Shares in lithium miner Altura Mining , jumped more than 7% yesterday after it confirmed market rumours that it is in takeover talks with its Chinese offtake partner and major shareholder Shaanxi J&R Optimum Energy.
Shaanxi already holds about 19% of the company and is understood to want to control Altura’s Pilgangoora lithium mine south of Port Hedland to secure supply of the commodity for its battery-making operations.
“The content of the discussions are confidential, incomplete, indicative and non-binding,” Altura said in a statement to the ASX yesterday.
“Any proposal would be subject to a number of conditions including regulatory approvals in China and Australia.
“At this stage there is no certainty that any transaction will proceed, and if so, on what terms,” Altura added.
Altura has begun mining at Pilgangoora and is commissioning its processing plant to produce a 6% spodumene product expected next quarter.
A stage two feasibility study is looking at doubling the project’s initial 220,000c tonnes tonnes a year processing capacity to 440,000. The second stage of that study is due to be wrapped up next month.