Lithium Australia participation in Venus Metals placement advances processing hub strategy

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) outlined its long-term strategy for the establishment of a lithium processing hub in Western Australia.

The company indicated its initial preference to be Port Hedland, citing the port city’s proximity to infrastructure, as well as its proximity to WA’s lithium hotspot, Pilgangoora.

The strategy follows recent announcements by the company of funding initiatives with Federal Government Business Innovation Grant and Minerals Research Institute of Western Australia (MRIWA) regarding the commercialisation of its Sileach process.

In line with the State Government-based nature of the MRIWA funding, LIT has been actively seeking local support for the studies to advance and promote Port Hedland, Pilgangoora and WA.

As a result it has struck a deal with Venus Metals Corporation (ASX: VMC), which has agreed to be a joint founding partner with LIT in the application to MRIWA for co-investment in this study.

To this end LIT has participated and subscribed to ordinary fully paid shares in a recent private placement conducted by VMC at 25 censt per share.

The two companies have commenced a desktop study with VMC planning a reconnaissance field trip to LIT’s Pilgangoora tenements.

“LIT’s point of difference with all other lithium companies is the ability to recover lithium from spodumene without the requirement for the extraordinary expense of roasting,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The company’s proprietary Sileach process has the flexibility to process any lithium bearing silicates.

“If our application is successful, the MRIWA grant will enable the commercialization of the Sileach process to be accelerated through to large-scale piloting.”