Lithium Universe (ASX:LU7)

Entitlement Issue Prospectus

Lithium Universe (ASX:LU7) presents this entitlement issue prospectus.


For a pro-rata non-renounceable entitlement issue of 1 Share for every 10 Shares held by those Shareholders registered at the Record Date at an issue price of $0.012 per Share, together with 1 free New Option for every 1 Share applied for and issued to raise up to $982,696 (based on the number of Shares on issue as at the date of this Prospectus) (Entitlement Offer).

This Prospectus also includes the Secondary Offers, which are set out in Section 2.2. The Secondary Offers and the Entitlement Offer are together referred to as the Offers.

IMPORTANT NOTICE

This document is important and should be read in its entirety. If, after reading this Prospectus you have any questions about the Securities being offered under this Prospectus or any other matter, then you should consult your professional advisers without delay.

The Securities offered by this Prospectus should be considered as highly speculative.

IMPORTANT NOTICE

This Prospectus is dated 1 November 2024 and was lodged with the ASIC on that date. The ASIC, ASX and their respective officers take no responsibility for the contents of this Prospectus or the merits of the investment to which this Prospectus relates.

No Securities may be issued on the basis of this Prospectus later than 13 months after the date of this Prospectus.

No person is authorised to give information or to make any representation in connection with this Prospectus, which is not contained in this Prospectus. Any information or representation not so contained may not be relied on as having been authorised by the Company in connection with this Prospectus.

Click here for the full ASX Release

This article includes content from Lithium Universe, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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Lithium Universe (ASX:LU7)

Lithium Universe


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Lithium Universe Ltd  Quarterly Activities Report

Lithium Universe Ltd Quarterly Activities Report

Melbourne, Australia (ABN Newswire) - Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) recently announced the results of its Preliminary Feasibility Study( PFS) for the Becancour Lithium Carbonate Refinery in Quebec, Canada. The PFS confirms the viability of a strong lithium conversion project, even within a below-average pricing environment.

The Company plans to build a reliable, low-risk lithium conversion refinery with an annual capacity of up to 18,270 tonnes, utilizing proven expertise from the Jiangsu processing model.

The facility will produce environmentally friendly, battery-grade lithium carbonate. The Company aims to establish a Canadian-based lithium chemicals business, purchasing spodumene feedstock from both domestic suppliers and international markets, including Brazil and Africa and producing a battery grade lithium carbonate product.

This aligns with the Company's broader vision of contributing to the North Atlantic lithium supply chain and closing the Lithium Conversion Gap. The project's economics are highly favourable, even with conservative price assumptions. The refinery is economically viable with a pre-tax Net Present Value (NPV) of approximately US$779 million, using an 8% discount rate, and a pre-tax Internal Rate of Return (IRR) of around 23.5%.

The payback period is estimated at 3.5 years. The financial model is built on cautious price forecasts of US$1,170 per tonne for spodumene concentrate (SC6) and US$20,970 per tonne for battery-grade lithium carbonate equivalent (LCE).

LU7's directors believe they have a reasonable basis for using the assumed price in the study of US$20,970 per tonne for battery grade lithium carbonate. Key operational assumptions include 86% plant availability and 88% lithium recovery.

At full production capacity, the project is expected to generate approximately US$383 million in annual revenue, with costs totalling around US$236 million, leading to an annual EBITDAof approximately US$147 million and a gross margin of in the region of 38%. Post-tax, the NPV at an 8% discount rate is estimated at approximately US$501 million.

The capital cost for the project is estimated at US$494 million, which includes a contingency of US$68 million. The capital cost estimate is based on advanced design specifications from the Jiangsu Lithium Refinery model, ensuring robust financial planning and projection.

These factors highlight the project's strong financial viability, even under conservative pricing conditions.

*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/CFSD11IG



About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe's mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.



Source:
Lithium Universe Ltd

News Provided by ABN Newswire via QuoteMedia

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Lithium Universe Ltd  Completes Share Placement and Launches Entitlement Offer

Lithium Universe Ltd Completes Share Placement and Launches Entitlement Offer

Melbourne, Australia (ABN Newswire) - Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce the following Placement.

Highlights

- Binding commitments received to raise $2.14 million

- Launch of pro-rata Non-Renounceable Entitlement Offer to raise $1.02 million

- Issue price of the Placement and Entitlement Offer is $0.0125 per share

- A total of $3.16 million in capital raising

- Participants in Placement and Entitlement Offer to receive free attaching options

- On the basis of 1 option for every 1 share issued with exercise price of $0.03 and expiry date of 12 January 2026

- Tranche 2 Shares and all Options to be issued under the Placement are subject to shareholder approval

- Funds will mainly be used to complete the Becancour Lithium Refinery DFS

- Maintains momentum, closer to establishing a lithium refinery in Becancour

Placement

The Company has received binding commitments from sophisticated and professional investors pursuant to a placement to raise $2.14 million by the issue of 171,320,000 fully paid shares ("Shares") at an issue price of $0.0125 per Share ("Placement"). The Placement is to be undertaken in two tranches:

- Tranche 1: issuing 155,320,000 Shares raising $1,941,500; and

- Tranche 2: issuing 16,000,000 Shares and raising $200,000, to be approved at a shareholders meeting, expected to be 9 December 2024 ("Shareholders Meeting").

The issue date of the Tranche 1 Placement Shares is to take place on 8 November 2024.

Participants in the Placement will also receive, subject to shareholder approval (to be undertaken at the Shareholders Meeting), free attaching options on the basis of one (1) option for every one (1) share issued, with each option having an exercise price of $0.03 and expiry date of 12 January 2026 ("Options"). The Company intends to list the Options as soon as possible. The issue of the Tranche 1 Placement Shares will be made out of the Company's existing placement capacity under Listing Rule 7.1 and 7.1A.

Included in the Tranche 2 Placement is an amount of $90,000 from Iggy Tan, Patrick Scallan and Gernot Abl.

The share issues will also be subject to shareholder approval at the forthcoming shareholders meeting.

The Placement was jointly managed by SP Corporate Advisory (Joint Lead Manager), Ignite Equity (Joint Lead Manager), and GBA Capital (Co-Manager). The costs associated with the Placement was a 6% fee on all funds raised.

Executive Chairman, Mr Iggy Tan stated "We are pleased with the outcome of the Placement in a challenging market, which reaffirms support for the Company's strategy to complete the Definitive Feasibility Study for the Becancour Lithium Refinery. On September 30, 2024, the Company reached a significant milestone, having released the positive and robust Preliminary Feasibility Study, displaying strong fundamentals despite the current low lithium pricing environment.

The Company is highly committed to our shareholders, and I am pleased we can offer them the same investment terms extended to sophisticated and professional investors. The Board and Management Team remains dedicated to engaging with our existing shareholders and delivering against our strategy. If fully subscribed, proceeds from the Placement and Entitlement Offer will strengthen our balance sheet, bringing us closer to establishing an operational lithium conversion plant in Becancour, Quebec."

*To view full details of the Entitlement Offer, please visit:
https://abnnewswire.net/lnk/L4NB5291



About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe's mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.



Source:
Lithium Universe Ltd

News Provided by ABN Newswire via QuoteMedia

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Lithium Universe Ltd  Proposed issue of securities - LU7

Lithium Universe Ltd Proposed issue of securities - LU7

Melbourne, Australia (ABN Newswire) -



About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe's mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.



Source:
Lithium Universe Ltd

News Provided by ABN Newswire via QuoteMedia

Keep reading...Show less
Lithium Universe Ltd  Becancour Lithium Refinery DFS Set for Release Next Quarter

Lithium Universe Ltd Becancour Lithium Refinery DFS Set for Release Next Quarter

Melbourne, Australia (ABN Newswire) - Lithium Universe Limited (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) is pleased to announce that the Becancour Lithium Refinery Definitive Feasibility Study (DFS) is at full steam and tracking as expected.

Highlights

- DFS is progressing and on track as expected

- Finalizing capital cost estimate for DFS

- 80% of supplier pricing program completed

- Procurement strategy and material take-offs being finalized

- Engineering design tailored to new site conditions

- Project led by John Loxton, Head of Refinery

- Overseen by Lithium expert, Dr Jingyuan Liu (NED)

The Company completed and announced its Preliminary Feasibility Study (PFS) on September 30, 2024, less than 12 months since engaging Hatch Ltd (Hatch) to commence the engineering study. Since releasing the PFS, the Hatch/LU7 project team has been working at full speed to finalize the capital cost estimates for the upcoming DFS. While the process designs and equipment outlined in the PFS remain unchanged, the next crucial step involves obtaining the remaining fixed-price quotations from vendors.

The Definitive Feasibility engineering is advancing well, focusing on closing interactions with equipment suppliers. Suppliers have been requested to provide a firm offer or a budget price depending on the significance of a package considering cost, lead time, and technical specifications. Design criteria documents for all engineering disciplines have been finalized, and with 80% of supplier interactions now complete, the engineering team is moving toward finalizing material take-offs and related deliverables based on the reference plant. These outputs will serve as the foundation for the final capital cost estimate, ensuring long-lead items can be ordered promptly. This effort will also underpin the project's execution schedule.

In parallel, the procurement strategy is complete, and efforts are now focused on refining the capital cost estimate to achieve an accuracy of +/-20%, with minimal reliance on factored estimates. This accuracy will be achieved by utilising material take-offs and unit rates and confirmed by a Quantitative Risk Assessment (QRA).

Additionally, trade-off optimization studies and the environmental assessment have been completed. Meanwhile, the feasibility engineering design for aspects unique to the Becancour plant, such as the process plant building, site earthworks, and drainage, is well advanced.

The major engineering activities have been completed, including the finalization of the plant layout and the preparation of documentation for key equipment packages, such as datasheets, scopes of work, and specifications. Key tasks such as creating the main power distribution single-line diagram and providing clarifications during the pricing processes have also been accomplished. Additionally, the effective management of process effluent and site runoff has been fully addressed. The development of the package register, material take-offs (MTOs), and comprehensive equipment lists are being finalized in readiness for the commencement of detailed engineering.

On the Lithium Universe side, the project is led by John Loxton, Head of Refinery. John's experience in lithium began in 2010 with Hatch, where he worked on the Jiangsu Lithium Carbonate Plant EPCM for Galaxy Resources in China, overseeing its construction and commissioning. In 2019, he joined Tianqi Lithium as Head of Projects, managing the execution of their investment in a lithium hydroxide processing plant in Kwinana, Western Australia. John successfully led the commissioning of the first train, achieving first product in 2021, and subsequently developed the execution plan and project team for the second, identical train in 2022.

The Becancour project is overseen by Lithium Universe Non-Executive Director, Dr. Jingyuan Liu, a widely respected technical expert in the lithium industry. Dr. Liu has served as a consultant on over 20 lithium conversion projects worldwide, from due diligence to commissioning. He previously held the role of General Manager of Development and Technologies at Galaxy Resources Limited, where he oversaw the construction and commissioning of the world-renowned Jiangsu Lithium Carbonate plant. Since then, he has acted as a special advisor to various global lithium carbonate and lithium hydroxide projects, including Tianqi's Lithium Hydroxide Plant in Kwinana, Western Australia.

Lithium Universe Head of Lithium Refinery, John Loxton said, "The project is on track to complete the DFS next quarter. Leveraging extensive data from our reference plant has significantly streamlined the process, making it both faster and more cost-effective. We're primarily updating prices for the same plant and equipment we've used before, often working with the same suppliers, which ensures more accurate quotations and reduces the risk of cost overruns. While some new work includes civil and design specific to the new site conditions, the majority of the engineering has been based on the reference plant."

To watch a Video of John Loxton explaining the refinery construction, please visit:
https://www.abnnewswire.net/lnk/1918Z8C3



About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe's mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.



Source:
Lithium Universe Ltd

News Provided by ABN Newswire via QuoteMedia

Keep reading...Show less
VIDEO: Lithium Universe Limited  CEO Alex Hanly Discusses the Becancour Lithium Refinery PFS

VIDEO: Lithium Universe Limited CEO Alex Hanly Discusses the Becancour Lithium Refinery PFS

Brisbane, Australia (ABN Newswire) - The Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF) strategy emphasizes developing a robust lithium refinery project in Becancour, designed to be viable even in low-price environments and ready to capitalize on price recovery. LU7 aims to close the lithium conversion gap by focusing on both resource development and end-market projects. The financial model demonstrates strong economic viability with a pre-tax NPV8% of US$779M, an IRR of 23.5%, and a payback period of 3.5 years, based on a lithium carbonate price of US$20,970/t and spodumene at US$1,170/t. The project has an expected annual revenue of US$383M and an EBITDA of US$147M, with a break-even lithium carbonate price of US$14,000/t.

LU7 plans to address global lithium conversion challenges by using proven Jiangsu Refinery technology, with a plant designed to produce 18,270 tonnes/year of battery-grade lithium carbonate. The design focuses on smaller, easier-to-operate facilities. The plant is strategically located in Quebec, which offers cost benefits like green energy and proximity to major lithium markets in North America. Powered by Hydro Quebec, the project aims for a 95% reduction in greenhouse gas emissions.

To Watch the Video, please visit:
https://www.abnnewswire.net/lnk/575S0398



About Lithium Universe Ltd:  

Lithium Universe Ltd (ASX:LU7) (FRA:KU00) (OTCMKTS:LUVSF), headed by industry trail blazer, Iggy Tan, and the Lithium Universe team has a proven track record of fast-tracking lithium projects, demonstrated by the successful development of the Mt Cattlin spodumene project for Galaxy Resources Limited.

Instead of exploring for the sake of exploration, Lithium Universe's mission is to quickly obtain a resource and construct a spodumene-producing mine in Quebec, Canada. Unlike many other Lithium exploration companies, Lithium Universe possesses the essential expertise and skills to develop and construct profitable projects.



Source:
Lithium Universe Ltd

News Provided by ABN Newswire via QuoteMedia

Keep reading...Show less
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Strong Preliminary Feasibility for Bécancour Lithium Refinery

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Lithium Universe

Lithium Universe Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

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