Environmental and Market Risks Loom as Lithium Plus Advances Lei Project
Lithium Plus Minerals has secured a 20-year mining lease for its Lei Lithium Project, marking a significant step toward production, while its subsidiary Moonlight Resources progresses with an IPO and strategic gold asset acquisition.
- 20-year mining lease granted for Lei Lithium Project
- Lei resource estimate at 4.09Mt at 1.43% lithium oxide
- Moonlight Resources files IPO prospectus and acquires Clermont Gold Project
- Cash balance of A$2.432 million with no debt
- Ongoing environmental approvals and mine design underway
Mining Lease Secures Long-Term Tenure
Lithium Plus Minerals Limited (ASX – LPM) has achieved a major milestone with the granting of a 20-year mining lease (ML33874) for its Lei Lithium Project in the Northern Territory. This lease secures the company’s tenure over the project area on the Cox Peninsula, approximately 71.5 km from Darwin Port, positioning Lithium Plus to advance toward production.
The Lei Lithium Project is envisioned as a low capital expenditure, direct shipping ore (DSO) operation, where ore will be processed on-site before transport to Canmax’s facility in China for conversion into lithium hydroxide or carbonate. This strategy aims to leverage existing downstream processing infrastructure, reducing upfront costs and accelerating time to market.
Robust Resource Base and Environmental Progress
The current Mineral Resource Estimate for Lei stands at 4.09 million tonnes at 1.43% lithium oxide, combining both indicated and inferred categories. While no measured resources have yet been classified, the resource base provides a solid foundation for further development and mine planning.
On the regulatory front, Lithium Plus has progressed through the environmental referral process with a positive Notice of Decision received, allowing the company to proceed via the Supplementary Environmental Report (SER) pathway. This regulatory milestone enables targeted supplementary studies to finalize the environmental approvals necessary for mining operations.
Moonlight Resources IPO and Strategic Acquisition
In parallel, Lithium Plus’s 33.5% owned subsidiary, Moonlight Resources Ltd, has lodged its IPO prospectus with ASIC and is preparing for ASX admission before year-end. Moonlight has entered a share sale agreement to acquire Diatreme Resources’ subsidiaries holding the Clermont Gold Project, expanding its portfolio into gold exploration.
Lithium Plus shareholders are offered a priority entitlement to participate in Moonlight’s IPO, which includes an attractive option incentive. This move diversifies Lithium Plus’s exposure beyond lithium, potentially enhancing shareholder value through participation in a broader mineral exploration portfolio.
Financial Position and Next Steps
At quarter-end, Lithium Plus reported a cash balance of A$2.432 million with no debt, reflecting a prudent financial position as it advances exploration and development activities. The company incurred A$189,000 in exploration expenditure during the quarter, focused on mining lease applications, environmental assessments, and field evaluations.
Looking ahead, Lithium Plus plans to complete the remaining components of the Supplementary Environmental Report, finalize mine design and scheduling, assess capital and operating costs, and advance downstream processing arrangements. These steps are critical to transitioning the Lei Lithium Project from exploration to production.
Bottom Line?
With a secured mining lease and strategic moves in gold exploration, Lithium Plus is poised for a pivotal phase of growth and value creation.
Questions in the middle?
- When will Lithium Plus finalize capital expenditure and production timelines for Lei?
- How will Moonlight Resources’ IPO performance impact Lithium Plus’s share price and strategy?
- What are the potential risks or delays in the environmental approval process for Lei?
