Junior lithium miner company news - Bacanora Lithium signs investment and off-take agreement with Ganfeng Lithium.
Welcome to the July 2019 edition of the "junior" lithium miner news. I have categorized those lithium miners that won't likely be in production before 2020 as the juniors. Investors are reminded that most of the lithium juniors will most likely be needed in the mid 2020s to supply the booming electric vehicle (EV) and energy storage markets. This means investing in these companies requires a higher risk tolerance, and a longer time frame.
July saw lithium prices slightly lower again. It was a relatively quiet month of lithium company news; however still some big announcements including the Bacanora Lithium/Ganfeng Lithium agreement and the European Metals Holdings/CEZ agreement.
During July, 99% lithium carbonate China spot prices were down 1.93%. Spodumene (5% min) prices were down 0.2%.
Fastmarkets (formerly Metal Bulletin) reports 99.5% lithium carbonate battery grade spot prices cif China, Japan & Korea of US$10.50-12.00/kg (11,000-12,500/t), and min 56.5% lithium hydroxide battery grade spot prices cif China, Japan & Korea of US$13-15.00/kg (13-15,000/t). China lithium spodumene prices are USD 585-650/tonne.
The charts below courtesy of Fastmarkets show lithium prices fallen further in recent months, particularly lithium hydroxide.
For a summary of the latest lithium market news and the "major" lithium company's news, investors can read my "Lithium Miners News For The Month Of July 2019" article. Highlights include:
On June 28, Bacanora Lithium announced: "Bacanora Lithium plc signing of investment and offtake agreement with Ganfeng Lithium." Highlights include:
Core 100% own the Finniss Lithium Project (Grants Resource) in Northern Territory Australia. Significantly they already have an off-take partner with China's Yahua ($2.4b market cap, large lithium producer). The company states they have a "high potential for additional resources from 500km2 covering 100s of pegmatites.
Resource growth and exploration drilling commences at Finniss Lithium Project.....Strong news flow expected over the coming weeks and months: Mineral Resource and Exploration Drilling at Finniss. Rapid Mineral Resource Growth. Ore Reserve and Mine Life Growth. Binding Concentrate Offtake. Fine Lithium Offtake. Full Project Approval. Project Financing.
On July 10, Core Lithium Ltd. announced: "FIRB approval for Lithium Royalty Corp. and share placement." Highlights include:
Investors can read my article - An Update On Core Lithium (Formerly Core Exploration), and a company presentation here.
On July 1, Sayona Mining announced: "Appointment of new Managing Director/Chief Executive Officer to advance Sayona Project."
Critical Elements Lithium Corporation signs impact and benefit Agreement with the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee) and the Cree Nation Government: A road map for a mutually beneficial development of the Rose Lithium-Tantalum Project. “We are very proud of this agreement, which is the first impact and benefit agreement signed with the Cree Nation of Eastmain regarding a mining project, and we are grateful to all members of the Cree Nation of Eastmain and the Cree Nation as a whole for their support towards the further development of the Rose-Lithium-Tantalum Project. It has always been a high priority of the Corporation to collaborate with local communities and the Pikhuutaau Agreement provides a road map for all parties to make this project a mutually beneficial success,” stated Jean-Sébastien Lavallée, CEO of Critical Elements.
On July 24, Lithium Power International announced: "WA exploration activities: Tabba Tabba drilling program commenced." Highlights include:
Investors can read my article: "Lithium Power International Has A Very High Grade And Expanding Lithium Project In Chile", as well as my ex-CEO interview on Trend Investing here.
2017 news included the 50/50 JV with SQM for the Mt Holland Lithium Project, and a proposal for a refinery located in WA. Last month Wesfarmers [ASX:WES] proposed to acquire 100% of the shares in Kidman for A$1.90 per share, or a US$545 million in total.
On July 11, Kidman Resources announced: "Quarterly activities report–June 2019." Highlights include:
Goulamina exploitation permit application update. Mali Lithium Limited is pleased to provide the following update on the application process for the Exploitation Permit for its 100% owned Goulamina Lithium Project in Mali. Since submitting the Exploitation Permit application in early April 2019, the Company has been working closely with La Direction Nationale de la Géologie et des Mines (DNGM) to ensure that all technical and regulatory requirements have been met. This included a presentation on the project to the DNGM leadership and technical team in late April 2019..... The Company understands that the approval processis well advanced, however cannot say when the final approval will be received.
On July 11, Mali Lithium Limited announced: "Lycopodium appointed to complete Definitive Feasibility Study for Goulamina Lithium Project."
Millennial has tenements at the Pastos Grande Lithium Project and the Cauchari East Lithium Project, in Argentina.
Investors can read the latest company presentation here, and an excellent video here. My CEO interview is available on Trend Investing here.
On July 12, AVZ Minerals announced: "Vesting and lapsing of performance rights. AVZ Minerals Limited advises that 13,950,000 performance rights have vested after achieving the following milestones."
On July 9, ioneer Ltd. announced: "Rhyolite Ridge pilot plant produces first high-purity boric acid." Highlights Include:
Argosy has an interest in the Rincon Lithium Project in Argentina, targeting a fast-track development strategy.
On July 5, Argosy Minerals announced: "Lithium carbonate production operations commenced at Rincon." Highlights include:
Funding arrangement and potential strategic partnership with CEZ. European Metals Holdings Limited is pleased to announce that CEZ Group (“CEZ”), one of Central and Eastern Europe’s largest power utilities, has today conditionally agreed to provide a EUR 2 million finance facility by way of a convertible loan. CEZ is currently conducting due diligence on the Company and Project. The successful outcome of the due diligence process could see CEZ become European Metals’ largest shareholder and co-development partner for the Cinovec Lithium/Tin Project through conversion of the convertible note and subsequent additional investment. CEZ is one of Europe’s largest power utilities and has an active strategy of advancing energy storage in Europe.
European metals holdings limited grant of options. European Metals Holdings Limited advises the following issue of unlisted options: 200,000 unlisted options, exercise price of 35 cents, expiring 1 January 2021; and, 400,000 unlisted options, exercise price of 48.18 cents, expiring 1 June 2021. The options are being issued to an independent consultant, as per their individual consultancy agreement.
France's Eramet gives go-ahead to lithium project in Argentina. The miner expects to invest 525 million euros ($597 million) in the Centenario deposit with the aim of producing 24,000 tonnes of lithium carbonate equivalent per year in a first phase that could start at the end of 2021. A final investment decision would be made at the earliest in the fourth quarter of this year once financing has been obtained.
Sigma is developing a world class lithium hard rock deposit with exceptional mineralogy at its Grota do Cirilo property in Brazil.
Sigma Lithium Resources Corporation announces voting results from annual and special shareholders meeting.
Wealth Minerals has a portfolio of lithium assets in Chile, such as 46,200 Has at Atacama, 8,700 Has at Laguna Verde, 6,000 Has at Trinity, 10,500 Has at Five Salars.
Wealth strengthens board and team with new appointments, arranges $266,060 loan, amends previous loans and grants stock options.
Plateau Energy Metals Inc. (formerly Plateau Uranium) is a Canadian lithium and uranium exploration and development company focused on its properties on the Macusani Plateau in southeastern Peru.
Plateau Energy Metals announces successful metallurgical program results at its Falchani Lithium Project. Extensive metallurgy program demonstrates the potential to produce a high purity (99.74% – 99.82%) lithium carbonate product. Trade-off study completed, PEA in focus.
Cypress Development and Lilac Solutions demonstrate high lithium recoveries from Clayton Valley Project in Nevada.....Lilac Solutions is a lithium extraction technology company based in Oakland, California. Cypress’ Clayton Valley Project is located 215 miles southeast of Reno, Nevada and features a large clay-hosted lithium deposit with 3.8 million tonnes of lithium carbonate equivalent in a NI 43-101 Indicated Resource category.
Piedmont Lithium state they are "the only US lithium spodumene project", with their 100%-owned Piedmont Lithium project in North Carolina. The company has already identified a 4+ kilometers of strike length in Phase 1 drilling.
Institutional placement to raise a $21million. Piedmont Lithium Limited is pleased to announce that it has received commitments to place 145 million shares at an issue price of A$0.145 per share to institutional investors to raise gross proceeds of A$21million (“Placement”). The Placement was led by cornerstone investor, Fidelity International (“Fidelity”), a global asset manager. Fidelity will subscribe for 74million shares and will become a substantial shareholder of the Company. Mr. Keith Phillips, President and CEO, said: “Securing these funds will allow us to maintain our ambitious development timetable for what we believe to be the world’s most strategically located lithium project.”
On July 17, Piedmont Lithium announced: "Outstanding PFS-level metallurgical results." Highlights include:
Frontier Lithium own the PAK Lithium (spodumene) Project comprising 6,976 hectares and located 175 kilometers north of Red Lake in northwestern Ontario. The PAK deposit is a lithium-cesium-tantalum (LCT) type pegmatite containing high-purity, technical-grade spodumene (below 0.1% iron oxide).
Frontier Lithium commences Phase II drill program on the Electric Avenue at the Spark Pegmatite......The Phase II drill program builds on the results of the maiden drill program which included drill hole #38 that intersected 215m of pegmatite averaging 1.4% Li2O, including 62.0m of 1.81% Li2O.
On July 5 Liontown Resources announced: "Junior minerals exploration incentive-successful application for 2019/2020 year."
Kathleen Valley Lithium Resource jumps 353% to 74.9Mt. New Measured, Indicated and Inferred Mineral Resource estimate for Liontown’s 100%-owned Kathleen Valley Lithium-Tantalum Project in WA: 74.9Mt @ 1.3% Li2O and 140ppm Ta2O5 (see Table 1 for cut offs applied). Containing 0.97Mt of Li2O or 2.5Mt of lithium carbonate equivalent (LCE) and 23Mlbs of Ta2O5.
Strong initial assays from resource definition drilling at Buldania extend mineralised trend to 1.4km.
Liontown acquires Buldania Royalty from Westgold Resources. Acquisition consolidates Liontown’s ownership of emerging WA lithium project. Liontown Resources Ltd is pleased to advise that it has signed a formal sale agreement with Westgold Resources Limited to acquire the revenue and production royalties relating to lithium and related minerals over its 100%-owned Buldania Lithium Project in WA.
Other juniors include: ABE Resources [TSXVABE] [GR:1AJ2] (OTCQB:ABEPF), AIS Resources [TSXV:AIS] (OTCQB:AISSF), Ardiden [ASX:ADV], American Lithium Corp. [TSX-V: LI] (OTCQB:LIACF), Anson Resources [ASX:ASN] [GR:9MY], Argentina Lithium and Energy Corp. [TSXV: LIT] (OTCQB: OTCQB:PNXLF), Avalon Advanced Materials [TSX:AVL] [GR:OU5] (OTCQX:AVLNF), Far Resources [CSE:FAT] (OTCPK:FRRSF), Force Commodities [ASX:4CE], Hannans Ltd [ASX:HNR], Iconic Minerals [TSXV:ICM] [FSE:YQGB] (OTCPK:BVTEF), Infinity Lithium [ASX:INF], Kodal Minerals (LSE-AIM: KOD), Lake Resources [ASX:LKE] [GR:LK1], Latin Resources Ltd [ASX: LRS] (OTC:LAXXF), Lithium Australia [ASX:LIT] (OTC:LMMFF), Lithium Chile Inc. [TSXV:LITH][GR:KC3] (OTCQB:LTMCF), Lithium Energi Exploration Inc. (TSXV:OTC:LEXI) (OTC:LXENF), MetalsTech [ASX:MTC], MGX Minerals [CSE:XMG] (OTC:MGXMF), Noram Ventures [TSXV: NRM], NRG Metals Inc. [TSXV:NGZ] (OTCQB:NRGMF), One World Lithium [CSE:OWLI] (OTC:OWRDF), Portofino Resources Inc.[TSXV:POR] [GR:POT], Prospect Resources [ASX:PSC], Pure Energy Minerals [TSXV:PE] (OTCQB:PEMIF), Rock Tech Lithium [CVE:RCK], Savannah Resources [LSE:SAV] (GR:AFM], and Standard Lithium [TSXV:SLL] (OTC:STLHF).
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Disclosure: I am/we are long NYSE:ALB, JIANGXI GANFENG LITHIUM [SHE: 2460], JIANGXI GANFENG LITHIUM [HK: 1772], SQM (NYSE:SQM), ASX:ORE, ASX:GXY, ASX:PLS, ASX:AJM, AMS:AMG, TSX:LAC, TSXV:NLC, ASX:AVZ, ASX:NMT, ASX:CXO, TSXV:PLU, TSXV:CYP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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