The dealmaking interest in ASX-listed lithium miners has spilled over to their unlisted counterparts.Phoenix Lithium is owned by Nicholas Wakim, who’s seeking a like-minded strategic partner to fulfil his project ambitions. Street Talk can reveal privately-held Phoenix Lithium, which owns one of the world’s largest lithium resources out of Southern California, has mandated Macquarie Capital to find a strategic partner.Phoenix’s East Brawley project is the world’s fifth-biggest lithium resource, dwarfing well-known Australian names and on par with projects from Chilean big-wigs like Albemarle and SQM, potential backers were told. It is also a top-ranking geothermal brine resource globally.That is thanks to East Brawley’s 12.4 million tonnes total mineral resource of lithium carbonate equivalent (or an 8.3 million indicated mineral resource). Average grade sits at 437 milligrams of the commodity per litre.Phoenix’s owner, Melbourne-based Nicolas Wakim, is understood to be laying the groundwork for a large-scale plant that would extract and recover 64,000 tonnes of battery grade lithium carbonate per annum.Related QuotesAdvertisementNice digsThe deal’s drawcard is the at-scale deposit’s location. At a time when the Chilean government’s mooted privitisation of its lithium mines has spooked investors, East Brawley’s backers would be tipping into a project located in South California’s Imperial Valley, about two hours’ drive east of San Diego. It’s also close to major North American battery and electric vehicle manufacturers.Phoenix has secured more than 8000 hectares of surface and mineral rights leases to support long-term growth. Throw in plans to build processing, a Tier 1 government, and tailwinds from adaption of electric vehicles – and it’s easy to see why the project has been talked up as the next big thing in lithium.Street Talk understands several counterparties have expressed interest in the Macquarie-run process. The tyre kickers so far cover the gamut of the lithium supply chain, including offtake, marketing and capital providers.But East Brawley is expected to hold the greatest appeal for deep-pocketed North American players and parties with mid-stream operational experience looking for a slice of the action.It’s the second lithium deal with Macquarie’s name on it to pass Street Talk’s desk this financial year. The investment bank has been running a downstream processing partner search for $14 billion Pilbara, which wants to build a processing plant to whip up battery-ready lithium hydroxide from spodumene that comes out of its mines.Macquarie’s also tending to Patriot Battery Metals, as it courts interest from investors. Albemarle has just written a cheque, and Pilbara Minerals is understood to have taken a look.
