Lithium Africa to Advance Springbok Project to Production Targeted for 2027

Lithium Africa Corp. announced a strategic shift for its Springbok Project in South Africa, moving from a direct shipping ore (DSO) sale model to on-site processing via a Dense Media Separation (DMS) plant to produce spodumene concentrate. The company targets first production in the second half of 2027.

The decision relies on third-party two-stage DMS testwork on a 13-tonne bulk sample, which has not yet been verified by a Qualified Person (QP). Mining at the Norrabees I site is already permitted under Mining Permit NC10950MP. Construction of the DMS plant requires additional environmental and processing approvals, which have commenced.

An initial Mineral Resource Estimate (MRE) is targeted for H1 2027, followed by a Preliminary Economic Assessment (PEA). Preliminary, non-binding discussions are underway for project-level financing, including offtake, vendor financing, and equity, with a decision targeted for H1 2027. The company emphasizes a self-funding exploration approach using small-scale mining to unlock the Springbok District.

Lithium Africa Corp. (LAF) is shifting its strategy from selling raw ore to processing concentrate, a move designed to capture higher margins. This transition introduces execution risks, as the project currently lacks a Qualified Person (QP)-verified resource and unverified metallurgical testwork. The company has set an aggressive production timeline for the second half of 2027, a target that is challenging given the absence of a defined resource or feasibility study.

To bridge the gap to concentrate production, Lithium Africa relies on existing stockpiled material at the permitted Norrabees I mine. However, moving to concentrate production will require significant capital and regulatory approvals. This announcement is incremental to previous exploration updates and the completion of the Springbok acquisition. While it aligns with management’s goal of advancing the project, it does not yet de-risk the economic viability. Due to the preliminary nature of the testwork and the lack of a current resource estimate, the market impact is expected to be measured rather than transformative.

Lithium Africa Corp. is a pre-revenue exploration and development company focused on hard rock lithium assets across Africa. Its flagship Springbok Project, located in the Northern Cape of South Africa, includes the past-producing Norrabees I spodumene mine, a approximately 30,000-tonne ore stockpile, and a 1,675 km² prospecting right. The company also holds early-stage exploration assets in Côte d'Ivoire (the Adzopé Project), Guinea, Mali, Morocco, and Zimbabwe through a 50/50 joint venture with GFL International. Lithium Africa Corp. transitioned to a public listing on the TSX Venture Exchange in February 2026 following a qualifying transaction.