Lightning Minerals Ltd (ASX:L1M) has wrapped up a busy June quarter with a $2 million capital raise, the proposed acquisition of Lotus Minerals, and ongoing exploration across its lithium, gold and copper assets in Australia and Brazil. Ending the period with $710,000 in cash, the company is set to boost its asset portfolio through the Lotus deal, which will give it exposure to brownfields gold and copper projects in Queensland and New South Wales.
Drilling is already planned at the Mt Turner Gold Project in Queensland within eight weeks of shareholder approval, targeting extensions to high-grade historical mineralisation along the 14-kilometre Drummer Fault.
“The company has been busy this quarter evaluating multiple new project opportunities that will add value to the company,” Lightning managing director Alex Biggs said. “It is important that we provide our shareholders with the opportunity to benefit from the buoyant gold and copper markets as well as maintain our lithium presence in Brazil.”
Lotus acquisition adds advanced gold and copper projects
Announced in late May, the acquisition of Lotus Minerals includes two key projects:
- Mt Turner Project (Queensland): Historical drilling has returned strong results including 16 metres at 3.56 g/t gold, 12 metres at 6.5 g/t and 3 metres at 5.1 g/t gold with 51 g/t silver. Drilling is expected to begin following the company’s extraordinary general meeting (EGM) to test below and along strike from historic pits that were mined to shallow depths.
- Lachlan Fold Belt Project (NSW): Located near Newmont Mining’s Cadia and Evolution Mining’s Northparkes mines, this porphyry copper-gold target has seen historical intercepts including 48 metres at 0.35% copper and 0.31 g/t gold, confirming a large-scale system.
The acquisition also includes the Mt Turner Copper Project, which hosts multiple advanced induced-polarisation (IP) targets, and the Warby-Scardon Gold and Copper Project in Queensland.
Brazil drilling complete, assays pending
Lightning completed a 1,400-metre diamond drill program during the quarter at its Esperança Project in Brazil’s Lithium Valley, targeting spodumene-bearing pegmatites confirmed via Raman spectroscopy.
Up to 300 metres of core has been selected for multi-element assay, with results pending. The company continues to develop drill-ready targets across its three Brazilian lithium assets: Esperança, Caraíbas and Canabrava.
Soil sampling earlier in the year returned lithium-in-soil anomalies up to 429 parts per million (ppm) at Caraíbas and 320ppm at Canabrava, supporting the potential for further exploration once market sentiment improves.
Dundas lithium soil results strengthen WA portfolio
In Western Australia, Lightning completed infill soil sampling across its Dundas North and South tenements. Results returned up to 147ppm lithium at Dundas North and 104ppm at Dundas South, with the company now evaluating next steps for the project.
Work also continued across its Mailman Hill and Mt Bartle gold and critical minerals projects in WA, where data review and heritage agreement negotiations are ongoing.
In Canada, a specialist consultant review was undertaken for the Dalmas and Hiver lithium projects, with evaluation now in progress by Lightning’s geology team.
Financing secured for next phase
To support its expanded exploration strategy and the Lotus acquisition, Lightning raised $2 million at $0.04 per share via a placement managed by GBA Capital and Canaccord Genuity.
The raise is being completed in two tranches, with about $620,000 already received under Tranche 1 and the balance subject to shareholder approval at the upcoming EGM. Directors Alex Biggs and Craig Sharpe will also participate in Tranche 2, contributing a combined $60,000.
Lightning spent $549,000 on direct exploration during the June quarter, primarily focused on activities in Brazil.
“The team in Brazil is now focused on target generation across all three project areas in the Lithium Valley region,” Biggs said. “This allows the company to conduct low-cost exploration and be ready with targets for drilling once the lithium price and sentiment improves.”
Lightning says the Lotus acquisition will not only diversify its asset base but also enhance its ability to generate shareholder value across multiple commodities amid shifting market conditions. Shareholders will vote on the deal and associated placement approvals at an EGM to be scheduled in the coming weeks.