Green Technology Metals ready and waiting for lithium rebound

• GT1 poised for market rebound with prospective Canadian lithium projects 
• Company advancing critical project workstreams with implemented cost-saving measures
• Strategic exploration review underway across portfolio of nine projects

Special Report: Green Technology Metals believes it is in a strong position to respond when the lithium market recovers, having delivered a series of solid strategic milestones.

The company has  delivering key project milestones – a +30Mt resource, strategic partnerships with LGES and EcoPro Innovation whilst  building a vertically integrated lithium business in Canada.

Green Technology Metals’ (ASX:GT1) Root project was recently subject to an optimised preliminary economic assessment detailing its potential as a standalone project with an updated resource of 20.1Mt at 1.24% Li2O.

Seymour project hosts a 10.3Mt at 1.03% Li20 resource and has a lithium offtake agreement with LG Energy Solution (also a shareholder) for 25% of spodumene concentrate production for five years.

While the company has delayed major cost items for the remainder of the Seymour definitive feasibility study (DFS) work streams, which are 70% complete, GT1 says it’s continuing to engage with Indigenous partners and progressing permitting strategically ahead of an anticipated rebound in the lithium market.

GT1 also credits its strong position to unwavering federal and provincial government support and initiatives like the C$150bn NATO and defence commitment to build infrastructure associated with the critical minerals supply chain to establish a secure foundation that will support Canada’s plans to supply defence and other critical minerals in-country and to allies.

Plus, late last year the company secured a Letter of Interest from Export Development Canada for up to C$100m in project financing for Seymour.

GT1 received conditional approval of up to C$5.47 million from Natural Resources Canada (NRCan) for the Jackfish and Armstrong Bypass Road Upgrade Project  related to the Seymour project and has now also submitted new applications totalling an additional C$5.5m under the Critical Minerals Infrastructure Fund (CMIF) to support consultation and early engineering works at the Seymour and Root projects.

Slow and steady wins the race

GT1 remains committed to delivering long-term value while navigating near-term market headwinds through strategic cost control such as reducing contractor expenditure, creditor payment plans, deferring executive fees and demobilising exploration camps.

“It’s been a challenging 12 months for the lithium sector, but our long-term strategy remains unchanged,” GT1 managing director Cameron Henry said.

“While market conditions have required us to slow down, we continue to have strong conviction in the quality of our assets, their location and our vertically integrated approach in Canada, underpinned by tier-one strategic partnerships with EcoPro Innovation and other lithium focused businesses. 

“The LOI from Export Development Canada, unwavering Canadian government support, delivery of key project milestones, and a robust +30Mt resource are all achievements in the past 12 months that have added significant value to the company. 

“These foundations place us in a strong position to respond when the market recovers and we’ll be ready.”

Henry said slowing the DFS was a difficult but necessary decision.

“We remain focused on advancing the critical development work required to ensure the Seymour project moves towards completion of permitting in consultation with our Indigenous partners and will be ready for investment decisions,” he said. 

“This period of disciplined capital preservation also provides an opportunity to explore new avenues to create value for shareholders, including a full review of our tenement portfolio and technical database, which may unlock further strategic opportunities aligned with current market demands and our long-term vision.” 

In the meantime, an exploration review is underway across all nine of GT1’s projects, with early indications highlighting strong potential for high-value by-products listed as critical minerals globally. 

This article was developed in collaboration with Green Technology Metals, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.