Lithium Australia Ltd (ASX:LIT, OTC:LMMFF) and its partner Mineral Resources Limited (MinRes) have made further progress towards commercialising the LieNA® lithium processing technology with the final stage of piloting completed at ANSTO to produce lithium phosphate product.
The final stage began in June 2024 and analysis of the pilot plant performance and lithium phosphate produced is in progress.
LIT has also received a further ~A$1.2 million, the fourth drawdown of the A$4.5 million convertible note issued by MinRes to fund the demonstration plant engineering study, which remains on track for completion this year.
Under the agreement with MinRes, a key milestone in LieNA® piloting is the production of lithium phosphate derived from spodumene concentrate provided by MinRes.
“Strong progress”
“We are excited to announce the completion of the LieNA® piloting program at ANSTO, with lithium phosphate now produced,” Lithium Australia CEO and managing director Simon Linge said.
“Lithium Australia and MinRes are now focused on finalising the engineering study for the LieNA® demonstration facility, which is on track for completion in 2024.
“The strong progress made this year highlighted Lithium Australia and MinRes’ ongoing commitment to the commercialisation of the unique LieNA® technology.
“We would like to thank ANSTO for their support during the piloting program and look forward to delivering updates on the completion of the engineering study and formation of a JV between Lithium Australia and MinRes.”
The lithium phosphate produced is now being analysed to determine the final product specifications in preparation for refining. This analysis and associated refining is expected to be completed by the end of 2024.
Fourth drawdown
The fourth drawdown from MinRes takes the total drawn to ~A$4.2 million from the A$4.5 million convertible note.
This drawdown will be used to fund ongoing activities during Q1 FY25. Agreed activities under the agreement include the completed piloting activities as well as the demonstration plant engineering study, which is being delivered by Carnac Project Delivery Services and remains on track for completion in 2024.
Toward JV
Subject to the results of product analysis and engineering study, Lithium Australia and MinRes will form a 50:50 joint venture (JV) to commercialise the LieNA® technology through a licensing model.
The JV will wholly own the LieNA® technology and expects to license the technology to third parties at a target headline gross product royalty rate of 8%.
The first licence issued by the JV is expected to be for the demonstration plant. Following this initial licence, the JV expects to issue licences to greenfield and brownfield spodumene mines globally.