Global Lithium Resources to make ASX debut tomorrow after raising $10 million in IPO

Global Lithium Resources Ltd (ASX:GL1) will make its debut on the ASX at midday on Thursday, May 6, following a heavily oversubscribed IPO. As previously covered by Proactive, Global Lithium closed its IPO early after raising the maximum $10 million at 20 cents per share. It will debut on the ASX with a market capitalisation of approximately $26.4 million. The company aims to become a leading Australian lithium producer and is focused on exploration of the Marble Bar Lithium Project (MBLP) in Western Australia’s famed Pilbara. IPO funds will be used to continue exploration at the project, where GL1 has already declared a maiden inferred mineral resource of 10.5 million tonnes at 1.0% Li2O at the Archer deposit. “Overwhelming support” Global Lithium managing director Jamie Wright said the company was “overwhelmed and extremely gratified” by the response to the IPO. “It has been fantastic to get so much support from investors as well as the market,” he said. “And in turn, we believe we are coming on to the ASX with a great deal of momentum as we look to create value for our shareholders. “Our ambition was to get our next drilling program going within a day of listing, and we’ve got a 4,000-metre reverse circulation drill rig on site right now as our next program kicks off.” Marble Bar Lithium Project About 180 kilometres southeast of Port Hedland and 15 kilometres northwest of Marble Bar, the MBLP consists of three granted exploration licences covering about 243 square kilometres of ground. The company’s exploration success to date includes the discovery of the Archer deposit and a declared maiden inferred mineral resource of 10.5 million tonnes at 1.0% lithium oxide. “There is a lot of potential to grow the project,” Wright told Proactive. “It is open in all directions and outside of the immediate area there is a very large prospective area to explore. “We are also fortunate enough to be located in one of the most infrastructure-rich mining jurisdictions on the planet, in one of the world’s tier-1 lithium provinces, and nearby to some very large lithium deposits.” Lithium opportunity Lithium is one of the key metals experiencing high demand as countries around the world seek to adopt more environmentally sustainable energy policies, thanks to its use in power units that form the basis of electric vehicles and rechargeable batteries. “The Pilbara is the engine room for many commodities delivered to global markets, quickly becoming a force delivering critical minerals including lithium to the battery metals supply chain,” Wright said. “Following a number of years of exploration, we believe this is a fortuitous time to be embarking on our public listing as the lithium market thematic builds momentum. “It has been an exciting few months with most of the notable car brands committing to electrification over the next decade, and if you follow that back through the supply chain, lithium, and particularly spodumene, which is of great importance to us, is a critical part of the picture.” Lithium prices rising Global Lithium has timed its listing well, with lithium prices rising exponentially across the board. Lithium carbonate, a critical ingredient in lithium-ion batteries, is the best-performing commodity in 2021 to date, having risen an astonishing 93 per cent to ¥90,000 a tonne, the highest levels in two years, while lithium hydroxide is up to ¥83,000 per tonne. And that’s not considering spodumene, which is a mineral and an important source of lithium. “It is most relevant for us, and it has risen more than 60% so far this year,” Wright said. “Market commentators are also saying this is a sustainable market we find ourselves in.” Next steps Wright said shareholders could expect consistent newsflow over the next 12 months. “We will be following up the RC drill program with a diamond drilling program in the middle of the year, and we are looking at further drilling programs and potentially even a resource update by the end of the year,” he said.” “We’ve got a packed 12 months ahead and we’re confident we’ll carry our momentum all the way through.” - Daniel Paproth