Liontown rejected a $5.5 billion takeover bid from a US-based chemicals giant.
👉 Background: Liontown Resources is a mineral exploration company focused on lithium projects in particular. It has already cut deals with Tesla and Ford over the past couple of years for lithium batteries.
👉 What happened: Earlier this week, Liontown received a $5.5 billion takeover bid from Albermarle, a US based chemicals giant. Albemarle offered a whopping 63 per cent premium to Liontown's closing price before the offer, but Liontown Resources said “nah-uh".
👉 What else: This wasn't the first time has Liontown rejected a big offer - because Liontown thinks there is a big opportunity for the company to grow from mining explorer to mining producer.
💡Every mining explorer with high-quality minerals faces the same billion dollar question. Literally... a billion dollar question. Do we remain a mining explorer? Or ramp up to become a mining producer?
💡 Mining explores will explore different sites around Australia or the world hoping that they may stumble across minerals. And it just so happens that Liontown has struck lithium. But to extract these highly-lucrative minerals from the ground, it will cost Liontown around $895 million.
💡So they will either need to raise many hundreds of millions to mine its minerals...or hold off for an even better offer from a mining producer to buy the rights off them.
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