Strike Resources Ltd has announced the proposed spin-out of its battery minerals related projects into Lithium Energy Ltd.
Lithium Energy proposes to undertake an Initial Public Offering (IPO) to raise AUS$9 million through the issue of 45 million shares (at AUS$0.20 per share) and seek admission to the Official List of ASX.
The spin-out will create a distinct battery minerals company whose clear focus will be on the exploration and potential development of its battery minerals assets with a principal focus on the development of its Solaroz Lithium Project located in Argentina. This move will allow Strike to focus on its iron ore assets, to bring the Paulsens East Iron Ore Project (located in the Pilbara, Western Australia) into production in 2021 and to expand production from its Apurimac Iron Ore Project (located in Peru).
The Solaroz Lithium Project comprises 12 000 ha. of highly prospective lithium mineral concessions located within the Salar de Olaroz Basin in South America’s ‘Lithium Triangle’ in northwest Argentina. The Solaroz Lithium Project is directly adjacent to or principally surrounded by mineral concessions being developed into production by Orocobre Ltd and Lithium Americas Corp. The location of the Solaroz Lithium Project is considered to be highly strategic and prospective.
In addition to its lithium assets, the company owns the Burke Graphite Project located in Queensland which contains a high grade graphite deposit and presents the opportunity for the company to participate in the anticipated growth in demand for graphite and graphite related products.
Further details about the Solaroz Lithium Project and Burke Graphite Project are in Strike’s December 2020 Half Year Report.
Lithium Energy will move to 100% of the Burke Graphite Project as part of the spin-out, acquiring the outstanding minority interests in the project conditional upon the ASX listing of Lithium Energy.
At completion of the spin-out, Strike will hold 34.4 million shares in Lithium Energy comprising a 43% shareholding. Strike’s shareholding in Lithium Energy should deliver additional value to Strike shareholders through a dedicated battery minerals company with a clear sector focus.
Lithium Energy has appointed Canaccord Genuity as the Lead Manager and Underwriter in respect of the Public Offer.
Read the article online at: https://www.globalminingreview.com/mining/24032021/strike-resources-spins-out-lithium-and-graphite-assets/