Mineral Resources picks up 10% stake in Kali Metals

The news: Mining giant Mineral Resources has snapped up a significant stake in Kali Metals, joining a long list of prominent investors backing the freshly listed lithium explorer.

The numbers: Mineral Resources said in an ASX filing it had acquired a 9.97% stake in Kali Metals this week, at an average price of 43 cents a share. Kali raised $15 million in November through an oversubscribed initial public offering, issuing shares at 25 cents apiece. Its shares have soared since the company debuted on the ASX this week, closing at 52.5 cents on Tuesday.

The context: Mineral Resources clarified in its market announcement that its shareholding in Kali was separate from a 4.85% stake acquired by MinRes CEO Chris Ellison during the IPO. The company’s other investors include West Australian billionaire Tim Roberts, Navitas co-founder Rod Jones as well as several family offices. Kali holds vast tracts of unexplored land around Kalgoorlie as well as near existing lithium projects in the Pilbara. It also holds a joint venture with Chilean lithium miner SQM for some of its Pilbara projects.