Back on the 7th May 2026, African-focused lithium play Atlantic Lithium (A11 AU) entered into a A$0.354/share (terms are in USD) Scheme with Zhejiang Huayou Cobalt (603799 CH).
On the 26th Oct, Atlantic announced Huayou had secured Ghana’s primary sovereign hurdle to acquire Elevra Lithium (ELV AU)‘s 22.5% direct stake in the Ewoyaa Lithium Project.
The Scheme Booklet is now out, with a 14th December Scheme Meeting and 12th January 2027 implementation. The IE (BDO) concluded “ fair and reasonable“. Clean deal. Trading wide.
Atlantic is very illiquid - look away now if that is not your bag.
The Trade:
Trading wide (14%/100% gross/annualised).
Zero vote risk - terms are 101% above the IE’s preferred value.
Just a question on timing as it relates to Ghanian/PRC regs.
The deal has already secured sovereign approval. ECRA will follow.
IF small, illiquid arbs are your bag, and not in, get involved