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Ero Mining shares spike 140% on acquisition of unlisted lithium explorer


The market today has applauded the move by uranium focused mineral explorer Ero Mining (ASX: ERO) to acquire 100% of unlisted South Australian based lithium and uranium explorer, South East Energy.

Ero shares have spiked 140% in intra-day trading at time of writing, last trading up $0.035 to $0.06, after peaking at $0.066.

Ero will acquire a package of prospective exploration acreage at Lake Frome, Lake Torrens and via its Padthaway project in the south east of South Australia.

This shows Ero's redirection in focus to exploration for lithium within continental brines and sediments of Lake Frome and Lake Torrens.

Ero said there is particular interest to test the conceptual exploration target of 8 to 10 million tonnes of lithium carbonate, equivalent of a grade range from 10 ppm to 250 ppm, at Lake Frome.

Consideration comprises Ero issuing 4.5 new Ero shares for every existing South East share, and 4.5 new Ero options for every existing South East option, exercisable on or before 31 October 2011.

Demand for lithium has experienced phenomenal growth in the past decade, which is used in the production of; glass, ceramics and aluminium, as well as for the production of lithium batteries for use in hybrid electric vehicles, mobile phones, laptops and other electronic devices.

The offer is subject to and conditional upon receipt of ERO shareholder approval.

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Market: ASX
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