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Highlights
- Cosmos Exploration signs exclusive option to acquire EAU Lithium Pty Ltd.
- Partnership paves the way for testing Bolivia's lithium brines with Vulcan’s cutting-edge technology.
- Shares surge 34.29%, trading at 4.7 cents following the announcement.
Cosmos Exploration Ltd (ASX:C1X) has taken a pivotal step toward advancing Bolivia’s lithium brine potential by signing an exclusive option agreement to acquire EAU Lithium Pty Ltd. This acquisition positions Cosmos at the center of the lithium triangle, a globally significant region for lithium production.
EAU Lithium brings to the table strategic partnerships, including a technology agreement with Vulcan Energy Resources (ASX:VUL) and a recently signed collaboration with Bolivia’s state-owned lithium company, Yacimientos de Litio Bolivianos (YLB). These agreements allow EAU to test lithium brines from Bolivia’s prominent salars, such as Salar de Coipasa, Salar de Empexa, and Salar de Pastos Grandes, with potential future expansions.
Bolivia’s Lithium Ambitions
The Bolivian government is determined to leverage its substantial lithium reserves to establish a leadership position in the global lithium supply chain. Using YLB as its strategic arm, the country aims to overcome long-standing challenges, such as the high magnesium content in salars that hinders traditional solar evaporation extraction methods.
YLB’s collaboration with EAU includes testing brines using Vulcan’s Direct Lithium Extraction (DLE) technology, specifically the VULSORB A-DLE system. If testing, currently underway in Germany, proves successful, it could lead to industrialisation agreements and a long-term joint venture between YLB and EAU.
Strategic Opportunity for Cosmos Exploration
Cosmos Exploration’s acquisition of EAU Lithium marks a critical opportunity to enter the Bolivian lithium market, widely regarded as underexplored yet highly prospective. Speaking on the development, Cosmos Executive Chairman Jeremy Robinson commented, “This acquisition represents an important step for Cosmos as we position ourselves at the forefront of lithium brine development in Bolivia. Leveraging Vulcan’s innovative DLE technology, we’re excited about the potential to unlock new opportunities in one of the most promising lithium regions globally.”
The acquisition aligns with Bolivia’s vision to deploy advanced technologies like DLE to extract lithium more efficiently and sustainably. If Cosmos successfully establishes a joint venture with YLB, the company could play a crucial role in helping Bolivia achieve its ambitious goals.
Market Reaction
Investors responded enthusiastically to the announcement, driving Cosmos shares up by 34.29% to 4.7 cents by 10:44 AEDT on 19 December 2024.
