Lithium Australia (ASX:LIT) has announced a Canadian alliance with LiGeneration Limited.

Seed capital has been provided by LIT to LiGeneration which is planning to list on the Australian stock exchange through an IPO by the end of the year.

Shareholders in LIT will be given priority entitlement to IPO share subscriptions in the LiGeneration float.

LIT will be a significant shareholder in LiGeneration and will provide both technical and administrative support.

LiGeneration’s assets include lithium pegmatites located in Quebec, Canada. Of which the IPO hopeful owns a 100% interest of the Whabouchi Southwest and Southeast lithium projects.

The more than 14,000ha area covered in three separate projects neighbours the world-class Nemaska Lithium Whabouchi Mine with is the second largest and richest global lithium reserve.

LiGeneration also holds a 100% stake in the Wells-Lacourciere lithium project. Historical exploration at the site consisting of trenching and bulk sampling returned assay results between 2.87% Li2O and 4.0% Li2O.

There is no guarantee the IPO of LiGeneration will add market value to LIT and its shareholders, so seek professional financial advice if considering LIT for your portfolio.

Further to the announcement surrounding LiGeneration, LIT has lodged a provisional application for an Australian patent with corresponding trademarks in relation to a caustic digestion process which has been entitled LieNA.

LIT has also confirmed that it has received funds to fully pay up the remaining two holdings in the LITCD series. Upon clearance of the funds and corresponding shares have been issued, Lit will make an application to the ASX for the current series of unlisted partly paid shares to become listed. To which an Appendix 3B will be issued in due course.

LIT presented this week at the Diggers and Dealers forum in Kalgoorlie, Western Australia…

Source: Lithium Australia involved in IPO of LiGeneration