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Galaxy Resources and General Mining agree to merge in $155 million deal

  • Region:

    Canada, Australia, Argentina

  • Sector:

    Materials

  • Deal Size:

    $155 million

  • Buy Side Company:

  • Sell Side Company:

    General Mining Corporation Limited, Galaxy Resources Limited
  • Target Company:

Australia's Galaxy Resources and General Mining agreed to a $155 million merger to consolidate their lithium mines in Australia, Canada and Argentina, with prices for the metal soaring on growing demand for electric vehicles. The offer, swapping one General Mining share for 1.65 new Galaxy shares, is the latest in a push by Australian-listed companies to mine lithium, essential in powering non-internal combustion engines and led by companies such a Tesla Motors , Nissan and BMW. Australia has seen a stampede of proposals to mine lithium in the past 12 months, with more than 20 companies in various stages of development in the Pilbara region of Western Australia state alone. Lithium prices have risen to over $20,000 a tonne from about $7,000 a tonne last September, according to metals consultancy CRU.

Tags:

BMW,Metalicity Ltd,Nissan,Orocobre Ltd,Tesla Motors,Galaxy Resources,General Mining,Mergers,M&A,Lithium mining,electric vehicles