IRIS Metals advances South Dakota lithium exploration with new funding and key partnership
IRIS Metals (ASX: IR1) is raising $8 million to support its exploration plans on the same day it also signed an agreement covering potential battery metal offtake sales.
In a transformative day, the hard rock lithium developer came out of a trading halt to announce it had received firm commitments for a placement of 32 million shares at $0.25 each and had reached an exclusivity agreement with battery-metals specialist Stardust Power.
IRIS intends to use the new funds for exploration and related activities at its South Dakota lithium project in the US, with a focus on the historic Tin Mountain mine.
Maiden MRE
“This new funding positions us to continue with our exploration, development and related activities at our properties in South Dakota,” IRIS chair Peter Marks said.
“As previously discussed, we anticipate announcing a maiden mineral resource estimate (MRE) at Beecher early in 2025, followed by a resource at Tin Mountain.”
Stardust Power will join the IRIS Metals shareholder register after subscribing for $2.5m of the total placement, with an option to subscribe for a further $2.5m upon completion of the 90-day exclusivity period.
‘Ideal partner’
Nasdaq-listed Stardust Power is a developer of battery-grade lithium products designed to supply the electric vehicle industry and is currently developing a large lithium refinery in Muskogee, Oklahoma.
The new agreement between the two companies will allow them to further explore commercial and strategic opportunities including a commercial offtake arrangement for battery-grade lithium production and financing, or other investment, in IRIS Metals or its affiliates.
“Stardust Power is an ideal partner for IRIS Metals,” Mr Marks said.
“We believe there is a highly complementary fit in our vision, cultures and operational expertise, with both committed to producing battery-grade lithium in a sustainable manner.”
“Stardust Power is aligned with our objective to develop our South Dakota lithium project into a world-class asset producing and supplying high-quality lithium products to the North American battery materials industry.”
Tin Mountain drilling
IRIS commenced a drill program at Tin Mountain in October to further test both the grade and extensions of the known pegmatite over depth and across strike under cover.
A total of 26 drill holes are planned from six drill pads for 1,560m of diamond core drilling.
In addition to geological logging and laboratory assay of the drill core, IRIS intends to advance metallurgical and process test work in the very near term using the recovered materials.
The historic Tin Mountain mine produced a variety of ores containing lithium, tin, beryllium and caesium across a well-zoned pegmatite.
It is especially known for its rather large spodumene “logs” and, as documented by the United States Geological Survey (USGS) in 1963, the average spodumene grade across the pegmatite is 20-30%.