Altura Mining reincarnates with 2 Li projects

The embattled Altura Mining (ASX: AJM) resumed trading on Tuesday after 16 months of suspension. 

The new Altura was brought back to life following a successful $8.5m capital raising at 0.5 cents per share, a 92% discount to its last traded price on 7 August, 2020. The company’s stock plunged 76% to 1.5 cents on Tuesday. 

A new beginning 

Altura entered administration in late 2020, when lithium prices were trading at multi-year lows. 

During this time, Pilbara Minerals (ASX: PLS) made a strategic move to acquire Altura’s Lithium Project (now named the Ngungaju project) for US$175m.

Having lost its flagship project, the new Altura operates two early stage projects - the Mallina Lithium Project in Western Australia’s Pilbara and the Fish Lake Valley Lithium Project in Nevada, US. 

Making up for lost time 

Altura has lined up a number of near-term exploration initiatives to turn things around.

The Mallina Lithium Project is currently owned by Sayona Mining (ASX: SYA). However, Altura will work its way into a 51% interest through $1.5m of exploration activities over a three year period.  

Sayona will retain the remaining 49% stake, subject to possible future dilution, depending on any additional spending by Altura. 

It is understood that Altura plans to deliver preliminary feasibility studies and develop ore reserves for Mallina by the first quarter of 2023. 

The Fish lake Valley Lithium Project has an earn-in price of US$525,000 plus US$400,000 equivalent in Altura shares for a 60% project interest. There is also an option to acquire up to 100% of the project. 

“The Fish Lake Valley Lithium Project is an excellent opportunity for both Altura and partner Lithium Corporation. The earn-in allows us the ability to secure lithium raw materials in a proven and stable mining jurisdiction of the United States,” said Altura CEO Alex Cheeseman. 

Altura intends to kick off a drill program for Fish Lake in the third quarter of 2022 ahead of preliminary studies and a mineral resource report in the first quarter of 2023.