Lithium Australia buys $3m German project

West Perth-based Lithium Australia has acquired a lithium-tin project in Germany from its joint venture partner Deutsche Rohstoff in a cash and scrip deal worth about $3.1 million.

Under the deal, Lithium will pay €500,000 ($772,000) in cash and €1.5 million ($2.3 million) in shares for the Sadisdorf project.

The two companies had signed a JV agreement in May last year, which stipulated that Lithium could earn a 15 per cent interest in the project by spending €750,000.

Lithium said it had spent about €750,000 on exploration.

Consultant CSA Global has estimated an inferred mineral resources of 25 million tonnes grading 0.45 per cent lithium oxide.

The company has developed a lithium processing technique SiLeach, which is a chemical-based process that converts lithium concentrate into battery minerals such as lithium carbonate.

Managing director Adrian Griffin said the deal was part of the company’s European strategy.

“SiLeach is the only practical means of realizing the full potential of deposits of this type where value can be recovered from the lithium, tin, potassium and other valuable by-products,” he said

“Our recent cobalt exploration success in the region is testimony to the latent potential of Saxony as a supply centre of the European battery industry.”

Shares in the company were flat at 12 cents each today.