Lithium, News

Ellison backs new horse in lithium race

lithium, flynn gold Image: Shutterstock / Steve Morfi

After a successful initial public offering that raised $15 million, Kali Metals has officially launched on the ASX under the ticker KM1.

Kali Metals was spun out by Kalamazoo Resources and Canadian gold miner Karora Resources, which now hold 22.1 per cent and 20.2 per cent interests in the new company respectively. Kali’s third largest shareholder is Mineral Resources managing director Chris Ellison, who carved out a 4.86 per cent stake through his private company Wabelo.

The new company consists of the Australian lithium assets once owned by Kalamazoo combined with Karora’s highly prospective lithium mineral rights across a range of projects.

The portfolio of projects is an impressive one, spanning the highly prospective Pilbara and Eastern Yilgarn regions in WA, and other sites across NSW and Victoria.

Two of Kali’s three Lithium projects in the Pilbara (DOM’s Hill and Marble Bar) are fully funded by SQM as part of a joint venture with the Chilean giant.

Kali’s arrival to the ASX comes at an interesting time for lithium, which in its unrefined form has fallen in price more than 85 per cent in the last twelve months.

Just this week, Core Lithium announced that it would suspend mining and development works at its Finniss operations until the market recovered.

But Kali’s successful start to life indicates that the bigwigs of the lithium industry are confident that the important battery metal will bounce back in a big way.

Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.

Previous ArticleNext Article
Send this to a friend