Eye on Lithium: Shares in European Lithium take off on binding BMW offtake deal

Arizona Lithium signs definitive agreement to acquire the Prairie Lithium Corporation
Exploration kicks off across Patriot Lithium’s North American projects
Pilbara Minerals says contract prices with major offtake customers are lifting to US$6300/t on a 6% Li2O basis

All your lithium news, Wednesday December 21.

In August, ~$120m capped project developer European Lithium (ASX:EUR) received a vote of confidence from premium automobile manufacturer BMW AG, which signed up to be its first offtake partner for battery grade hydroxide produced from the Wolfsberg lithium project in Austria.

The deal marked one of the first offtake agreements BMW had signed with a mining company.

Today, European Lithium says it has executed the binding long term lithium offtake agreement. BMW is expected to make an advance payment of US$15mn, which will be repaid through equal set offs against LiOH delivered to BMW.

“Securing first offtake is a key milestone and allows the company to focus on the final steps of development and construction of the Wolfsberg Project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe,” the company said in an ASX announcement on Wednesday.

Here’s how ASX lithium companies are tracking:

CODE	COMPANY	PRICE	% TODAY	MARKET CAP
EUR	European Lithium Ltd	0.084	17%	$104,345,221
LLI	Loyal Lithium Ltd	0.35	15%	$16,009,450
BYH	Bryah Resources Ltd	0.025	14%	$6,187,576
AZL	Arizona Lithium Ltd	0.07	13%	$149,415,385
CTN	Catalina Resources	0.009	13%	$9,907,895
RLC	Reedy Lagoon Corp.	0.011	10%	$5,667,196
CMD	Cassius Mining Ltd	0.022	10%	$8,169,858
VSR	Voltaic Strategic	0.022	10%	$6,128,613
ESS	Essential Metals Ltd	0.335	10%	$81,455,342
MM1	Midasmineralsltd	0.205	8%	$10,855,035
IPT	Impact Minerals	0.007	8%	$16,128,909
NVA	Nova Minerals Ltd	0.67	6%	$132,086,602
NWM	Norwest Minerals	0.055	6%	$11,549,584
PGD	Peregrine Gold	0.495	5%	$18,213,388
ARN	Aldoro Resources	0.2	5%	$21,453,340
PNN	Power Minerals Ltd	0.5	5%	$34,316,291
LLL	Leolithiumlimited	0.4825	5%	$453,862,180
GT1	Greentechnology	0.76	5%	$138,285,335
KAI	Kairos Minerals Ltd	0.022	5%	$41,245,963
FG1	Flynngold	0.115	5%	$7,156,553
TMB	Tambourahmetals	0.115	5%	$4,531,186
TYX	Tyranna Res Ltd	0.023	5%	$52,919,357
PSC	Prospect Res Ltd	0.125	4%	$55,471,135
EFE	Eastern Resources	0.026	4%	$28,838,789
ZNC	Zenith Minerals Ltd	0.26	4%	$87,828,645
MMC	Mitremining	0.265	4%	$6,906,701
CXO	Core Lithium	1.0425	4%	$1,847,511,016
FRS	Forrestaniaresources	0.14	4%	$8,209,526
MRR	Minrex Resources Ltd	0.031	3%	$32,546,025
TUL	Tulla Resources	0.32	3%	$62,183,748
MQR	Marquee Resource Ltd	0.035	3%	$11,125,055
AS2	Askarimetalslimited	0.36	3%	$17,268,693
TKM	Trek Metals Ltd	0.074	3%	$26,204,046
ASN	Anson Resources Ltd	0.195	3%	$223,868,435
GLN	Galan Lithium Ltd	1.04	2%	$310,087,986
LIS	Lisenergylimited	0.3325	2%	$53,922,111
RIO	Rio Tinto Limited	115.8	2%	$42,029,099,749
QPM	Queensland Pacific	0.1125	2%	$192,098,271
GSM	Golden State Mining	0.045	2%	$5,148,625
AGY	Argosy Minerals Ltd	0.5675	2%	$779,446,161
DRE	Dreadnought Resources Ltd	0.091	2%	$274,079,495
KTA	Krakatoa Resources	0.047	2%	$15,856,656
RAS	Ragusa Minerals Ltd	0.1225	2%	$16,238,178
VUL	Vulcan Energy	6.41	2%	$900,145,690
AOU	Auroch Minerals Ltd	0.052	2%	$21,742,327
CAI	Calidus Resources	0.27	2%	$116,051,902
MIN	Mineral Resources.	80.71	2%	$15,034,395,366
NMT	Neometals Ltd	0.835	2%	$453,247,764
MNS	Magnis Energy Tech	0.37	1%	$354,170,991
SYA	Sayona Mining Ltd	0.2025	1%	$1,736,806,307
IGO	IGO Limited	14.02	1%	$10,488,159,210
CRR	Critical Resources	0.0435	1%	$67,847,046
CHR	Charger Metals	0.445	1%	$19,186,655
WR1	Winsome Resources	0.945	1%	$130,144,540
WES	Wesfarmers Limited	45.68	1%	$51,415,216,731
EMH	European Metals Hldg	0.69	1%	$81,879,947
LKE	Lake Resources	0.795	1%	$1,099,402,480
AKE	Allkem Limited	11.815	0%	$7,524,365,415
ADV	Ardiden Ltd	0.008	0%	$21,506,683
1MC	Morella Corporation	0.014	0%	$83,321,781
AML	Aeon Metals Ltd.	0.028	0%	$30,699,217
AVZ	AVZ Minerals Ltd	0.78	0%	$2,752,409,203
INF	Infinity Lithium	0.14	0%	$64,762,893
JRL	Jindalee Resources	1.8	0%	$103,282,139
LPD	Lepidico Ltd	0.014	0%	$106,928,797
LTR	Liontown Resources	1.35	0%	$2,965,187,723
PLL	Piedmont Lithium Inc	0.7	0%	$291,782,680
TKL	Traka Resources	0.007	0%	$4,821,422
TON	Triton Min Ltd	0.037	0%	$51,163,015
BMM	Balkanminingandmin	0.38	0%	$16,344,087
LEL	Lithenergy	0.74	0%	$44,511,000
AAJ	Aruma Resources Ltd	0.055	0%	$8,632,883
PAM	Pan Asia Metals	0.42	0%	$61,679,348
AX8	Accelerate Resources	0.027	0%	$8,397,749
AM7	Arcadia Minerals	0.225	0%	$10,507,026
DTM	Dart Mining NL	0.062	0%	$9,626,130
IMI	Infinitymining	0.25	0%	$19,112,080
LRV	Larvottoresources	0.17	0%	$9,544,414
RAG	Ragnar Metals Ltd	0.015	0%	$5,687,773
TEM	Tempest Minerals	0.024	0%	$12,114,388
WCN	White Cliff Min Ltd	0.015	0%	$11,299,278
WML	Woomera Mining Ltd	0.019	0%	$18,167,063
KGD	Kula Gold Limited	0.022	0%	$7,946,662
MTM	Mtmongerresources	0.079	0%	$4,504,913
SCN	Scorpion Minerals	0.074	0%	$24,694,258
AZI	Altamin Limited	0.08	0%	$31,337,340
ENT	Enterprise Metals	0.009	0%	$6,345,726
AVW	Avira Resources Ltd	0.003	0%	$6,401,370
BNR	Bulletin Res Ltd	0.088	0%	$25,748,017
SRZ	Stellar Resources	0.013	0%	$13,060,202
AOA	Ausmon Resorces	0.007	0%	$6,001,025
VKA	Viking Mines Ltd	0.01	0%	$10,252,584
SRI	Sipa Resources Ltd	0.033	0%	$7,490,535
VMC	Venus Metals Cor Ltd	0.13	0%	$23,150,229
RGL	Riversgold	0.028	0%	$26,473,096
G88	Golden Mile Res Ltd	0.022	0%	$4,500,975
WC8	Wildcat Resources	0.025	0%	$16,550,568
THR	Thor Mining PLC	0.007	0%	$10,095,490
CZL	Cons Zinc Ltd	0.017	0%	$7,869,665
MXR	Maximus Resources	0.044	0%	$14,031,854
M2R	Miramar	0.08	0%	$5,654,539
XTC	Xantippe Res Ltd	0.0055	0%	$52,002,691
LRD	Lordresourceslimited	0.22	0%	$7,322,617
WMC	Wiluna Mining Corp	0.205	0%	$74,238,031
AUN	Aurumin	0.072	0%	$12,798,928
ALY	Alchemy Resource Ltd	0.021	0%	$24,739,601
DAF	Discovery Alaska Ltd	0.028	0%	$6,278,572
FTL	Firetail Resources	0.15	0%	$9,750,000
IR1	Irismetals	1.16	0%	$72,766,800
LNR	Lanthanein Resources	0.023	0%	$22,576,238
DAL	Dalaroometalsltd	0.1	0%	$2,987,500
CY5	Cygnus Gold Limited	0.385	0%	$70,791,572
OCN	Oceanalithiumlimited	0.36	0%	$12,717,000
A11	Atlantic Lithium	0.59	0%	$357,387,579
PLS	Pilbara Min Ltd	3.85	0%	$11,571,742,155
LPI	Lithium Pwr Int Ltd	0.425	-1%	$237,685,590
EMC	Everest Metals Corp	0.081	-1%	$8,727,515
EMS	Eastern Metals	0.076	-1%	$3,007,960
SGQ	St George Min Ltd	0.069	-1%	$56,800,402
ZEO	Zeotech Limited	0.046	-2%	$77,113,166
LRS	Latin Resources Ltd	0.1025	-2%	$217,866,861
INR	Ioneer Ltd	0.39	-3%	$839,335,307
STM	Sunstone Metals Ltd	0.038	-3%	$102,197,410
GL1	Globallith	1.87	-3%	$408,380,652
EPM	Eclipse Metals	0.0145	-3%	$30,363,853
GW1	Greenwing Resources	0.285	-3%	$37,241,001
QXR	Qx Resources Limited	0.046	-4%	$42,329,391
LIT	Lithium Australia	0.044	-4%	$56,174,817
KZR	Kalamazoo Resources	0.22	-4%	$34,228,456
RDT	Red Dirt Metals Ltd	0.435	-4%	$189,337,249
A8G	Australasian Metals	0.215	-4%	$9,263,361
MLS	Metals Australia	0.043	-7%	$27,923,665
LSR	Lodestar Minerals	0.005	-9%	$9,561,405
RMX	Red Mount Min Ltd	0.0045	-10%	$9,941,744
EVR	Ev Resources Ltd	0.015	-12%	$15,792,729

The sharemarket gained 1.5pc by lunchtime with energy and mining companies leading the charge.

In the land of lithium, 57 companies finished the day in the green while 20 others tumbled into the red zone.

Who else has news out?

ARIZONA LITHIUM (ASX:AZL)

AZL has signed a definitive agreement to acquire the Prairie Lithium Corporation, which it calls one of Canada’s most advanced lithium brine companies, and one of the most advanced Direct Lithium Extraction (DLE) projects globally.

This acquisition represents a 1,200% increase to AZL’s global lithium resource, which now stands at 4.4Mt of LCE and includes a proprietary direct lithium extraction technology that removes lithium from brines and ore bodies.

PATRIOT LITHIUM (ASX:PAT)

Exploration has kicked off across PAT’s North American projects including at Keystone and Tinton West in the Black Hills South Dakota and Wyoming, as well at at the Wickenburg Project in the Pegmatite Belt of Arizona.

Data compilation and targeting is underway for systematic field work and drill targeting in early 2023 at both the Keystone and Tinton West Projects.

Field work and drill targeting are in progress at the Wickenburg Project with a potential drill program envisaged for early 2023.

PILBARA MINERALS (ASX:PLS)

PLS says contract prices with major offtake customers are lifting to US$6300/t on a 6% Li2O basis, following upward moves in spot prices in part powered by its own BMX lithium auctions, where cargos of spodumene have gone for upwards of US$8000/t on a 6% benchmark.

This should give investors some confidence there remains upside for lithium producers by inking offtake deals closer to spot prices, despite a slight pullback in chemical prices in China in recent weeks (still, though, around the US$80,000/t mark).

PLS also announced a hefty price tag for the expansion of its Pilgangoora Project from 100,000tpa to 680,000tpa – a rise of more than $100m from $297.5m to $404m.

PLS attributed the changes to increase material and equipment costs, costs to maintain the delivery schedule and additional trade labour hours for construction in the current labour market and more work identified as a result of engineering being further progressed.

The Pilbara Minerals board has also approved pre-FID funding of $38.3m to maintain its execution schedule for a yet to be approved ramp up to 1Mtpa.

COSMOS EXPLORATION (ASX:CX1)

Cosmos has picked up the highly prospective Corvette Far East Lithium Project in James Bay, Quebec, for cash and shares.

The company says the project is an outstanding addition to its portfolio, being just 20km along trend from Patriot Battery Metals (ASX:PMT) Corvette (CV5) lithium discovery where recent drill intercepts of up to 159m at 1.6% Li2O have been announced.

The project is also within the same greenstone belt, where historic large-scale mapped pegmatites remain unexplored, and is prospective for lithium over 15km of strike.

European Lithium, Arizona Lithium, Patriot, Pilbara Minerals and Cosmos Exploration share prices today:

ST GEORGE MINING (ASX:SGQ)

In two separate announcements, SGQ says it has raked in a $2mn strategic investment by a world-leading lithium-ion battery player and believes there is a “very large” lithium bearing pegmatite system lurking under the surface at its Mt Alexander Project.

Hongkong Xinwei Electronic Co, a wholly owned subsidiary of China based Sunwoda Electronic Co has agreed to invest in St George by way of a placement of new shares, at a price of 8.6 cents per share, a significant premium to the market.
Sunwoda is a high-tech enterprise specialising in the design, production and sale of lithium-ion battery cells and modules for use in a range of applications including mobile phones and laptops, electric vehicles, and energy storage devices.

Meanwhile, recent drilling suggests outcropping lithium-bearing pegmatites continue below the surface up to a vertical depth of at least 200m and in most cases, are open at depth.

The latest assays for rock chips, which have returned up to 3.25% Li2O have also been completed and highlight new broad areas of prospective fractionated pegmatite outcrop.

A combination of reverse circulation and diamond drilling on a total of 20 holes intersected pegmatites with visual lithium-bearing minerals, which St George Mining (ASX:SGQ) says implies a fertile lithium-mineral system is present along a strike of 1.7km.