Sydney-headquartered Armada Metals is making a significant move into the US lithium market. On Monday, the company announced a binding term sheet agreement to acquire Midwest Lithium, a mineral explorer focused on hard rock lithium projects in South Dakota.
Armada’s nonexecutive chairperson, Rick Anthon, described Midwest as a “transformative” opportunity, offering drill-ready lithium pegmatite projects on permitted lands in the Black Hills region.
Midwest, an Australian entity, has established itself as a notable player in the US lithium market. The company holds or has rights to acquire a 100% interest in over 1,000 unpatented lode mining claims covering approximately 93 km² in the Black Hills. Additionally, Midwest has options to secure six more patented lode mining claims in the area.
This acquisition comes as the Black Hills region experiences renewed interest in lithium exploration and development.
Companies like Iris Metals, Patriot Lithium, and United Lithium are actively exploring the area’s lithium potential, highlighting the region’s growing significance.
Armada believes Midwest Lithium’s early mover advantage positions it strategically within this competitive landscape.
Midwest was poised for an ASX listing in October last year, with conditional approval in place. However, unfavorable market conditions, including a drop in spodumene prices, led the company to reevaluate its strategy and ultimately decide against the initial public offering.
Anthon emphasized that Armada remains committed to its existing projects in Africa, including the Nyanga project in Gabon and the Bend nickel project in Zimbabwe.
