Exciting news. Pilbara Minerals Limited has bid for Latin Resources Limited via an all-scrip scheme of arrangement, targeting the development of the Salinas 500+ktpa spodumene concentrate project. If successful, this would de-risk and possibly bring forward much needed lithium supply proximal to the EU/US markets currently starved of seabourne spod. con. - underpinning development of merchant refining facilities in those regions.
Operationally, I see a lot of synergies here. Salinas' near surface, stacked dyke resource is similar to Pilbara's Pilgangoora. Though skeptics will point to how thin the dykes are at Salinas, lending to a high strip ratio 17+. The project PEA envisioned a DMS-only flowsheet with a SC3 tail product, though I think PLS, now emboldened with their recent success with TOMRA ore sorting, will bring that into the picture to better handle dilution at the front end and remove the need for the tailings recovery circuit. (i now hear this being signalled on the investor call this AM). Further, if Sigma is any guide, the course grain nature of the region's spodumene is incredibly forgiving to liberate. If this can be replicated at Salinas, ease of processing may offset any issues emerging in mining.
Overall I think this counter-cyclical transaction could prove to be quite successful in the fullness of time, helping diversify Pilbara's market exposure and production base while supporting the buildout of the North American/European EV markets
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1wLooks like Bluey was popular with the kids- and what an apt mascot for COV - embodying a sense of adventure, an abundance of energy, imagination and curiosity about the world.