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.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.