Prior to its agreement with CATL, Millennial terminated its prior arrangement with Ganfeng Lithium Co. Ltd., which offered to buy the company at C$3.60 per share (C$353 million) in July but was unwilling to enter a bidding war.
CATL’s competing offer represents a premium of approximately 29% over the 20-day average closing price of C$2.98 for the common shares on the TSX Venture Exchange, as well as a 6.9% premium over Ganfeng’s bid.
Apart from Ganfeng, Millennial’s assets have also attracted interest from China Molybdenum Co., which was rumored to have considered joining CATL in its bid.
Millennial has two non-producing lithium brine projects in northern Argentina, Pastos Grandes and Cauchari East, with a combined 4.12 million tonnes of lithium carbonate equivalent (LCE) in measured and indicated resources.
