Gilbert + Tobin advised Kali Metals Limited on its successful and oversubscribed Initial Public Offering (IPO) and listing on the Australian Securities Exchange (ASX).
Kali Metals Limited (Kali) is an Australian critical minerals resources company that was established from the spin out of ASX-listed Kalamazoo Resources Limited’s (ASX: KZR) (Kalamazoo) lithium assets across the Pilbara region of Western Australia, New South Wales and Victoria, in conjunction with Kali acquiring lithium mineral rights over TSX-listed Canadian gold miner Karora Resources Inc.’s (TSX: KRR) (Karora) Higginsville Project (Higginsville Lithium Project) in Western Australia’s Eastern Yilgarn region.
Kali’s IPO was heavily oversubscribed and raised the maximum amount of $15 million. The funds raised by the IPO will be used to explore and develop Kali’s lithium exploration projects, with a strong focus at the Higginsville Lithium Project.
On Kali’s opening day of trading on the ASX on 5 January 2024, its shares closed at 43.5¢ - nearly doubling the IPO price of 25¢ within its first day of trading.
The G+T team advised on all aspects of the IPO and ASX-listing, including the transfer of Kalamazoo’s lithium assets and interests in an earn-in agreement with lithium producer SQM from Kalamazoo to Kali, as well as Kali’s acquisition of lithium mineral rights over the Higginsville Lithium Project tenements from Karora, via a share sale agreement and multiple mineral rights agreements.
The G+T team was led by partner Simon Rear and lawyers Ryan Gava and Sarah Urquhart in the Corporate Advisory team, who advised Kali on its ASX listing and IPO. The team also included partner Claire Boyd and lawyers, Claudia Russo, Anneka Thomson and Lucy Burns in the Energy + Resources team, who advised Kali on its acquisition of the Kalamazoo assets and mineral rights arrangements with Karora.
Simon Rear commented: “We are delighted to have advised Kali on its successful listing on the ASX. It’s an exciting growth opportunity for Kali as they develop their projects and we wish them every success as they capitalise on the growing demand for lithium, as part of the clean energy transition, in the future.”
Other firms involved in this IPO included Bell Potter Securities Limited and Canaccord Genuity (Australia) Limited as Joint Lead Managers and Grant Samuel who acted as Kali’s financial adviser.