(Kitco News) - Sibanye-Stillwater (NYSE: SBSW) announced today that it intends to exercise its pre-emptive right to increase its shareholding in Finland-focused lithium developer Keliber from an initial 30.29% to 50% plus 1 share.
Importantly, the company said that simultaneous with the pre-emptive offer, it will also make a voluntary cash offer to minority shareholders of Keliber, other than the Finnish Minerals Group, which could initially increase its shareholding in Keliber to over 80%.
The Finnish Minerals Group, a Finnish State-owned holding and development company which manages the State’s mining industry shareholdings, is the second largest shareholder in Keliber behind Sibanye-Stillwater with a current circa 20% shareholding.
Sibanye said that, subsequent to completion of the voluntary offer, a capital raise by Keliber will be executed, adding that if required post the above-described transactions, an equalization mechanism may be implemented such that Sibanye-Stillwater achieves its targeted 80% shareholding in Keliber.
According to the company’s statement, the transaction (including the pre-emptive offer, the voluntary offer and the capital raise) entails a maximum possible cost to Sibanye-Stillwater of €446 million (excluding transfer tax), of which a possible maximum of €250 million in equity will be contributed by Sibanye-Stillwater.
Sibanye also noted that conventional debt facilities are currently being advanced with third party lenders to at least match the €250 million equity contribution to fund construction of the project. The company anticipates that all aspects of the various transactions described above will be completed by 13 February 2023, being the effective date.
CEO Neal Froneman commented, “This is a further significant step in our strategy to build a unique global portfolio of green metals in a value accretive manner. We look forward to partnering with our Finnish stakeholders to build the Keliber project, which will be the first mining and metallurgical operation in Europe to deliver high quality, low-cost lithium hydroxide with a low carbon footprint and will be ideally placed to deliver critical metals into the growing European battery industry.”
In its press-release, Keliber said that the proposed arrangement is significant for the company because it enables the lithium project to progress to the construction phase, from a financing point of view. Keliber's Board of Directors considers the negotiated financing arrangement to be a good solution for all parties.
Sibanye-Stillwater is a multinational mining and metals Group with a diverse portfolio of mining and processing operations and projects and investments across five continents. The Group is also one of the foremost global PGM autocatalytic recyclers and has interests in leading mine tailings retreatment operations.
Keliber is a European, Finnish special chemical and mining company with the aim of producing sustainable, high-purity, battery-grade lithium hydroxide for the growing lithium battery industry in 2024 by utilizing own ore.
The planned operations include lithium mines and the concentrator plant in Kaustinen, Kokkola and Kruunupyy, Finland, and a lithium hydroxide plant in Kokkola.
