Lithium Australia NL (ASX:LIT) is inviting its shareholders to participate in the initial public offer (IPO) of MetalsTech Limited through a priority offer.
MetalsTech is seeking to raise up to $6 million through the issue of up to 30 million shares priced at $0.20.
Lithium Australia shareholders on the register as at 15 December 2016 have been set aside 5 million shares in the IPO pursuant to the priority offer.
MetalsTech was formed to identify, fund, acquire, explore and develop high grade hard rock lithium projects in Quebec, Canada.
The partnership with MetalsTech provides Lithium Australia with significant equity and technology leverage across six highly prospective hard rock lithium projects in Quebec.
Indicative timetable
The indicative dates for the IPO are as follows:
- 24 November 2016: Lodgement of prospectus;
- 15 December 2016: Priority offer record date;
- 21 December 2016: Offer closes;
- 24 December 2016: Priority offer closes; and
- 30 January 2017: Expected date for quotation on ASX.
Background
MetalsTech has an existing partnership and collaboration agreement with Lithium Australia with relation to its Sileach and LieNa processes as well as to further development of lithium extraction technology specific to the spodumene at the MetalsTech projects.
MetalsTech has assembled a strong board and management team with significant Canadian specific experience and a track record in discovering resource deposits.
Funds raised under the IPO will allow the company to accelerate exploration at its portfolio of six lithium project in Quebec.
A recent exploration program at the Cancet Lithium Project and the Adina Lithium Project has confirmed the presence of high grade lithium from channel sampling from surface.
Recent samples from Cancet returned grade of up to 3.79% lithium oxide from surface.
MetalsTech currently plans to immediately follow up with a detailed drilling program at each project with an aim to further advance these high priority projects.
Quebec
Quebec is an attractive jurisdiction in which to pursue exploration and mining activities and has been consistently ranked in the top 10 mining jurisdictions globally by the Fraser Institute.
It boasts clear and transparent mining regulations, well-developed infrastructure including road, rail and port as well as very low-cost power from one of the world’s largest hydro-electricity operations.
Quebec has a history of hard rock lithium production and has a track record in not only permitting new lithium mines, but co-investing alongside private enterprise through Investissement Quebec, a Quebec government funded initiative.
All-in-all it is a mining friendly jurisdiction that has demonstrated strong support for the lithium revolution.
Quebec also offers ready access to Asia and Europe via its numerous deep-water ports.