After Kali Metals Ltd (ASX:KM1)’s highly successful ASX listing, it has been revealed Chris Ellison’s Mineral Resources was blocked from participating in a joint venture or initial public offering (IPO).
However, the mining giant now has close to a 10% stake in Kali as the company’s first week of trading closes out and is looking to work closely with Kali in this high potential lithium area in Western Australia.
The Australian Financial Review this week contacted MinRes about its initial meetings with Kali, potential for involvement as a joint venture partner and its involvement in the IPO.
“Those approaches were declined,” a MinRes spokesman told the AFR when asked about its rejection from last year’s IPO.
“Kali has been explicit about its decision to exclude companies such as MinRes from the IPO. MinRes then invested in Kali Metals at the earliest opportunity, which was on-market after the company listed.
“The MinRes investment in Kali Metals, which has assets in proximity to our Mt Marion and Bald Hill operations, is consistent with previous strategic acquisitions in numerous junior lithium companies with assets in the Goldfields and Pilbara regions. MinRes is confident these investments will deliver shareholder value over time.”
Ellison takes separate holding
Ellison also invested in Kali through his private company, Wabelo, which emerged with a 4.86% stake after the IPO. Ellison is Kali’s third-biggest shareholder behind Kalamazoo Resources Ltd (ASX:KZR) and Karora Resources Ltd, which combined to spin out Kali.
Ellison’s 4.86% stake is separate to the MinRes shareholding. His attraction to Kali is the potential of its Goldfields land package and the existing management team.
“I think the Goldfields is the most prospective ground on the planet for lithium and WA is supportive on approvals through to production,” Ellison told the AFR. “I’m passionate about the future of lithium being the fast track to emissions reduction, and the Kali ground is adjacent to some great country.”