Atlantic Lithium (A11 AU) Enters Scheme With Zhejiang Huayou Cobalt

• Back in November 2023, African-Focused lithium play Atlantic Lithium (A11 AU) announced it had twice rejected NBIOs from South African-based Assore International, its major shareholder.

• Assore offered A$0.63/share by way of Scheme, a 64% premium to undisturbed. Atlantic’s IBC rejected terms as they were not in the best interest of shareholders.

• Atlantic has now entered a Scheme with Zhejiang Huayou Cobalt (603799 CH). Price? A$0.354/share, a 26.6% premium to undisturbed. Assore, holding 26.4%, and directors (1.8%), are supportive. This is done.

Atlantic is illiquid - look away now if that is not your bag.

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The Trade:

• Clean deal. Just a question of timing as it relates to PRC regs.

• If small, illiquid arbs are your bag, I’d be picking up shares here - currently trading at a 12.4%/21.2% gross/annualised spread, assuming mid-Dec completion.