Fotios back in lithium

An advisory firm led by mining veteran Michael Fotios has been engaged by lithium hopeful GreenTech Metals, one week after Mr Fotios was appointed chief executive of Scorpion Minerals.

As principal consultant to Obsidian Metals Group (OMG), Mr Fotios will lead a services agreement with Perth-based junior explorer GreenTech Metals.

Under the deal, OMG will invest a minimum of $1 million through a placement priced at 0.144 cents per GreenTech share, representing a 30 per cent premium to its last closing price.

OMG will also explore, evaluate and potentially develop lithium bearing pegmatites throughout Greentech’s tenements in the West Pilbara and broader region.

The GreenTech deal is similar to an arrangement OMG has had with Scorpion.

OMG has been technical adviser to Scorpion since April last year and was responsible for the introduction of the Youanmi lithium project in the Murchison region to the company’s portfolio.

The deal comes a week after Mr Fotios was appointed chief executive of Scorpion Minerals to “drive development of highly prospective Murchison lithium profile”, according to the company.

It’s the latest career move in the mining executive’s colourful past, including his resignation from both Redbank Copper and Horseshoe Mining after declaring bankruptcy in 2019.

The bankruptcy followed his battle with the Australian Taxation Office over unpaid taxes, which resulted in a $51,500 fine in the Perth Magistrates Court after Mr Fotios pleaded guilty to seven Commonwealth tax charges.

The mining boss has previously been involved in numerous gold ventures of varying success, including the company he founded, Eastern Goldfields, which went into administration months after he resigned in 2018.

He was previously the founding managing director of Galaxy Resources before it merged with fellow lithium producer Orocobre in August 2021 to form Allkem. 

Focused on exploring, developing and acquiring battery minerals and metals projects, GreenTech is also developing projects in the Mid West and Goldfields regions.

GreenTech executive director Thomas Reddicliffe said the strategic partnership and investment from Obsidian was a strong endorsement of the company’s strategy.

“This partnership will allow GreenTech to leverage OMG’s extensive technical expertise in pegmatite-hosted lithium exploration, while also benefiting from OMG’s substantial network of contracts in the lithium sector,” he said.