Global Lithium Resources has announced several corporate changes as it weathers the lithium downturn.
This includes stripping back parts of its definitive feasibility study (DFS) for the Manna lithium project in Western Australia. The company said scaled-back work would continue on the DFS, including the completion of technical testwork and modelling.
Global Lithium is also reducing monthly spending on corporate overheads and operational expenditure and will reduce its board from four to three people until there is greater certainty in lithium market forecasts.
The company said these changes will ensure it remains in a strong financial position to advance Manna when the lithium market bounces back.
Alongside scaled-back DFS work, Global Lithium will continue to conduct targeted exploration at Manna to further unlock the advanced project.
Global Lithium announced a 43 per cent resource increase for Manna in June, which took the project’s mineral resource estimate to 51.6 million tonnes (Mt) at one per cent lithium oxide, within arm’s reach of Mineral Resources’ (MinRes) 60.5Mt Mt Marion lithium operation located just down the road.
Manna now well and truly trumps MinRes’ 26.5Mt Bald Hill mine for size, which is an operating lithium asset.
Global Lithium chair Ron Mitchell said the corporate changes were prudent in the current climate.
“The changes we are implementing at both corporate and operational levels are appropriate, given the macro circumstances facing the company and the lithium industry more broadly,” he said.
“Our focus must remain on protecting and enhancing value for our shareholders, which is why these tough decisions are now unavoidable. Nevertheless, the company is in a robust financial position and is well placed to weather the current market conditions.
Global Lithium had $25.2 million in cash and listed investments with no debt as of August 31.
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