High prices attract Australian investor in lithium mining
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