(Yicai Global) Jan. 9 -- Tianqi Lithium’s stock price gained after China's biggest lithium extractor said it plans to acquire an Australian lithium miner for AUD136 million (USD94 million).

Tianqi Lithium [HKG: 9696] closed 2.3 percent higher at HKD61.25 (USD7.88) today, after climbing by as much as 5.5 percent in the morning trading session. Its Shenzhen-listed stock [SHE: 002466] ended up 0.9 percent at CNY85.02 (USD12.57).

Tianqi Lithium unit Tianqi Lithium Energy Australia plans to buy all of Essential Metals for 50 Australian cents (30 US cents) a share, its Chengdu-based parent company said today. The acquisition will help TLEA expand its lithium resource reserves, in line with the company's development and international business strategies, and boost its competitiveness, it added.

The deal is subject to approval by shareholders and authorities such as the Australian Securities and Investment Commission, Australian Securities Exchange, and local courts, Tianqi Lithium noted.

Essential Metals has 11.2 million tons of lithium resources, with an average lithium oxide content of about 1.2 percent and an optimistic estimate of about 790 tons of resources available, according to the company's resource report. It owns the Pioneer Dome lithium project.

Tianqi Lithium's revenue soared 580 percent to CNY10.4 billion (USD1.5 billion) in the third quarter of 2022 from a year earlier. Net profit skyrocketed 1,173 percent to CNY5.7 billion.

Editor: Martin Kadiev