Earlier this morning, the ASX was buzzing with commodities releasing the latest on their respective developments for production, growth and possibility as the new year begins strong.
Azure Minerals [ASX:AZS] revealed that SQM, a global lithium giant from Chile, will invest AU$20 million for a 19.22% stake in its company, sending shares skyrocketing 31%.
Ionic Rare Earths [ASX:IXR] also rose by more than 5% on announcing the Retention Licence renewal approval for its Makuutu Project, and European Lithium [ASX:EUR] increased by more than 4% on the sharing of an ‘extremely robust’ DFS update for Wolfsburg.
Source: tradingview.com
SQM invests AU$20 million in Azure
Chilean lithium heavyweight SQM has shown vast support for smaller Australian miner Azure Minerals — with an initial AU$4.2 million investment to increase to AU$20 million, for 19.99% of the lithium minnow.
This deal is subject to conditions, after which tranche 2, the remaining AU$15.8 million, will occur.
SQM is buying at the price of $0.2564 a share, a premium of 13.9% to Azure’s last trading price on 6 January.
Azure’s Managing Director, Tony Rovira, stated:
‘We’re very pleased to welcome SQM as a substantial and strategic investor in Azure, which demonstrates their strong interest and belief in the lithium potential of the Andover Project.
‘This is a significant milestone event and is a strong endorsement of Azure and our projects by one of the world’s leading lithium producers.’
Rovira expects SQM’s existing technical expertise in pegmatite lithium exploration, project development and production expertise to benefit AZS.
Azure Minerals’ cash balance of more than $25 million will accelerate lithium exploration and intensive drilling for its Andover Project, WA.
Ionic’s licence renewal
Ionic shareholders were expressing appreciation for an application renewal of RL00007 at its Makuutu Rare Earths Project, approved within two weeks of submission.
Uganda’s Directorate of Geological Survey and Mines (DGSM) has granted approval for the project, which currently has an inferred resource of 39 million tonnes.
Ionic hopes there will be opportunities to expand with further drilling planned this year.
Managing Director Tim Harrison said:
‘The rapid approval of the renewal of RL 00007, which occurred within 2 weeks of finalising the submission documentation, is another positive reflection of the strong support IonicRE and the Project has within Uganda. As the Company, via RRM, finalises the MLA at Makuutu for RL 1693, we remain confident that Makuutu will continue to grow and support a much larger Project.’
Europe shares DFS update
Lastly, European Lithium has announced an updated DFS NPV (net present value), accelerating to US$1.504 billion, based on measured and indicated resources of 9.7 million tonnes at its Wolfsberg Lithium Project in Vienna, Austria.
Chairman Tony Sage commented:
‘The robust DFS NPV provides confidence in the commercialisation of the Wolfsberg Project. The DFS NPV update has come during a buoyant market for lithium and an increased urgency for decisive action to accelerate the green energy transition, especially in Europe. Our next steps include finalisation of the listing of Critical Metals on NASDAQ and continuing our discussions with our financiers. Through the business combination with Sizzle, Critical Metals Corp expect to access substantial opportunities available in the U.S. market.’
A final DFS is expected for the first quarter of 2023.
Speaking of commodities, and their busyness in accelerating plans for 2023, our resources expert and on-the-ground experienced geologist, James Cooper, thinks the Australian resources sector is set to enter a new commodities boom brought on by the ‘Age of Scarcity’.
James is convinced ‘the gears are in motion for another multi-year boom in commodities.’
A boom where Australia (and ASX stocks) stands to benefit…
The next big mining boom is predicted to happen in the next few years.
You can access a recent report by James on exactly that topic, AND access an exclusive video on his personalised ‘attack plan’ — right here.
If that isn’t enough to sate your curiosity, check out the recent interview with James and Greg at Ausbiz at the end of last year.
Regards,
Mahlia Stewart
For Money Morning
