Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production

Bradda Head Lithium Ltd (AIM: BHL, TSXV:BHLI), is a North America-focused lithium development group with assets across the lithium mineralisation spectrum including sedimentary, pegmatite and brine opportunities.

The company has beaten its target 43-101 Resource of 2.5mt of Lithium Carbonate equivalent following the completion of its latest drilling programme at Basin in Arizona, which qualifies it for a US$3 million royalty payment as per its contract with Lithium Royalty Company ‘LRC.’

Ian Stalker, Executive Chairman explains the significance of targets being surpassed and the royalty. “That has got significant benefits for not only ourselves but for the shareholders because there's no further dilution required. So, we're fortunate in not having to do that and it allows us to move in our other projects.”

In this interview investors will learn:

- What the company intends to spend the US$3 million royalty fee on  

- Why the company predicts its San Domingo pegmatite project will provide low hanging fruit in terms of early production and cash flow

- How the company’s three different types of lithium mineralization future proofs the portfolio against market and political bias

- How the lithium-in-clays Basin asset in Arizona has the potential to be expanded

- How the company intends to capitalise on the trending interest in lithium-in-oil brines

- What the company intends to do with the land packages where there is no significant work taking place

- Whether the potential for end of 2025 or early 2026 production is a possibility

- Why current management hires mitigate against the company’s lack of a chief executive

Reasons to add BHL to your watchlist:

- Lithium is a necessary element for the EV economy and the U.S. has mandated it wants a domestic supply of the critical mineral  

- All projects are 100% owned and are located in close proximity to infrastructure and end users

- Management is highly experienced in the mining sector

- Non-executive Deputy Chairman James Mellon is a successful U.K. investor, entrepreneur and has an 18.71% shareholding in the company

Stalker is clear about the pathway Bradda Head Lithium wants to pursue.

“We've got a strategic resource in the lithium-in-clays, but that will take a longer period of time to come into production. We have certainly a huge exploration upside in the lithium in the spodumene, the hard rock. We'll be back there in the second half of this year and I hope that we can bring that into closer to production and get a cash flow.”

Ian Stalker, Chairman at Bradda Head Lithium Limited was interviewed by Sarah Lowther at focusIR.  

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