SQM to acquire stake in Azure

Highlights:

• Global lithium producer SQM has made an initial AUS$4.2 million investment in Azure.
• Subject to the satisfaction of certain conditions precedent, SQM will invest a further AUS$15.8 million to hold a 19.99% interest in Azure.
• SQM will invest at a price of US$0.2564 per share, which represents premiums of: 
  • 13.9% to Azure’s last traded price of US$0.225 per share on 6 January 2023.
  • 12.4% to Azure’s 10 day VWAP of US$0.228 up to and including 6 January 2023.

This strategic investment by SQM is a strong endorsement of the lithium potential of the Andover project (60% Azure/40% Creasy Group) and highlights the upside potential for Andover to grow into a globally significant lithium mining and processing operation.

Commenting on SQM’s investment, Azure’s Managing Director Mr Tony Rovira said:

“We’re very pleased to welcome SQM as a substantial and strategic investor in Azure, which demonstrates their strong interest and belief in the lithium potential of the Andover project. This is a significant milestone event and is a strong endorsement of Azure and our projects by one of the world’s leading lithium producers.

“The new relationship will allow Azure to draw upon SQM’s technical expertise in pegmatite-hosted lithium exploration, project development, production and marketing, providing Azure with strong support as we look to develop the Andover lithium assets.

“Azure is now in a very strong financial position and, following completion of both tranches of the transaction with SQM, Azure will have a cash balance of more than US$25 million which will be used to accelerate lithium exploration through a program of intensive drilling across the Andover project.”

Read the article online at: https://www.globalminingreview.com/finance-business/13012023/sqm-to-acquire-stake-in-azure/