Lithium Australia NL (ASX:LIT) has settled by mutual agreement litigation that has resulted in Lithium Australia retaining three enforceable and valid licence agreements for the L-Max® lithium extraction process.
The three licence agreements are with Li-Technology Pty Ltd being the exclusive L-Max Licence for Western Australia, International Licence No.1 and International Licence No.2.
It has also been agreed that the 100% Lithium Australia owned Sileach™ process is not an improvement, enhancement or modification of the L-Max® process.
As a result of these positive outcomes, Li-Technology has withdrawn its counterclaim against Lithium Australia.
Adrian Griffin, managing director commented: “We are pleased with the outcome which allows Lithium Australia to pursue its strategy of building a global lithium business without unnecessary distractions or legal impediments.
“We can now continue with the business of delivering further positive results for our shareholders.”
Background
Lithium Australia is a dedicated developer of disruptive lithium extraction technologies, and 100% owner of the Sileach™ and LieNa™ processes.
The company has strategic alliances with a number of companies, potentially providing access to a diversified lithium mineral inventory.
Lithium Australia aspires to create the union between resources and the best available technology to establish a global lithium processing business.
Analysis
The settlement is a positive outcome from Lithium Australia and paves the way for commercialising its Sileach™ process without legal impediment.
This also benefits the company’s partners including Pilbara Minerals (ASX:PLS) and the recently listed Metalstech (ASX:MTC).
Metalstech, who holds a Sileach™ licence for operation in Quebec, debuted on the ASX last Friday closing at a premium of 35% from its $0.20 issue price.
Pilbara Minerals has an agreement to work with Lithium Australia to commercialise Sileach™ for use on spodumene concentrates from Pilgangoora.
The settlement also provides a significant benefit for the company in Western Australia, where it now has the potential to dominate local lithium chemical processing, outside conventional roast-leach processes.
The company will be largely in an open playing field, with little competition on the processing front, particularly with the unconventional lithium feeds such as mica.
Shares are up 13% through the morning’s trading, currently priced at $0.165.