Deal puts Lithium Australia in the box seat

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 28 Jun 2016   Posted by admin


Image: Lithium Australia

By Elizabeth Fabri

LITHIUM Australia (LIT) and US Masters Holdings (USH) have joined forces in a strategic move to consolidate Lake Johnston lithium pegmatite field resources.

LIT would obtain lithium rights to two additional licences at the field, giving company a distinct advantage in new pegmatite discoveries, and while USH remained the sole owner of granted exploration licenses E63/1722 and 1733, lithium rights would be ceded to LIT. In return, USH would acquire the gold and nickel rights to LIT’s existing uncontested application for E63/1777, subject to regulatory approvals.

LIT managing director Adrian Griffith said the venture between both parties put the company in the box seat. “While previous exploration ignored the lithium potential of the pegmatites, recent exploration has demonstrated conclusively the prospectivity of the area,” Mr Griffith said. “It’s a great deal for LIT and for USH.”

Discoveries in the field were reported by Poseidon Nickel (POS) in May, who announced high levels of lithium in samples taken close to the boundary of E63/1722.