Greenwing’s Full Control of San Jorge Project Restored After NIO Option Lapses
Greenwing Resources reports solid progress across its lithium and graphite assets in Argentina, Madagascar, and Tasmania, completing a $3.5 million equity raise and appointing a new chairman.
- San Jorge Lithium Project shows resource expansion and favorable processing results
- Graphmada Graphite Complex benefits from evolving global graphite market dynamics
- Que River Project in Tasmania reveals exploration upside and critical minerals potential
- Equity raising of $3.5 million underway with new non-executive chairman appointed
- Call option with NIO Inc. lapses, restoring full control of San Jorge Project to Greenwing
San Jorge Lithium Project, Expanding Horizons in Argentina
Greenwing Resources continues to build on its foothold in Argentina’s Lithium Triangle with the San Jorge Lithium Project. The company holds a substantial tenement package exceeding 38,000 hectares, including exclusive operational control of the San Francisco salar. Following a maiden mineral resource estimate in May 2024 that quantified 1.07 million tonnes of lithium carbonate equivalent, recent geophysical surveys have revealed significant extensions of lithium-bearing brines both laterally and at depth. These findings suggest considerable potential to increase both the size and grade of the resource.
Complementing the resource growth, Greenwing has advanced processing evaluations, with promising results from direct lithium extraction technologies provided by IBC Advanced Technologies and Xtralit. The brine’s amenability to these innovative methods could enhance project economics and sustainability.
Madagascar Projects, Strategic Engagement and Asset Optimization
In Madagascar, Greenwing maintains a diversified portfolio including the Graphmada Graphite Mining Complex and the Millie’s Reward Lithium Project. The Graphmada asset, with a robust mineral resource of nearly 62 million tonnes at 4.5% fixed carbon, is strategically positioned to capitalize on shifting global graphite supply dynamics. Recent export restrictions by China have elevated the importance of alternative sources, particularly for critical minerals in the US, EU, and Japan.
Company executives recently engaged with Madagascar’s Mines Minister to discuss regulatory reforms and project advancement. Concurrently, Greenwing is progressing a sale of surplus equipment at Graphmada to strengthen its cash position. Discussions with vendors of Millie’s Reward continue, aiming to finalize agreements and resume exploration activities focused on lithium-bearing pegmatites.
Que River Project, Unlocking Exploration Potential in Tasmania
The Que River Project, located within Tasmania’s prolific Mount Read Volcanic Trend, holds a JORC-compliant polymetallic resource adjacent to established mines. Greenwing’s recent work has identified multiple zones of high-grade mineralisation open at depth and along strike, with potential for both underground and open-pit mining. The company is also investigating the presence of critical minerals, aligning with broader market demand trends.
Site maintenance continues while a forward exploration program is planned to further delineate resource extensions and assess new targets.
Corporate Developments and Financial Position
Greenwing successfully raised approximately $3.5 million through placements and a share purchase plan, with ongoing efforts to complete the remaining tranche. The company also announced a board change, with James Brown appointed as non-executive chairman, bringing extensive mining industry experience, particularly in lithium and battery materials.
Financially, Greenwing reported net cash outflows from operating and investing activities during the quarter but maintains a solid cash position supported by an unsecured loan facility and an undrawn $8 million at-the-market equity facility. The lapse of the call option held by NIO Inc. on the San Jorge Project restores Greenwing’s full control and flexibility to pursue strategic partnerships.
Bottom Line?
With resource expansions and strategic moves underway, Greenwing is poised to navigate evolving critical minerals markets while investors watch for upcoming exploration results and partnership developments.
Questions in the middle?
- How will Greenwing prioritize capital allocation across its diverse lithium and graphite projects?
- What impact will Madagascar’s new mining code have on project timelines and investment?
- Will Greenwing secure strategic partners to accelerate development post-NIO option lapse?
