Birimian in $107m lithium deal

Chinese chemical company Shandong Mingrui Group will buy a lithium project in Southern Mali from ASX-listed Birimian Resources in a $107.5 million deal.

The Bougouni project has indicated resources of 87,000 tonnes of lithium oxide, and is about 150 kilometres from the African nation’s capital, Bamako.

Birimian had bought the site in April from an unnamed local vendor in what the company had described as a low cost transaction.

Drilling at the site continues, while Birimian had planned for a pre feasibility study on the project in the June quarter.

In mid-December, Birimian had signed a memorandum of understanding with another Chinese company, Far East First New Energy, for development of the project, including a potential offtake deal.

The company has two other interests in Southern Mali, the Dankassa and Massigui projects, both gold focussed.

Shares in Birimian were up 16.7 per cent to 5.5 cents each at the time of writing.