Part of the Stock Digest group of websites: Visit Tech Stock Digest  

 

 

"Advantage Lithium: Leading Lithium Junior Built to Last" 

2017 has started with a plethora of news on the lithium front. On January 4, 2016, Tesla announced that the long-awaited gigafactory in Nevada has been activated. As Bloomberg reported:

The start of mass production is a huge milestone in Tesla’s quest to electrify transportation, and it brings to America a manufacturing industry—battery cells—that’s long been dominated by China, Japan, and South Korea. More than 2,900 people are already working at the 4.9 million square-foot facility,  and another 4,000 jobs (including temporary construction work) will be added this year through the partnership between Tesla and Panasonic.

By 2018, the Gigafactory, which is less than a third complete, will double the world’s production capacity for lithium-ion batteries and employ 6,500 full-time Reno-based workers, according to a new hiring forecast from Tesla. The company’s shares, having touched their highest point since August, closed up $10 at $226.99 in New York trading. 

On January 5, 2016 Ford announced plans at CES to build a range of new electric and hybrid-electric vehicles, revealing plans for seven of its total 13 planned electric cars set for arrival in the next five years. These include a brand-new, fully electric small SUV, and a new fully autonomous car that will be the basis of its new electric ride-hailing fleet, with a target debut date of 2021.

The new Ford vehicles will be built at the carmaker’s Flat Rock, Michigan plant, as part of a planned expansion of that facility with a $700 million investment. Ford also announced specific plans for its autonomous vehicle fleet saying it’s targeting “high-volume” production.

The announcement from Ford is one of many and a clear indicator that companies with clear differentiators that can execute their business plan in the graphite, cobalt and lithium space, may be able to deliver big gains to shareholders positioned correctly.

Advantage Lithium Corp. (TSX-V: AAL) “Advantage” was created June 2016 to combine technical prowess with capital markets expertise and acquire and develop lithium projects in proven camps in the Americas. In six months, the company has assembled an international portfolio of projects, has hit strong, wide intercepts of lithium brines in the Clayton Valley, Nevada (adjacent to Albemarle’s Silver Peak lithium operation) and announced a major deal with Orocobre (TSX:ORL)— one of Argentina’s leading lithium producers. Further drill programs are planned for Cauchari (Argentina) and Clayton NE (Nevada) in Q1, 2017.

Advantage has an award-winning team that includes company builders and end-to-end technical excellence in the mining and metals sector. Between them, the team has raised over CDN $434M for their previous three deals and made international headlines with their technical prowess. The team’s major awards include: Order of BC (Government of British Columbia), Finance Monthly’s Deal Maker of the Year, The Northern Miner’s Mining Persons of the Year, PDAC’s Bill Dennis Award and The Mining Journal’s Exploration Project of the Year.

The company is strategically positioned in Nevada and Argentina and benefits from significant infrastructure at both from producers Albemarle and JV partner Orocobre.

The flagship asset -- Cauchari -- came about as a result of the deal with Orocobre. A deal many companies were looking to make but one that ultimately was negotiated by Advantage. Below are the main takeaways from Cauchari: 

Cauchari—the Flagship Asset
• Near-surface, inferred resource. Cauchari hosts inferred resource of 470,000 tonnes of lithium carbonate equivalent (LCE) and 1.62 million tonnes of potash (KCL) from the combined northern and southern resource (from 230 million cubic metres of brine at ~380 mg/l Li and 3,700 mg/l K.
• Large exploration target. Drilling on property and resource definition on neighbouring properties strongly suggests the lithium brines are open at depth and laterally. Key target defined: 0.25 to 5.6 mt of lithium carbonate and 0.9 mt to 16 mt of potash (KCl).1
• Upcoming drill program. Fully-permitted, five hole drill program planned for as early as Feb, 2017
• Low development costs. Low CAPEX anticipated due to Orocobre’s nearby Olaroz facility and established infrastructure,
including roads, gas pipe line, and power.
• Partnership. Advantage can leverage Orocobre’s strong relationships with government and communities.
• Ability to fast-track development. Infrastructure is in place, brine chemistry has been tested and found to be the same
as chemistry Olaroz, Olaroz facility is close by, government and community relations are strong.

The company is in the process of raising US$12-15 million, has ongoing drilling in Nevada and is preparing to drill in Argentina in Q1 of 2017. If the company is able to execute -- as it has before -- today's price levels will be seen as a bargain. 

 

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

MARKET SUMMARY

INDICES

Name Last Change
DOW 23358.20 0.43%
S&P 500 2578.85 0.26%
NASDAQ 6782.79 0.15%
TSX 15998.57 0.40%
TSX-V 799.35 0.00%

Resource Commodities

Name Last Change
Gold 1294.20 1.20%
Silver 17.31 1.33%
Copper 3.06 0.62%
Platinum 952.00 1.56%
Oil 56.55 2.49%
Natural Gas 3.10 1.42%
Uranium 24.25 N/A
Zinc 1.45 0.00%

@RSDigest ON TWITTER

Part of the Stock Digest family of websites
Small Cap Stock Digest