- Lithium Australia (LIT) has begun reducing its German lithium exploration activities, electing to cut two out of its three prospects in Saxony
- The explorer has cited a blend of COVID-19 restrictions and the "considerable" financial commitments required to maintain the operations as reasons for the decision
- LIT says it will not renew its licence in Sadisdorf and has relinquished its position in Eichight, with a decision regarding Hegelshöhe still pending
- Investors have responded favourably to the decision, as LIT shares spike 36.4 per cent and trade at 13.5 cents each
Lithium Australia (LIT) has begun reducing its German lithium exploration activities, electing to cut two of its three prospects in Saxony.
LIT has undergone exploration activities in Germany since 2017, however, a mixture of COVID-19 restrictions and the "considerable" financial commitments required to maintain the operations, have led Lithium Australia to call time on its tenures.
The miner's European portfolio comprised of three mining areas in the Erzgebirge mountains in Saxon, namely, Hegelshöhe, Eichight and Sadisdorf.
Prompted by the aforementioned COVID restrictions, LIT has let the Sadisdorf licence run its term and has elected not to renew, relinquishing its 133-kilometre position in Eichight.
A decision on Hegelshöhe is yet to be made by the company.
The explorer flagged its intentions to refocus on projects that would deliver near-term positive cashflow in July last year, as the pandemic took its toll on LIT's logistical operations.
Lithium Australia's Managing Director Adrian Griffin said the move was in line with the company's corporate policy.
"Our preference is to maintain leverage to battery materials in Europe by applying our proprietary technologies, including lithium extraction, cathode powder production and battery recycling, to emerging opportunities," he explained.
"We see the application of LieNA (the recovery of lithium from low-grade spodumene without roasting) as having great potential, since LieNA can produce the ideal feed for the production of lithium ferro phosphate (‘LFP’) batteries," he added.
Investors have responded favourably to the decision, as LIT shares spike 36.4 per cent and trade at 13.5 cents each at 2:19 pm AEDT.