Pilbara Minerals to acquire Latin Resources

Pilbara Minerals (ASX: PLS) will acquire 100% of the shares in Latin Resources (ASX: LRS) after entering a binding scheme implementation agreement.

The Latin Resources board has unanimously recommended the scheme in the absence of a superior proposal.

Pilbara Minerals managing director and chief executive Dale Henderson comments on the acquisition.

“This acquisition is on-strategy, diversifying the business with what we believe is a counter-cyclical, accretive extension that further builds out Pilbara Minerals’ position as one of the leading lithium materials suppliers globally,” he said.

“The acquisition will deliver our second 100% owned, Tier 1, hard rock lithium asset, which is expected to be low-cost and accretive for our shareholders.

“It provides Pilbara Minerals with optionality to sequence new supply and diversify into new growth markets for lithium such as Europe and North America.

“The acquisition follows an extensive period of project assessment globally in which we rank Latin Resources’ Salinas project at the top of our list when benchmarked holistically across a range of key criteria.

“Further, a comprehensive due diligence period has been conducted over the past six months which has built-out our understanding of the asset and the region’s potential.

“Importantly, the acquisition leverages Pilbara Minerals’ capability in hard rock lithium resource delineation, project development, operations and marketing experience.”

Latin Resources managing director Chris Gale says Pilbara Minerals’ expertise in lithium mining will be an enormous benefit not only to Latin Resources and its 100%-owned Brazilian subsidiary, Belo Lithium, but to Brazil itself.

“Brazil’s Lithium Valley will now well and truly be on the world’s global lithium map as one of the best lithium mining jurisdictions in the world,” he said.

“Along with my fellow directors, I had no hesitation in supporting this scheme and I am very much looking forward to working with Dale and the Pilbara Minerals team to unlock the full potential of Salinas.”

Latin Resources intends to dispatch a scheme booklet to its shareholders in mid-October.

A scheme meeting is expected to be held in mid-November 2024 and, if approved by Latin Resources shareholders and the Court, the scheme is expected to be implemented in late November or early December.