MAN gets US$1M Department Of Energy grant

Published 05-AUG-2024 10:44 A.M.

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Our US lithium Investment Mandrake Resources (ASX: MAN) just got a US$1M grant from the US government.

The US$1M was given to MAN so that the company can work on ‘Characterizing and Estimating Reserves of Lithium and Other Critical Minerals in the Paradox Basin, Utah’.

The US$1M adds to the $14.9M cash the company had at 30 June to put into its lithium project.

For us, the grant validates what MAN is trying to do in the Paradox Basin.

Clearly the US government is interested in seeing company’s like MAN unlock the lithium potential of projects in this part of the US.

MAN’s project already has a 1.7Mt to 5.6Mt LCE (lithium carbonate equivalent) JORC exploration target.

MAN expects to have a maiden JORC lithium resource announced on the project before the end of this quarter.

With a huge cash pile (and now even more with the US$1M grant) we are looking forward to seeing how much progress MAN can make with its project over the coming months.

We put out a deep dive on the company just a few days ago which you can find here: Lithium turnaround opportunity? MAN close to cash backing - JORC resource due in coming weeks

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MAN’s key upcoming catalyst - expected this quarter

Maiden JORC Lithium resource 🔄

Next we want to see MAN convert its exploration target into a maiden JORC resource.

We think this could be the major catalyst for MAN which finally gives the market an easy to understand metric that is comparable with MAN’s much bigger regional peer Anson.

Objective #4: Maiden JORC resource estimate

We want to see MAN first publish a JORC compliant exploration target (Objective #2) and then convert it into a maiden JORC resource estimate.

We also want to see the company evaluate suitable Direct Lithium Extraction (DLE) processing technologies as this will determine how much of a resource can be converted into a maiden JORC resource.

Milestones
🔄 Progress on Direct Lithium Extraction technologies.
🔄 Maiden JORC resource estimate.

Source: “What do we expect MAN to deliver” section - MAN Investment Memo 24 Feb 2023

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Our MAN Investment Memo

You can read our Investment Memo in the link below. This memo provides a short, high-level summary of our reasons for Investing. We use this memo to track the progress of all our Investments over time.

In our MAN Investment Memo, you can find the following: