We have lithium stocks on our radar given the long-term demand support for the battery metal. One stock we have been running the ruler over is WA-based developer Global Lithium Resources (GL1). They have two assets in the state, the 100% owned Marble Bar project in Pilbara, and 80% owned Manna project in the Goldfields east of Perth, both with around 100kt of resource of hard rock lithium. These are not producing assets, so this is more speculative in nature, however drilling programs are underway at both sites with the aim of tripling the resource base to justify getting the projects up and running. Interestingly, both tenements are in close proximity to two deposits owned by Mineral Resources (MIN) who also own a 5% stake in GL1. An affiliate of China’s largest EV battery manufacturer, Suzhou T&A, also has a 9.9% stake and a 10-year offtake agreement in place when production starts at some point in the future. These two shareholders provide a strong cornerstone to support any capital requirements required, while Mineral Resources (MIN) has the capacity to takeover GL1 to expand their WA lithium footprint if they wished.
MM is keen on GL1 for our Emerging Companies Portfolio
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