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General Market Commentary
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General Energy
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General Market Commentary
Brien Lundin on Leading Edge Materials (TSX-V: LEM)
Leading Edge Materials
LEM.V; LEMIF.OB
604-685-9316
With plans for a battery “gigafactory” in the works for Sweden, Leading Edge Materials has focused its efforts on being part of the supply chain for that factory.
The latest move in that effort is the acquisition of the Rotmyran lithium project. Located 20 kilometers north of its Bergby project in Sweden, Rotmyran shares geological similarities to Bergby and is situated near infrastructure.
With drilling uncovering high-grade lithium at Bergby, the company is hopeful that this new project can add to its lithium portfolio. The 1,019-hectare property hosts features that are highly prospective for lithium-cesium-tantalum pegmatites.
On the graphite side, the company recently released test results from lithium ion battery cells made at its Woxna mine and processing facility, which is also in Sweden. The production of 18650 format cells has allowed Leading Edge to test the performance of Woxna’s graphite in these cells.
The initial results indicate the Woxna graphite can, indeed, produce “industry standard” batteries similar to those produced by Panasonic. The next steps are to further test performance and to produce more 18650 battery cells.
To help fund this and other work, Leading Edge recently closed on a C$2 million private placement. The financing raised these funds by issuing 3,636,364 units priced at C$0.55 per unit. Each unit consists of one common share and one purchase warrant, redeemable at C$0.80 a share for a period of three years.
The company’s ability to access capital is an indication of the strong investor interest that currently exists in companies serving the battery supply chain. With demand for electric vehicles poised to expand exponentially in the next decade, the market is scouring the globe for ways to capitalize on this trend.
As a Europe-based producer of battery metals, Leading Edge Materials is a smart, leveraged way to play this trend and a key hold in our portfolio.
Leading Edge Materials Corp.
Recent Share Price:................C$0.53
Shares Outstanding:.......80.0 million
Market Cap:..............C$42.4 million
Shares Outstanding
Fully Diluted:.................90.0 million
Market Cap
Fully Diluted:............C$47.7 million
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