High prices at­tract Aus­tralian in­vestor in lithium min­ing

The African - - NEWS - BY JOSEPH LINO

Fol­low­ing the de­cline of tra­di­tional min­er­als the emer­gence of ‘new uses’ to min­er­als has led to in­creased de­mand that has trig­gered in­crease in their prices and have to some ex­tent con­fused in­vestors to take new out­look on min­eral uses and their mar­ket value.

The rise in prices of lithium car­bon­ate in Novem­ber last year has at­tracted Aus­tralian based min­ing firm Auroch Min­er­als that has ac­quired Hom­bolo Lithium project in Dodoma an un­prece­dented move from valu­able gold to in­dus­trial lithium.

Auroch sold its Man­ica gold project to Xtract Re­sources in Mozam­bique in 2014 made up the strate­gic de­ci­sion to com­bine its gold ex­per­tise with op­por­tu­ni­ties in the lithium and tan­talum sec­tor due to the strong out­look for lithium from the bur­geon­ing bat­tery mar­ket.

Auroch Min­er­als Chair­per­son, Glen Wid­don in his state­ment last week said that the firm was com­plet­ing due dili­gence on sev­eral other projects world­wide.

“Our goal is to de­velop a port­fo­lio of as­sets from grass­roots to ad­vanced stage, across sev­eral ge­o­graph­i­cal and po­lit­i­cal ju­ris­dic­tions to take ad­van­tage of the bur­geon­ing bat­tery mar­ket,” he noted.

The Hom­bolo project was lo­cated ad­ja­cent to ASX-listed Lion­town Re­sources Mo­hanga lithium/tan­talum project, where grades of 5.2 per­cent lithium ox­ide and 0.11per­cent tan­talum in peg­matite’s have been an­nounced ac­cord­ing to Wid­don.

Auroch has en­tered into a con­di­tion agree­ment to buy an Aus­tralian com­pany that, through a Tan­za­nian sub­sidiary, owned or had the right to these ten­e­ments.

The com­pany paid a non­re­fund­able de­posit of $75 000 for the ten­e­ments and would is­sue 950 000 shares upon sign­ing a bind­ing agree­ment ac­cord­ing to Auroch.

Upon share­holder ap­proval of the trans­ac­tion, the com­pany would pay the seller $75 000 in cash, 2.05-mil­lion shares and three-mil­lion op­tions ex­er­cis­able at $00.20.

“We are ex­cited to be com­mit­ting to the lithium space dur­ing this pe­riod of mas­sive tech­no­log­i­cal change.”

“Auroch has made a strate­gic de­ci­sion to fo­cus a por­tion of the funds it has re­ceived from the sale of the Mon­ica Gold project in Mozam­bique to­wards this sec­tor and is com­plet­ing due dili­gence on sev­eral other projects world­wide,”.

Over­all, the firm has se­cured the rights to two prospect­ing li­censes, three granted pri­mary min­ing li­censes, eight ap­pli­ca­tions for pri­mary min­ing li­censes and eight re­gional prospect­ing li­censes un­der ap­pli­ca­tion – to­tal­ing 21 sep­a­rate li­censes with a to­tal ground pack­age of 1,700km2.

Auroch will com­mence field op­er­a­tions in June with ini­tial planned ex­plo­ration ac­tiv­i­ties to in­clude trench­ing, map­ping and sam­pling of the peg­matites and soil sam­pling.

Ac­cord­ing to Fin Feed Fi­nan­cial, Lithium price was $7000 per ton the last six months ago but now lithium car­bon­ate is trad­ing at around $22,000 per ton and it says that lithium is not a stan­dard­ized com­mod­ity and there­fore does not trade on an ex­change or in fi­nan­cial deriva­tives such as fu­tures and op­tions all pur­chase

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