Allkem shares lift as two projects progress

The news: Shares in Lithium miner Allkem have jumped more than 3% in early trading after it signed a first nations agreement for its James Bay project in Canada and secured an extra USD50 million ($74.6 million) in finance for Sal de Vida in Argentina.

The numbers: The funding boost takes total financing for Sal de Vida to USD180 million, structured as green and sustainability-linked loans. The Canadian agreement with the Cree Nation is based around sustainable development, respecting traditional activities and providing opportunities for Cree people. AKE shares were trading 3.2% higher at $10.38 just after 10:40am AEDT on Friday.

The context: Allkem's share price has been on a steady downward trend for the second half of 2023, tracking with a declining lithium price and ahead of its proposed mega-merger and US listing with lithium giant Livent. The deal has support from influential proxy advisers such as Glass Lewis, but the Australian Financial Review reported fund manager Ausbil — which owns roughly 3.3% of Allkem — believes the miner would be better off on its own on the ASX. Allkem investors will vote on the merger on 19 December, and the deal will need at least 75% support to pass.