33)

South32 has acquired the remaining 83% of the issued and outstanding shares in Arizona Mining for $1.3bn.

South32 has acquired the remaining 83% of the issued and outstanding shares in Arizona Mining for $1.3bn.

Arizona Mining’s shareholders received C$6.20 ($4.69) in cash for each common share currently held as part of the development.

The acquisition will add an additional base metal project to South32’s portfolio.

Australia-based South32 is a mining and metals company, while Arizona Mining is a Canadian mineral exploration firm.

OZ Minerals has acquired all the outstanding shares in Avanco Resources for A$418m ($323.2m) as part of a compulsory acquisition.

“Osisko Mining has signed a definitive agreement to acquire all the issued and outstanding common shares in Beaufield Resources under a statutory plan of arrangement.”

The takeover bid was originally initiated in March and includes a cash payment of A$0.085 ($0.066), as well as the issuance of 0.009 shares, to Avanco shareholders for each share currently held in the company.

OZ Minerals’ Brazilian subsidiary carried out the acquisition as part of the company’s multi-asset, province-focused growth strategy.

The transaction is also expected to offer significant additional growth options within the region.

Australia-based OZ Minerals is a modern mining firm that primarily focuses on copper, while Avanco Resources is a Brazilian mineral exploration and development company.

Osisko Mining has signed a definitive agreement to acquire all the issued and outstanding common shares in Beaufield Resources under a statutory plan of arrangement.

Beaufield shareholders will receive 0.0482 of a common share in Osisko in exchange for each share currently held as part of the deal.

Osisko Mining is engaged in the mining of precious-metals, while Beaufield Resources is focused on mineral exploration.

Both companies involved in the transaction are based in Canada.

Sociedad Química y Minera de Chile (SQM) subsidiary SQM Potasio has entered an agreement with a subsidiary of Jiangxi Ganfeng Lithium (GFL) to sell its entire stake in Minera Exar for $87.5m.

Minera Exar is the holding company of the Caucharí-Olaroz lithium brine project and was originally formed in partnership with Lithium Americas.

Lithium Americas is set to increase its share in Exar from 50% to 62.5% following the transaction, while Ganfeng will retain the remaining 37.5% interest.

GFL also agreed to provide Lithium Americas with a new $100m unsecured, limited recourse, subordinated loan facility for the development of the Caucharí-Olaroz lithium brine project as part of the arrangement.

Chile-based SQM is the world’s biggest lithium producer, while GFL is one of the largest lithium product manufacturers in China.

Lithium Americas is a Canada-based company focused on the development of the Caucharí-Olaroz lithium brine project.