Neo Lithium Corp (TSX-V:NLC) has told investors that its wholly-owned subsidiary, LIEX SA, has received a ‘Declaracion de Impacto Ambiental' (DIA) from the Environmental and Mining Authority in Argentina’s Catamarca province.
The company said the issuance of the DIA satisfies one of the final conditions needed under a proposed takeover offer by China’s Zijin Mining Group Co, other than conditions that can only be satisfied at the effective time of the transaction.
In October 2021, Neo Lithium announced it had entered into a definitive agreement that will see Zijin acquiring all its outstanding stock for $6.50 per share in cash - or a total of $960 million.
READ: Neo Lithium receives $960 million cash takeover offer from China's Zijin Mining
Neo Lithium said the DIA rubber stamped LIEX's environmental impact assessment for construction and operation of the mine as set out in the feasibility study for its wholly-owned Tres Quebradas (3Q) lithium brine project in Catamarca.
As part of the issuance of the DIA, it agreed to fund an infrastructure trust to be administered for the benefit of the 3Q Project and its impacted areas.
Neo Lithium said the transaction with Zijin was approved by its shareholders at a special meeting on December 10, 2021, and the Ontario Superior Court of Justice granted a final order approving the plan of arrangement to implement the transaction at a hearing held on December 15, 2021.
It said Zijin is in the process of obtaining approval for the transaction from relevant authorities in the People's Republic of China, with the closing of the transaction expected soon thereafter.
Shanghai Stock Exchange-listed Zijin is one of the largest mining companies in China as well as a leading global gold and copper producer. It manages an extensive portfolio, primarily consisting of gold, copper, zinc, and other metals through investments in China and twelve overseas countries across Europe, Central Asia, Africa, Oceania and South America.
The Province of Catamarca is the largest lithium-producing area in Argentina. The 3Q project covers approximately 35,000 hectares (ha) and the salar complex within this area is approximately 16,000 ha.
Contact the author at stephen.gunnion@proactiveinvestors.com