Li3 Lithium offloads its 50% stake in Mutare Lithi...

Li3 Lithium offloads its 50% stake in Mutare Lithium Project

Zim Now Writer

Canadian firm Li3 Lithium has said it lacks sufficient funds and management resources to simultaneously undertake work on both Zimbabwe Mutare Lithium Project and its Nevada Northern Lights Copper Project and has disengaged from the Mutare Lithium Project.

"While the decision to disengage from the Company's Zimbabwe lithium project has been a difficult one, we feel it is the right one and will free up scarce resources to fast-track exploration on the Company's promising 100% owned Nevada copper project,” said Li3 Lithium chairman Steve Dunn.

Li3 Lithium announced that it disposed of its 50% interest in the Mutare Lithium Project for nominal consideration without naming the buyer.

The Mutare Lithium Project consists of 1,500 hectares of licenses within the Mutare Greenstone Belt of Zimbabwe, located close to the eastern border with Mozambique and Li3 Lithium acquired its 50% stake from London AIM-listed Premier African Minerals Limited.

Dunn said demand for copper is forecast to undergo unprecedented structural change driven by the global energy transition with mined copper supply forecast to enter a deficit position starting as early as 2025

“The project's U.S. location coincides nicely with the U.S. Government's recent addition of copper to its Critical Minerals List and opens up the possibility of funding via the U.S. Government's recently approved initiative,” said Dunn.

“The U.S Government's legislative and funding initiative will help copper projects in the US that are necessary for the clean energy transition by allocating additional resources to the mining sector, including funding for exploration and feasibility studies," Dunn said.

Dunn also announced the resignation of Francois Auclair as the company's CEO, President and Director in light of the developments.

“I will assume the additional role of CEO and President alongside my position as Chairman,” said Dunn.

He said Li3 Lithium is contemplating a name change to better reflect its new copper-only focus.