AFR Article:
MacCap in partner search for one of world’s biggest lithium projects
Thedealmaking interest in ASX-listed lithium miners has spilled over to theirunlisted counterparts. Phoenix Lithium is owned by Nicholas Wakim, who’sseeking a like-minded strategic partner to fulfil his projectambitions.
Street Talkcan reveal privately-held Phoenix Lithium, which owns one of the world’slargest lithium resources out of Southern California, has mandated MacquarieCapital to find a strategic partner.
Phoenix’sEast Brawley project is the world’s fifth-biggest lithium resource, dwarfingwell-known Australian names and on par with projects from Chilean big-wigs likeAlbemarle and SQM, potential backers were told. It is also a top-rankinggeothermal brine resource globally.
That isthanks to East Brawley’s 12.4 million tonnes total mineral resource of lithiumcarbonate equivalent (or an 8.3 million indicated mineral resource). Averagegrade sits at 437 milligrams of the commodity per litre.
Phoenix’sowner, Melbourne-based Nicolas Wakim, is understood to be laying the groundworkfor a large-scale plant that would extract and recover 64,000 tonnes of batterygrade lithium carbonate per annum.
Nice digs
The deal’sdrawcard is the at-scale deposit’s location. At a time when the Chileangovernment’s mooted privitisation of its lithium mines has spooked investors,East Brawley’s backers would be tipping into a project located in SouthCalifornia’s Imperial Valley, about two hours’ drive east of San Diego. It’salso close to major North American battery and electric vehicle manufacturers.
Phoenix hassecured more than 8000 hectares of surface and mineral rights leases to supportlong-term growth. Throw in plans to build processing, a Tier 1 government, andtailwinds from adaption of electric vehicles – and it’s easy to see why theproject has been talked up as the next big thing in lithium.
Street Talkunderstands several counterparties have expressed interest in the Macquarie-runprocess. The tyre kickers so far cover the gamut of the lithium supply chain,including offtake, marketing and capital providers.
But EastBrawley is expected to hold the greatest appeal for deep-pocketed NorthAmerican players and parties with mid-stream operational experience looking fora slice of the action.
It’s thesecond lithium deal with Macquarie’s name on it to pass Street Talk’s desk thisfinancial year. The investment bank has been running a downstreamprocessing 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’salso tending to Patriot Battery Metals, as it courts interest from investors.Albemarle has just written a cheque, and Pilbara Minerals is understoodto have taken a look.
