While 2024 might not be top the “lithium boom” of 2023, one major miner has made an early play on lithium upstart Kali Metals.
Kali Metals, the spinout of gold explorer Kalamazoo Resources, only commenced trading on the Australian Securities Exchange (ASX) this week, but Mineral Resources (MinRes) is keen to hop on board.
The major has come away with a 10 per cent stake in Kali Metals, which closed at $0.43 on Monday. On Tuesday, Kali Metals revealed that spodumene had been identified at its Higginsville lithium district in WA.
“The MinRes investment in Kali Metals, which has assets in proximity to our Mt Marion and Bald Hill operations, is consistent with previous strategic acquisitions in numerous junior lithium companies with assets in the Goldfields and Pilbara regions,” a MinRes spokesperson told The Australian Financial Review (AFR).
“MinRes is confident these investments will deliver shareholder value over time.”
Lithium had a surge of activity in 2023, as Albemarle prepared to launch a $6.6 billion takeover of lithium producer Liontown in September.
While Albemarle engaged in talks with Liontown, Hancock Prospecting, led by executive chairman Gina Rinehart, was quietly increasing its stake in the company, which has two major lithium deposits in WA.
Less than a week later, and after considerable speculation in the market about Hancock’s goal in buying the increased stake, Albemarle backed out of the deal to acquire Liontown.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
