THE BOURSE WHISPERER: Metalicity (ASX: MCT) has struck a non‐binding Memorandum of Understanding (MoU) and made a placement to raise approx. $3 million with members of the China Battery Association.
The MoU is with China New United Shanghai Metal Resources Co, Ltd (Shanghai Metals), which Metalicity said will advance the company’s lithium exploration and business development strategy plans.
The MoU will jointly fund, develop and acquire Lithium projects and will also off‐take a minimum of 100,000 tonnes per annum and up to 150,000 tonees per annum of lithium spodumene concentrate produced from Metalicity’s existing or future projects.
The controllers of Shanghai Metals have agreed to subscribe for shares in Metalicity by way of a placement for approximately $3M at seven cents per share.
Metalicity has already banked $2.7 million of the proceeds with the remaining funds expected to be banked on 6 June 2016.
Metalicity described Shanghai Metals to be an emerging lithium Industry participant whose strategy is to build on its interests in the lithium industry value chain for the ultimate production of lithium carbonate and cathodes.
The company said its new partners see its lithium exploration and business development strategy as an important step in achieving this goal.
Metalicity is well advanced into an accelerated $1 million exploration program including field exploration in the Pilgangoora, Greenbushes and Lake Cowan lithium districts.
Comprising a comprehensive and systematic sampling and mapping across all projects areas, the company outlined the key focus of this phase will be the central outcropping pegmatites at Stannum, which forms part of the Pilgangoora South project.
This work is generating drill targets for a maiden drilling program planned to commence at Stannum as soon as licenses are granted and approvals obtained.
“The MoU and Placement with a key China Battery Association Member further accelerates this plan with an additional $3m of funds now banked and applied to this strategy,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.