Bill Beament’s Develop Global seals the deal for Chris Ellison’s Essential Metals

Develop Global’s all-scrip takeover of Essential Metals has been waved through by shareholders in a deal likely to be valued at about $150 million (reports The West Australian).


At the scheme meeting on Wednesday, 93 per cent of the votes cast by Essential Metal’s shareholders — representing 78 per cent of the register — gave the takeover the tick of approval.

At least 50 per cent of investors with shares comprising 75 per cent of register needed to vote in favour of the deal for it to go through.

The deal comprises one Develop share for every 6.18 Essential Metals shares held.

At the time the deal was announced on July 3 it valued Essential at about $152.6m, with the exact price of the takeover to be locked in on October 30.

Develop managing director Bill Beament will continue to lead the new entity, with Essential’s flagship Pioneer Dome lithium and early-stage gold and nickel projects in WA to be added to Develop’s portfolio of copper, nickel and zinc assets across WA and New South Wales.

Mineral Resources boss Chris Ellison is Essential’s largest shareholder with a 19.9 per cent holding.

MinRes also has a 12.8 per cent stake in Develop Global.

The merger will create a green metal miner helmed by veteran Bill Beament, bringing together Essential’s Pioneer Dome lithium project in WA and Develop Global’s copper, zinc, and nickel assets in NSW.

Influential proxy adviser Institutional Shareholder Services announced its support for the Develop takeover earlier this month.

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