Oceana Lithium Advances Exploration with $1.2M Capital Raise and Strategic Project Moves
Oceana Lithium Limited reports steady progress across its Northern Territory, Western Australia, and Brazil projects, underpinned by a successful $1.2 million capital raise and a solid cash position of $2.7 million.
- Completed $1.2 million fully underwritten entitlement offer
- Ongoing exploration at Napperby Project targeting uranium and rare earth elements
- Bangemall Project granted exploration licence with promising base metal targets
- Strategic reduction and permit extension at Solonópole lithium project in Brazil
- Maintained cash reserves of approximately $2.7 million at quarter end
Exploration Momentum in Northern Territory
Oceana Lithium Limited (ASX: OCN) has reported a productive December 2024 quarter, highlighting continued exploration efforts at its Napperby Project in the Northern Territory. The project spans a substantial area of over 1,100 square kilometres, encompassing both a granted exploration licence and a pending application. Situated within the Northern Arunta pegmatite province, the area is known for its potential to host lithium, rare earth elements (REEs), and uranium mineralisation.
Recent geological reviews and fieldwork have focused on identifying uranium mineralisation associated with fertile granites and younger sedimentary formations. Notably, the company has identified a potential major shear zone in the southwest corner of the granted licence, which could be a significant host for uranium enrichment. Oceana plans to undertake targeted geological fieldwork in the first half of 2025 to further assess this prospect.
Advancing Base Metals Exploration in Western Australia
In Western Australia, Oceana’s Bangemall Base Metals Project has moved forward with the granting of exploration licence EL52/4393, covering approximately 93.5 square kilometres. The project area lies within the Mesoproterozoic Bangemall Basin, a region with a complex geological history and known for base metal mineralisation.
Historical exploration by Rio Tinto and BHP identified base metal anomalies, including zinc and copper, supported by geophysical EM highs. Oceana’s review of this data has prioritized targets for further investigation. The company is preparing for non-invasive field activities such as mapping and sampling to refine drill targets, aiming to unlock the potential of this strategically located project.
Strategic Focus on Lithium in Brazil
Oceana’s Solonópole Project in Ceará State, Brazil, has undergone a strategic consolidation during the quarter. The company allowed three exploration licences to expire due to lower lithium prospectivity and associated exploration costs. However, it has sought an extension for a key licence containing the Nira Prospect, where access delays have previously hindered progress.
Environmental permits have been secured for drilling and trenching at priority targets Bom Jesus de Baixo, Lapinha, and Urubu, confirming their lithium and tantalum potential. Planning for trenching activities is underway, signaling a focused approach to advancing these prospects.
Financial Position and Capital Raising
Financially, Oceana Lithium strengthened its position by completing a fully underwritten two-for-three pro rata non-renounceable entitlement offer, raising approximately $1.2 million before costs. This capital injection bolsters the company’s cash reserves, which stood at around $2.7 million at the end of December 2024.
Exploration expenditure for the quarter was modest at $80,000, reflecting a disciplined approach to capital deployment. Payments to related parties, including directors and consultants, totalled $77,000, consistent with prior periods.
With over ten quarters of funding available based on current expenditure rates, Oceana is well-positioned to advance its exploration agenda across its diversified portfolio.
Outlook
Looking ahead, Oceana Lithium’s planned geological fieldwork at Napperby and preparatory activities at Bangemall set the stage for potential drill campaigns. Meanwhile, the Solonópole Project’s environmental clearances pave the way for trenching and further resource definition. The company’s recent capital raise provides a solid financial foundation to support these initiatives.
Bottom Line?
Oceana Lithium’s strategic exploration and capital management position it for meaningful progress in 2025 across multiple promising mineral provinces.
Questions in the middle?
- Will the planned geological fieldwork at Napperby confirm the presence of economically viable uranium mineralisation?
- How will Oceana prioritise and sequence drilling activities across its three key projects given its current cash position?
- What impact will the permit extension and focused exploration at Solonópole have on the company’s lithium resource potential?
