Eye on Lithium: It’s a capital raising, board changing, deep drilling extravaganza as lithium sentiment remains unbridled
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All your ASX lithium news, Tuesday October 11.
Lithium ASX juniors are rapidly accelerating exploration efforts in the face of the world’s growing raw material challenge, which sees demand for lithium-ion batteries set to grow six-fold by 2032.
According to Benchmark Mineral Intelligence, to meet the world’s lithium requirements, another 74 new mines with an average size of 45,000t will need to come online by 2035.
While the next crop of lithium producers – like Core (ASX:CXO), Sayona (ASX:SYA) and Piedmont (ASX:PLL) will likely grab a piece of that pie, beyond the next couple of years the baton will then fall to the small caps in the space.
~$31.45m market cap explorer Alchemy Resources (ASX:ALY) made the headlines at the end of September for winning a ballot for new ground along strike of Global Lithium Resources’ (ASX:GL1) 9.9Mt Manna lithium deposit and adjacent to Breaker Resources’ (ASX:BRB) 1.7Moz Lake Roe gold project.
Today, the company revealed a $5.5m capital raising to fund drilling across its high priority lithium assets in WA (Karonie and Lake Rebecca) as well the advanced suite of base and battery metals projects in NSW.
After beating multiple parties for the 24.8sqkm exploration licence at the Karonie Lithium and Gold Project near Kalgoorlie, ALY said it plans to conduct a 3,000-5,000m drilling program initially targeting the nearby Hickory prospect which has seen limited drill testing with modern exploration methods.
Larvotto Resources (ASX:LRV) is another example of a junior lithium stock that has secured funds to expedite exploration across its Eyre Project in WA after bringing on a North American institutional fund to its register.
• Punter favourite $DUN hits 358m of sulphides in first proper drill hole
• $E25 says feasibility study into the production of battery grade manganese due December
• $LRV raises $3.4m to expedite lithium exploration #ASX #batterymetals
— Stockhead (@StockheadAU) October 11, 2022
This morning the company signed a royalty, equity and off-take agreement with Canadian-based Lithium Royalty Corp who will acquire a 1% gross revenue royalty, payable if any lithium is extracted or sold by LRV from Eyre.
They will also subscribe for ~11m new shares at an issue price of $0.18 to raise $2m – a small 10% discount to 10-day VWAP — and acquire a 20% life of mine off-take right for lithium from Eyre for an extra $700,000.
36 lithium companies ended the day in the green, 47 lost their marbles, and 48 fell flat.
MCT’s exploration team arrived on site over the weekend at the Mt Surprise Lithium Project to kick off exploration, initially focusing on geological field mapping and rock chip sampling from prospective lithologies and key structural features.
This is where historic rock chip samples returned 3.55% Li2O, 125ppm tantalum, 0.25% caesium and 1.26% rubidium as well as significant high-grade copper mineralisation at surface.
Metalicity’s managing director says the program is also designed to target new pegmatites and potential lithium mineralisation to assist with future targeted exploration programs.
A strategic placement to US and Australian-based investors will raise $1.03m, with the bulk of the funds used make a 5% equity investment in North American focused hard rock lithium exploration company, Midwest Lithium AG.
Midwest Lithium has properties in the Black Hills district of South Dakota and RML says the investment is being undertaken as part of their larger capital raising of US$2m, which is expected to be sufficient to allow them to complete further claim (tenement) acquisition costs, and continue exploration programs, permitting and working capital.
The acquisition of the interest by RML has been approved by Midwest Lithium’s shareholders and is expected to be completed on or about October 25.
RML says the investment underpins the company’s commitment to growing its exposure to new energy metals and gives shareholders early exposure to an underexplored known spodumene-pegmatite lithium field in an area with significant past lithium production.
Dakota is a top-rated North American mining jurisdiction with established large-scale mining operations.
XTC has appointed John Featherby as the executive chairman of the company, effective immediately, as well as Carlos Arecco as non-executive director – effective from October 14.
Featherby has extensive experience in the stockbroking and wealth management industry with past experience at Harley Pynton, now EurozHartleys.
Arecco “is one of the most respected and successful businessmen in Argentina”, XTC says, and is the founder of Arecco Ingenieria (AISA).
Over its 43-year history, Arecco has built a major private conglomerate in the fields of water, gas, industrial installations, airports, communications and the naval industry.
A regional scale lithium in brines geophysical survey has begun at Arcadia’s Bitterwasser Project in Namibia.
New Resolution Geophysics (NRG) – a specialist airborne geophysical operator, will fly the electromagnetics survey over large portions of the project in the aim to identify possible lithium rich brine layers at depth.
If successful, a drilling program will be planned over the best targets.