Global Lithium Resources Limited has lodged its prospectus for the ASX, aiming to join the bustling cohort of lithium explorers and producers as prices rise around the world.
The $10 million initial public offer will see the company, which hopes to trade under the ASX code GL1, offer 50 million shares at 20 cents a pop.
Global Lithium managing director Jamie Wright said the company “aims to become a leading lithium company in an environmentally, socially and governance-orientated manner to create value for its shareholders”.
“We are thrilled to have lodged our prospectus for the company to list on the ASX,” he said.
Inferred mineral resource
Global Lithium’s main focus upon ASX listing will be the Marble Bar Lithium Project, an emerging lithium discovery located in the globally renowned Pilbara region of Western Australia.
About 180 kilometres southeast of Port Hedland and 15 kilometres northwest of Marble Bar, the project consists of three granted exploration licences covering about 243 square kilometres of ground.
The company’s exploration success to date includes the discovery of the Archer deposit and a declared maiden inferred mineral resource of 10.5 million tonnes at 1.0% Li2O.
Lithium opportunity
As is well known, lithium is one of the key metals experiencing high demand as countries around the world seek to adopt more environmentally sustainable energy policies, thanks to its use in power units that form the basis of electric vehicles and rechargeable batteries.
“The Pilbara is the engine room for many commodities delivered to global markets, quickly becoming a force delivering critical minerals including lithium to the battery metals supply chain,” Wright said.
“Following a number of years of exploration, we believe this is a fortuitous time to be embarking on our public listing as the lithium market thematic builds momentum.
“As investors are rapidly embracing the global push for carbon neutrality driven by EV adoption and energy storage, it is a great time to be involved in lithium exploration.”
Lithium prices rising
Global Lithium has timed its IPO well, with lithium prices rising exponentially across the board.
Lithium carbonate, a critical ingredient in lithium-ion batteries, is the best-performing commodity in 2021 to date, having risen an astonishing 83 per cent to ¥85,000 a tonne, the highest levels in two years, while lithium hydroxide monohydrate is up to ¥72,500 per tonne.
The price rises are being driven by a backdrop of tight availability and firm demand, according to commodities analysts Fastmarkets.
The board
Global Lithium’s impressive board consists of non-executive chairman Warrick Hazeldine, Jamie Wright and non-executive director Dr Dianmin Chen, who all have significant mineral exploration and corporate expertise.
Hazeldine has more than 20 years’ experience in capital markets and has worked with many ASX-listed companies in an investor relations capacity to attract capital and grow shareholder value, and has been at the forefront of a number of lithium, hydrogen and battery metal transactions in recent years.
Dr Chen is a founder of Global Lithium Resources and a mining engineer with more than 35 years’ experience in metal mining, having held a wide range of roles in mining technical, production and management in Australia, China and Canada within publicly listed and private companies.
- Daniel Paproth