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CATL acquiring Millennial Lithium for C$377M; beating Ganfeng Lithium offer

China-based battery-maker CATL will acquire Canada-based Millenial Lithium in an all-cash deal of approximately C$377 million (US$298 million) (C$3.85 per common share), after topping an earlier offer by Ganfeng Lithium of C$3.60/share.

After receiving the CATL offer, Millennial notified Ganfeng that this proposal constituted a “Superior Proposal” in accordance with the terms of the arrangement with Ganfeng. Ganfeng elected not to exercise its right to match and, as a result, Millennial terminated the Ganfeng Arrangement Agreement in accordance with its terms and entered into the CATL Arrangement Agreement.

The CATL Arrangement represents a premium of approximately 6.9% to the value of the consideration offered pursuant to the Ganfeng offer.

CATL has also reimbursed Millennial for the termination fee of US$10 million paid to Ganfeng in respect of the termination of the Ganfeng Arrangement Agreement.

The transaction is expected to close by January at the latest.

Millennial has 2 projects strategically located in the heart of the Argentinean portion of the “Lithium Triangle” covering approximately 24,000 hectares. Argentina is a favorable mining jurisdiction which hosts some of the world’s largest lithium resources.

  • Pastos Grandes (100%). The company’s flagship project covers more than 14,000 hectares of the Pastos Grandes Salar, 231 km from the city of Salta at an elevation of 3,800 meters. Pilot plant and evaporation ponds in operation which have produced 99.96% purity lithium carbonate.

  • Cauchari East (100%). The Cauchari East project covers more than 11,000 hectares in the Cauchari Salar, adjacent to and contiguous with Lithium America’s Cauchari Project and Orocobre’s producing Olaroz mine.