Mineral Resources (MRL) has exited its 5.4% shareholding in Pilbara Minerals Ltd, raising gross pre-tax proceeds of approximately AUS$328 million.
The sale was executed via a fully underwritten accelerated block trade offered to institutional investors. MRL will apply the cash proceeds it receives to the capital expenditure program.
MRL became a substantial shareholder in Pilbara Minerals in October 2016 as part of an agreement to relinquish offtake rights and a royalty that the company held over Pilbara Minerals’ Pilgangoora project.
MRL is reportedly delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora, but believes it is time to redirect its investment into its own growth projects, including in the hard-rock lithium and iron ore sectors.
Read the article online at: https://www.globalminingreview.com/mining/07092021/mineral-resources-divests-pilbara-minerals-shareholding/