Lithium Australia NL (ASX:LIT) has signed a strategic partnership agreement with MetalsTech Ltd, which is developing a number of lithium projects in Quebec, Canada.
MetalsTech will have an exclusive right to use Lithium Australia’s proprietary lithium extraction technologies.
The partnership will provide Lithium Australia with significant equity and technology leverage across six prospective hard rock lithium projects in Quebec.
Adrian Griffin, managing director, commented:
“The Strategic Partnership Agreement with MetalsTech provides Lithium Australia with the opportunity to become a shareholder in a company controlling seven projects in one of the world’s most rapidly emerging lithium pegmatite provinces.
“In the longer term, licensing arrangements with MetalsTech provides potential for significant royalty income.
“Lithium Australia’s shareholders also have the opportunity to directly participate through a priority allocation in the MetalsTech IPO.”
Key partnership terms
Under the Strategic Partnership Agreement, MetalsTech will have the exclusive right to use and apply LIT’s proprietary lithium extraction technologies (including Sileach and LieNA processes) for the processing of spodumene concentrate from MTC’s lithium projects, within Quebec.
Pursuant to the Strategic Partnership Agreement, Lithium Australia will have the following interests:
- 1 million MetalsTech shares;
- 1 million MetalsTech shares for entering into the Strategic Partnership Agreement
- Lithium Australia will be issued with up to a further 4 million shares and 3 million MetalsTech options subject to various performance milestones;
- a 2% gross revenue royalty on any products that are produced by MetalsTech using the proprietary lithium extraction technologies; and
- Lithium Australia shareholders will also be allocated a $1 million priority offer in MetalsTech’s upcoming IPO.
MetalsTech recently acquired LiGeneration Ltd, in which Lithium Australia was an early seed shareholder.
Lake Johnston area lithium consolidation
Lithium Australia has today completed a transaction with newly listed Lefroy Exploration Ltd (ASX:LEX), which provides the company access to most of the Lake Johnston lithium pegmatite field in Western Australia.
Lithium Australia has issued 9 million shares to Lefroy Exploration Ltd for the lithium rights.
Lefroy has issued 3 million shares to Lithium Australia for the gold and nickel rights.
Lefroy re-listed on the ASX today.
Once exploration access arrangements are finalised, Lithium Australia will commence field work on the tenements.