Lithium has become an essential commodity in the market over the years and many are jumping at the chance to make a variety of lithium investments. The rapid emergence of lithium as a hot commodity has brought numerous Australian ASX listed companies into the spotlight, including Lithium Australia (OTCMKTS:$LMMFF).
Lithium Australia is not only a lithium exploration company, it also owns lithium extraction and advanced processing technologies such as Sileach and LieNa. These technologies have allowed for Lithium Australia to process lithium silicates without roasting.
Most of Lithium Australia’s potential comes from the fact that they hold the keys to unlocking high-grade lithium for any producer or consumer, at a fraction of the current cost using its technology. Additionally, their progress on lithium exploration has excelled over the last two years.
With that in mind, there is still speculative stock, which means success is not guaranteed. If you are looking to start investing in lithium, remember to invest with caution, and before you finalize any of your lithium investments, it is worth seeking out financial advice.
Along with Lithium Australia’s advanced technology, their Sonora project in Mexico and Gascoyne Project in Australia has helped to direct the company from a micro-capped lithium explorer to a lithium technology company whose technology is highly sought after. In light of recent months, Lithium Australia’s exploration news flow has picked up quite quickly.
Lithium Australia’s Sonora Project in Mexico:
With strike potential confirmed at more than 5 km and drill intersection bearing sediments at the surface, Lithium Australia’s first lithium hole at its Agua Fria Project in Sonora Mexico is considered to be quite the success for LIT and JV partner Alix Resources.
With five completed holes coming to a total of 627 meters and assays only received for hole AF-17-001, drilling at the Agua Fria Project is progressing considerably well. This progress means that positive results may follow. Additionally, LIT is put at an advantage as it, and its subsidiary Lithophile Pty Ltd has ownership to area prospective for lithium mineralization in the Gascoyne Province of Western Australia.
Consisting of five exploration licenses, 800 km from Perth and adjacent to the Nardoo Pegmatite District, the Gascoyne Project will play a defining role in Lithium Australia’s long-term strategic plan to acquire alternative lithium sources in order to feed their 100% owned processing technology. In addition, Lithium Australia has managed to lock down 1000 km2 of identified base metal occurrences that have strong lithium potential. This is referred to as the Amber Project, which is located in Queensland, 1350 km from Brisbane.
Furthermore, Lithium Australia might be working on a graphite project as well. This project has been made possible following Blackearth Minerals acquisition of the exploration rights to Capricorn Metals graphite assets.
It’s important to note that the above-mentioned activity is solely from May 2017, but there is so much more going on as Lithium Australia uses its technology across all projects in Australia and uses it to further its relationships with countries such as Canada, Mexico, and Europe.
Along with numerous projects, Lithium Australia has a variety of prospects, resources and exploration programs available. For instance, the Sileach Pilot Plant engineering study is due, Greenbushes have been acquired and LIT is looking to complete construction of the pilot plant by the end of 2017. This aim acts as a prelude to a commercial scale processing hub which is looking to be launched next year as well as other Sileach processing hubs in Europe and around the world.
Anyone interested in investing in lithium will know that having access to lithium-bearing ore is not the hard part, it is extracting high-grade lithium from micas and brine supply that’s proven to be difficult. That said, Lithium Australia has the technology to meet these difficult extraction needs. LIT has a goal to become Australia’s main source of high-grade lithium products, therefore, it is worth keeping an eye on their progress if you are thinking about making lithium investments.
Sileach Technology: Why is it important?
Lithium Australia is working on numerous projects at a time in an attempt to put its advanced technology into action. Sileach technology, for instance, has the ability to transform the lithium sector in the same way base metal was transformed following the introduction of froth flotation. Sileach has been designed to digest any silicate mineral at a fast rate, and there is no doubt that this process will have an effect on LIT’s path to commercialisation.
Lithium Australia has conducted laboratory testing as well as Pilot Testing at ANSTO. There is a commitment to a large pilot plant to be made by mid-2017 and commercial production is set to begin.
LIT has been working towards commercialisation for a while, and these ambitions can be seen in their commercialisation agreement with Pilbara Minerals. With Pilbara Minerals, LIT has a partnership to supply spodumene concentrates. LIT’s alliance with Alix Resources for their project in Sonora Mexico will also play a defining role in commercialization.
Keep in mind however, that JV is still developing and it should not be an influencer if you are thinking about investing in lithium. If you are looking to make lithium investments, make sure you seek out financial advice beforehand.
In an attempt to upgrade its JORC Resource in Sadisdorf Germany, Lithium Australia entered into a binding MOU with Tin International AG. LIT is able to upgrade since it has the right to earn roughly 15% of the company by spending 750,000 Euro on lithium exploration until the end of 2017. Furthermore, LIT is able to increase its stake to 50% while providing Sileach technology to enhance lithium opportunity.
LIT has several alliances across Australia, Canada, Mexico and Europe, which they are using to obtain resource security and as a way of combing their advanced technology with their global resource portfolio. LIT’s portfolio includes 100% ground holding at Greenbushes, Ravensthorpe, Lake Johnston, Gascoyne in WA, Bynoe in the NT, Kangaroo Island in SA and Cape York in Queensland.
Off market takeover bid could give LIT a third technology:
Currently, LIT is in an off-market takeover bid with Lepidico (FRA:$AUB). Lithium Australia used to be partners with Lepidico and they helped them develop the L-Max technology. The L-Max technology was to be advanced based on tweaks in the specifications and geographical licensing agreements between Lithium Australia and Lepidico.
However, as a result of the takeover bid and Lepidico’s L-Max technology, Lithium Australia now plans to produce a global force in the lithium market. So far this acquisition has played a role in LIT’s shared price and they have extended the offer period to the 19th of May, 2017.
Given that Lithium Australia’s market capitalization is $28 million and their assets are under management, many believe that LIT is of great value. However, even if the takeover bid fails, LIT still has the L-Max rights to Western Australia as well as two international licenses. Plus, Lithium Australia is spending money so they can expand their lithium explorations at their domestic and international lithium projects. All in all, even if the potential market takeover fails, Lithium Australia is excelling and moving forward in several ways. If, however, LIT gets the takeover bid, chances are it will result in a unified company that has one brand, as Sileach and L-Max are essentially the same kinds of technology, just with different settings.
Both technologies work towards processing high-grade lithium carbonate from hard-rock lithium bearing micas.
What Does This Potential Takeover mean for Lithium Australia?
– Access to L-Max and Sileach synergies would be provided.
– LIT could control the upcoming technology market through L-Max, LieNA, and Sileach, as a result of the amalgamation.
– Lithium Australia could achieve ample savings in capital and development costs by combining the commercialisation of L-Max and Sileach. Additionally, by doing so, LIT could provide a one-stop solution for lithium output and extraction.
– This combined group would create a larger entity which would allow for the company to pursue larger market goals. Additionally, a combined group will create greater market dominance and allow for a large balance sheet.
For those investing in lithium, remember that Lithium Australia is a lithium company that has prospects, exploration programs, tenements and ore deposits, spread all over multiple continents. It is also important to remember that LIT is on its way down the commercialisation path.
Lithium is considered to be the ‘new gasoline’
Lithium used to be an exotic metal known for its unstable properties 10 years ago. It used to be that lithium was most famous for being given to mentally disturbed individuals as a way to regulate brain chemistry. However, in 2017, lithium is being thought of as a potential replacement for oil and natural gas. Investing in Lithium has its advantages as lithium has a massive future ahead of it.
The Future of Lithium:
Lithium Australia hopes to become a top supplier of customized high-grade lithium, and they plan on satisfying the needs of end-user customers, regardless of the specifications and quantity that they require. Instead of sitting around waiting for agreement offers, LIT has diversified its market through their boundary-breaking technology. Continuing to spit out promising lab results, Sileach technology is on its way to becoming a primary component in global lithium extraction. Since Lithium Australia produces both lithium and technology, this company might be able to achieve economic growth without having to drill or shovel.
Mentioned previously, speculative stocks still exists, therefore, success is not guaranteed. It also depends on a number of factors that are outside of LIT`s control so if you are thinking about investing in lithium or investing in this company, do so with caution.
With a value of less than $30 million, Lithium Australia is still a great way to balance the ongoing demand for lithium and the upcoming lithium-ion battery goldmine.
Additionally, if LIT takes over Lepidico, new windows of opportunity will be created as the commercial value of Sileach technology can be put into full effect. All in all, if you are looking for ways to make lithium investments, keep an eye on Lithium Australia and all that they offer.
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