“The completion of the merger brings together assets and teams with highly complementary skills and knowledge,” de Solay said. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
- The new board of the merged company will have four independent directors from Orocobre and four from Galaxy Resources and Orocobre’s current chief executive.
- The 292,598,572 newly issued Orocobre shares are expected to commence trading on ASX on a normal settlement basis from Thursday, 26 August 2021.
- Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.
- “Both Orocobre and Galaxy shareholders will benefit from the diversification, growth and scale of a top five global lithium chemicals company,” he said.
- Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day.
The Web’s Largest Resource for
Galaxy operates the Mt Cattlin lithium operation in Western Australia and produced 109,909 tonnes of lithium concentrate in the first half of 2021. The ASX lithium sector has seen some takeover activity in the past year as companies seek economies of scale and project synergies in order to get positioned for the next boom. A new name has yet to be selected for the new merged company which will have its head office in Buenos Aires, Argentina, and a corporate headquarters on Australia’s east coast.
Galaxy Resources Limited
According to Orocobre managing director and chief executive officer Martín Pérez de Solay, the merger paves the way for a new top five lithium producer. The merged company will have a strong balance sheet with cash of Weakness of a company $US487m making it well positioned to develop its world-class lithium projects with a production capacity of 40,000 tonnes per year. The new company will have an industry-leading growth profile and an enhanced financial position to optimise and accelerate development of its lithium assets. The new board of the merged company will have four independent directors from Orocobre and four from Galaxy Resources and Orocobre’s current chief executive.
Featured Companies
Participation in the merger will provide significant benefits to Galaxy Resources shareholders in being part of a larger diversified group and help to advance its projects’ development. “This transaction has the potential to be a significant value-creating opportunity for Galaxy and Orocobre shareholders,” said Galaxy Resources chairman, Martin Rowley, the new company’s non-executive chairman. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most best investment options 2021 trusted online community for developers to learn, share their knowledge, and build their careers. “The merger consolidates the combined group’s position in Argentina and provides an opportunity to build on a strong platform there and in our other key jurisdictions globally, including Australia, Japan and North America,” de Solay said.
Markets coverage, company profiles and industry insights from Australia’s best business journalists – all collated and delivered straight to your inbox every day. “The merged entity’s growth opportunities in both brine and hard rock position it uniquely to take advantage of expected rising EV demand for lithium,” said Rowley. Galaxy Resources shareholders will receive 0.569 Orocobre shares for each of their Galaxy Resources shares, leaving Orocobre shareholders with 54.2 per cent of the merged company and Galaxy Resources shareholders will own 45.8 per cent. The companies have a complementary portfolio of brine and hard rock lithium assets spread across Australia and Argentina and a vertically-integrated supply chain. “Both Orocobre and Galaxy shareholders will benefit from the diversification, growth and scale of a top five global lithium chemicals company,” he said.
Solay is to oversee the integration process for the new merged company and with its board, determine an optimal management team that draws from employees of both companies. Both Hubbard and Rowley are to step down from their roles as chairman and deputy chairman of the new company one year after the merger is implemented in August this year. Australian Resources & Investment is this country’s premier mining journal dedicated to providing readers with cutting-edge insights into resource developments in Australia, and from Australian companies operating around the world. “It will give us significant operational, technical and financial flexibility to deliver the full value of our combined portfolio. The company is also developing the Sal de Vida lithium brine project in Argentina, which is located in South America’s “lithium triangle”. Orocobre has its Olaroz and Cauchari lithium carbonate projects also in Argentina, and the Naraha lithium-ion hydroxide conversion facility in Japan for 10,000 tonnes per year.
The boards of the two companies have signed a binding Merger Implementation Deed whereby Orocobre will acquire 100 per cent of the shares of Galaxy Resources. Orocobre Deputy csco stock forecast, price and news Chairman Rob Hubbard said that he welcomed Mr Rowley, Ms Heredia, Mr Turner and Mr Fitzpatrick to the Orocobre Board and looked forward to working with them. He also said, “that each of the retiring directors has made unique and valuable contributions throughout the Orocobre journey that has led to today’s merger.