First Lithium welcomes new funding for project as maiden JORC draws near

FL1 targeting resource estimate at Blakala lithium project in Mali
Move comes as Mali Government recommences issuing of licences
The company has also raised funds via a loan note

Special Report: First Lithium will take a step towards upgrading from explorer to developer this year with a maiden resource in the works for its Blakala lithium asset in Mali as the government recommences issuing licences.

The Government of the Republic of Mali recently announced plans to partially lift a suspension of mining permits by mid-March 2025. The suspensions have been in place since late 2022.

The lifting of the suspension will mean more straight forward and direct dealings on licence applications and renewals, including those held by FL1 subsidiaries in Mali.

First Lithium (ASX:FL1) has already received a letter from the National Director of Geology and Mines in Mali confirming work can continue on the Faraba and Blakala permits in the interim, pending direct meetings with government confirming requirements for the licence renewal process.

$1.2m to progress maiden resource

The company has also finalised a loan note of up to $1.2m via an agreement with sophisticated and professional investors.

Funds will be used to finalise the licence renewal process and advance a maiden resource estimate (MRE) for Blakala as well as general working capital.

The estimate will follow some stellar drill hits, which included strikes in the Eastern pegmatite zones including 24m at 1.53% Li2O from 129m, 28.59m at 1.51% from 117m and 9m at 1.62% from 117m.

Anything above 1% Li2O is generally considered economic with only a handful of deposits reporting grades upwards of 1.4%.

And while prices have long been set on the 6% Li2O benchmark originally delivered from the Greenbushes mine, the company’s Blakala test work has suggested it can hit a concentrate grade of as much as 6.8%.

“The pending renewal of the Mali permits along with interim funding via the loan notes secured by CPS is a great confidence booster,” FL1 managing director Venkatesh Padala said.

“The renewal process in Mali has been on hold for some time, so to see progress in this regard is a great step forward.

“The company is now in a great position to focus on its maiden JORC resource and delivering another successful Mali mining project.”

The loan funding will occur in three $400,000 tranches with a conversion price of $0.10 each, with interest accruing at 10% per annum and payable in stock on the same terms as the loan.