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Mining Capital

VSA Capital Market Movers - Novo Lítio

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Novo Lítio (ASX:NLI) has announced that it has completed the acquisition of a significant land package in Northern Portugal from Medgold Resources (MED CN) as per the previously announced conditions. The land package is highly complementary to the Sepeda project with multiple known tin-bearing pegmatite outcrops as well as multiple historic workings. NLI paid EUR167.5k for the tenement package.

Crucially, the tenements already have licenses granted and therefore it is not possible, as in the case of other unlicensed sites in Portugal, for other parties to put in additional license applications whilst the grant process is ongoing. Given the prospectivity of the region for lithium and the ongoing strong market fundamentals, ungranted licenses typically have multiple applications and the auction style process which follows can take some time to be resolved. It is therefore of great advantage to NLI to already have the licenses on this new tenement package. Consequently, NLI’s team is already identifying exploration targets via soil sampling and mapping.

With regard to the Sepeda court process, the company are still awaiting a date for the hearing although continue to expect this to be in November 2017.

We reiterate our Speculative Buy recommendation and A$0.2/sh. target price.


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