Calidus partner to sell 40% stake in Pilbara lithium project to SQM (updated)

Calidus Resources

23/10/2023 24:44

(Adds details of agreement throughout, share moves in paragraph
7)
       Oct 23 (Reuters) - Australian gold explorer Calidus
Resources Ltd  CAI.AX  said on Monday Chilean lithium miner SQM
 SQMA.SN  will buy a 30% stake in a Pilbara lithium project from
its joint venture partner Haoma Mining.
    SQM will ultimately take its interest in Pirra Lithium Ltd
to 40% by injecting A$3 million ($1.90 million) to fund
exploration, Calidus said in a statement.
    Calidus, which owned Pirra equally with Haoma, will
ultimately retain 40% ownership in the project by injecting A$2
million to fund exploration.
    A SQM unit will subscribe A$3 million Pirra shares for
A$0.20 apiece, Calidus said.
    "Calidus will maintain its position in Pirra at 40% due to
the significant potential of the land package and will re-assess
its options for this holding as exploration continues," the
company said.
    "In line with this approach, there is no plan to seek an IPO
of Pirra in the immediate term."
    Shares of the Australian gold explorer soared as much as 27%
to A$0.165, marking their biggest intraday jump since February
2019.

($1 = 1.5828 Australian dollars)

 (Reporting by Roshan Thomas in Bengaluru; Editing by Jacqueline
Wong and Subhranshu Sahu)
 ((Roshan.Thomas@thomsonreuters.com;))