All systems go in hard rock lithium
It’s certainly been an interesting month in the Western Australian hard-rock lithium market! First up we had IGO Ltd’s (ASX:IGO) announcement that it agreed to pay US$1.4bn (A$1.9bn) to acquire a 49% stake in Tianqi Lithium Energy Australia Pty Ltd from Tianqi Lithium (SHE:002466). This will provide IGO with a 24.99% indirect interest in the Greenbushes hard rock mine and a 49% indirect interest in the Kwinana LHM plant. It plans to fund the deal with A$1.1bn of debt, A$766m of new equity and its existing cash reserves. If we back out the LHM project, the deal looks pretty good...