Lithium Australia can earn up to 50% interest by spending EUR 2.0 million
Mannheim/Leipzig. Tin International AG, 61.5% owned by Deutsche Rohstoff AG, announced today that it has signed the Joint Venture Agreement with Lithium Australia NL. The company is listed on the Australian Stock Exchange (ASX: LIT) and develops a processing technology that allows the economic extraction of lithium from lithium-bearing mica ore (so-called Sileach™ technology). Lithium Australia also holds a global portfolio of Lithium deposits.
The “Sadisdorf” deposit, located in Saxony, Germany, will become the key asset of the Joint Venture. Lithium Australia can earn a 15% interest in the Joint Venture Company by spending EUR 750,000 in exploration on “Sadisdorf” until 30 June 2018. Alternatively, the company can elect to pay the outstanding amount in cash to Tin International. A further 35% interest (for a total 50% interest) can be earned by spending an additional EUR 1.25 million in exploration until latest May 2020. After the completion of the farm-in period, the partners equally bear the project development costs or are diluted accordingly.
With the signing of the Joint Venture Agreement, Tin International receives a one-time cash payment of EUR 50,000 and 1,723,806 Lithium Australia shares.
Lithium Australia will manage the Joint Venture throughout the three-year farm-in period while Tin International will provide administrative and technical assistance. The Joint Venture aims to extend and upgrade the existing “Sadisdorf” JORC (2012) resource (3.36 Mt inferred resource grading 0.44% Sn at a cutoff of 0.25% Sn) and to delineate a lithium resource which is anticipated to be associated with the tin mineralization. The management expects that the economic viability of the “Sadisdorf” project can be improved substantially through this strategy. Lithium is an important commodity especially in the manufacturing of batteries and according to most analysts the demand for lithium will increase significantly with the growing market for electric vehicles in the coming years.
Thomas Gutschlag, CEO of Deutsche Rohstoff, comments: “We are very pleased with the signed Joint Venture Agreement and look forward to further explore and develop the Sadisdorf deposit and its tin-lithium potential together with Lithium Australia as a strong partner over the next years.”
Mannheim, 25 May 2017
Deutsche Rohstoff identifies, develops and divests attractive resource projects in North America, Australia and Europe. The focus is on the development of oil and gas opportunities within the United States. Metals, such as gold, copper, rare earth elements, tungsten and tin complete our portfolio. For more information please visit www.rohstoff.de.