Bradda Head Lithium experienced a significant 18% increase in its shares following the announcement of an updated estimate for the contained lithium in its Basin Project in Arizona. This positive development triggered a $2.5 million payment to the company.
At 0801 GMT, shares are up 0.50 pence at 3.25 pence.
New Estimates Boost Confidence
The North America-focused lithium development group disclosed on Thursday that the updated estimates allow them to activate the $2.5 million payment from the Lithium Royalty Company, in accordance with their royalty agreement.
The updated estimate reveals an impressive figure of 17.0 million metric tons of indicated resources and 210 million tons of inferred resources. In terms of lithium carbonate equivalent, this translates to 85,000 tons indicated and 1 million tons inferred, respectively. It is worth noting that indicated resources are those whose properties can confidently be proven, while inferred resources are based on limited sampling and information.
Chairman Optimistic About Basin Project
Chairman Ian Stalker expressed his excitement and optimism about the future of the Basin Project due to the increase in lithium carbonate equivalent at Basin East Extension and into Basin North. He stated, "The increase in LCE at Basin East Extension and into Basin North highlights the impressive potential that we have always believed is inherent at the Basin Project."
Further Potential Rewards
Should the achievement of 2.5 million tons of lithium carbonate equivalent become a reality, Bradda Head Lithium stands to receive an additional $3 million payment.
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