THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced its intentions to spin out a portfolio of prospective graphite ground it has accumulated in Western Australia.
Lithium Australia indicated it intends to float the assets as part of an IPO, which it previously announced to the ASX in August 2016.
“Two of Western Australia’s most experienced mining business identities Mr Tom Revy, and Mr George Bauk will drive the proposed public float and ASX-listing of the pure graphite play, Graphite Australia,” Lithium Australia said in its ASX announcement.
The company signalled all Lithium Australia shareholders will be offered a priority entitlement to IPO share subscriptions.
Lithium Australia has been granted two exploration licences, E70/4811 and E70/4812 over prospective ground within what is known as the Greenhills graphite project area covering a combined area of 56 square kilometres, located between 20 and 30km east of the town of York.
“The applications cover a number of historic graphite occurrences which have not been subject to evaluation by advanced exploration techniques,” the company continued.
“Known as the Greenhills Graphitic Zone the prospective units extend for up to 20 kilometres.”