Armada enters the US lithium market with the acquisition of Midwest

Sydney-based Armada Metals has set its sights on the US lithium market. On Monday, the company unveiled a binding agreement on terms to acquire Midwest Lithium, a mineral exploration company targeting hard rock lithium projects in South Dakota.

Non-executive chairman of Armada Stack Anton described Midwest as a “transformational” opportunity for the company, offering drill-ready lithium pegmatite projects on permitted lands in the Black Hills region.

Midwest, an Australian entity, has established itself as a player in the US lithium market. Owning or having the rights to acquire 100% interest in over 1,000 unpatented deposit mining claims in an area of ​​approximately 93 km² in the Black Hills region, the Midwest influence is significant. The company also has the ability to secure an additional six patented deposit mining claims in the area.

The decision to pursue this acquisition comes at a time when the Black Hills region is experiencing a renaissance in exploration and development of lithium projects. Several companies, including Iris Metals, Patriot Lithium and United Lithium, are actively engaged in exploring the potential for lithium in this region.

Armada believes that Midwest Lithium’s early-stage advantage positions it strategically in this landscape.

Midwest was on the verge of listing on the ASX last October, having already received conditional approval. However, market conditions, including the decline in spodumene prices, prompted the company to re-evaluate its strategy, which ultimately led to the decision to abandon the IPO.

Anthon stressed that Armada remains committed to its existing projects in Africa, including the Nyanga project in Gabon and the Bend Nickel project in Zimbabwe.