Lithium Australia NL (ASX:LIT) has agreed to sell its Emu Lake tenement near Kalgoorlie in pursuant to an option agreement with Metal Hawk Limited which is subject to Metal Hawk's successful initial public offer.
This comes as Lithium Australia continues the review of its Raw Materials Division given the current lithium market conditions.
Metal Hawk IPO
Metal Hawk is currently undertaking an IPO and will issue Lithium Australia 300,000 MHK shares at a deemed issue price of 20 cents per share with Lithium Australia retaining the lithium rights.
The company opened the initial public offer on November 6 to raise a minimum of $4.5 million and a maximum of $5.5 million.
The Western Australian exploration company is focused on the early-stage discovery of gold and nickel sulphides in the Eastern Goldfields and in the Albany-Fraser Orogen.
Global supply chains and CRM's
Lithium Australia yesterday urged Australia to take advantage of its natural wealth in critical raw materials (CRMs) by stepping up its influence on global supply chains for these in-demand commodities.
Acknowledging last week’s Federal Government initiatives to deploy wider access to funding for domestic CRM players, Lithium Australia has kept strong on its view that these measures ignore a fundamental need – more grassroots support for research and development.
LIT's managing director Adrian Griffin said Australia had the resources and potential to become globally competitive in the CRM domain, however, the Federal Government’s Critical Minerals Strategy would need to be strengthened by providing more R&D funding for local companies involved with these materials.