Lithium back on investors’ screens

Mineral Resources (ASX:MIN) recently announced that it has commenced aprocess to sell up to 49% of its world-class 100%-owned Wodgina Lithium Projectas part of an offtake and partnering process. Wodgina, 100km south of PortHedland in WA’s Pilbara region, is the world’s largest hard rock lithiumdeposit with an upgraded (April 2018) Mineral Resource of 233Mt @ 1.21% Li2Oand a Probable Reserve of 142.4Mt @1.19% Li2O. The divestment process follows asignificant number of unsolicited approaches to MIN from interested partiesincluding lithium processors, battery manufacturers, international tradingcompanies, and automakers expressing interest in securing a direct investmentin the project and/or offtake rights.

 The move adds to aflurry of merger and acquisition activity in the domestic lithium sector.Galaxy Resources (ASX:GXY) is looking to sell a stake in its Sal de VidaLithium and Potash Brine Project in Argentina, Altura Mining (ASX:AJM) is indiscussions with a major Chinese shareholder regarding a potential controltransaction, and emerging lithium producer Tawana Resources (ASX:TAW) – ownerof the Bald Hill Lithium Project in WA - and Singapore-listed Alliance MineralAssets (SGX:40F) are in merger negotiations.