Pegmatites have been identified in the region containing abundant lithium micas, which are often associated with alluvial deposits of tin and tantalum.
Lithium Australia has purchased the tenement from Anova Metals Australia Pty Ltd for consideration of $25,000 in cash and shares valued at $25,000.
Moolyella “has the right ingredients”
Managing director Adrian Griffin said: “The abundance of fertile granites and associated pegmatites in the Pilbara has seen the region emerge as the greatest lithium province in the world.
“There remains great potential for further discoveries and Moolyella has all the right ingredients.”
Lithium micas are a preferred feed for Lithium Australia’s SiLeach® process for which the company aims to build a large-scale pilot plant as part of the commercialisation process.
The Moolyella project covers targets within the Fig Tree Gneiss, which is part of the Tambina Supersuite.
Outcropping pegmatites occur as swarms with individual dykes being up to 15 metres thick and traceable for up to 700 metres along strike.
The exploration licence was granted on July 4, 2017, and is about 18 kilometres from Marble Bar and 160 kilometres southeast of Port Hedland.
Conversion of $100,000
Lithium Australia has also agreed to issue shares to the value of $100,000 to Arena Investors LP to satisfy a conversion notice which forms part of a $18.27 million convertible note facility.
The company advised on March 1, 2018, that it had secured the facility with Arena, a leading US institutional investor with more than US$750 million in assets under management.
These unsecured notes have a face value of A$21 million and, subject to certain conditions, will be issued by Lithium Australia at a discount of 13%.
They will be drawn down in six tranches with the first tranche received by the company, which triggered Arena’s request to convert a minimum parcel of shares to the value of $100,000.
Lithium Australia is aiming for a circular economy in lithium-ion battery supply.
Lithium Australia aspires to 'close the loop' on the energy-metal cycle.
Its disruptive extraction processes are designed to convert all lithium silicates to lithium chemicals, from which advanced components for the battery industry can be created.
By uniting resources and the best available technology, Lithium Australia seeks to establish a vertically integrated lithium processing business.