AUS
NZ
UK
CA
USA
IND
Lithium Australia NL (ASX:LIT) released a Raw Materials Update on 27 December 2019, announcing that the Company continues to rationalise its holdings of raw materials, including those in Western Australia, the Northern Territory, Queensland, South Australia, Germany and Mexico.
Currently, the Company’s preferred supply model involves sourcing lithium minerals from mine-waste streams (historical dumps and tailings) or as discharge from currently operating mines; while other supply opportunities are also being explored.
LIT’s prime targets include lithium micas, often associated with tin, tantalum and tungsten, certain types of clay minerals, fine spodumene discharged as waste during the production of lithium concentrates.
Lithium Australia’s Projects/Alliances
Source: Company’s Website
Western Australia
· Ravensthorpe Rehabilitation: Rehabilitation at Ravensthorpe is ongoing. Further, there has been good progress at Deep Purple, which has been under inspections by the Western Australian Department of Mines, Industry, Regulation and Safety (DMIRS). The Company is preparing for further rehabilitation work at Horseshoe, subject to approval of the updated rehabilitation plan by DMIRS.
· Seabrook Rare Metals Venture: The 5-year term of the Seabrook Rare Metals Venture had expired in November 2019, putting an end to the arrangement with Tungsten Mining NL. The project presented an opportunity for LIT to calibrate and test laser-induced breakdown spectroscopy (LIBS) as a practical, field-portable assay technique for lithium.
In addition, the R&D programme undertaken at Seabrook generated procedures/protocols that have been successfully employed for real-time drill control on the Company’s Electra Project in Mexico, as well as applications for other projects, including metallurgical process control.
· Coolgardie Rare Metals Venture (CRMV): Lithium Australia consistently engaged in R&D throughout 2019 for identifying proper sources of waste lepidolite at its Lepidolite Hill project. It further developed its knowledge of Lepidolite Hill through the use of deep-ground penetrating radar. Once targets were identified with this non-invasive programme, sampling was undertaken using LIBS.
Final validation of the LIBS programme, the subject of a Department of Mines Exploration Incentive Scheme (EIS) grant was also achieved by processing duplicate samples using conventional assay techniques.
· Metal Hawk IPO update, Emu Lake Project: The Company was recently informed about the extension of the Metal Hawk Limited’s (MHK) IPO timetable. As advised on 20 November 2019, subject to a successful ASX listing MHK would be issuing Lithium Australia with 300,000 MHK shares at a deemed issue price of $ 0.20 for the purchase of the Emu Lake project.
· Greenbushes Project: Lithium Australia has a special interest in a significant holding adjacent to and in the proximity of Greenbushes mine, the world’s largest lithium mine, operated by Talison Lithium Pty Ltd (51% Tianqi and 49% Albemarle). The Company seeks a partner in its bid to advance exploration in the area.
· Medcalf Lithium Prospect, Lake Johnston Project: The Company is seeking approvals from the appropriate authorities to undertake drilling at this target.
South Australia
· Dudley Project, Kangaroo Island: Studies of prospective pegmatites at Dudley have revealed significant potential for high-purity kaolin and halloysite, as well as gem-quality tourmaline. Lithium Australia is now seeking expressions of interest in a commercial transaction such as a sale, joint venture, farming, sublease or any other that would provide benefit to its shareholders.
Northern Territory
· Bynoe Project: Lithium Australia holds a tenement in Bynoe, which is considered strategic, as it is situated proximal to the Finnis project of Core Lithium Ltd. The Company is undertaking discussions with prospective partners to further explore in this area.
Queensland Projects
Lithium Australia is relinquishing its least prospective areas in far north Queensland and seeking partners to continue exploration on the remaining land tenure.
Mexico
· Electra Project: Lithium Australia identified extensive mineralisation within this area. The Company is now seeking partners for its 54% interest in this lithium clay project, which flanks the Sanora lithium clay deposit of Bacanora Minerals plc, recognised as one of the largest deposits of its type globally.
Germany
· Sadisdorf Lithium Project: The pre-feasibility study (PFS), that would comprise further resource modelling, sampling and SiLeach® processing at this project, is currently examining viability of cathode materials’ production for LIBs from that location. The PFS will.
Funding, R&D Rebates and Grants
o The Company has received $ 3 million under its $ 6.3 million funding agreement with The Lind Global Macro Fund, LP, a New York-based institutional fund manager managed by The Lind Partners.
o Also, LIT has received a $ 1.23-million R&D rebate from the Australian Tax Office (ATO) concerning eligible activities under the ATO’s R&D tax incentive scheme for FY19.
o On 10 December 2019, Lithium Australia’s subsidiary VSPC Ltd (100%-owned) announced to have received another receipt of $ 876,095 R&D rebate from ATO for FY19. On the same day Envirostream Australia Pty Ltd (LIT’s 100%-owned subsidiary) announced that Sustainability Victoria had awarded an $ 110,000 grant regarding its Melbourne battery recycling facility.
Use of funds
The funds above along with Lithium Australia’s current cash would be directed towards the expansion of the Soluna Australia battery business; commercialisation of the VSPC Ltd cathode business; the advancement of the Envirostream Australia battery recycling business, and for general working capital purposes (including costs of the funding agreement).
Stock Performance: With a market capitalisation of around $ 35.08 million and approximately 556.77 million shares outstanding, the LIT stock was trading at $ 0.061 at AEDT 03:20 PM with ~ 987,547 shares traded. LIT has delivered positive returns of 90.91% in the last one month and 34.04% in the last three months.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.
