Global Lithium Resources has made significant progress on its Manna Lithium Project, advancing its Definitive Feasibility Study and securing a key variation to its offtake agreement with Canmax. The company also reported a substantial reduction in its cash burn rate, maintaining a strong cash position.
- Ongoing optimisation of Manna Lithium Project Definitive Feasibility Study
- Finalisation of Native Title Mining Agreement negotiations with Kakarra Group
- Variation to Canmax offtake agreement removes termination rights post-2024 deadline
- Completion of co-funded drilling program at Marble Bar Project with assay results pending
- Significant reduction in cash burn rate; $16 million cash and $7.9 million in equity investments
Progress on Manna Lithium Project Milestones
Global Lithium Resources Limited (ASX – GL1) has reported steady advancement in its flagship Manna Lithium Project in Western Australia's Goldfields region. The company is focused on three critical milestones – finalising the Native Title Mining Agreement (NTMA) with the Kakarra Group, securing the mining lease, and completing an optimised Definitive Feasibility Study (DFS). The DFS work, led by project director Mincore and supported by GR Engineering, aims to enhance project economics by reducing capital and operating costs, with completion targeted for the December quarter of 2025.
Strategic Offtake Agreement Variation with Canmax
In a notable development, Global Lithium and Canmax, a global lithium chemical leader, have agreed to vary the terms of their existing offtake agreement. The variation removes the reciprocal rights to terminate the contract related to missed development milestones by the end of 2024, thereby maintaining Canmax's ongoing interest in sourcing spodumene concentrate from Manna. Pricing under the agreement will be reviewed within six months following the DFS delivery, reflecting market conditions and project progress.
Exploration and Resource Base
While no site activities occurred at Manna during the quarter, the company completed a co-funded drilling program at its Marble Bar Project in the Pilbara region. The program targeted gold and base metals, with assay results pending. Global Lithium continues to explore non-lithium commodities such as gold and copper on its tenements, aiming to unlock additional value. The company holds a combined indicated and inferred lithium mineral resource of 69.6 million tonnes at 1.00% lithium oxide across its Manna and Marble Bar projects, positioning it as a significant player in the global lithium sector.
Financial Discipline and Corporate Outlook
Global Lithium has successfully reduced its cash burn rate significantly during the quarter, reflecting disciplined cost control amid a subdued lithium market. The company ended the period with $16 million in cash and $7.9 million in listed equity investments, providing a solid financial foundation to advance its projects. Management is actively engaging with potential strategic partners and reviewing business growth opportunities to enhance shareholder value.
Looking Ahead
The coming months will be pivotal for Global Lithium as it aims to complete the optimised DFS and secure the mining lease following the NTMA finalisation. The outcome of the Marble Bar drilling assays will also be closely watched for indications of further resource potential. Meanwhile, the variation of the Canmax offtake agreement signals confidence from a major industry player, potentially underpinning future project financing and development.
Bottom Line?
With key milestones on the horizon and strategic partnerships secured, Global Lithium is positioning itself for a critical phase of project advancement and value creation.
Questions in the middle?
- When will the Native Title Mining Agreement be formally signed and the mining lease granted?
- What will the final optimised DFS reveal about the Manna Project’s capital and operating costs?
- How will the pending assay results from Marble Bar influence Global Lithium’s exploration strategy?