Battery deal gives miner boost
Altura Mining has struck a $41.6 million deal with a Chinese battery manufacturer to help pay for the development of its Pilgangoora lithium project in the Pilbara.
Under the deal, Shaanxi J&R Optimum Energy will be issued 306 million new shares in Altura priced at 13.6 cents in a two-tranche placement.
The deal will give J&R Optimum a 19.9 per cent stake in Altura and a seat at the company’s board table.
J&R Optimum has 18 battery plants either in operation or under construction across several Chinese provinces and is listed on the Shenzhen Stock Exchange.
Altura managing director James Brown said the outcome of the placement was an excellent result for both companies’ future growth.
He said the transaction significantly de-risked the Pilgangoora project and provided a strong lead to debt funding groups as Altura worked towards finalising the complete financial package for the project.
J&R Optimum recently acquired the Optimum Nano group with whom Altura signed a non-binding memorandum of understanding earlier this year to take a minimum of 100,000 tonnes per annum of lithium spodumene concentrate. Altura also has a binding offtake agreement with Chinese group Lionergy to take a minimum 100,000 tonnes of spodumene a year for an initial five years.