Western Australia gold mining ripe for more (friendly) M&A
The small and fragmented WA gold sector remains ripe for consolidation, even after several deals already so far this year.
Australian lithium miner Pilbara Minerals (ASX: PLX) said on Thursday it would acquire smaller peer Latin Resources (ASX: LRS) for an implied value of A$559.9 million ($369.37 million) through an all-share transaction.
Latin Resources shareholders will receive 0.07 new Pilbara shares for each share held, under the deal terms.
Based on Pilbara’s last closing price, the deal implies a value of A$0.20 per Latin share, a 66.7% premium to its last closing level.
On completion, Pilbara will gain control of Latin’s flagship Salinas Lithium Project in Minas Gerais, Brazil, as it moves to diversify its operations by gaining exposure to the growing North American and European battery market.
Latin Resources board unanimously recommended the deal in the absence of a better proposal.
($1 = 1.5158 Australian dollars)
(Reporting by Sneha Kumar; Editing by Mohammed Safi Shamsi and Rashmi Aich)
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