Pilbara Minerals Finalizes $560 million Acquisition of Latin Resources

Highlights:

• $560 million Deal: Pilbara Minerals completes its acquisition of Latin Resources.
• New Shares Issued: 205.5M shares allocated to Latin Resources shareholders.
• Global Expansion: Strengthens Pilbara’s presence in Brazil’s lithium sector.

Strategic Expansion into Brazil’s Lithium Market

Pilbara Minerals Limited (ASX: PLS) has successfully completed the acquisition of Latin Resources Limited (ASX: LRS), securing ownership of the Salinas lithium project in Brazil. The takeover, valued at approximately $560 million, marks a significant step in Pilbara’s efforts to expand beyond its Australian operations.

Key Transaction Details

As part of the all-scrip deal, Pilbara Minerals issued 205,521,136 new shares to Latin Resources shareholders, representing around 6.4% of Pilbara’s total shares on issue. The offer was structured at a ratio of 0.07 new Pilbara shares for each Latin Resources share.

Diversification Beyond China

At the time of writing, Pilbara Minerals’ move into Brazil aligns with its broader strategy of reducing reliance on Chinese markets and strengthening its global supply chain. However, some analysts and investors had previously raised concerns over the deal’s valuation and strategic fit. Despite this, Pilbara remains optimistic about the growth potential of the Salinas lithium project, which could enhance its position in the global battery materials market.

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