Morella Corporation has advanced its Mt Edon Rubidium-Lithium Project towards drilling readiness, supported by strong metallurgical results and fresh funding. The company also initiated legal proceedings related to past asset sales, underscoring a busy start to 2026.
- High rubidium recoveries confirmed in Phase 2 metallurgical tests at Mt Edon
- Resource definition drilling planned for early 2026 following permitting and heritage clearances
- Secured $1.4 million convertible note facility to strengthen financial position
- Nevada lithium portfolio rationalised to reduce holding costs while maintaining exposure
- Legal action commenced over 2020 Altura Mining receivership asset sale proceeds
Strong Technical Progress at Mt Edon
Morella Corporation Limited has reported significant advancements in its critical minerals projects during the December 2025 quarter, with the Mt Edon Rubidium-Lithium Project in Western Australia taking centre stage. Phase 2 metallurgical testwork results confirmed high rubidium recoveries, reinforcing the project's potential and supporting the transition from technical validation to development readiness.
The company finalised its 2026 resource definition drilling program design, prioritising key pegmatite targets such as Sophie, Miles, and June. Importantly, Morella secured all necessary Program of Works approvals and completed heritage surveys and site clearances, positioning the project for drilling commencement in early 2026, subject to contractor availability and seasonal access.
Portfolio Management and Exploration Activities
Beyond Mt Edon, Morella progressed exploration and target refinement across its broader Western Australian lithium portfolio, including the Mallina Lithium Project and the Dixon Well titanium-vanadium project. The Mallina project benefited from a government co-funded ground gravity survey, integrating geological and geochemical data to refine targets ahead of planned drilling in mid-2026.
In Nevada, Morella focused on tenure management and portfolio rationalisation, reducing non-core ground to lower holding costs while preserving exposure to promising lithium basins. This disciplined approach reflects the company's strategy to balance near-term development catalysts with longer-term growth opportunities.
Financial Position and Corporate Developments
Financially, Morella strengthened its position by securing commitments for a $1.4 million convertible note facility during the quarter. This funding provides flexibility to advance exploration and development activities across its Australian and U.S. projects. Operating and investing cash outflows were managed prudently, with the company maintaining approximately $840,000 in cash at quarter-end.
Subsequent to the quarter, Morella initiated legal proceedings in the Federal Court of Australia concerning proceeds from the 2020 receivership of Altura Mining Limited, now part of Morella. While the outcome remains uncertain, the company does not anticipate any material impact on its operational activities.
Looking Ahead
As Morella enters 2026, the focus is firmly on executing the planned drilling program at Mt Edon and continuing to refine and advance its portfolio of critical minerals projects. Managing Director James Brown emphasised the company’s disciplined execution and strategic capital allocation, highlighting readiness to capitalise on development opportunities in Tier-1 jurisdictions.
Bottom Line?
With drilling poised to start at Mt Edon and fresh funding secured, Morella is set for a pivotal year, but legal uncertainties linger.
Questions in the middle?
- Will the upcoming Mt Edon drilling confirm resource estimates and attract further investment?
- How will the legal proceedings related to the Altura Mining receivership affect Morella’s financial and operational outlook?
- What impact will portfolio rationalisation in Nevada have on Morella’s long-term U.S. lithium strategy?