BRISBANE, Australia, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Allkem Limited (ASX|TSX: “Allkem,” the Company”) has completed the sale of Borax Argentina S.A (“Borax”) to Golden Wattle Springs Pty Ltd (“Golden Wattle”) and has acquired the María Victoria lithium tenement from Minera Santa Rita S.R.L (“MSR”) (the “Transactions”).
Under the Transactions:
- Allkem transferred to Golden Wattle (a group associated with MSR) all of the issued shares in the two Borax holding companies and US$14 million cash for employee and rehabilitation liabilities; and
- MSR has sold to an Allkem subsidiary 100% ownership of the Maria Victoria Tenement, as described in more detail below. The transfer deed recording this sale is in the process of being registered by the Jujuy mining court.
Existing employees of Borax will continue to be employed by Borax following the sale.
Following completion of the Transactions:
- Borax will, subject to receipt of third-party consents and governmental authorisations, transfer to Allkem subsidiaries certain properties, lithium tenements and associated lithium royalties held in the Cauchari, Olaroz and Hombre Muerto salars (“Allkem Property Transfers”); and
- Allkem subsidiaries will grant to Borax certain borate extraction rights over the properties the subject of the Allkem Property Transfers (on customary industry terms), with those subsidiaries retaining the ability to repurchase those extraction rights in the future.
Allkem will also retain a portion of the Borax gas capacity in the Fenix and La Puna gas pipelines which it will make available to its Sal de Vida project.
Managing Director and CEO Martin Perez de Solay said, “The Maria Victoria tenement is expected to add resource tonnes to the already substantial lithium brine resource defined at Olaroz. Control of this tenement will enable the more efficient development of the Olaroz salar as we consider the long term expansion of production.”
María Victoria Tenement
The Maria Victoria Tenement covers approximately 1,800 ha and is located in the northern part of the Salar de Olaroz, approximately 10km from Allkem’s Olaroz Lithium Facility in the Jujuy Province
(Figure 1).
Figure 1: Olaroz and Cauchari showing Maria Victoria tenement
This release was authorised by Mr Martin Perez de Solay, CEO and Managing Director of Allkem Limited.
IMPORTANT NOTICES
This investor ASX/TSX release (Release) has been prepared by Allkem Limited (ACN 112 589 910) (the Company or Allkem). It contains general information about the Company as at the date of this Release. The information in this Release should not be considered to be comprehensive or to comprise all of the material which a shareholder or potential investor in the Company may require in order to determine whether to deal in Shares of Allkem. The information in this Release is of a general nature only and does not purport to be complete. It should be read in conjunction with the Company’s periodic and continuous disclosure announcements which are available at allkem.co and with the Australian Securities Exchange (ASX) announcements, which are available at www.asx.com.au.
This Release does not take into account the financial situation, investment objectives, tax situation or particular needs of any person and nothing contained in this Release constitutes investment, legal, tax, accounting or other advice, nor does it contain all the information which would be required in a disclosure document or prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). Readers or recipients of this Release should, before making any decisions in relation to their investment or potential investment in the Company, consider the appropriateness of the information having regard to their own individual investment objectives and financial situation and seek their own professional investment, legal, taxation and accounting advice appropriate to their particular circumstances.
This Release does not constitute or form part of any offer, invitation, solicitation or recommendation to acquire, purchase, subscribe for, sell or otherwise dispose of, or issue, any Shares or any other financial product. Further, this Release does not constitute financial product, investment advice (nor tax, accounting or legal advice) or recommendation, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
The distribution of this Release in other jurisdictions outside Australia may also be restricted by law and any restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.
Past performance information given in this Release is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.
Forward Looking Statements
Forward-looking statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performances or achievements expressed or implied by such forward-looking statements, including but not limited to, the risk of further changes in government regulations, policies or legislation; the risks associated with the continued implementation of the merger between the Company and Galaxy Resources Ltd, risks that further funding may be required, but unavailable, for the ongoing development of the Company’s projects; fluctuations or decreases in commodity prices; uncertainty in the estimation, economic viability, recoverability and processing of mineral resources; risks associated with development of the Company Projects; unexpected capital or operating cost increases; uncertainty of meeting anticipated program milestones at the Company’s Projects; risks associated with investment in publicly listed companies, such as the Company; and risks associated with general economic conditions.
Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, the Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements in this Release to reflect any change in expectations in relation to any forward-looking statements or any change in events, conditions or circumstances on which any such statements are based. Nothing in this Release shall under any circumstances (including by reason of this Release remaining available and not being superseded or replaced by any other Release or publication with respect to the subject matter of this Release), create an implication that there has been no change in the affairs of the Company since the date of this Release.
Notforreleaseordistribution in theUnited States
This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction, and neither this announcement or anything attached to this announcement shall form the basis of any contract or commitment. Any securities described in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in transactions registered under the U.S. Securities Act of 1933 or exempt from, or not subject to, the registration of the U.S. Securities Act of 1933 and applicable U.S. state securities laws.
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