The IGO Ltd (ASX: IGO) share price dropped today. The company made an announcement.
Market update
IGO, which is an exploration and mining company, gave an update regarding its recently announced transaction with Tianqi Lithium Corporation and the company’s ongoing strategic review of its 30% ownership of the Tropicana Gold Operation.
The company confirmed today that Tianqi received approval for the transaction with IGO from its shareholders, with 99.97% voting in favour of the transaction. IGO said this was strong validation of the ‘win win’ the transaction has created for the shareholders of both companies.
IGO Managing Director and CEO Peter Bradford said: “The resounding vote of support which Tianqi has received from its shareholders further validates the value creation from this transaction for the shareholders of both companies. Tianqi and IGO continue to progress the completion workstreams and we will provide further updates to the market as the remaining conditions precedent requires to complete the transaction are progressed.”
The company also said the review of the Tropicana Operation is still ongoing.
Summary thoughts
Resource businesses can produce good returns, but only if you buy at the right time and it’s hard to know when resource cycles are going to change (positively or negatively). I prefer ASX growth shares with consistent growth potential.
