Key Points
Development
-- Strategic Metallurgy completed all planned pilot trial works and associated reports including lithium hydroxide refining and by-product manufacture that confirm Phase 1 design parameters with nominal battery grade lithium hydroxide recovered using LOH-Max®
-- Third-party crystalliser vendor advised following test-work on pilot trial feed material; lithium hydroxide “crystals are much more pure than that produced from the [conventional] sodium sulfate route”
-- Independent Engineer review of final pilot trial reports underway; completion of this technical due diligence is a key gating item for securing Phase 1 Project debt
-- Chemical plant FEED scheduled to complete in November following procurement optimisation and design refinements; concentrator FEED successfully completed in the prior quarter
-- By-product pilot trials result in, “excellent separation of potassium sulfate from impurities” and “high recovery of caesium”
-- Request for quotations issued to shortlisted UAE chemical plant main construction contractors
-- Further impressive drill results from Helikon 4 that include 34.8 m @ 1.25% Li2O from 22 m extend the zone of mineralisation down dip and along strike to the east
-- Upgraded Karibib Measured & Indicated Mineral Resources – from previous Inferred estimates – well advanced, with the objective of extending Phase 1 operating life to 20 years
-- Further drilling imminent at Helikon 2 and 3 to follow up on these excellent Helikon 4 results
Products & Marketing
-- Commercial terms agreed with Tier 1 consumers for supply of all Phase 1 lithium hydroxide under the binding agreement with Traxys; full supply agreements now being progressed
-- Caesium and rubidium supply negotiations advancing well with growing interest for compounds of both metals, which are both categorised as Critical Minerals
-- Negotiation of supply agreements for bulk by-products with UAE customers started; LOIs in place for 100% of Phase 1 amorphous silica, Sulphate of Potash (SOP) and gypsum residue
Corporate and Finance
-- Entitlements Offer to raise $11.7 million closed 28 October 2022 with final acceptances to be announced on 3 November 2022 and proceeds due on 4 November 2022
-- Cash and equivalents at 30 September 2022 of $2.8 million and no debt, with a pro-forma cash (before expenses) of $16.3 million including exercise of options, utilisation of the CPA facility and assuming the Entitlement Offer is fully subscribed
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