Eye on Lithium: Half a Chinese lithium mine just sold for US$300 million at auction
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All your ASX lithium news for Tuesday, May 24
The global rush for to secure lithium supplies just ramped up, with an auction for a controlling stake in a Chinese lithium mine scoring 3,448 bids over the weekend.
The 54.3% stake in Yajiang Snowway Mining Development, which owns the mine in Sichuan, a southwestern province in China, sold for about 2 billion yuan (around US$300million).
The insane price was nearly 600x higher than the starting price of around 3.35 million yuan.
The fierce bidding was joined by 21 participants and lasted five days – and 980,000 people watched online.
“We believe the auction price indicates a bullish Chinese primary market for future lithium prices as well as the strategic importance of Sichuan spodumene assets,” Daiwa Capital Markets’ analysts Dennis Ip and Leo Ho said in a note.
Yajiang Snowway is undergoing a bankruptcy process, and its Dechenonba lithium mine has estimated reserves of 24.9 million tonnes and a planned 1-million-ton capacity per year.
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A total of 46 stocks were in the green today, with 39 flatlining and 39 in the red.
The company has exercised its option to acquire the Luz Maria lithium brine tenement in Argentina, known as the Carachi Pampa project, which has a total area of ~3,400 Hectares in close proximity to Lake Resources (ASX:LKE) Kachi project.
“In exercising the option to acquire the Luz Maria tenement, Xantippe has increased its holding by 3,383 hectares in the Latin American lithium triangle,” MD Richard Henning said.
“Together with La Sofia, Rita, and Rita I, XTC now holds almost 12,400 hectares.
“The Company’s objective is to produce a ESG Lithium product using direct lithium extraction (DLE) which requires a smaller environmental footprint, provides optimal yield and efficient use of water.”
XTC plans to get exploration underway ASAP once the necessary approvals are secured.