Sponsored

Lithium Australia (ASX:LIT) zeroes in on core assets; divests stake in Greenbushes South Lithium Project - Kalkine Media

December 13, 2022 02:56 PM AEDT | By Ankur Jaiswal
Follow us on Google News: https://kalkinemedia.com/resources/assets/public/images/google-news.webp

Highlights:

  • Lithium Australia (ASX:LIT) is divesting its remaining 20% stake in the Greenbushes South Lithium Project.
  • The agreement will entitle Lithium Australia to receive a cash payment of AU$2 million and fully paid ordinary shares worth AU$1 million in the capital of Galan.
  • The sale is in line with LIT’s continued transition since 2014 from exploration to lithium processing and recycling.

Lithium Australia Limited (ASX:LIT) is committed to advancing its battery recycling division and commercialising lithium ferro phosphate (LFP) cathode powders, as part of its goal to ensure an ethical and sustainable future for the global battery industry.

To further enhance its primary focus, the company has entered into a binding agreement to sell its remaining 20% interest in the Greenbushes South Lithium Project.

Lithium Australia divests stake in Greenbushes South Lithium Project

Lithium Australia has executed the agreement with Galan Lithium Ltd (ASX:GLN), which already owns 80% interest in the project.  

Under the terms of the agreement, Lithium Australia is entitled to receive a cash payment in the amount of AU$2 million and fully paid ordinary shares in the capital of Galan to the value of AU$1 million.

As part of the agreement, LIT has also gained the first right of refusal for offtake of a maximum of 20% of Galan’s share of lithium produced to the company for LFP production for commercialisation purpose in the future. However, the rights will only be entitled if Lithium Australia makes a financial investment decision announcement before 31 December 2029 for a lithium metal phosphate cathode powder commercial facility.

© 2022 Kalkine Media®, Data source: Company update, 13 December 2022

The agreement also highlights that the joint venture partnership between the companies will terminate on the completion of the sale.

Prior to this agreement, on 13 January 2021, Lithium Australia and Galan entered into the Letter Agreement – Acquisition and Joint Venture. As per the agreement, Galan acquired an 80% interest in certain tenements comprising the Greenbushes South Lithium Project.

Additionally, the agreement also gave Galan an 80% interest in LIT’s contractual rights to lithium in certain tenements comprising part of the Greenbushes South Lithium Project.

Lithium Australia’s primary focus on lithium processing and recycling

The development is in line with the company’s continued transition since 2014 from exploration to lithium processing and recycling.

Lithium Australia is focused on achieving its goal through its wholly owned business divisions, Envirostream and VSPC.

Data source: LIT update

Share price: LIT shares were trading at AU$0.046 during the morning session on 13 December 2022, up over 1% from the last close.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

5 ASX Companies Leveraging AI to Drive Growth in 2024



Top ASX Listed Companies


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.