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Canadian firm sells stake in Zimbabwe lithium project; shifts focus to copper in the US
CANADA: Li3 Lithium Corp has decided exit Zimbabwe lithium to shift its focus to copper and to its 485 ha Northern Lights copper project, in Nevada, in the US.
Given the company’s lack of sufficient funds and management resources to simultaneously undertake work on the Northern Lights project and on its 50%-owned Mutare lithium project, in Zimbabwe, Li3 Lithium has sold its stake in the latter project.
This will relieve the company of further funding obligations for the Zimbabwe project and allow it to focus its resources exclusively on its Nevada copper project going forward.
“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 chairperson Steve Dunn
“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 US location coincides nicely with the US government’s recent addition of copper to its Critical Minerals List and opens up the possibility of funding via the US government’s recently approved initiative.”
He added; “The clean energy transition cannot occur without a significant increase in copper production.
“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.”
He points out that, as a result of the company shifting its focus to the Northern Lights project and disposing of its interest in the Zimbabwe project, CEO, president and director Francois Auclair has tendered his resignation.
“I will assume the additional role of CEO and president alongside my position as chairperson,” he explained.
“Also, the company is contemplating a name change to better reflect its new copper-only focus. We will keep shareholders apprised once a decision on a new name is decided upon. Any name change will be submitted to shareholders for approval at the next annual general meeting.”