An Exciting Time For Lithium
Jeb Handwerger | Jul 14, 2017 02:07AM ET
Its a very exciting time for the lithium sector as electric cars become the new luxury vehicle. Tesla (NASDAQ:TSLA) has released a model that is more economically suitable for a middle class lifestyle with the Model 3.
Keep a close eye on Bearing Lithium Corp (V:BRZ) who may soon have a major position in possibly the highest grade undeveloped lithium brine asset in the world. Its close to double the grade of the top lithium projects in Argentina.
So the question is why is Bearing Lithium so cheap if they could soon own a piece of the top development project in the most exciting commodity?
Bearing is in the process of a complex cross border merger with Lithium Consolidated Mineral Exploration Ltd (AX:LI3) which they expect to close by the end of the summer. Once that is done I expect the many who are waiting on the sideline to enter. Remember having a high grade salar like this can possibly make a huge difference with capex as you have to move less waste.
There has been so much money invested in this project already around $25 million. Bearing should be fully carried through feasibility. This means minimal dilution for existing shareholders.
Bearing just released an updated JORC resource estimate from the Maricunga Project in Chile which demonstrated that it is one of the highest grade undeveloped lithium brine projects in the world. The resource has tripled in size nevertheless the high grades are maintained. The new resource could be just a starting point as they move closer to feasibility in the first half of 2018. Flow rate tests showed that extraction by pumping is strong.
Bearing Lithium CEO Jeremy Poirier stated in the news release,
“We are extremely pleased with the updated JORC resource estimate completed by the Maricunga joint venture under the direction of the project operator, Minera Salar Blanco (MSB). This resource estimate demonstrates the true potential of this world-class project. The results have significantly increased the size of the resource, confirmed the grade, and demonstrated the continued existence of exploration potential. M&I grades of 1,100 mg/L Li and Inferred grades of 1,300 mg/L Li rank Maricunga as the highest-grade pre-production lithium brine project worldwide. Development activities remain on schedule with process test work, preliminary engineering and design advancing towards a Pre-Feasibility Study (PFS) anticipated later this year and a Definitive Feasibility Study (DFS) in H1/18,”
Get The News You Want
I expect Chile to possibly make some moves that promotes lithium development. Its a strategic metals in Chile and Albemarle was granted the right to expand their operation. Bearing has grandfathered concessions which could hopefully help them start processing lithium.
In addition to having this world class asset they also have a CEO who founded Pure Energy (V:PE) and helped facilitate a deal with Tesla. Bearing’s VP Corp Dev used to be an analyst for lithium at Haywood so that means he could probably open some doors at some big funds.
The CEO and Chairman of Li3 is on the Board of Bearing in advance of closing the cross border merger so that is a huge vote of confidence. Financially, Bearing has around $2 million CAD in the bank and treasury should be growing with in the money warrants. The stock is breaking out and bouncing off the 50 DMA. This may be what some technicians call a secondary accumulation opportunity from its initial run up to $1.80.
Disclosure: I have a conflict of interest as I own Bearing and they are a website sponsor which means I have been compensated. That makes me biased. This should be considered an advertisement with forward looking statements which may not come to fruition as small cap investing is incredibly risky. I may buy and/or sell at anytime. Do your own due diligence as this is not financial advice. I am not a registered financial advisor. I may buy/sell shares in these stocks at any time. Please be aware.
Section 17(b) provides that: “It shall be unlawful for any person, by the use of any means or instruments of transportation or communication in interstate commerce or by the use of the mails, to publish, give publicity to, or circulate any notice, circular, advertisement, newspaper, article, letter, investment service, or communication, which, though not purporting to offer a security for sale, describes such security for a consideration received or to be received, directly or indirectly, from an issuer, underwriter, or dealer, without fully disclosing the receipt, whether past or prospective, of such consideration and the amount thereof.”
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.