Kidman Resources Ltd share price falls 13%

Unfortunately for its shareholders, the Kidman Resources Ltd (ASX: KDR) share price has given back all of this week’s gains with a sharp fall during trade today.

In late trade the lithium miner’s shares are on course to finish the day lower by 13% to 61.5 cents.

What happened?

This morning Kidman announced that it has agreed to establish a 50:50 joint venture with Sociedad Química y Minera de Chile to develop and operate its world-class Mt Holland Lithium Project.

Furthermore, the two parties will develop a downstream lithium refinery operation in Western Australia.

In consideration for the acquisition of a 50% joint venture interest in the Mt Holland Lithium Project, Sociedad Química y Minera will pay US$110 million.

Judging by the share price reaction, it appears as though the market doesn’t believe that Kidman Resources has received a fair price for the valuable asset.

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