Cosmos Exploration (ASX: C1X) has advanced its Bolivian lithium strategy, with backed entity EAU Lithium and Bolivia's state-owned YLB executing a non-binding Negotiation Agreement for potential future contracts related to lithium production.
The framework specifically focuses on using Vulcan Energy's VULSORB A-DLE technology.
Extensive testing of this direct lithium extraction technology has already occurred on multiple Bolivian brines and synthesised Uyuni brine samples.
Cosmos Exploration retains an exclusive option to acquire 100% of EAU Lithium, aligning its future with the outcomes of these ongoing negotiations.
Bolivian Lithium Strategy Context
Cosmos' engagement in Bolivia was a key focus in its annual report for FY2025.
The report highlighted the EAU Lithium option and the ongoing brine testing with Vulcan Energy's technology as a significant strategic area.
Previous coverage has noted Cosmos' entry into the 'Lithium Triangle' via the EAU Lithium agreement with YLB.
Cosmos maintains a diversified exploration portfolio across multiple commodities and jurisdictions, including lithium projects in Canada and rare earths in Western Australia.
Financial and Funding Headwinds
Cosmos reported a net loss of $4.42 million in FY2025, with minimal revenue and a cash balance of only $681k. This reflects the typical financial profile of an exploration-stage company.
The company faces ongoing funding risks, with its recent quarterly activities report as of December 2025 indicating a tight liquidity position and an estimated cash runway of approximately 0.57 quarters.
The company noted ongoing discussions with financiers and shareholders for potential funding.
Progress in Bolivia is subject to significant regulatory, political, and sovereign risks that could potentially delay or even derail any future contracts.
There are no guarantees on land rights or production at this stage.
Furthermore, exploration success is not guaranteed, and the results from test programs remain uncertain.
Outlook on Bolivia Deal and Funding
The non-binding negotiation agreement with Bolivia's YLB represents a procedural step for Cosmos' EAU Lithium, leveraging Vulcan Energy's DLE technology.
However, the deal's success is heavily contingent on navigating Bolivia's complex regulatory landscape and securing further funding to sustain operations and development efforts.
Commodity price volatility and the persistent need for external funding are also ongoing concerns for Cosmos Exploration.
