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Lithium Consolidated Mineral Exploration (LCME) [ASX:LI3], an Australian lithium explorer, could take on joint venture partners for its Western Australia and Botswana projects, and would also consider acquisitions, CEO Shanthar Pathmanathan said.

Its Yilgarn hard rock lithium project in Western Australia and lithium brine project in Botswana are the company’s first and second priorities at the moment, Pathmanathan said.

LCME, which has a market cap of AUD 10.3m (USD 8.3m), has good access to capital and does not have to seek a partner for the projects, but would consider doing so as the Botswana project is a large tenement and has the potential to be a very big project, he said. Chinese players are active in Africa, he noted.

LCME has cash assets of AUD 3.4m, the CEO said. Many lithium juniors are low on funds, and LCME, which is fairly well capitalised in comparison, sees an opportunity in buying distressed peers at a discount to book value, the CEO continued.

The company receives approaches from selling as well as buying parties on a weekly basis, he said. There are acquisition opportunities for example in Western Australia and Botswana, he added.

It may or may not use a financial advisor on a future transaction, depending on the nature of the deal, but is always keen to talk to advisory firms, the CEO said.

Pathmanathan has 14 years’ experience in investment banking from Deutsche Bank and Macquarie Group. LCME would require legal advisory on deals and works with HopgoodGanim, he said.

LCME, which listed late last year, would likely finance acquisitions by raising equity via its share, Pathmanathan said. It could go to its existing shareholders, and also has an ongoing dialogue with funds, which could be taken to the next level, he said. The company would be unlikely to pay for new projects using debt, he added.

The company’s 100%-owned Yilgarn project in Western Australia was discovered by and is managed by Douglas Haynes, the former chief geologist at BHP [LON:BHP], the CEO said. The exploration programme is currently being designed, he said. Its Botswana project, which was discovered by the same team, is at an early stage with initial sampling work being carried out, he said.

LCME also holds two lithium brine exploration projects in Nevada, the US, in which it owns an 80% interest, with Big Smokey Exploration and ProspectOre holding the rest. It also owns a project in South Australia.