Lithium Australia has completed its acquisition of the Sadisdorf lithium-tin resource and Hegelshöhe exploration project from Tin International in Germany.
Upper Mining Authority of Saxony has approved the transfer of licenses from Tin International to the wholly owned German subsidiary of Lithium Australia, Trilithium Erzgebirge GmbH.
Those licenses include Sadisdorf lithium-tin resource and the prospective Hegelshöhe exploration license.
In April this year, Lithium Australia completed drilling work at the Sadisdorf project, which is 15km northwest of the historic world-class mine of Altenberg in Saxony.
A maiden lithium mineral resource estimate of 25 million tonnes (Mt) at 0.45 per cent lithium oxide was announced last year.
Lithium Australia will pay its former joint venture (JV) partner €2 million ($3.3 million), which will be paid in €0.5 million of cash and 21.3 million Lithium Australia shares at 105 per cent its traded value.
The Deutsche Rohstoff-owned company will now hold a total of around 23 million Lithium Australia shares, together with the ownership of 1.72 million shares resulting from the JV agreement. It is equivalent to a 5 per cent stake in Lithium Australia.
Chief executive of Deutsche Rohstoff, Thomas Gutschlag, said, “We are pleased to announce the sale of our licenses Sadisdorf and Hegelshöhe. Lithium Australia is well positioned to develop these tin-lithium deposits and benefit with their SiLeach-technology from the upcoming boom of electric cars.
“We are happy to become a significant shareholder of Lithium Australia and participate in the further development of the company.”
Lithium Australia’s SiLeach process will unlock battery-grade lithium from non-brine mine waste at a cost similar to that of brine producers.
Through the acquisition, Lithium Australia has gained substantial resource in lithium-ion battery production facilities to support the rapid growth of Europe’s electric vehicle industry.
Lithium Australia was granted an exploration license for the Germany-based Eichigt project earlier in January, which is characterised by significant cobalt and copper mineralisation.