Global Strategic Metals granted Austrian mining licence

THE BOURSE WHISPERER: Global Strategic Metals (ASX: GSZ) has been granted a mining licence by the Austrian Mining Authority in respect to the company’s 80 per cent-owned Wolfsberg lithium project located in Carinthia, south of Vienna.

The granting of the licence enables the company to comply with its obligation to carry out mining activities on the project within two years of the granting of the original exploration licence.

The Mining Licence permits Global Strategic Metals to carry out mining activity to extract two 500 tonne bulk samples, without having to meet the requirement to complete a second egress (an escape way/drive of approximately 180 metres) as originally stipulated.

Global indicated the variation to the original licence not only provides time saving but also a cost saving of approximately €200,000 in contractor fees which would have been incurred to complete the egress.

Global was also successful in securing a reduction in the bond it is required to pay from €200,000 to €20,000.

Following the granting of the Mining Licence, which the company was able to achieve at a negotiated saving of approximately €430,000, Global has already called for three tenders from local contractors to extract the Bulk Samples.

Once the Bulk Sample exercise is completed, the leases pertaining to the project will be granted to the company permanently.

“The grant of the Mining Licence places the company in an excellent position to advance the project,” Global Strategic Metals chairman Tony Sage said in the company’s announcement to the Australian Securities Exchange.

“The anticipated achievement of absolute lease security will be a significant milestone for the company enabling it to progress with orderly development towards a concentrate and then carbonate production to supply the European lithium market.”