Global Lithium buys Nova Project from IGO for $7M

• Global Lithium Resources acquired the Nova Project from IGO to repurpose its nickel-copper processing plant for lithium production.
• The cash and scrip transaction reduces the need for a brand-new greenfield build, aiming to fast-track production within the next 12 months.
• IGO divested the asset ahead of its planned mining closure next quarter, as it is no longer core to its business strategy.

Global Lithium Resources (ASX:GL1) executed an agreement to acquire the Nova nickel-copper-cobalt project from IGO (ASX:IGO) for $7 million in cash and scrip to process pegmatite ore from its Manna lithium deposit.

The transaction occurs as the Nova asset approaches the end of its 10-year operating life, contrasting with a new greenfield processing plant build that requires larger capital expenditure.

“Ultimately, spodumene concentrate output from the converted processing plant is expected by mid-2027, just a year from now, which is critical to capitalising on the forecast rise in demand for lithium offtake,” said Global Lithium Managing Director Dianmin Chen.

The company stated that the high-grade material will be transported across the 170-kilometre road distance from Manna to Nova for crushing and sorting before traveling 375km to Esperance port.

Following the announcement, the Global Lithium Resources share price was unchanged at $0.22.

The acquirer will immediately commence an integration study with a targeted completion deadline set for the current quarter.

The vendor confirmed that mining operations at the site will conclude next quarter before the ownership transaction officially closes.