Lithium Australia NL (ASX:LIT) has received $3 million under its $6.3 million funding agreement with New York based institutional fund manager The Lind Global Macro Fund, LP, an entity managed by The Lind Partners.
The initial investment of $3 million will be used for:
- Growth of the Soluna Australia battery business;
- Commercialisation of LIT’s cathode business, owned by its subsidiary VSPC Ltd; and
- Growth of the company’s battery recycling business, owned by its subsidiary Envirostream Australia Pty Ltd.
LIT has received an R&D rebate of $1,229,442 from the Australian Tax Office (ATO) in relation to eligible activities under the ATO’s R&D tax incentive scheme for the 2019 financial year.
The company’s 100%-owned subsidiary VSPC Ltd has received an ATO R&D rebate of $876,095 for the 2019 financial year.
Raw materials update
LIT continues to rationalise its holdings of raw materials, including those in Western Australia, the Northern Territory, Queensland, South Australia, Germany and Mexico.
At present, the company’s preferred supply model involves sourcing lithium minerals from mine-waste streams (historical dumps and tailings) or as discharge from currently operating mines; however, other supply opportunities are also being evaluated.
Lithium micas, often associated with tin, tantalum and tungsten, as well as certain types of clay minerals, are prime targets for LIT, as is the fine spodumene discharged as waste during the production of lithium concentrates.
Greenbushes project – Western Australia
Of particular interest to LIT is its significant holding adjacent to and in the vicinity of Greenbushes mine, the world’s largest lithium mine, operated by Talison Lithium Pty Ltd.
The Greenbushes project covers an area containing numerous pegmatites. LIT is seeking a partner in its bid to advance exploration in the area.