Lithium Australia’s multiple tentacles have found their way into Germany with due diligence now underway on a proposed joint venture and two local appointments to help build activity in Europe.
The fast-expanding Lithium explorer and developer of Lithium extraction technologies announced in February a Memorandum of Understanding to form the joint venture with German-listed Deutsche Rohstoff, the parent company of Tin International.
Tin International’s key asset is the Sadisdorf Tin deposit, located in Saxony, 15km northwest of the historic, world-class Altenberg mine, which was worked for more than 500 years until 1991. The Sadisdorf orebody is believed to contain in the order of 15% zinnwaldite, a Lithium-rich mica that is ideally suited to Lithium Australia’s proprietary Sileach extraction process.
Lithium Australia announced this week it had begun due diligence on the assets in the proposed joint venture, which it expected to complete by the end of this month.
The company also announced two German-based appointments, Dr Georg Hochwimmer and Albert Gruber, to provide technical and corporate support in Europe.
Dr Hochwimmer holds a PhD in chemistry and has diverse industrial and corporate experience. He will assist Lithium Australia with administration, Government liaison and investor relations.
Mr Gruber has been engaged to manage the technical aspects of the geological assessment of Sadisdorf and to investigate other opportunities for Lithium Australia in Europe.
Following successful due diligence, Lithium Australia will pay Tin International EUR 200,000 (A$280,000) in Lithium Australia shares and EUR 50,000 (A$71,000) in cash to begin the farm-in. The company plans to spend up to EUR 2 million (A$2.8 million) over a three-year period to lift its stake in the JV to 50%.
Lithium Australia aims to extend and upgrade the existing JORC inferred resource of 3.36Mt grading 0.44% Tin and delineate an associated Lithium resource.
Managing Director, Adrian Griffin, said “The joint venture with Tin International provides Lithium Australia with a low-cost entry into an established JORC resource, albeit originally established for Tin.”
“There is little doubt that a substantial Lithium inventory also exists and the focus of the joint venture is to fast-rack the project to feasibility. The experience provided by Tin International will be a key element in expediting the evaluation process and we are pleased to have them as a partner.”
By Matt Birney
