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New Drilling and Exploration Programs Launched for Critical Minerals and Gold Targets in World-Class Australian Mineral Provinces
Metals Australia Ltd (ASX: MLS) is ramping up exploration programs across Critical Minerals and gold targets on the three key projects acquired through the purchase of an 80% interest in Payne Gully Gold Pty Ltd (PGG)1.
- A series of new drilling and exploration programs have been launched, testing Critical Minerals and gold targets across three key project areas. These projects all lie along strike from major deposits in world-class mineral provinces in Western Australia and the Northern Territory (see locations, Figure 1).
- The exploration programs at these highly prospective projects, acquired through the purchase of an 80% interest in Payne Gully Gold Pty Ltd1, include:
- Initial drilling of un-tested key copper-gold target corridor at the Warrego East Copper-Gold Project within the Tennant Creek Mineral Field (TCMF) in the NT (see Figure 1), which has historically produced 25Mt @ 6.9 g/t Au and 2.8% Cu2. The granted Warrego East EL32725 lies directly east of Warrego, the largest historical mine at Tennant Creek, which produced 6.75Mt @ 1.9% Cu, 6.6 g/t Au2, and covers a fault corridor interpreted from detailed magnetics and the Company’s gravity survey that connects Warrego with the Gecko and Orlando copper-gold deposits (past production and resources 11Mt @ 2.3% Cu, 1.8 g/t Au2,3 – see Figure 2). A Mine Management Plan (MMP) has been submitted to the NT Government for approval for an extensive aircore drilling program and follow-up RC/diamond drilling across ironstone hosted copper-gold targets which have not been previously tested. The Company also has four EL applications in the TCMF, all of which sit on key mineralised corridors (see Figures 2 & 3).
- Initial drilling of lithium-pegmatite targets on the Warrambie Critical Minerals (Li, Ni-Cu-Co) Project in WA’s northwest Pilbara (see Figure 1). Warrambie is located just 10km east of the major Andover lithium discovery which has produced drilling intersections of up to 209m @ 1.42% Li2O4. Targets have been defined by detailed gravity and reprocessed magnetics imagery5 which are analogous to the Andover geophysical signature but have not previously been tested due to the presence of shallow soil cover. A Program of Work (PoW) has been submitted to the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) for approval to drill a series of aircore drilling traverses and follow-up with RC or diamond drilling across identified lithium pegmatite targets (see Figures 4 & 5). This program is expected to commence during H2 2024.
- An aeromagnetic (fixed wing) survey is underway across the granted gold tenements located along strike to the northeast of the 5Moz Big Bell gold deposit in WA’s Murchison Gold Province. (see Figures 1 & 6). The tenements cover a 50km strike length of the regional scale Chunderloo Shear Zone and regional magnetics show potential for greenstone and potentially gold-mineralised splay structures which have not been tested in areas of cover1. The detailed aeromagnetics will define these targets prior to planned aircore drilling to test bedrock targets.
Metals Australia CEO Paul Ferguson commented:
“These new exploration programs are important steps in advancing our extensive and highly prospective Critical Minerals and gold projects in WA and the NT, which are all located along strike from major deposits in world-class mineralised terranes.
High-quality drilling targets have been identified by our geological team at the Tennant Creek project, east of the high-grade Warrego copper-gold mine, and at our Warrambie project in the northwest Pilbara, which is only 10km east of the major Andover lithium discovery. We have also commenced a detailed aeromagnetic survey across a large project area located directly along strike from the 5-million-ounce Big Bell mine in WA’s Murchison district.
With exploration programs across five key projects in Australia and Canada, the second half of 2024 will be an extremely exciting period for the Company as we look to unlock the value of our portfolio.”
The target areas being tested are all located along strike from major mineral deposits (see Figure 1, below).
Figure 1: Metals Australia key Critical Minerals and gold exploration projects in world-class mineral terranes (adapted from Geoscience Australia, Australian Mineral Deposits)
Warrego East Copper-Gold Targets, Tennant Creek, NT
The Company’s Tennant Creek Project includes granted EL32725 at Warrego East and four EL applications, EL32397, EL32837, EL32410 and the more recent EL33853, located in the Tennant Creek Mineral Field (TCMF) (see Figure 2 below).
The TCMF has produced 25Mt @ 6.9 g/t gold (Au) & 2.8% copper (Cu) historically2, the equivalent of more than 8.5Moz or $20 billion worth of gold at current prices, with all production coming from deposits in outcropping areas.
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This article includes content from Metals Australia Ltd, 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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Metals Australia
Overview
Metals Australia (ASX:MLS) is a mineral exploration company with a high-quality portfolio of advanced battery minerals and metals projects in Tier 1 mining jurisdictions of Western Australia and Canada. The portfolio comprises two critical minerals projects in Quebec, Canada — the Lac Carheil flake graphite project and the Corvette River lithium (and gold) project. The Australian portfolio comprises four projects: Tennant Creek (copper-gold) in the Northern Territory and Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc) – all in Western Australia.
The push for net zero targets and the call from policymakers to transition to cleaner energy has intensified the focus on electric vehicles (EVs) and battery storage. The EV automakers and battery manufacturers, rely on essential materials such as graphite and metals, including lithium, nickel, copper and cobalt, to manufacture the batteries that are used in these vehicles and storage batteries generally. This has driven carmakers and battery manufacturers to partner with battery material suppliers under direct off-take agreements. Further, some automakers/battery manufacturers are buying equity stakes in miners, involving them directly in financing decisions for the development of mining projects. This is encouraging for companies such as Metals Australia as it actively advances its projects towards development.
Figure 2 – Graphite is a Critical Mineral required for the mass electrification of auto transportation.
Metals Australia is focused on progressing its flagship Lac Carheil flake graphite project in Quebec, Canada. The project is well-positioned to supply high quality graphite products, including battery-grade graphite to the North American market – including for lithium-ion and EV battery production in the future. The company announced positive sampling results across a 36-km strike length of identified graphite trends at Lac Carheil, including many values over 20% Cg and an exceptionally high-grade sample containing over 63% Cg. The company has planned a drilling program to test new high-grade zones identified from the sampling program, which will form the basis for upgrading the existing Lac Carheil Mineral Resource. An application for the drilling program is progressing with the Quebec regulator. Additionally, the company has recently commenced a Flake Graphite concentrate prefeasibility study with Lycopodium in Ontario and a downstream battery anode plant design with ANZAPLAN in Germany.
Metals Australia is also advancing its lithium, gold and silver exploration project at Corvette River, which is adjacent to Patriot Battery Metals’ world-class lithium project. Further, the company carries out aggressive exploration programs at its other projects, including Manindi, Warrambie & the Murchison in Western Australia and Tennant Creek in the Northern Territory region of Australia.
Metals Australia is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million, which we note was higher than the company’s market capital at current share price. Metals Australia benefits from a team of professionals boasting extensive expertise in geology and mining. The appointment of experienced mining executive Paul Ferguson as the CEO is positive for the company. Since joining in January 2024, he has significantly advanced planning and preparation for the exploration, metallurgical test work programs, and design studies required to move its flagship Lac Carheil high-grade graphite project towards development. The Corvette Project has also completed exploration planning and is now fully permitted for drilling and trenching work during the northern hemisphere summer.
Company Highlights
- Metals Australia is rapidly advancing its flag ship Lac Carheil Graphite Project in Quebec, Canada. In addition, the company has a suite of high-quality exploration projects – including Lithium, Gold and Silver in Quebec, Canada and Lithium, Gold, Copper & Vanadium in Western Australia (WA) and the Northern Territory (NT).
- All projects are in Tier-1 mining jurisdictions (Canada and Australia) with world-class prospectivity and stable geo-politically.
- The company has six key exploration and development projects:
- two in Canada: the Lac Carheil high-grade flake graphite project and the Corvette River lithium and gold-silver-copper exploration project, and,
- four in Australia: Warrambie (lithium, nickel-copper, gold), Murchison (gold) and Manindi (lithium, vanadium-titanium, zinc-silver) in WA, and Tennant Creek (Warrego East copper-gold) in the NT.
- The focus is to rapidly advance its flagship Lac Carheil Graphite Project towards development. A drilling program is already contracted to substantially increase the existing JORC 2012 Mineral Resource of 13.3 Mt @ 11.5 percent graphitic carbon (Cg) and test the potential of the many other identified high-grade graphite trends.
- The 2020 Scoping Study on Lac Carheil based on the existing resource, representing only 1km of drilling out of the total 36kms of identified graphite trends, indicates a 14-year mine life with a production of 100,000 tons per annum and a pre-tax NPV @ 8 percent of US$123 million (~AUD$190 million).
- There are multiple catalysts at Lac Carheil in the near term including a pre-feasibility study (PFS) (underway), a scoping study on downstream battery (anode) - grade graphite production, and planned drilling aiming to at least double the resource as well as test other identified high-grade graphite trends.
- Furthermore, other projects in Canada including the Corvette River lithium and gold targets, and exploration in Australia at Manindi, Warrambie, Murchison and Warrego – are all seeing active progress.
- The company is well-funded to complete all its planned exploration and project studies. The cash position at the end of Q1 2024 was AU$17.86 million.
- Metals Australia is led by a seasoned board and management team possessing extensive mining sector experience and a proven track record of successful discoveries and project developments. With funding in place, the company is well-positioned to capitalise on growth prospects.
Figure 1 – Location of Metals Australia’s projects in the Tier 1 Mining Jurisdictions in Quebec, Canada and Australia’s Western Australia and the Northern Territory.
Key Projects
Canada
Lac Carheil Flake Graphite Project (MLS 100%)
Conceptual 3D Mining layout from February 2021 Scoping Study (Lac Carheil Project formerly named Lac Rainy Project)
The Lac Carheil Graphite Project is located in eastern Quebec, Canada, a tier 1 mining jurisdiction with access to excellent infrastructure, including hydroelectric power facilities. The project hosts an existing JORC 2012 mineral resource of 13.3 million tons (Mt) @ 11.5 percent graphitic carbon, which was announced in 2020 and a scoping study was completed and reported on in early 2021. Battery test work followed, in Germany, and this demonstrated the Lac Carheil Graphite concentrate could be shaped, purified, coated and used in battery applications with excellent results. Given the above work, the company carried out further field work, recently announcing exceptionally high-grade sampling results from 80 samples on 10 identified graphitic trends across the property. This included a sample containing 63 percent graphitic carbon, and 10 samples containing over 20% Cg. The average grade of the sampling was 11% Cg, which is comparable to the current high-grade resource. The combined strike length of the identified high-grade graphitic zones is over 36 kms. This compares to just 1 km of drilling on 1.6 kms of graphite trend that was utilised to obtain the existing resource. The potential for expanding and upgrading the existing resource remains enormous.
Figure 4 –Lac Carheil Graphite Project - Electromagnetic imagery outlining graphite trends and the resource
Additional drilling and development studies are either planned or are already underway, including a pre-feasibility study for a high grade Flake graphite concentrate product – which has commenced and a downstream purification options assessment and a scoping study for a battery anode facility in North America, which has been contracted. The company also announced it is contract ready for its planned drilling program and will fast-track the program as soon as permits are received from the Quebec regulator.
Corvette River Lithium Project (MLS 100%)
Corvette River Lithium, gold and silver Project is located in Quebec’s James Bay region Metals Australia recently announced that it is fully permitted to advance an extensive field exploration program across its holdings which include the wholly owned East Pontois, Felicie and West Pontois projects, situated within Patriot Battery Metals' (ASX:PMT) CV Lithium Trend, as well as tenements at West and East Eade in the company's parallel Corvette River South Trend. A field mapping and sampling program concluded last year and identified large, potentially lithium-bearing pegmatites immediately along strike from Patriot Battery Metals’ world-class lithium pegmatite discoveries. Additionally, the company has flagged significant gold and silver samples from its review of work previously completed across the field as is illustrated in the diagram below.Figure 5 – The Corvette Projects in the James Bay region of Canada. Prospective for Lithium, Gold & Silver
Australian Projects
Warrambie Project (MLS 80%)
The Warrambie project is located in the Pilbara region of Western Australia. It is 20 kms west of the Andover Lithium discovery (Azure Minerals (ASX:AZS). Metals Australia has completed geophysical surveys across the area and is identifying targets for further field exploration and drilling.
Tennant Creek (Copper-Gold) Project (MLS 80%)
Metals Australia acquired the tenements as part of a package purchased from Payne Gully Gold in 2022. The company’s tenements include a granted exploration license (E32725) directly along strike to the east of the Warrego copper-gold deposit, which has a production of 1.45 Million Ounces of gold at 8 grams per tonne and over 90,000 tonnes of Copper at 2%. The Warrego mine operated from the late 1950’s through until 1989. It was found under sedimentary cover. The area and this land package is under detailed review utilizing available geophysical surveys. The company aims to identify further targets hidden under shallow sediment cover.
Murchison Gold Project (MLS 80%)
The Murchison tenements were also acquired as part of the Payne Gully Gold transaction. Metals Australia owns exploration licenses at the Murchison gold project, which is adjacent to the >5 million ounces (Moz) Big Bell gold deposit. The company plans to conduct detailed magnetics and gravity surveys to test for extensions and repeats of high-grade gold deposits.
Manindi Project (MLS 80%)
The Manindi project is located in the Murchison District, approximately 500 kms northeast of Perth in Western Australia. The project comprises three mining leases and has an established high-grade zinc mineral resource. The metallurgical test work has located spodumene in samples from a high-grade lithium intersection of 12m @ 1.38 percent lithium oxide, including 3m @ 2.12 percent lithium oxide. The company also made a new vanadium-titanium discovery at the Manindi project.Management Team
Paul Ferguson – Chief Executive Officer
A Mining Engineer, Paul Ferguson has over three decades of experience in the resources and energy sectors across North America, Asia and Australia. He has extensive project development and operational experience working in Canada. He has worked in oil & gas major ExxonMobil across project stages, including feasibility, design, construction, and operation. He has worked in Executive level roles within Australia, including at GMA Garnet and held increasingly more senior roles with BHP (Iron Ore & Coking Coal) and then with Exxon Coal Minerals and Mobil Oil Australia during the early stages of his career.
Tanya Newby – CFO and Joint Company Secretary
Tanya Newby is a finance and governance professional with over 20 years experience in various corporate and commercial roles. She has a strong background in the resources sector and has provided financial advice and assistance to a number of publicly listed entities through exploration, project development through to the production stage. Tanya is a member of the Institute of Chartered Accountants, Member of the Governance Institute of Australia and a Graduate Member of the Institute of Company Directors.
Michael Muhling – Joint Company Secretary
Michael Muhling has over two decades of experience in the resources, including 15 years in senior roles with ASX-listed companies. He is a fellow of CPA Australia, The Chartered Governance Institute, and the Governance Institute of Australia.
John Dugdale – Technical Advisor
John Dugdale is a geologist with over 35 years of experience in the discovery and development of graphite, lithium, gold, nickel and copper projects. His corporate experience includes serving as a director and CEO of several junior resource companies focused on nickel-cobalt, graphite and copper-gold projects. Additionally, he has experience in funds management with Lion Selection Group.
Chris Ramsay – General Manager Geology
Chris Ramsay is a geologist and project manager with over 25 years of experience in the global mining industry. He has been involved in exploration, mine development and operations for mining projects in Australasia, Southeast Asia, and parts of Africa and North America.
Board
Michael Scivolo – Non-executive Chairman
Michael Scivolo has extensive accounting and taxation experience for corporate and non-corporate entities. He was a partner/director at a CPA firm until 2011 and has since been consulting in accounting and taxation. Scivolo is on the boards of several ASX-listed mining companies, including Sabre Resources, Golden Deeps and Tennant Minerals Ltd.
Alexander Biggs – Non-executive Director
Alexander Biggs has over 20 years of experience in the mining and engineering sector. During his career, he has been involved in various activities, including operations, consulting, finance and capital raising. He is currently the managing director of Lightning Minerals (ASX) and was previously the managing director of Critical Resources (ASX:CRR). Biggs is a member of the Australian Institute of Mining and Metallurgy and a graduate of the Western Australian School of Mines.
Rachelle Domansky – Non-executive Director
Rachelle Domansky is an ESG specialist and a consulting psychologist for businesses, governments and educational institutions in the Asia-Pacific region. In addition to Metals Australia, Rachelle holds non-executive board positions at Quebec Lithium and Access Plus WA Deaf.
Basil Conti – Non-executive Director
Basil Conti has been associated with the mining industry for over 25 years. He is a fellow of the Institute of Chartered Accountants Australia & NZ and was a partner/director of a chartered accounting firm in West Perth until 2015.
Jindalee Lithium Limited (ASX: JLL) – Reinstatement to Quotation
Description
The suspension of trading in the securities of Jindalee Lithium Limited (‘JLL’) will be lifted immediately, following the release by JRL of an announcement regarding a capital raising.
Issued by
ASX Compliance
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This article includes content from Jindalee Lithium Limited, 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.
Jindalee Secures Up to $6.7M in Funding to Advance McDermitt Lithium Project
Jindalee Lithium Limited (Jindalee, the Company) is pleased to announce that it is seeking to raise up to $6.7 million (Capital Raise), with total firm commitments of $4.1 million, to allow Jindalee to progress work at the Company’s McDermitt Lithium Project (McDermitt, Project), which hosts the largest lithium deposit in the USA1 (Table 1).
- Jindalee is seeking to raise $6.7 million, through a combination of a Placement, Entitlement Issue and Convertible Notes, with the potential to raise up to a further $9.0 million in Convertible Notes. Total firm commitments of $4.1 million
- Firm commitments for a Placement to raise gross proceeds of approximately $0.6 million from institutional investors, directors and management, at an issue price of $0.30 per share, including a $0.5 million commitment from Mercer Street Global Opportunity Fund II, LP and other funds managed by US-based C/M Capital Partners, LP (Mercer Street)
- Opportunity for eligible shareholders to participate via a non-renounceable Entitlement Issue on a 1 for 6 basis to raise up to approximately A$3.1 million on the same terms as the Placement
- Strong support indicated from directors and management in the Entitlement Issue with pre- commitments received for approximately A$0.5 million
- Every two shares under the Placement and Entitlement Issue will be accompanied by two free- attaching options in total (one ‘Short Term Option’ and one ‘Long Term Option’), with Placement options subject to shareholder approval
- Funding facility of up to $12 million via Convertible Securities received from Mercer Street with an initial tranche of $3.0 million ($1.5 million of which is subject to shareholder approval) and additional potential funding of up to $9.0 million by mutual agreement
- Funds to be directed to deliver value optimisation opportunities in the McDermitt PFS, which are expected to improve capital intensity and operating costs (versus initial PFS scope) and provide runway to achieve several key value catalysts in H2 2024, including the optimised PFS and potential for non-dilutive US government grant funding
- a placement of approximately $0.6 million to institutional investors, directors and management at $0.30 per fully paid ordinary share (Share) with Attaching Options (Placement);
- a non-renounceable rights issue to existing shareholders on a 1 for 6 basis at $0.30 per Share with Attaching Options pursuant to a prospectus (Prospectus), to raise up to approximately $3.1 million (Entitlement Issue); and
- a funding facility including:
- $3.0 million investment for Convertible Notes, with $1.5m advanced on closing with a further $1.5 million investment subject to shareholder approval
- Additional potential funding of up to $9 million for Convertible Notes
Further details in relation to the Placement, Entitlement Issue and Convertible Notes are available in Schedules 2 and 3.
Support from US Institutional Investors, Board and management
US-based fund manager C/M Capital Partners LP, as manager of Mercer Street Global Opportunity Fund II, LP and other funds (together, Mercer Street) have agreed to provide the Company with a $0.5 million equity investment via the Placement.
The Company has also entered into a funding facility with Mercer Street of up to $12 million. Mercer Street will fund an initial Convertible Note tranche of $3.0 million ($1.5 million of which is subject to shareholder approval). In addition, Mercer Street may fund optional further tranches of up to $9.0 million by mutual agreement and subject to shareholder approval or the Company having available placement capacity, demonstrating the value Mercer Street sees in the long-term prospects of Jindalee and its flagship McDermitt Lithium Project.
Furthermore, Jindalee has secured formal commitments from directors and management, including from Mr Lindsay Dudfield (Executive Director and largest shareholder), totalling minimum subscriptions of approximately $0.6 million in the Placement and Entitlement Issue. Director participation in the Placement will be subject to shareholder approval.
Use of Proceeds
Funds raised pursuant to the Capital Raise, will be applied as follows:
- Completion of the McDermitt Pre-Feasibility Study (PFS) with the incorporation of new value optimisation opportunities, which are expected to improve capital intensity, operating costs and production outcomes vs the initial scope of PFS (see Schedule 1 for further details);
- Continuing US activities including baseline studies, permitting and stakeholder engagement; and
- Corporate costs, general working capital and costs associated with the Capital Raise.
Upcoming Value Catalysts
Jindalee has continued to progress McDermitt throughout 2024, with the Capital Raise to allow the Company to execute on several potential value catalysts in the second half of CY2024. These include:
- Tribal Agreements (Q3)
- US Government technical cooperation agreement (Q3)
- Production of battery grade lithium carbonate from test work (Q3)
- Update on POSCO test work currently underway in Korea (Q3)
- Completion of optimised McDermitt PFS (Q4)
- Potential award decision for non-dilutive US Government grant funding (Q3/Q4)
- Commence strategic partnership/investment process (Q4)
Jindalee’s CEO Ian Rodger commented:
“We are very pleased to have secured the support of Mercer Street as a long-term funding partner, alongside the continued backing of our existing shareholders. We firmly believe that the funding initiatives announced today will support Jindalee’s work programs for the foreseeable future. This funding will enable us to deliver several key value catalysts in the second half of 2024, including the optimised McDermitt PFS and a potential award decision for US Government grant funding.
Additionally, we are excited by the value optimisation opportunities at McDermitt, which are underpinned by our recent metallurgical test-work which yielded better than expected results. Our goal is to reduce capital intensity and operating costs, thereby improving early returns while still delivering a multi-decade production outlook for battery-grade carbonate, from what we believe is an emerging top-tier, generational asset. We are committed to incorporating these opportunities into the PFS and look forward to sharing the outcomes later this year.”
Mercer Street’s Managing Partner Jonathan Juchno added:
“Mercer Street is pleased to support Jindalee Lithium. We see a significant value disconnect between Jindalee's current market valuation and the strategic potential of the McDermitt Lithium Project. With strong long-term prospects for the lithium market as the US builds out its battery value chain, we are confident in the Jindalee team's ability to advance the Project through key milestones expected in the coming months."
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This article includes content from Jindalee Lithium Limited, 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.
Obeikan Group Executes Shareholder Agreement for Hydroxide Plant in Kingdom of Saudi Arabia
European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company), is pleased to announce that Obeikan Group for Investment Company (Obeikan Group) has executed the Shareholders Agreement.
HIGHLIGHTS
- Obeikan Group has agreed to a Deed of Assignment and entered into the Shareholder Agreement for the development and operation of the plant;
- Work is progressing with incorporation of the joint venture company, Arabian New Energy.
- Arabian New Energy shall be incorporated after successful registration and approval by the KSA Regulatory Authorities.
- The 50%/50% JV will be geared towards developing, constructing and commissioning a lithium hydroxide processing plant, and operating the plant for the conversion of lithium spodumene concentrate from Wolfsberg.
- Under the Shareholders agreement, the newly established Arabian New Energy company (Arabian New Energy) seek to have an exclusive right to purchase spodumene mined from the current resource at Wolfsberg (Zone 1), and the facility is expected to be developed to meet the minimum initial capacity and product specifications based on the Company’s binding Long Term Supply Agreement with BMW (refer ASX announcement dated 21 December 2022).
- Under the Shareholders Agreement, and subject to the successful commissioning of the Plant, the Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the JV company over the life of the current resources of the Wolfsberg mine at a reduced rate, with a floor and ceiling price subject to final agreement of the parties.
- The parties will establish a Development Committee for the purpose of jointly collaborating on all key decisions in relation to the development of the Plant.
- Once Critical Metals Corp (CRML) has signed the Deed of Assignment (refer ASX announcement dated 2 June 2023) and the Shareholders Agreement, both agreements will become binding on all parties.
Tony Sage, Executive Chairman of EUR said:“This is another huge milestone for the Wolfsberg project following on from the recent $US15m commitment made by BMW. We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide. Now after these key milestones have been achieved the next steps become a lot easier. Over the next two quarters we expect to finalize the updated DFS on the now separated projects and secure the necessary funding to commence construction. The Board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organized from within Saudi Arabia”.
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This article includes content from European Lithium, 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.
PFS Plant Location Study Results in Decision to Locate Carbonation Plant in Mining Centre of Copiapó
CleanTech Lithium PLC (AIM: CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing sustainable lithium projects in Chile, announces the results of a plant location study completed as part of the ongoing pre-feasibility study (PFS) for the Laguna Verde Project, which is due to complete later this year. The PFS is being led by Worley, a global professional services company of energy, chemicals and resources experts, from its Santiago office which has high-level experience in the lithium sector. Xi´an Lanshen New Material Technology Company ("Lanshen") has been selected to provide the lithium processing plant design and equipment, and Worley to design the balance of plant and infrastructure.
Highlights:
- A plant location study was completed by Worley, which evaluated the optimal plant location configuration for the Laguna Verde project, based on a capacity of 20,000 tonnes per annum of battery grade lithium carbonate equivalent (LCE)
- This provided a trade-off analysis between locating the entire plant at Laguna Verde versus splitting plant facilities between Laguna Verde and the nearby mining centre of Copiapó
- The option of locating the DLE plant and eluate concentration stages at the Laguna Verde site, and the carbonation plant at Copiapó is highly favourable, resulting in the decision to proceed with this option
- A concentrated eluate with 6% lithium, the maximum concentration before lithium salts begin to precipitate, will be transported to Copiapó for impurity removal and carbonation stages
- This configuration results in a minor increase in volumes transported while taking advantage of Copiapó's well-developed infrastructure and better access to a skilled workforce
- According to the Lanshen plant design, approximately 70% of the operational workforce will be employed at the carbonation plant, locating it in Copiapó provides major advantages in hiring a local work force including diversity outcomes such as greater female participation, while contributing to the local economy
- The footprint at the project site, which is at 4300m above sea level, will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts
- The carbonation plant in Copiapó would eventually be expanded to also treat concentrated eluate from the Viento Andino project
- The PFS, now due for completion before the end of Q4 this year, will include updated capex and opex estimates and will further determine the optimal production development strategy
Steve Kesler, Executive Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"We undertook a plant location study as part of our ongoing PFS for the Laguna Verde project resulting in the decision to locate the DLE and eluate concentration stages at the project site, and the carbonation plant in Copiapó. This will have various benefits such as reducing the footprint and impacts at Laguna Verde, and taking advantage of existing infrastructure, power supply and skilled workforce in Copiapó. The plant at Copiapó can then be expanded to treat material from our Viento Andino project and potentially others. The decision on plant configuration will feed directly into the wider PFS which is due to be completed later this year."
Further Information
The Company engaged Worley, utilising its local Santiago based office, to undertake the PFS for the Laguna Verde project, and selected Lanshen as designer and supplier of the entire DLE processing plant. Worley recently performed various trade-off or options studies to consider the most favourable configuration of the project and a plant location option study which assessed three scenarios for location of the plant, of which two of the scenarios, labelled Scenario 1 and Scenario 3 in the report, provided the relevant trade-off comparison:
- Scenario 1: Locating the entire plant based at the Laguna Verde project site
- Scenario 3: Locating DLE and eluate concentration stages at the project site, and the impurity removal and carbonation (downstream plant) at Copiapó
Laguna Verde is connected to Copiapó via a 270km paved international highway, as shown in Figure 1. Copiapó is a major regional mining centre in Chile with a population of 175,000, having well established infrastructure, a skilled workforce, and existing supply hubs for reagents and other materials. While basing the entire plant at the project site is feasible and most lithium projects in the lithium triangle are proceeding on such a basis, the good transport link and relative proximity to Copiapó made a trade-off study valuable.
Figure 1: Regional Map
An analysis of the difference in transport volumes was undertaken showing a minimal overall difference between the two scenarios. For Scenario 3 where impurity removal and carbonation stages are in Copiapó, there will be no transport of reagents or bulk chemicals to Laguna Verde which has a positive environmental and community impact.
A qualitative assessment was then undertaken by the Company across the range of metrics as shown in Figure 2. There are only two metrics in which Scenario 1 where the entire plant is located at site has a significantly positive comparison. The first one is storage during the construction phase, in that it will require a single storage facility rather than storage at both locations for tools, materials and spare parts. The second is disposal of solids, which is largely Sodium Chloride (NaCl or table salt) that is dissolved in the eluate and removed in the impurity removal stage before carbonation. In Scenario 1, these would be re-dissolved in the spent brine and re-injected. In Scenario 3, the report assumed NaCl would need to be disposed in Copiapó at a cost. However there should be a ready market for NaCl and further evaluation of this is required.
Figure 2: Qualitative Comparison- All on site (1) and split plants (3)
Across a range of other metrics the Scenario 3 of locating the downstream plant at Copiapó has major advantages. According to Lanshen, approximately 70% of the operational labour force will work at the downstream plant, which provides a far superior option for skilled workforce based in Copiapó. The footprint at the project site will be greatly reduced, from power supply, storage, camp and plant facilities, construction phase impacts, and environmental impacts. The Board has accepted the study and the decision to split the plant facilities between the project site and Copiapó will be the basis for the PFS.
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Fox-Davies Capital Limited (Joint Broker) Daniel Fox-Davies | +44 (0) 20 3884 8450 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com
New Bridging Loan and Termination of Convertible Loan Notes
CleanTech Lithium PLC (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF), an exploration and development company advancing lithium projects in Chile, is pleased to announce it has secured commitments from a number of investors (including existing shareholders) to raise gross proceeds of approximately A$4 million (approximately £2.1 million) through the issue of loan notes (the "Loan Notes"). In addition, the Company announces that on 28 June 2024 it has terminated the £1 million convertible loan notes (the "CLNs"), details of which were announced on 22 April 2024.
The Loan Notes:
The Loan Notes subscribed for are for an aggregate amount of A$3,995,000, have been denominated in both Australian Dollars (the "AUD Loan Notes") and Pounds Sterling (the "GBP Loan Notes") and carry an entitlement to warrants ("Warrants"). Each A$ 0.9126 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes subscribed will carry an entitlement to one Warrant. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being a 71.4 per cent. premium to the Company's closing share price on 28 June 2024 of £0.14 and each has a term of 5 years.
The funds raised through the issue of the Loan Notes will provide CTL with immediate liquidity and will enable the Company to maintain its current activities and work programmes whilst it prepares for the planned dual-listing on the Australian Securities Exchange ("ASX").
CLNs Termination:
On 28 June 2024 the Company terminated the agreement relating to the £1 million CLNs, details of which were announced on 22 April 2024, due to the CLNs subscriber failing to pay the subscription monies for the CLNs to the Company, despite ongoing assurances to the Company that they would meet their obligations under the agreement.
Steve Kesler, Chairman and Interim Chief Executive Officer, CleanTech Lithium PLC, said:
"The Board considered it prudent to bring in the necessary funds now to provide for our working capital as we move forwards towards the intended ASX dual-listing. We are grateful to the Loan Note holders for responding to our request for a short-term facility which is undertaken on what the Board considers to be in line with reasonable terms for a loan facility of this type. This loan is intended to be a short-term bridging facility to be repaid from the proceeds of the next capital raise, which as previously announced, the Company intends to conduct in connection with its dual-listing on the ASX.
I was in Australia for meetings with various parties for 10 days recently, along with our advisors and fellow director Tommy McKeith, and we were very pleased at the reception to our Company's story.
We will update the market again soon on the next steps with the listing."
Further Information on the Loan Notes:
On 28 June 2024 CTL has entered into the Loan Notes with four lenders on the following terms:
- A$3,140,000 AUD Loan Notes and £450,000 GBP Loan Notes have been subscribed for, equivalent to total gross proceeds of A$3,995,000 or £2,102,632 at an FX rate of GBP1.00/A$1.90
- The Loan Notes attach a Warrant for every A$0.912 of AUD Loan Notes subscribed and/or each £0.48 of GBP Loan Notes issued respectively
- The AUD Loan Notes are issued in integral multiples of A$10,000 and the GBP Loan Notes in multiples of £10,000
- The Loan Notes do not bear interest and have a maturity date of 12 months from issue date ("Maturity Date")
- A premium shall be payable on the principal amount of any outstanding Loan Notes, to be paid on the date of redemption, as follows:
- 15% premium if the Loan Notes are repaid within three (3) calendar months of their issue date; and
- Should the repayment not be made within the first three (3) months, then the premium incrementally increases to up to 50% should the Loan Notes be repaid between ten (10) and twelve (12) calendar months from the date of issue.
- All of the outstanding Loan Notes shall be redeemed on the earlier of:
- the Maturity Date, and
- 10 business days following the completion of a capital raise of at least A$5,000,000.
- Security:
- The Loan Notes are unsecured for the first three months. Should the repayment not be made during that period, security over assets will need to be procured. Until the Loan Notes have been redeemed, the Company will not take out any other loan facilities without the prior approval of at least 75% of the Loan Noteholders.
Related Party:
Regal Tactical Credit Fund, of which Regal Funds Management Pty Ltd is a trustee, has subscribed for A$3,000,000 of the AUD Loan Notes. Regal Funds1, as defined below, are currently interested in 15.35 per cent. of the Company's issued share capital and therefore are, as a substantial shareholder, a Related Party under the AIM Rules. As such, Regal Tactical Credit Fund's participation in the subscription under the AUD Loan Notes is a Related Party Transaction for the purposes of Rule 13 of the AIM Rules.
In assessing the reasonableness of the terms of the Loan Notes, the Directors considered several prevailing factors including the Company's cash position in general, the need to replace proceeds from the CLNs which had not been paid (as referred to above) the pressing need to manage Company's near-term working capital requirements with suitably priced alternative funding and also to find supportive Loan Note holders who are supportive of the Company's wider objectives. The only equity linkage is the Warrants with a fixed subscription price of either A$0.456 or £0.24 which compares to a closing price on AIM on 28 June 2025 of £0.14. As explained above, the Loan Notes are intended to be repaid from the proceeds of the next capital raise in conjunction with the planned ASX listing, were that listing not to occur then the Company would need to undertake an alternative raise at some point over the next twelve months to allow for the Loan Notes to be repaid in full.
Accordingly, the Directors of the Company, all independent, having consulted with Beaumont Cornish Limited, the Company's Nominated Adviser, have concluded that the terms of the Loan Notes are fair and reasonable insofar as the Company's shareholders are concerned.
1Regal Funds comprising Regal Funds Management Pty Limited and its associates (including Regal Partners Limited, of which Regal Funds Management Pty Limited is a wholly owned subsidiary) which act as trustee and investment advisor for certain funds
Warrant Instrument:
The Loan Notes carry an entitlement to Warrants. Each Warrant grants the holder the right to subscribe for one new Ordinary Share at a price of either A$0.456 or £0.24 (at the warrant holder's election), being 71.4 per cent. above the Company's share price at close of trading on 28 June 2024 of £0.14 and has a term of 5 years. If exercised, the Warrants would generate approximately £1.1m in additional cash proceeds for the Company. All Warrants are transferrable.
In aggregate a total of 4,380,181 Warrants have been granted and any Warrants which are unexercised at the end of the relevant subscription period shall automatically expire. Upon exercise of the Warrants, it is anticipated the underlying Ordinary Shares will be issued within seven days.
For further information contact: | |
CleanTech Lithium PLC | |
Steve Kesler/Gordon Stein/Nick Baxter | Jersey office: +44 (0) 1534 668 321 Chile office: +562-32239222 |
Or via Celicourt | |
Celicourt Communications Felicity Winkles/Philip Dennis/Ali AlQahtani | +44 (0) 20 7770 6424 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Asia Szusciak | +44 (0) 20 7628 3396 |
Canaccord Genuity (Joint Broker) James Asensio | +44 (0) 20 7523 4680 |
Fox-Davies Capital Limited (Joint Broker) | +44 (0) 20 3884 8450 |
Daniel Fox-Davies |
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.
Notes
CleanTech Lithium (AIM:CTL, Frankfurt:T2N, OTCQX:CTLHF) is an exploration and development company advancing sustainable lithium projects in Chile for the clean energy transition. Committed to net-zero, CleanTech Lithium's mission is to produce material quantities of sustainable battery grade lithium products using Direct Lithium Extraction technology powered by renewable energy. The Company plans to be a leading supplier of 'green' lithium to the EV and battery manufacturing market.
CleanTech Lithium has two key lithium projects in Chile, Laguna Verde and Viento Andino, and hold licences in Llamara and Salar de Atacama, located in the lithium triangle, a leading centre for battery grade lithium production. The two major projects: Laguna Verde and Viento Andino are situated within basins controlled by the Company, which affords significant potential development and operational advantages. All four projects have direct access to existing infrastructure and renewable power.
CleanTech Lithium is committed to using renewable power for processing and reducing the environmental impact of its lithium production by utilising Direct Lithium Extraction with reinjection of spent brine. Direct Lithium Extraction is a transformative technology which removes lithium from brine, with higher recoveries than conventional extraction processes. The method offers short development lead times with no extensive site construction or evaporation pond development so there is minimal water depletion from the aquifer. www.ctlithium.com
SQM Pilot Testing DLE Technologies, Plans to Choose One or More by 2025
SQM (NYSE:SQM) plans to choose one or more direct lithium extraction (DLE) technologies by next year.
The decision, confirmed by Carlos Diaz, SQM's lithium division head, at Fastmarkets' Lithium Supply and Battery Raw Materials Conference, held in Las Vegas from June 24 to 27, comes as part of a broader effort to expand production of lithium, a crucial metal for electric vehicle batteries, in the Salar de Atacama region.
"We would like to have multiple (DLE) solutions," Reuters quotes Diaz as saying. "It's difficult to choose one that is going to fit and be suitable for all kinds of different chemicals that can be in different types of brine."
Diaz further revealed that the Chilean lithium company has evaluated over 70 DLE technologies and selected 12 for pilot testing, with two of the shortlisted technologies currently being tested. SQM's goal is to increase its annual lithium production to between 280,000 and 300,000 metric tons by 2060, up from an estimated 200,000 tons in 2024.
SQM is weighing several factors in its decision-making process, such as the higher electricity consumption of DLE technologies compared to traditional evaporation ponds, and the freshwater requirements of some DLE variants.
The company is also considering how reinjecting brine post-lithium extraction could impact local aquifers.
Chile is currently the world's second largest lithium producer, trailing only Australia. The country's lithium output is largely driven by SQM and its competitor, Albemarle (NYSE:ALB). Both companies are exploring the use of DLE technologies, which have yet to be proven effective on a commercial scale without the aid of evaporation ponds.
At the end of May, SQM entered into a partnership agreement with Codelco, Chile's stated-owned copper miner, through which the two will jointly exploit lithium and other products in the Salar de Atacama.
In addition to its these advancements, SQM recently secured long-term agreements to supply lithium hydroxide to Hyundai Motor (KRX:005380) and Kia (KRX:000270), two of South Korea's leading electric vehicle manufacturers.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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