Lithium Australia (ASX:LIT) has received a significant vote of support from existing investors as the company engages in a new lithium venture in Mexico.
Lithium Australia received a 98% response rate for a share converting program from holders of the company’s partly paid ordinary shares (LITCB), which ended trading on November 6.
The call of A$0.01 per share on LITCB shares had aimed to raise at least $366,680.
Stock in Lithium Australia was last trading at A$0.094, or about 60% higher than just two months ago.
Confirmation of this faith in the company’s operations has followed quickly on a deal with Canada’s Alix Resources (TSX-V:AIX) whereby the two companies will jointly develop lithium extraction technologies applicable to advancing Alix’s Electra project in Mexico.
The Alix arrangment represents a major advance for Lithium Australia as it provides an opportunity to evaluate ground next door to Bacanora Minerals’ (TSX-V:BCN) Sonora project, which is expected to produce 35,000 tonnes of lithium carbonate per annum and cement North America’s reputation as an emerging powerhouse in the sector.
The deposits in this region have already sparked the attention of Tesla as feed for the Gigafactory, which is close in comparison with other developed deposits.
Providing a low-energy, cost effective alternative to less efficient processing systems may create a big advantage for these deposits.
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