Bradda Head Secures Funding to Expand Lithium Resource Base

Bradda Head Lithium Limited has set its sights on an exploration target range of 1 million to 6 million tonnes (Mt) of lithium carbonate equivalent (LCE) for its Basin projects located in Arizona. The company's comprehensive year-end report highlighted its preparations for a series of pivotal events scheduled for the second half of 2023 and the first half of 2024. These milestones encompass the advancement of its assets and the culmination of drilling activities in the Basin area.

Adding to its forward momentum, Bradda Head has successfully deployed a drill rig for its second drill program at San Domingo within a year's time. The central objective of this endeavor is to define a resource that will contribute to the company's growth.

Last October's follow-up drill program yielded a notable outcome, leading to a 22% augmentation of the company's resource base, resulting in a total of 371,000 LCE units. A significant financial highlight within the reviewed period was the successful fundraising initiative that secured US$13 million. This injection of capital has become a pivotal force in accelerating Bradda Head's ambitious drilling campaigns.

The fiscal year that concluded on February 28, 2023, witnessed the company reporting a loss of US$3.9 million as it dedicated resources to exploration work. Importantly, the period concluded with a robust balance sheet containing US$7.75 million in funds.

Bradda Head is strategically developing a fresh lithium source, a pivotal component in electric vehicle (EV) batteries, with proximity to automobile and power plant manufacturers. Chief Executive Officer Charles FitzRoy underscored that numerous lithium end-users are situated in the Western states, in close proximity to the company's projects. Most notably, Tesla's Gigafactory in Nevada and LG Chem's Arizona battery complex, set to commence EV battery production by 2025, exemplify this trend.

FitzRoy further elaborated that Tesla's ongoing endeavors, including the establishment of a lithium refinery in Corpus Christi, Texas, to produce battery-grade lithium hydroxide, signify the surging demand for raw materials within the US. This includes the demand for materials like 6% spodumene concentrate, traditionally transported from Australia to China for lithium hydroxide processing—a key precursor chemical for EV batteries.

In conclusion, Bradda Head Lithium Limited's pursuit of an extensive exploration target range for its Basin projects in Arizona reflects its dedication to advancing in the lithium sector. The company's strategic initiatives, successful fundraising, and proximity to crucial end-users in the Western states underscore its determination to contribute to the burgeoning demand for lithium, particularly within the realm of electric vehicle battery production.