Double dose of good news for Lithium Australia
Two important developments on Friday and Monday have resulted in Lithium Australia’s (ASX:LIT) share price surging approximately 14% when markets opened this morning.
Friday’s news could have gone unnoticed because it related to the first day’s trading in MetalsTech (ASX: MTC), an IPO which raised approximately $4.3 million at a price of 20 cents per share.
MTC closed at 27 cents on Friday, representing a premium of 35% to the IPO price.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
At listing date LIT held 2 million shares in MTC, as well as an existing agreement which provides significant equity and technology leverage across six highly prospective hard rock lithium projects in Québec.
The other important development that emerged on Monday was an advice by LIT Managing Director, Adrian Griffin, that litigation with Lepidico (ASX: LPD) subsidiary, Li-Technology Pty Ltd had been settled by mutual agreement.
Commercial details of the settlement are confidential, however Griffin stressed that the three registered L-Max licence agreements LIT has with Li-Technology remain valid and enforceable, being the exclusive L-Max licence for Western Australia, International Licence No.1 and International licence No.2.
Importantly, Lepidico has agreed that the 100% Lithium Australia owned proprietary Sileach process is not an improvement, enhancement or modification of the registered L-Max process.
In response to these developments, Griffin said, “Clearly the win removes distractions and paves the way for commercialising the Sileach process without legal impediment”.
This also represents a positive outcome for MTC as it holds a Sileach licence for operation in Québec.
Pilbara Minerals (ASX: PLS) is also a beneficiary as it has an agreement to work with LIT to commercialise Sileach for use on spodumene concentrates from its Pilgangoora project.