Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

Albemarle (NYSE:ALB) Could Be Targeting These Nevada Lithium Juniors

Albemarle (NYSE:ALB) Could Be Targeting These Nevada Lithium Juniors

Tesla’s Gigafactory in Nevada, the world’s largest lithium battery plant, will require about 24,000 tonnes of lithium hydroxide annually, according to Benchmark Mineral Intelligence. To put that into perspective, in 2014, 50,000 tonnes of lithium hydroxide was consumed globally. Tesla’s desire would be to source this lithium locally, but Albemarle’s Silver Peak mine is the only producing lithium mine operating in the United States, with output of about 6,000 metric tons of lithium carbonate equivalent per year. Thus, for Albemarle to try and meet this potential demand from Tesla it would have to acquire additional supply, which could come from the juniors on our list.

Lithium X Energy Corp. (TSXV: LIX): Lithium X would likely be a priority target for Albemarle if, for no other reason, that it has an option to become the largest claims holder in Nevada’s Clayton Valley with over 15,020 acres (6,078 hectares). Its Nevada properties are also directly north and south of Albemarle’s lithium mining operation. Lithium X announced recently that it has begun the Phase 1 exploration drill program at its Clayton Valley North Lithium Project.

Nevada Sunrise Gold Corporation (TSXV: NEV): Nevada Sunrise has an option to acquire properties in the Clayton Valley that border Albemarle to the northeast as well as Lithium X to the southwest. Nevada Sunrise’s most valuable asset currently, though, could be its option to purchase water rights in the Clayton Valley, which would allow for 1,770 acre/feet of water use for mining and milling per year. On August 29, 2016, Nevada Sunrise announced that it had completed an agreement with Advantage Lithium Corp. (see company description below), whereby Advantage can earn working interests in five of Nevada Sunrise’s lithium exploration projects located in Esmeralda County, Nevada, by incurring C$3.0 million in exploration expenditures. Advantage will also be granted an option to acquire State of Nevada water right Permit 44411. In return, Nevada Sunrise Gold will receive C$600,000 in cash as well as 2,071,447 shares of Advantage.

Albemarle filed an official protest of Nevada Sunrise’s water rights option with the Nevada Division of Water Resources back in April and, depending on the outcome it might be easier for to Albemarle just to acquire this C$13 million market cap company.

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