Lithium Australia (ASX: LIT) will be starting the new year with $5.2 million in additional cash after it received government R&D rebates and the first part of its funding under the Lind Partner agreement.
The company has now received $3 million under its previously announced $6.3 million funding agreement with The Lind Partners’ entity New York-based The Lind Global Macro Fund.
Additionally, Lithium Australia has also received a $1.23 million R&D rebate from the Australian Tax Office, while its wholly-owned subsidiary VSPC secured a further rebate of $876,095.
Lithium Australia’s majority owned battery recycling company Envirostream Australia also received funding in the form of a $110,000 grant from Sustainability Victoria.
Two more grant applications are pending, and Lithium Australia expects a decision on these to be made early next year.
The new funding will be used towards growing Lithium Australia’s 50%-owned energy storage and battery sales business Soluna Australia.
Funds will also be used to commercialise the VSPC cathode business, while progressing Envirostream’s battery recycling efforts.
Raw materials division update
At Lithium Australia’s Sadisdorf lepidolite and tin project in Germany, a pre-feasibility study is underway and is investigating the viability of using feedstock from the project to produce lithium-ion battery cathode materials.
Meanwhile, back in Australia, Lithium Australia noted it had a significant holding adjacent and in the vicinity of the Tanqi (51%) and Albemarle’s (49%) Greenbushes mine in Western Australia.
Lithium Australia’s own Greenbushes tenements host numerous pegmatites and the company is seeking a partner to advance the project.
Also in WA, Lithium Australia owns the Medcalf lithium prospect in the Lake Johnston project. The company stated the target warrants drilling and is seeking approvals to begin a program.
In the Northern Territory, Lithium Australia holds a strategic tenement in proximity to Core Lithium’s (ASX: CXO) flagship Finnis project. It is currently negotiating with possible partners to advance the asset.
For several other non-core projects, Lithium Australia has decided to either relinquish the projects or find a partner.