Plymouth steps up lithium chase with name change and sale of potash assets
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Plymouth Minerals has decided it wants to ramp up its focus on Spanish lithium and is divesting its potash projects and changing its name.
The company (ASX:PLH) is rebranding as Infinity Lithium Corporation and has begun the process of divesting its “high-quality, but non-core potash assets in Gabon”.
Lithium has become a favoured commodity among Australian explorers, with demand driven by electronics and the electric vehicle uprising that is forecast to reach over 500 million vehicles by 2040 from 2 million now.
Plymouth is increasing its focus on the San Jose lithium-tin project in Spain and has undertaken a board and management reshuffle to better position itself to bring the operation into production.
Ryan Parkin has been named general manager of corporate development and Christian Cordier has stepped down as non-executive director.
Mr Cordier came on board with Plymouth in April 2016 when it first acquired its potash assets.
While managing director Adrian Byass could not put a timeframe on when the divestment of the potash assets would likely be completed, he did tell Stockhead that Plymouth has had interest from potential buyers.
“You quietly sound these things out before you do it sometimes,” he said. “They are very good assets. To be honest I would love to keep them, but it’s against shareholder interests to have two development projects which aren’t directly compatible in the same company.”
Plymouth isn’t looking for an immediate cash injection and still wants to retain exposure to the upside of the potash assets.
“We believe that we will secure something which rewards shareholders for the money that has been spent on an equity basis,” Mr Byass said.
“We’re not looking for cash because we believe in the upside. We are carrying a book value of $2.7 million, which is ball park for the equity in the right shell or structure, so that when they get revalued everybody wins.”