Canadian lithium developer MetalsTech to float on the ASX

Source: MetalsTech

MetalsTech has launched its initial public offering (IPO) on the ASX, with shareholders of strategic partner Lithium Australia having priority to participate.

Canada-focused MetalsTech, which owns interests in six lithium projects in Quebec, plans to raise up to $6 million to fund the ongoing development of its assets. As part of the offer, $1 million worth of MetalsTech shares have been set aside for Lithium Australia shareholders on a ‘first come, first served basis’.

Earlier this year, the two companies formed a collaboration that provides MetalsTech with exclusive rights to use Lithium Australia’s lithium extraction technologies to process spodumene concentrate from its Canadian projects.

Lithium Australia has been rewarded with priority in the float because of a previous investment it made in lithium explorer LiGeneration, a company MetalsTech recently acquired.

“The strategic partnership agreement with MetalsTech provides Lithium Australia with the opportunity to become a shareholder in a company controlling seven projects in one of the world’s most rapidly emerging lithium pegmatite provinces,” Lithium Australia managing director Adrian Griffin said when the partnership was announced.

“In the longer term, licensing arrangements with MetalsTech provides potential for significant royalty income.”

Lithium Australia has developed a hydrometallurgical process, known as Sileach, for the recovery of lithium from spodumene, the host crystals for MetalTech’s lithium projects and the primary source of hard rock lithium output globally.

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