By Anirban Sen and Ernest Scheyder

(Reuters) -Compass Minerals is in talks with private-equity corporations to promote itself, three sources mindful of the topic talked about, after an aborted lithium-mining challenge hit shares of the minerals producer, which is value about $1.5 billion along with debt.

Overland Park, Kansas-based Compass has been working with its funding bankers for several weeks to set up in thoughts acquisition passion from several buyout corporations, the sources talked about, inquiring for anonymity as the discussions are confidential.

The talks are developed and a deal would be signed in the upcoming weeks, the sources talked about. Nonetheless they warned a deal was once now not certain.

The company’s shares jumped bigger than 30% on Friday after Reuters reported its talks with likely suitors.

A spokesperson for the corporate declined to comment.

Compass produces salt for the transportation and food industries, as well to fireplace retardants and fertilizers.

Compass grew to change into an acquisition aim after its shares misplaced bigger than half their ticket this One year up to Thursday’s finish. The company shut down its lithium unit, which old style to have electrical-car battery metal for automakers akin to Ford Motor (NYSE:), disappointing investors.

Earlier this One year, Compass canceled plans to gather a neat lithium challenge in Utah after going thru intense opposition from regulators, who argued it would non-public a detrimental environmental influence on the Good Salt Lake.

Delicate weather has also worry its mineral salts business in its most modern quarterly results. In Might per chance maybe per chance moreover simply, the corporate talked about it would scale again its debt pile and never pay out dividends to disencumber cash.

For the quarter ended June 30, Compass’ earnings fell a miniature to $203 million, whereas it swung to a gather loss of $43.6 million.