Australasian Gold (ASX: A8G) has announced that it has secured a $2.5M strategic placement to accelerate exploration work at its 100%-owned Mt Peake Lithium Project in the Northern Territory.
The placement is comprised of $1M investments from major lithium industry figures Shandong Ruifu Lithium Industry Co Ltd (Ruifu) and Tangshan Xinfeng (Hong Kong) Limited (Xinfeng), along with a group of sophisticated investors.
The deal will see the issue of 5,555,553 new fully-paid ordinary shares at a price of $0.45 per share, and will fund activities including surface mapping, geochemical sampling, geophysics and future drilling programs.
“We are delighted to have attracted major industry participants at this early stage of our discovery journey”
Speaking on the news, Australasian Gold Managing Director Dr Qingtao Zeng said: “We are delighted to have attracted major industry participants at this early stage of our discovery journey. We have an exciting lithium project in an under-explored pegmatite province and we look forward to accelerating our exploration efforts over the coming weeks and months.”
The Mt Peake Lithium Project is situated within the Anningie Sn-Ta pegmatite field approximately 200km north of Alice Springs along the Stuart Highway. The region is described as a ‘known Lithium-Caesium-Tantalum pegmatite district’, with Todd River Resources (ASX:TRT) discovering spodumene lithium mineralization at the nearby Walabanba Project including 15 rock chip samples containing over 1.0% Li2O.
In 2017 TRT statedL “Sampling of the numerous pegmatites mapped in the Bismark area has returned results with an outstanding maximum lithium grade of 4.63% Li2O. The best grade is associated with spodumene-quartz pegmatite and albite- spodumene-quartz pegmatite, confirmed by XRD analysis.”. The project was acquired by Core Lithium in 2019.
Placement participants Ruifu and Xinfeng account for a combined annual production capacity of 35,000 tonnes of lithium carbonate and 20,000 tonnes of lithium hydroxide, with both already actively participating in the Australian spodumene concentrate market.