Mineral Resources has not been deterred by Wildcat Resources’ meteoric share price rise, with the Chris Ellison-led miner confirmed to be behind a share raid to acquire a 19.85 per cent stake in the lithium hopeful.
Filings to the ASX after market close on Tuesday revealed MinRes acquired the majority of its stake on Saturday — with a $158.6 million share sale agreement at 85¢ per share.
That share sale agreement was with Global Advanced Metals. MinRes chair James McClements also chairs Resource Capital Funds, with RCF selling the Tabba Tabba lithium project to Wildcat via its majority-owned Global Advanced Metals.
Shares in Wildcat dropped 18 per cent to close on Tuesday at 70¢.
MinRes’ move on Wildcat is the latest in a wave of consolidation sweeping WA’s lithium space, with Gina Rinehart’s Hancock Prospecting announcing on Friday it purchased $210m worth of Azure Minerals shares over the course of two trading days to amass an 18.3 per cent sake in the takeover target.
Hancock has also amassed a 19.9 per cent stake in Liontown Resources to derail a $6.6 billion bid from US chemicals giant Albemarle.
Wildcat’s flagship Tabba Tabba lithium project is located near MinRes’ 50-per cent owned Wodgina lithium project, in addition to being 80km from the port of Port Hedland.
Wildcat has had an astonishing emergence since lingering around 3¢ per share up until early May. Within the space of six months its shares have skyrocketed to trade as high as 89¢, meaning if an investor who shelled out $35,000 for shares on May 1, that investment would have made them a millionaire on Friday.
Wildcat is led by Samuel Ekins, who told The West Australian last week that Wildcat is aiming for a maiden mineral resource estimate at Tabba Tabba by mid-way through next year.
“We’ve made what could genuinely be a tier-1 one discovery and we are still yet to define the limits of the resource,” he said.
“All the pegmatites are open so understanding the scale of Tabba Tabba and advancing mine permitting will be our key next steps.”