Sydney-headquartered Armada Metals has set its sights on the lithium market in the US. The company on Monday unveiled a binding term sheet agreement to acquire Midwest Lithium – a mineral explorer targeting hard rock lithium projects in South Dakota.
Armada nonexecutive chairperson Rick Anthon has described Midwest as a “transformative” opportunity for the company, offering drill-ready lithium pegmatite projects within permitted lands in the Black Hills region.
Midwest, an Australian entity, has positioned itself as a player in the US lithium landscape. Holding or having rights to acquire a 100% interest in more than 1 000 unpatented lode mining claims spanning about 93 km2 in the Black Hills region, Midwest’s footprint is significant. The company also has options to secure an additional six patented lode mining claims in the area.
The decision to pursue this acquisition comes at a time when the Black Hills region is experiencing a resurgence in lithium project exploration and development. Several companies, including Iris Metals, Patriot Lithium, and United Lithium, are actively engaged in exploring the area's lithium potential.
Armada believes Midwest Lithium's early mover advantage positions it strategically within this landscape.
Midwest was on the cusp of an ASX listing in October last year, with conditional approval in hand. However, market conditions, including a dip in spodumene prices, prompted the company to reevaluate its strategy, ultimately leading to the decision to forgo the initial public offering.
Anthon stressed that Armada remained committed to its existing projects in Africa, including the Nyanga project in Gabon and the Bend nickel project, in Zimbabwe.