Zijin Mining Group Announces Plans to Acquire Neo Lithium Corp.

Oct 13, 2021 By MarketDepth

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Zijin Mining Group Co., Ltd. recently announced plans to acquire the Canadian company Neo Lithium Corp. (TSX-V: NLC) in an all-cash deal worth $960 million.

Buyout $6.50 per share

The companies have entered into a definitive agreement pursuant to which Zijin had agreed to acquire all of the outstanding shares of Neo Lithium at a price of $6.50 per share. The offer represents Zijin’s first attempt to acquire assets connected to the electric vehicle supply chain, according to BNN Bloomberg. Historically, the company dealt exclusively with base metals such as gold, copper and zinc since its formation in 1993. 

“After a thorough strategic process, we are very pleased to provide this all-cash premium offer to our shareholders from a leading global mining company. We believe that it is now time for our project to proceed to the construction and production phases with Zijin, a leader with a track record of developing assets in a responsible manner respecting the interests of local employees, communities and authorities.”

Waldo A. Perez, President and Chief Executive Officer of Neo Lithium

This isn’t the first time Zijin has acquired Canadian-based companies in recent years, as its recent forays into the country include a $1.8-billion deal for Nevsun in 2018, a $1.4-billion takeover of Continental Gold in 2019 and a $323-million deal for Guyana Goldfields last year, according to BNN Bloomberg.