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Lithium Australia attracts a Speculative Buy from Perth-broker

Lithium Australia is a dedicated developer of disruptive lithium extraction technologies.
Lithium Australia attracts a Speculative Buy from Perth-broker
Shares in the company last traded 2.9% higher at $0.18

Lithium Australia NL (ASX:LIT) has been rated a Speculative Buy from Perth-broker RM Research, following the completion of due diligence for the acquisition of an advanced lithium-ion cathode production technology.

The following is an extract from the report.

Due Diligence Completed

- Lithium Australia developer of disruptive lithium processing technology has completed its due diligence for the acquisition of advanced cathode material producer, the Very Small Particle Company (VSCP).

- Completion of due diligence represents a positive outcome for Lithium Australia as it moves forward to seeking shareholder approval to complete the acquisition.

- VSPC’s research and development work has resulted in supplying high-quality cathode material including Lithium Iron Phosphate (LFP) cathode material, widely used in hybrid electric vehicles, power tools and domestic storage batteries - into global test markets.

Key Acquisition benefits

- Innovative, patent-protected chemical process for the production of lithium ion battery cathode material.

- Ability to produce the world’s most advanced cathode materials.

- Acquisition value at deep discount to the $30million previously invested in VSCP.

- Acquisition includes VSPC’s Brisbane based pilot plant and Australia’s most advanced Liion battery-laboratory and testing facility, the laboratory includes cathode coating equipment and cell production capacity.

- Leverage and expansion of VSPC’s global strategic partnerships.

An integrated lithium technology portfolio

- Lithium Australia is focused on developing the seamless production of cathode materials from hard-rock minerals using hydrometallurgical front-end processes including its 100% owned SiLeach ® process and the LMax ® process (owned by Lepidico LtdASX:LPD) for which Lithium Australia has exclusive rights in Western Australia.

- The acquisition of VSPC  provides Lithium Australia with access to the technologies required to participate in all sectors of the energy metal cycle.

- The integration of Sileach ®  or LMax ® with VSPC’s technology has the potential to remove two process steps involved in the manufacture of cathode materials, resulting in a revolutionary process with significant economic benefits over legacy processes.

Action and Recommendation

- RMR initiates a Speculative Buy for Lithium Australia.

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March 12 2019

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