Lithium

Critical Elements Lithium Corporation (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) ("Critical Elements" or the "Corporation") is pleased to announce results of a new Feasibility Study on the Rose Lithium-Tantalum project ("Rose" or the "Project") in Eeyou-Istchee - James Bay, Québec. Unless otherwise stated, all figures are quoted in American dollars ("US$") and are reported on a 100% equity project basis

Highlights

  • Average production, Year 2 to Year 16 of 173,317 tonnes of chemical grade 5.5% spodumene concentrate
  • Average production, Year 2 to Year 16 of 51,369 tonnes of technical grade 6.0% spodumene concentrate
  • Average production, Year 2 to Year 16 of 441 tonnes of tantalum concentrate
  • Expected life of mine of 17 years
  • Average operating costs of US$74.48 per tonne milled, US$540 per tonne of concentrate (all concentrate production combined)
  • Estimated initial capital cost $US$357 million before working capital
  • 100% equity basis for project
  • Average gross margin of 68.3%
  • After-tax NPV of US$1,915 million (at 8% discount rate), after-tax IRR of 82.4% and average price assumptions of US$4,039 per tonne technical grade lithium concentrate, US$1,852 per tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide (Ta2O5)
  • Anticipated construction time to start of production of 21 months

The Rose Lithium-Tantalum Project is 100% owned by Critical Elements. The Corporation's market strategy is to enter the lithium market with a low-risk approach. The completion of the feasibility on the spodumene plant is the first step to enter the market and establish the Corporation as a reliable high quality lithium supplier. The low-risk approach is characterized by simple open-pit mining and conventional lithium processing technologies.

Critical Elements has consistently sought to advance the wholly owned Rose Lithium-Tantalum Project in a low-risk manner. To this end, the Corporation has completed a new Feasibility Study with a conservative spodumene concentrate price deck, as well as capital and operating cost estimates reflective of current market conditions. The new Feasibility Study incorporates a standard truck and shovel open-pit mining operation and conventional lithium processing technologies. The Project will produce technical grade spodumene concentrate for the glass and ceramics industry and chemical grade spodumene concentrate for conversion for use in batteries for e-mobility, as well as a tantalite concentrate.

The mine will excavate a total of 26.3M tonnes ore grading an average of 0.87% Li2O and 138 ppm Ta2O5 after dilution. The mill will process 1.61M tonnes of ore per year to produce an annual average of 224,686 tonnes of technical and chemical grade spodumene concentrates and 441 tonnes of tantalite concentrate. The ore is contained in several parallel and continuous shallow dipping pegmatite dykes outcropping on surface. The ore zones are open at depth and a future underground operation is possible.

Over the life of mine, the open pit will excavate a total of 182.4M tonnes of waste rock and 10.9 M tonnes of overburden. The average strip ratio is 7.3 tonnes of waste per tonne of ore.

Table 1 Rose Key FS Results

Item

Units

Value

Production

Project life (from start of construction to closure)

years

19

Mine life

years

17

Total mill feed tonnage

M t

26.3

Average mill feed grade

Li2O

% Li2O

0.87

Ta2O5

ppm Ta2O5

138

Lithium Concentrate Production

% of Production, Chemical Grade

%

75

% of Production, Technical Grade

%

25

Mill recoveries

Li2O, Chemical Grade

%

90

Li2O, Technical Grade

%

87

Ta2O5

%

40

Payable

5.5% Li2O Concentrate, Chemical Grade

t

2,798,000

6% Li2O Concentrate, Technical Grade

t

829,000

Ta2O5 contained in concentrate

kg

1,453,000

Average Commodity Prices

5.5% Li2O Concentrate, Chemical Grade

US$/t conc.

1,852

6% Li2O Concentrate, Technical Grade

US$/t conc.

4,039

Ta2O5 contained in concentrate

US$/kg contained

130

Exchange rate

1 US$ : 1.30 CAN$

0.77 US$ : 1 CAN$

Item

Units

Value

Project Costs

CA$

US$

Average Mining Cost

$/t milled

37.89

29.17

Average Milling Cost

$/t milled

19.88

15.31

Average General & Administrative Cost

$/t milled

20.30

15.63

Average Concentrate Transport Costs

$/t milled

18.66

14.37

Project Economics

CA$

US$

Gross Revenue

$M

10,855

8,358

Total Selling Cost Estimate

$M

236

182

Total Operating Cost Estimate

$M

2,543

1,958

Total Sustaining Capital Cost Estimate

$M

160

123

Total Capital Cost Estimate

$M

464

357

Duties and Taxes

$M

3,098

2,386

Average Annual EBITDA

$M

493

379

Pre-Tax Cash Flow

$M

7,452

5,738

After-Tax Cash Flow

$M

4,354

3,352

Effective Tax Rate

42%

Discount Rate*

8%

Pre-Tax Net Present Value @ 8%

$M

4,368

3,363

Pre-Tax Internal Rate of Return

125.0%

Pre-Tax Payback Period

years

1.0

After-Tax Net Present Value @ 8%

$M

2,487

1,915

After-Tax Internal Rate of Return

82.4%

After-Tax payback period

years

1.4

*Discounting starts with commercial production.

Property

The Rose property is located in northern Québec's administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the Traditional Lands of the Eastmain Community, approximately 40 kilometers north of the Cree village of Nemaska. The latter is located approximately 300km north-west of Chibougamau.

The Rose property is accessible by road via the Route du Nord, usable all year round from Chibougamau. The mine site can also be reached by Matagami, via Route 109 and Route du Nord. Figure 1 shows the regional location of the project. The project is located 80 km south of Goldcorp's Éléonore gold mine and 45 km north-west of Nemaska's Whabouchi lithium project and 20 km south of Hydro Québec's Eastmain 1 hydroelectricity generating plant. The Nemiscau airport services the region's air travel needs. The Rose property site is located 50 km by road from the Nemiscau airport.

The Rose property comprises 473 claims spread over a 24,654-ha area. Geologically, the Rose property is located at the north-east end of the Archean Lake Superior Province of the Canadian Shield.

Over the life of mine, the open pit will excavate a total of 182.4M tonnes of waste rock and 10.9 M tonnes of overburden. The average strip ratio is 7.3 tonnes of waste per tonne of ore.

Figure 1 Rose Property Location

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Reserve Estimate

A Mineral Reserve Estimate for 17 mineralized zones was prepared during this study. The estimation assumed the production of a chemical grade spodumene concentrate with a price of 20 US$ per kg Li2O and a tantalite concentrate with a price of 130 US$ per Kg of Ta2O5. The recoveries were fixed at 85% and 64% for Li and Ta respectively. The grade-recovery curve used for resource estimate, which became available after the mineral reserves were evaluated, was verified and found to have little influence on the reserve estimate. The production of a higher value technical grade spodumene concentrate was not assumed in the reserve estimate.

Based on compilation status, metal price parameters, and metallurgical recovery inputs, the effective date of the estimate is May 27, 2022.

The estimate was prepared in accordance with CIM's standards and guidelines for reporting mineral resources and reserves.

Table 2 displays the results of the Mineral Reserve Estimate for the Rose Project at the $36.92 NSR per tonne cut-off for the open-pit scenario.

Table 2 Mineral Reserve Estimate

Tonnage

NSR

Li2O_eq

Li2O

Li2O

Ta2O5

Ta2O5

Category

(Mt)

($)

(%)

(%)

(000 t)

(ppm)

(000 t)

Probable

26.3

204

0.92

0.87

193.8

138

2.3

Total

26.3

204

0.92

0.87

193.8

138

2.3

  • The Independent and Qualified Person for the Mineral Reserve Estimate, as defined by NI 43‑101, is Simon Boudreau, P.Eng, of InnovExplo Inc. The effective date of the estimate is May 27, 2022.
  • The model includes 17 mineralized zones.
  • Calculations used metric units (metres, tonnes and ppm).
  • The number of metric tons was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. Rounding followed the recommendations in NI 43‑101.
  • InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Reserve Estimate.

Resource Estimate ("MRE")

The current MRE is primarily based on changes made to the net smelter return ("NSR") parameters, supported by new assumptions concerning metal prices and the creation of potentially mineable shape to constrain the MRE for the potential underground extraction scenario. No changes to the interpretation and interpolation parameters were deemed necessary. The mineral resource model for the current MRE is based largely upon the model generated for the 2011 PEA.

The effective date of the estimate is May 27th, 2022, based on compilation status, metal price parameters, metallurgical recovery inputs and creation of the constraining volume.

Given the density of the processed data, the search ellipse criteria, the drill hole density and the specific interpolation parameters, the QP is of the opinion that the current MRE can be classified as Indicated and Inferred resources. The estimate was prepared in accordance with CIM's standards and guidelines for reporting mineral resources and reserves.

Table 3 displays the results of the MRE for the Rose Project using $31.4 NSR/t cut-off for the open-pit potential extraction scenario and and $121.12 NSR cut-off for the underground potential extraction scenario.

Table 3 Mineral Resource Estimate

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture
  • The Independent and Qualified Person for the Mineral Resource Estimate, as defined by NI 43‑101, is Carl Pelletier, P.Geo., of InnovExplo Inc. The effective date of the estimate is May 27, 2022. The MRE follow 2014 CIM Definition Standards and the 2019 CIM MRMR Best Practice Guidelines.
  • These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
  • The model includes 23 mineralized zones.
  • The reasonable prospect for eventual economic extraction is met by having constraining volumes applied to any blocks (potential open -pit or underground extraction scenario) using Whittle and the Deswik Stope Optimizer (DSO) and by the application of cut-off grades. The mineral resource is reported at a cut-off of $31.4 NSR for the open-pit potential; and of $121.12 NSR for the underground potential based on market conditions (metal price, exchange rate and production cost).
  • A range of densities was used on a per-zone basis based on statistical analysis of all available data.
  • A minimum true thickness of 2.0 metres was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.
  • High grade capping was done on raw assay data based on the statistical analyses of individual mineralized zones.
  • Compositing was done on drill hole intercepts falling within mineralized zones (composite lengths vary from 1.5 m to 3 m in order to distribute the tails adequately).
  • Resources were evaluated from drill holes using a 2-pass OK interpolation method in a block model (block size = 5 m x 5 m x 5 m).
  • The inferred category is only defined within the areas where blocks were interpolated during pass 1 or pass 2 where continuity is sufficient to avoid isolated blocks being interpolated by only one drill hole. The indicated category is only defined by blocks interpolated by a minimum of two drill holes in areas where the maximum distance to the closest drill hole composite is less than 40 metres for blocks interpolated in pass 1.
  • Results are presented in-situ. The number of metric tons was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects. Rounding followed the recommendations in NI 43‑101.
  • The qualified persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue, that could materially affect the potential development of mineral resources other than those discussed in the MRE.

Feasibility Study

The parameters used for the feasibility study are the following:

  • Open pit mining rate of 1,610,000 tpy
  • Spodumene process plant with a 4,600 tpd capacity

Mining Operation

The mineralization is hosted within outcropping pegmatite dykes subparallel to surface. The ore body is relatively flat, close to surface and comprised of north oriented stacked lenses. Mineralization recognized to date on the Rose property includes rare element of Lithium-Cesium-Tantalum or LCT-type pegmatites and molybdenum occurrences.

A conventional truck and shovel open-pit approach was considered to mine the Rose Lithium-Tantalum Project's Probable Mineral Reserves. The dimensions of the engineered pit design are approximately 1,620m long x 900m wide x 220m deep.

The life of mine plan (LOM) proposes to mine 26.3 Mt of ore, 182.4 Mt of waste, and 10.9 Mt of overburden for a total of 219.6 Mt of material. The average stripping ratio is 7.3 tonnes of waste per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day and 350 operating days per year.

The mining operation production rate is set to approximately 15 Mt of material per year. An open pit mining schedule was planned and resulted in a mine life of 17 years.

Contract mining will be used for the removal of the overburden while Critical Elements will undertake the mining of all hard rock material with its own equipment fleet and operators.

The main production fleet will consist of one (1) backhoe excavator, one (1) electric front shovel, one (1) wheel loader, seven (7) haul trucks (65t), seven (7) haul trucks (135t), two (2) rotary drills, one (1) DTH drill, two (2) bulldozers, one (1) wheel dozer, two (2) graders, one (1) auxiliary excavator, one (1) auxiliary wheel loader, and two (2) water trucks.

The Rose project pit was designed with a 10m single benching arrangement. A 57° inter-ramp angle and an overall pit slope angle of 55° were utilized for the ultimate pit design. A berm width of 7.0m corresponding to the recommended overall slope angle was used. The pit slopes in overburden have a face ratio of 2.5:1 with a 10m berm width.

The main in-pit haulage ramp is designed at 30.9m wide to allow a double-lane traffic, except for the last benches at the pit bottom that are designed at 20.4m wide for single lane traffic. A 2m drainage ditch is included to allow for water drainage and pipe installation. The maximum gradient of the inner curvature of all ramp segments is 10%.

Figure 2 Rose Pit Plan View

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Figure 3 Rose Pit Side View Looking West

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Mineral Processing

A standard froth flotation process will be utilized to produce technical grade and chemical grade lithium concentrates and a tantalum concentrate. The mineral process plant will consist of crushing, beneficiation, and dewatering areas. The technical grade lithium concentrate will grade 6.0% Li2O while the chemical grade lithium concentrate will grade 5.5% Li2O. The tantalum concentrate will grade 20% Ta2O5.

The beneficiation process includes crushing, grinding, magnetic separation and flotation. The crushing circuit will consist of a jaw crusher and two (secondary and tertiary) cone crushers, and screens. The crushed ore will have a P80 of 13 mm and will be stockpiled in a 9,200-tonne capacity dome; this is sufficient for approximately two days of mill operation. The grinding circuit will consist of a ball mill operating in a closed circuit and a two-stage cyclone cluster. The tantalum will first be recovered at a grade of 2.0% Ta2O5 by high intensity magnetic separation then upgraded further to 20.0% Ta2O5 by gravity separation. The lithium flotation circuit will include removal of slimes after magnetic separation followed by mica flotation, scrubbing, and spodumene flotation to the required grade. The lithium flotation circuit will remove slimes, separate mica, and purify the lithium to the required grade. The spodumene concentrate will then be thickened, vacuum filtered, dried to 1% moisture, and stored in 1500-tonne silo from where it can be bulk loaded into trucks. The tailings will be thickened, vacuum filtered to 15% moisture or less, and trucked to the waste rock / tailings piles where it will be dry stacked.

The spodumene plant will operate 24 hours per day, 7 days per week, and 52 weeks per year. The process plant was designed with an operating availability of 90%. The crushing circuit was designed using an operating availability of 50%. The concentrator capacity has been established at a nominal throughput rate of 4 900 dry tonnes per day. The plant has a capacity of 1,610,000 per year.

The process plant flowsheet developed by Bumigeme Inc. is presented in Figure 4.

Figure 4 Rose Process Flowsheet

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Metallurgy

Bench scale metallurgical testing was performed at ACME Metallurgical Limited in Vancouver in 2011. The results from these tests were used for the PEA study. Three composites; the Rose (main structure), the Rose Sud-Est (Southeast structure) and Tantalum (secondary structure with higher tantalum and lower lithium content) were subjected to various metallurgical tests.

SGS Canada Inc. in Lakefield conducted tests from 2013 to 2015 to improve lithium and tantalum recoveries. In 2015 SGS Canada Inc. developed a conceptual flowsheet based on a series of bench scale tests on various samples from the Rose deposit. The proposed flowsheet consists of conventional three-stage crushing and single stage grinding followed by magnetic separation for the recovery of tantalum, mica flotation, and spodumene flotation. This flowsheet was the basis of the process plant design.

SGS Canada also conducted a pilot plant program in early 2017 on two samples from the Rose project (Rose and Rose South). The main objective of the pilot plant program was to generate spodumene concentrate for testing in a lithium carbonate pilot plant which was conducted by Outotec in Germany and Finland. Secondary objectives were to prove metallurgical performance on a continuous pilot scale and to generate metallurgical and operating data for further studies. The spodumene pilot plant demonstrated the robustness of the design process.

The Feasibility Study assumes 87.3% and 90% recovery for technical and chemical grade lithium concentrates respectively and 40% minimum recovery for the tantalum concentrate.

Process water will be recycled releasing minimal amounts to the equalization pond and final effluent treatment plant.

Environmental and Social Impact Assessment

The final environmental impact assessment (EIA) was submitted to the governments of Canada and Quebec in February 2019. CELC has answered a series of questions from both government bodies (COMEX and CEAA). In August 2021, Critical Elements announced that the Federal Minister of Environment and Climate Change had rendered a favorable decision in respect of the proposed Rose Project. In a Decision Statement, which included the conditions to be complied with by the Corporation, the Minister confirmed that the Project is not likely to cause significant adverse environmental effects when mitigation measures are taken into account.

The final remaining step in the Rose Project's approval process is the completion of the provincial permitting process, which runs parallel to the federal process. Pursuant to the James Bay and Northern Quebec Agreement (JBNQA), the provincial environmental assessment is conducted jointly by the Cree Nation Government and the Government of Quebec under the Environmental and Social Impact Review Committee ("COMEX"). The provincial assessment is already well advanced and has undergone several rounds of questions from COMEX and answered by Critical Elements in the normal course of the assessment process. At this time, Critical Elements has received no further questions from COMEX and remains confident in a positive outcome given the stated support for lithium project development in the Province of Québec.

Critical Elements has been working since the beginning with the Eastmain Community, on whose lands the Project lies. The Corporation has also maintained good relations with the Grand Council of the Cree and with the neighbouring Nation of Nemaska. Consultations have been ongoing and are planned throughout the life of the Project. In 2019, Critical Elements entered into an impact and benefits agreement with the Cree Nation of Eastmain, the Grand Council of the Cree (Eeyou Istchee), and the Cree Nation Government called the Pihkuutaau Agreement.

The Corporation's mine closure and restoration plan was accepted by the Ministry of Energy and Natural Resources of the Province of Québec (MERN) in April 2022.

Infrastructure

The Project infrastructure includes site main access, services and haulage roads, explosive and detonator storage, a spodumene processing plant, a maintenance facility, a warehouse, diesel and gasoline storage, LNG storage and distribution, ore stockpile pad, waste rock and dry tailings stockpile, overburden stockpile, main electrical substation and distribution, fresh and potable water supply, sewage, surface water management, final effluent treatment, communication system, gate house, and an administrative building.

The mine site layout is shown in Figure 5.

Figure 5 Rose Site Layout

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Waste rock and tailings samples were analyzed at the SGS Canada's laboratory in Lakefield and both were found to be non-acid generating. The dry tailings and the waste rock will be stored in the same facility which has sufficient capacity for the life of mine. Rain and snow melt water will be collected in ditches and pumped to the water treatment plant.

The industrial pad has an area of 296,000 m2 and will contain the process plant, the maintenance facility, warehouse, administration building, diesel and gasoline storage tanks, LNG storage and distribution, and all associated services. LNG will be used for buildings heating and for the drying of the lithium and tantalum concentrates. The ore pad will have a 3.9M tonne capacity where low-grade material may be stored.

The hydrology study has suggested that water inflow to the open pit is to be expected. In order to maximize pit slopes, water wells will be constructed around the pit periphery to lower the water table below the pit floor. One of these wells will be used to supply the mine site with fresh water. Water from the other wells will be directed to sedimentation ponds and treated, if necessary, before being released to the final effluent.

Water from the waste rock / dry tailings stockpile, the open pit, the industrial pad, the overburden stockpile and the roads will be collected in an equalization pond and treated before being released as final effluent.

The mine site will have a 2.7 km main access road from the Eastmain 1 road to the industrial pad. Including the service roads, the site will total 15.8 km of roads.

Electricity will be provided by Hydro-Québec. A 315 kV electrical transport line (L3176), owned by Hydro‑Québec, runs North-South over the eastern side of the Rose Property. It runs over the planned open pit. The portion running over the open pit representing 4.2 km will be rerouted to allow open pit operation.

Figure 6 Power Line at Rose Site

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Capital Costs

The capital and operating costs were estimated in Canadian dollars. An economic analysis was conducted with a discounted cash-flow before and after tax. The initial capital cost is estimated at US$357 M including all infrastructures described earlier with a 10% contingency. The sustaining capital is estimated at US$126 M over the life of mine.

The total payable products are estimated at 2,797,668 tonnes of chemical grade 5.5% Li2O concentrate, 829,198 tonnes of technical grade 6.0% Li2O concentrate, and 7,264 tonnes of 20% Ta2O5 concentrate.

Table 4 Initial Capital and Sustaining Capital Costs

Item

Initial Capital

Sustaining Capital

Initial Capital

Sustaining Capital

M CA$

M CA$

M US$

M US$

Direct Capital Estimate

312.7

118.0

240.8

90.9

Mining

62.8

110.3

48.3

85.0

Power & Electrical

39.3

0.8

30.3

0.6

Infrastructure

40.2

0.0

30.9

0.0

Process plant

153.3

0.0

118.0

0.0

TSF and Water management

17.2

6.9

13.3

5.3

Indirect Capital Estimate

108.6

0.5

83.6

0.4

Administration & Overhead

57.2

0.0

44.1

0.0

Project Development (Studies)

0.4

0.0

0.3

0.0

PCM, Other indirects & Other costs

50.9

0.5

39.2

0.4

Contingency

42.1

11.8

32.4

9.1

Mine Rehabilitation (incl. contingency)

0.0

21.7

0.0

16.7

Mine Rehabilitation Bond & Costs

0.2

8.0

0.2

6.2

Total Capital Estimate

463.7

160.0

357.0

123.2

Operating Costs

The operating costs are estimated at $96.73 US$74.48 per tonne of ore processed which include:

  • Mining - US$29.17 per tonne processed
  • Processing - US$15.31 per tonne processed
  • G&A - US$15.63 per tonne processed
  • Concentrate transportation - US$14.37 per tonne processed

The total operating costs are estimated at US$550/tonne of concentrate after Tantalite Credit, as summarized in Table 5.

Table 5 Operating Costs per Tonne of Concentrate

Item

CA$/t all concentrate

US$/t all concentrate

Mining

274

211

Processing

144

111

General and Administration

147

113

Transportation Concentrate

135

104

Total Operating Costs

701

540

SG&A

35

27

Royalties

30

23

Total Operating Costs (w. SG&A and Royalties)

766

590

Less: Tantalite Credit

52

40

Total Operating Costs (after Tantalite Credit)

714

550

Energy unit costs are CA$0.06 per kWh for electricity, CA$1.70 per litre for diesel, and CA$0.935 per m3 for LNG.

Project Economics

The mine will process 1,610,000 tonnes ore per year grading an average of 0.87% Li2O and 138 ppm Ta2O5 over a period of 17 years. Over the Life of Mine (LoM), the averages for the price assumptions are US$1,852 per tonne and US$4,039 per tonne of chemical grade and technical grade lithium concentrates respectively (FOB port) and US$130 per kg Ta2O5 contained in the tantalum concentrate (FOB mine site).

Figure 7 shows the prices per year for the lithium concentrate products.

Figure 7 Concentrate Selling Price Per Year

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

The pre-tax and after-tax NPV at various discount rates are presented in Table 6.

Table 6 Pre-Tax and After-Tax NPV

Discount Rate*

Pre-Tax

After-Tax

Pre-Tax

After-Tax

M CA$

M CA$

M US$

M US$

NPV @ 0%

$7,452

$4,354

$5,738

$3,352

NPV @ 5%

$5,253

$3,023

$4,045

$2,328

NPV @ 8%

$4,368

$2,487

$3,363

$1,915

NPV @ 10%

$3,896

$2,201

$3,000

$1,695

NPV @ 12%

$3,497

$1,959

$2,693

$1,509

*Discounting commences with commercial production.

The after-tax internal rate of return is 82.4%.

Sensitivity Analysis

The sensitivity of the NPV to exchange rate and chemical grade lithium concentrate price is presented in Table 7.

Table 7 After-Tax NPV Sensitivity to Exchange Rate and Chemical Grade Lithium Concentrate

Exchange Rate

After-Tax NPV 8% Discount Rate - M CA$

Li2O Price - Chemical Grade

-20%

-10%

Base Case

10%

20%

-10%

1475 M CA$

1799 M CA$

2121 M CA$

2443 M CA$

2765 M CA$

Base Case

1771 M CA$

2129 M CA$

2487 M CA$

2844 M CA$

3202 M CA$

10%

2065 M CA$

2459 M CA$

2852 M CA$

3246 M CA$

3639 M CA$

Figures 8 and 9 present the sensitivity of the NPV at 8% discount rate and IRR to prices, Li2O recovery, exchange rate, operating costs, and capital cost. The economics are most sensitive to Li2O price, exchange rate, and Li recovery.

Figure 8 Sensitivity on After-Tax NPV 8%

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Figure 9 Sensitivity on After-Tax IRR

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Lithium Demand Outlook

The future growth of the lithium market will clearly be dominated by e-mobility powered by Li-ion batteries but also increasingly energy storage systems (ESS). With the declining cost of Li-cells, targets for 1 kWh being now very close to 150 US$, they are also becoming attractive for use in private installations combined with increasing use of photovoltaic roof-top electricity generation (PV). For example, in Germany a new regulation demands that for all PV projects exceeding 1MW power generation an energy storage system has to be installed by 2025. This is intended to avoid peak energy stressing the electricity distribution systems, a phenomenon which already pushes European systems to their limits during the summer months and increasingly so with the ongoing addition of new PV systems, be they commercial or private.

In the coming years the major driver of the Lithium demand growth continues to be the electro mobility. The IHS Markit Global Production Forecasts from December 2021 assumes an electric vehicle penetration rate of 22% in 2025 and 39% in 2030. This mainly in combination with the expected growth of average battery size will result in a strong increase of the Lithium demand.

Considering about 100 million new cars per year by 2030, and assuming that 40% of them are BEVs equipped with an average 55-kWh battery, this market segment alone will require in excess of 1.5 million metric tons of LCE. In addition, this does not include other transport segments such as two/three-wheelers, light duty trucks, heavy duty trucks, electric stationary storage (ESS), etc.

Most recently, all major lithium producers as well as the leading market analysts have increased their forecasts significantly. Figure 10 shows the actual demand forecast as well as previous projections from Albemarle.

Figure 10 Lithium Demand Forecast for 2025 and 2030

Critical Elements Lithium Corporation, Monday, June 13, 2022, Press release picture

Lithium Price Outlook

Based on the actual demand forecast, the increased production cost of incumbents and newcomers, the rising quality requirements and more stringent ESG requirements leading to higher capital expenditures, a price higher than 1,500 US$/MT for 6% spodumene concentrate resulting in an approximate price of 22,000 US$/MT of LCE is a prerequisite for putting new projects into production. As the market faces a structural supply deficit for the remainder of this decade, prices are expected to exceed minimum price requirements. Benchmark Minerals and Fastmarkets both reported in Q2 2022 contractual prices exceeding 60 US$/kg for lithium carbonate and lithium hydroxide as well as 5,500 to 6,000 US$/mt for spodumene 6%. Also, suppliers who are able to provide a higher quality chemical grade spodumene yielding lower conversion cost will also be able to achieve higher prices.

The market for technical grade spodumene is a specialty chemicals market, which addresses the specific needs for customers in the glass and ceramics industry. Historically, prices have been reflecting the higher value of iron free spodumene like in lithium carbonate and specific properties of the crystalline material.

Therefore, pricing for technical grade spodumene is directly linked to the lithium oxide content in lithium carbonate.

Ongoing Work

The geotechnical program is being completed.

Front-End Engineering is being conducted and detailed engineering work will follow.

The detailed design of the co-disposal facility for the stacked tailings and pit waste rock is under way.

Report Filing

The Corporation plans to file an NI 43-101 technical report that summarizes the Rose Lithium-Tantalum project on SEDAR (http://www.sedar.com) and on the Corporation's website (http://www.cecorp.ca/en/) within 45 days.

Qualified Persons

The Feasibility Study was prepared in accordance to 43-101 standards by WSP Canada Inc (WSP), Bumigeme inc, and InnovExplo Inc.. InnovExplo Inc was responsible for the resource estimate and the mine plan, Bumigeme Inc was responsible for the mineral processing, WSP was responsible for environmental study, project infrastructure, financial modelling, and report integration. Information regarding the outlook for lithium comes from a market study prepared by Mr. Gerrit Fuelling on behalf of the Corporation. Mr. Fuelling is an independent consultant specializing in the lithium market.

The qualified persons for the study are:

InnoExplo Inc;

  • Carl Pelletier, P.Geo, Geologist
  • Simon Boudreau, P.Eng, Mining Engineer

Bumigeme;

  • Florent Baril, Eng, Metallurgical Engineer

WSP;

  • Eric Poirier, Eng, PMP, Project Manager
  • Rick McBride, P.Eng., Mining Engineer
  • Olivier Joyal, Geologist

About Critical Elements Lithium Corporation

Critical Elements aspires to become a large, responsible supplier of lithium to the flourishing electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly owned, high purity Rose lithium project in Québec. Rose is the Corporation's first lithium project to be advanced within a land portfolio of over 700 square kilometers. In the Corporation's view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 93% hydroelectricity. The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government; The Corporation is working to obtain similar approval under the Québec environmental assessment process. The Corporation also has a good, formalized relationship with the Cree Nation.

For further information, please contact:

Patrick Laperrière
Director of Investor Relations and Corporate Development
514-817-1119
plaperriere@cecorp.ca
www.cecorp.ca

Jean-Sébastien Lavallée, P. Géo.
Chief Executive Officer
819-354-5146
jslavallee@cecorp.ca
www.cecorp.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary statement concerning forward-looking statements

This news release contains "forward-looking information" within the meaning of Canadian Securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "scheduled", "anticipates", "expects" or "does not expect", "is expected", "scheduled", "targeted", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information contained herein include, without limitation, statements relating to mineral reserve estimates, mineral resource estimates, realization of mineral reserve and resource estimates, capital and operating costs estimates, the timing and amount of future production, costs of production, success of mining operations, the ranking of the project in terms of cash cost and production, permitting, economic return estimates, power and storage facilities, life of mine, social, community and environmental impacts, lithium and tantalum markets and sales prices, off-take agreements and purchasers for the Corporation's products, environmental assessment and permitting, securing sufficient financing on acceptable terms, opportunities for short and long term optimization of the Project, and continued positive discussions and relationships with local communities and stakeholders. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Although Critical Elements has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking information include, but are not limited to: Critical Elements' ability to secure sufficient financing to advance and complete the Project, uncertainties associated with the Corporation's resource and reserve estimates, uncertainties regarding global supply and demand for lithium and tantalum and market and sales prices, uncertainties associated with securing off-take agreements and customer contracts, uncertainties with respect to social, community and environmental impacts, uncertainties with respect to optimization opportunities for the Project, as well as those risk factors set out in the Corporation's year-end Management Discussion and Analysis dated August 31, 2021 and other disclosure documents available under the Corporation's SEDAR profile. Forward-looking information contained herein is made as of the date of this news release and Critical Elements disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

SOURCE:Critical Elements Lithium Corporation



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TSXV:CRE

Critical Elements Lithium Corporation

Overview

Critical Elements Lithium Corporation's (TSXV:CRE,OTCQX:CRECF,FWB:F12) vision is to be a large, responsible supplier of lithium hydroxide to the emerging electric vehicle and energy storage industries. The company is well-positioned, wholly owning over 530 km² of prospective lands hosting one of the highest purity spodumene deposits globally. This deposit is in Quebec, one of the company's premier mining investment jurisdictions. The company aspires to achieve its goals with a minimal environmental footprint by drawing electricity from Quebec's established low-carbon power grid, and in cooperation with the Cree Nation and local First Nations communities, with whom relationships have been formalized.

The Rose lithium-tantalum deposit, one of the largest highest purity lithium deposits in the world, can supply multiple lithium markets because of its unique purity with low iron oxide and mica content. The Rose lithium-tantalum deposit has an updated NI 43-101 resource estimate that outlines an indicated resource of 31.9 million tonnes grading 1.04 percent lithium oxide equivalent or 0.93 percent lithium oxide and 148 ppm of tantalum pentoxide with an inferred resource of 2.8 million tonnes grading 0.92 percent lithium oxide equivalent or 0.82 percent lithium oxide and 145 ppm of tantalum pentoxide.

Following a positive feasibility study for spodumene mining and concentration, Critical Elements Lithium Corporation is now ready to advance to the next stage of development for Rose. The feasibility study was, in part, informed by the results of a bulk sampling and pilot plant study. The results demonstrated that the conversion of the resources from the Rose lithium-tantalum deposit into the spodumene crystalline phase is easily achievable, with lithium concentrate grades up to 6.56 percent. Extraction was achieved at high conversion rates for chemical and technical-grade spodumene, yielding 83.4 percent with a concentrate grade of 6.41 percent for Rose, and recovery averaged 81.9 percent with a concentrate grade of 6.56 percent for Rose South. The high yield confirms the low-impurity profile of the Rose ore, allowing for the production of battery-quality lithium carbonate at a competitive cost and without additional purification steps.

Most recent testing at the Rose lithium-tantalum pilot plant has resulted in the production of battery-quality lithium hydroxide. Critical Elements was able to demonstrate that its plant can achieve extraction rates of 93 percent, which is higher than the market benchmark of 70 percent to 75 percent. The plant's overall recovery rate from spodumene to battery-quality lithium hydroxide is 80 percent, which is again higher than the market benchmark of 65 percent.

Tantalum is used in a wide variety of applications across the electronics, medicine, engineering and energy-generation industries. Since 1995, the market for tantalum has experienced average yearly growth in demand of about 8 to 12 percent. End users are facing increasing market pressure to secure conflict-free sources of tantalum, further tightening global supply.

Critical Elements Lithium Corporation is focused on developing supply for these markets at its Rose lithium-tantalum project. The unique geological properties of this deposit give it the potential to supply multiple markets, including battery-grade materials, ceramics, glass and tantalum.

Company Highlights

  • The positive Phase 1 feasibility study shows a pre-tax NPV 8 percent of C$1.257 billion and pre-tax IRR of 48.2 percent
  • Higher lithium recoveries in concentration and carbonation compared to peers
  • Pilot plant testing achieved an 83 percent lithium recovery rate from the Rose lithium-tantalum project ore to battery quality lithium carbonate and 80 percent to battery quality lithium hydroxide
  • No uranium or thorium contaminants in the deposit, low iron content, low mica content
  • Critical Elements engages GoldSpot Discoveries Corp. (TSXV:SPOT; OTCQX:SPOFF), a leading technology services company, to apply its proprietary machine learning technology and geoscience expertise on Critical Elements' extensive property package located in James-Bay, Quebec.
  • Critical Elements also received UL 2723 ECOLOGO® Certification for Mineral Exploration Companies. The Company has successfully completed the final stage of the certification process, which includes audit results, use of the UL ECOLOGO® mark, and registration in UL's SPOT sustainable product database.
  • Critical Elements and Lomiko Metals Inc. (TSXV:LMR, OTCQB:LMRMF, FSE:DH8C) have entered into an option agreement that gives Lomiko the right to acquire up to a 70 percent interest in the Bourier project.

Key Project

Key Property: Rose Lithium-Tantalum Project

The Rose lithium-tantalum project is located in the James Bay area of Quebec, Canada, about 35 kilometres north of Nemiscau and 75 kilometres due south of Newmont Corporation's (NYSE:NEM) Eleonore gold deposit. Excellent infrastructure is in place locally and regionally, including 100 ton capacity road access, an airport, a mining camp and a power line directly on the project property.

Rose is located in the Quebec Plan Nord designated area, where the government is fast-tracking the construction of new infrastructure, accelerating permitting and assisting with project financing. The project covers about 109 square miles of active mining titles in the northeastern part of the Archean Superior Province of the Canadian Shield craton and within the southern portion of the Middle and Lower Eastmain greenstone belt.

Resource Estimate

The Rose deposit has an updated NI 43-101 resource estimate of 31.9 million tonnes of indicated resources containing 1.04 percent lithium oxide equivalent or 0.93 percent lithium oxide and 148 ppm of tantalum pentoxide, and an inferred resource of 2.8 million tonnes grading 0.92 percent lithium oxide equivalent or 0.82 percent lithium oxide and 145 ppm of tantalum pentoxide.

Feasibility Study

In November 2017, Critical Elements announced the completion of a positive Phase 1 feasibility study for the Rose project with a pre-tax NPV at 8 percent of C$1.257 billion and a pre-tax IRR of 48.2 percent. The study is based on a conventional truck and shovel open pit operation that is expected to process 1.61 million tonnes a year in a conventional milling process with the aim of producing technical and chemical grade spodumene concentrate and a tantalite concentrate. The mine is expected to excavate a total of 26.8 million tonnes of ore of an average grade of 0.85 percent lithium oxide and 133 parts per million of tantalum pentoxide. Critical Elements Lithium Corporation has submitted their environmental and social impact study to the federal and provincial environmental agencies.

Highlights from the Phase 1 Feasibility Study include:

  • After-tax NPV of C$726 million at an 8 percent discount rate
  • After-tax IRR of 34.9 percent
  • Price assumption of US$1,500 per tonne technical grade lithium concentrate, US$750 per tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide
  • Average annual production of 186,327 tonnes of chemical grade lithium concentrate
  • Average annual production of 50,205 tonnes of technical grade lithium concentrate
  • Average annual production of 429 tonnes of tantalum concentrate
  • Expected mine life of 17 years
  • Average operating costs of C$66.56 per tonne milled
  • An estimated initial capital cost of C$341.2 million before working capital
  • 100 percent equity basis for project
  • Average gross margin of 63.6 percent
  • Anticipated construction time to start of production of 21 months

Industry leading Primero Group recently completed the first phase of its Early Contractor Involvement agreement with the company and provided a guaranteed maximum price for the engineering, procurement and construction of the Rose project on a lump sum turnkey basis that is in line with the project's feasibility study. Critical Elements expects Primero to complete detailed engineering over the coming months.

Excellent recoveries and battery-grade purity

Intensive metallurgical testing and flowsheet optimization work has shown that Critical Elements Lithium Corporation's Rose lithium-tantalum project demonstrates a significant advantage over other known lithium deposits based on its ability to produce premium-purity lithium carbonate at a low cost.

During flotation testing, recoveries reached up to 91.9 percent lithium with a concentration grade of 6.43 percent lithium; recoveries averaged 90.88 percent with a concentration grade of 6.2 percent lithium.

Results from recent hydrometallurgical testing for the conversion of spodumene to lithium carbonate have shown an overall recovery rate of up to 88.4 percent with an overall purity of 99.9 percent—surpassing the requirements for battery-grade lithium carbonate. The high purity percentage is due in large part to the low impurity profile of Critical Elements Lithium Corporation's spodumene in combination with the use of a sodium carbonate alkaline process rather than the industry-standard sulfuric acid process. The sodium carbonate alkaline process poses a much lower environmental risk and is much more successful in dissolving impurities at the leaching stage.

Pilot Plant Study Supports Proposed Large-scale Production

In late 2016, Critical Elements Lithium Corporation initiated a bulk sampling program of 50 tons of material from two different zones of the deposit, Rose and Rose South, for subsequent pilot plant testing. The results of the pilot project are expected to be used to decide the plant equipment for large-scale production.

The proposed plant design includes simple grinding and magnetic and gravity separation. Critical Elements Lithium Corporation innovates by introducing circulating fluid beds, common in many other industries, such as the aluminium industry. However, it is rare in lithium extraction, where rotary kilns are preferred. Fluid-bed calcination would cut down on energy use and modestly reduce capital costs, helping the company deliver high-quality lithium at low cost.

In April 2017, Critical Elements Lithium Corporation announced the successful completion of its pilot work with results in spodumene concentrates grading up to 6.56 percent lithium. From Rose, recovery rates averaged 83.4 percent with a concentrate grade of 6.41 percent, and from Rose South, recovery rates averaged 81.9 percent with a concentrate grade of 6.56 percent.

In May 2017, Critical Elements Lithium Corporation announced the subsequent completion of its pilot work for the thermal conversion of alpha to beta spodumene followed by the conversion to battery quality lithium carbonate achieving a high-quality product of 99.9 percent purity at superior recovery rates without the need to apply additional cost-intensive purification steps.

“The high yield we achieved during extraction confirms the low-impurity profile of our ore, which is what allows us to produce battery quality lithium carbonate at a competitive cost, without additional purification steps," Jean-Sébastien Lavallée said.

Mr. Lavallée also noted the pilot work achieved conversion rates for alpha spodumene of 97 percent or better, followed by the conversion to lithium carbonate of battery-grade quality with total recovery rates of 88.4 percent. This included modelling results done by Metso Outotec for the flotation process of spodumene, which returned recovery rates of 92 percent, well above the industry standard of 60 percent to 65 percent.

Further testing at the pilot stage was able to successfully convert spodumene concentrate into a battery-quality lithium hydroxide using a thermal leaching process, providing Critical Elements Lithium Corporation with the flexibility to meet the needs of battery and electric vehicle (EV) producers. Through the testing, Critical Elements Lithium Corporation was able to demonstrate that the pilot plant could achieve extraction rates of 93 percent, which is higher than the market benchmark of 70 percent to 75 percent. The plant's overall recovery from spodumene to battery-grade lithium hydroxide is 80 percent, again higher than the market benchmark of 65 percent.

“These pilot plant results support the low impurity profile of our feed, which facilitates the production of battery-grade lithium carbonate and lithium hydroxide at competitive costs without additional purification steps," said Mr.Lavallée. “Critical Elements Lithium Corporation is very pleased with providing the production of battery-grade lithium hydroxide for the Rose lithium-tantalum project. These test results demonstrate that the Rose lithium-tantalum project can responsibly deliver a range of EV products, including battery-quality lithium carbonate and hydroxide, to varied end-users for varying applications."

Tantalum by-product more economical than potash

Most of the world's supply of lithium comes from deposits with a significant potash co-product. The Rose lithium-tantalum deposit, however, possesses a unique combination of tantalum and lithium mineralization. The tantalum found in the Rose lithium-tantalum deposit gives the project additional by-product diversification and makes it one of the few economic, conflict-free, industrial-scale tantalum sources in the world.

The most recently reported metallurgical results from pilot work for tantalum at the Rose deposit show tantalite magnetic recoveries as high as 69 percent with an average of 64 percent, up significantly from the 50 percent recoveries reported in the 2011 PEA. Recent tantalum mine closures in Canada, Mozambique and Australia are creating a major shortage of supply from which Critical Elements Lithium Corporation might benefit.

Management Team

Jean-Sébastien Lavallée—Chief Executive Officer and Director

Mr. Jean-Sébastien Lavallée, P. Geo., has been the Chief Executive Officer of Critical Elements Lithium Corporation since 2009. From 2009 to 2017, he also served as President. Mr. Lavallée has been active in mining exploration since 1994. He was President and Chief Executive Officer of Quebec Precious Metals Corporation (TSXV:QPM) from 2012 to May 2017, and since June 2017, Mr. Lavallée has been Director and Vice President Exploration in this company. Mr. Lavallée has been on the Board of Directors of the Quebec Mineral Exploration Association “AEMQ" from 2017 to 2019, and he is also working with Consul-Teck Exploration Minière Inc., a Val-d'Or based consulting firm. Most of the firm's mandates involve the generation and execution of projects in remote areas. Mr. Lavallée has acted as a geologist for many companies, including Eloro Resources Ltd., Agnico-Eagle Mines Ltd., Noranda Minerals Inc. and Champion Minerals Inc. Having been responsible for the planning and execution of many exploration programs in recent years, Mr. Lavallée has acquired solid experience in exploration project development.

Dr. Steffen Haber—President

Dr. Haber is the President of Critical Elements Lithium Corporation since January 2017. He was President and Chief Executive Officer of Rockwood Lithium GmbH when Chemetall GmbH was legally split off in 2012. From 2011 to 2012, he was Managing Director of Chemetall and since 2007 President of Chemetall's lithium business. Prior to joining Chemetall GmbH, Dr. Haber worked in different executive positions for Sanofi-Aventis SA and its predecessor companies in France. Dr. Haber completed his doctorate in organic chemistry at the University of Kaiserslautern, Germany, in 1991, and added one year as a Post-Doc at Ecole Polytechnique in Paris. In 1997, Dr. Haber earned his Bachelor of Science in Management from the International School of Management in San Diego in the United States. Dr. Haber is a fellow of the International Directors Program of INSEAD.

Eric Zaunscherb—Chairman

Mr. Eric Zaunscherb is a Canadian geologist with over 32 years and six cycles of experience as a mining analyst. He most recently served as Managing Director, Research – Metals & Mining Analyst at Canaccord Genuity where he co-ordinated the firm's global mining equity research team. He has enjoyed working in Toronto, Vancouver and London, experiencing best practices in Capital Markets at several leading firms and conducting hundreds of exploration, development and mining project site visits globally. He embraces new technologies and industry initiatives in diversity and socially responsible investing, ensuring that local communities receive lasting benefits from mineral resource development.

Marcus Brune—VP Finance

Dr. Brune was Chief Financial Officer of Rockwood Lithium from 2011 until the acquisition by Albemarle in 2015. He left Albemarle in 2016 once the lithium business was successfully integrated into Albemarle's organizational structure. Prior to joining Rockwood Lithium, Dr. Brune had worked in different executive positions in corporate finance and M&A for Rockwood Holdings and its predecessor companies since 2004. Prior to that, he was with McKinsey as a strategy consultant for organizational development and management. Dr. Brune completed his doctorate in material sciences at the Technical University of Dortmund, Germany, after earning a physics degree.

Nathalie Laurin—Secretary and Chief Financial Officer

Mrs. Nathalie Laurin has over 30 years of experience in administration and accounting. The experience gained through working in various roles with increasing responsibilities, primarily in the natural resources sector, has given her a solid mastery of finance and project management. Since 2006, she has acted as corporate secretary and/or chief financial officer for several companies, most notably mineral exploration companies, including Critical Elements Lithium Corporation, Delta Resources Limited, MPV Exploration Inc., Quebec Precious Metals Corporation and BlackRock Metals.

Jean-Raymond Lavallée—Director

Mr. Jean-Raymond Lavallée has more than 30 years of experience in mining exploration, as contractor, consultant and manager for several mining companies, such as Louvem, Soquem, James-Bay Development Corporation, Sullivan Consolidated, Cache Explorations Inc., Parquet Resources, Dumont Nickel Corporation, Westminer Canada Ltd, Baribec Management Inc., Exploration Ojibway Inc. and others. He was also controller for Mines Expert Inc. during the construction of the Doyon Mine. Mr. Lavallee is currently president of Consul-Teck Exploration, a consulting firm of Val-d'Or founded in 2003 that specializes in mining exploration in northern areas.

Marc Simpson—Director

Mr. Marc Simpson is President and Chief Executive Officer of Vanadian Energy Corp. Mr. Simpson has worked in the mining and exploration industry for over 23 years, working for junior, mid-tier and senior mining companies on projects both in Canada and worldwide, including Bema Gold (sold to Kinross for C$3.5 billion in 2007), B2Gold and Echo Bay Mines. Mr. Simpson has been involved in exploration and mining projects from grass roots exploration through to mine development and production. Mr. Simpson obtained his B.Sc. in Geology from the University of Manitoba and is a member of Association of Professional Engineers and Geoscientists of British Columbia and Association of Professional Engineers and Geoscientists of the Province of Manitoba.

Matthew Lauriston Starnes—Director

Mr. Matthew Lauriston Starnes is a lawyer with over 22 years of experience. Mr. Starnes is currently a Peerpoint lawyer with Allen & Overy in Tokyo specializing in mining law. Prior to this, he was legal counsel in Sumitomo Corporation's Mineral Resources Division in Tokyo, Japan. Among other things, he was responsible for legal aspects of Sumitomo's investment in the Sierra Gorda copper project in Chile and was also part of the team for the Ambatovy project in Madagascar. Prior to joining Sumitomo, he also was the General Counsel and Deputy CEO for the Ambatovy project. Mr. Starnes has also practiced as a corporate lawyer with major law firms in Montreal.

Charles B. Main—Director

Mr. Main brings over 30 years of experience in the mining and finance industries, having most recently served as Executive Vice President, Finance and Chief Financial Officer of Yamana Gold Inc. from August 2003 to March 2017. He is currently an Independent Director and Chair of the Audit Committee with Wesdome Gold Mines Ltd. Mr. Main is a Chartered Professional Accountant and began his career with 10 years at PriceWaterhouseCoopers. Mr. Main has also held positions that include Director of Corporate Development with Newmont Capital Corporation, Vice President of Normandy Mining Limited and Outokumpu Mines Ltd. and Vice President, Finance of TVX Gold Inc. Mr. Main holds a Bachelor of Commerce from McGill University.

Maysa Habelrih —Director

Maysa Habelrih is a result-oriented executive and board director leveraging global experience and a track record of delivering operational excellence and transforming business objectives into bottom line growth within complex environments. She has expertise in international joint ventures management and board oversight with solid knowledge of environmental, social, and corporate governance (ESG) business practices. Over the past year, Maysa has been the CEO of Mouvement Québécois de la Qualité, a non-profit focused on increasing the competitiveness and productivity of Quebec organizations. From 1989 to 2019, she worked for Alcan, which company became Rio Tinto Aluminium in 2007. Maysa ending as General Manager / Vice-President Joint Ventures with full governance and fiscal accountability for nine joint venture operations globally, featuring $2 billion in revenues, $400 million in EBITDA and 1,900 direct and indirect employees. This included the oversight of the successful design and implementation of an $850 million mine expansion project in Guinea. Maysa holds Bachelor and Master degrees in Chemical Engineering from McGill University in Montréal, as well as an International Masters Program in Practicing Management (IMPM) which is offered in partnership by INSEAD, McGill University, and 3 others universities.

Vanessa Laplante —Director

Vanessa Laplante has more than 30 years of experience in finance and taxation, including 16 years in the mining industry. She is a leader in her field of specialization, mining taxation, which has allowed her to be recognized as Chair of the Tax Committee of the Association Minière du Québec since 2011, and Chair of the Board of Directors of the Association Minière du Québec since June 2021. Since 2014, Vanessa is the Tax and Montreal office Director, as well as treasurer, for Canadian Malartic Partnership, a joint venture between Agnico Eagle Mines Limited and Yamana Gold Inc., which operates Canada's largest open pit gold mine. From 2019 to 2020, she was a board member and Chair of the Audit and Risk Management Committee of Nemaska Lithium Inc. As part of her functions at Osisko Mining Corporation from 2010 to 2014 she was a member of the Audit Committee. From 2015 to 2019 Vanessa was a member of the advisory committee on the simplification of the mining royalty regime, formed by the Ministry of Natural Resources of Québec. Vanessa holds a Bachelor of Business Administration from the University of Sherbrooke (1991) and is a Member of the Order of Chartered Professional Accountants of Quebec (CPA).

Andrew Baribeau – Advisor

Mr. Baribeau has been closely involved in the community and territorial development issues, for both the private and public sectors. Throughout his career, he has participated in and led the negotiation and implementation of more than a dozen agreements related to labour relations and resource development. He has a well-established background in community and stakeholder relations, socio-economic impact assessments and economic development. From 2010 until 2015, he led the Cree Nation Government's mining files, after which was tasked with implementing the newly created Department of Commerce and Industry for the Cree Nation Government, where he continued to be responsible for files related to mining and other resource development issues.

Cantor Fitzgerald – Financial Advisor

Cantor Fitzgerald brings significant mining and minerals experience and a global full-service investment banking suite. Founded in 1945, Cantor Fitzgerald is an innovative global financial services firm that has offices and trading desks in all major financial centers throughout the world. Cantor Fitzgerald's Investment Banking Division is a leading provider of advisory and capital markets services to corporate and financial sponsor clients across the globe. Its advisory services involves mergers & acquisitions, divestitures, corporate restructuring, cross-border transactions, takeover defense, strategic partnerships and fairness opinions.

Ani Markova – Independent Director

Markova is a senior executive and an award-winning portfolio manager with more than 15 years of experience investing in the mining and metals industry. She is currently a corporate director with Golden Star Resources and SilverCrest Mining. She is the Chair of the Safety, Environmental and Social Sustainability Committee at SilverCrest and a member of the Corporate Responsibility Committee at Golden Star. She also sits on their Audit and Governance and Compensation committees. She is the Founder and CEO of Investor View Advisory, which is engaged with public companies on Environmental, Social and Governance (ESG) reporting and integration. Mrs. Markova holds an MBA from George Washington University in Washington DC, Chartered Financial Analyst (CFA), Canadian Investment Management (CIM), and Corporate Board International (CDI.D) designations.

Patrick Laperrière – Director of Investor Relations and Corporate Development

Patrick is an investment professional with over twenty years of experience in portfolio management and capital markets. Prior to joining Critical Elements Lithium Corporation, he was responsible for portfolios specializing in natural resources as well as Canadian and American small-cap public shares at la Caisse de dépôt et placement du Québec from 1998 to 2003. He then held roles at major brokerage firms, such as Canaccord, RBC, Industrial Alliance and Macquarie, where he developed close relationships with institutional asset managers. These experiences allowed him to acquire excellent knowledge of company analysis and investment portfolio structure. He graduated from the University of Montreal with a Bachelor's degree in Mathematics and a Certificate in Economics. He is also a CFA charter holder (Chartered Financial Analyst) from the CFA Institute.

Yves Perron - Vice-President Engineering, Construction and Reliability

Yves Perron, Eng., MBA brings extensive experience in mining sector, engineering and construction in Québec to the Corporation. He was appointed Vice-President, Engineering and Construction by Stornoway Diamond in June 2012 and Vice-President, Engineering and Construction for Mason Graphite in August 2018. Mr. Perron served as Vice-President Engineering and Construction for Loop Industries since January 2021. Mr. Perron has over 25 years of experience in project management in the industrial sector within major international firms. Prior to joining Stornoway, Mr. Perron was Vice-President, Business Development and Project Manager at Delsaer and Seneca. He also held several management positions in areas of production, operation start-ups, maintenance, engineering and project management with ArcelorMittal and Xstrata. Mr. Perron holds a Bachelor Degree in Mechanical Engineering from Université du Québec - École de Technologie Supérieure in Montréal and a DEC in Civil Engineering Technology. In addition, he holds an MBA from Université du Québec in Montréal as well as an Executive MBA from Université Paris Dauphine.

Critical Elements Lithium Announces the Continued Strengthening of its Board of Directors with Two New Appointments

Critical Elements Lithium Announces the Continued Strengthening of its Board of Directors with Two New Appointments

Critical Elements Lithium Corporation (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) ("Critical Elements" or the "Corporation") is pleased to announce the appointments of Ms. Maysa Habelrih and Ms. Vanessa Laplante to its Board of Directors

Ms. Maysa Habelrih is a result-oriented executive and board director leveraging global experience and a track record of delivering operational excellence and transforming business objectives into bottom line growth within complex environments. She has expertise in international joint ventures management and board oversight with solid knowledge of environmental, social, and corporate governance (ESG) business practices. Over the past year, Maysa has been the CEO of Mouvement Québécois de la Qualité, a non-profit focused on increasing the competitiveness and productivity of Quebec organizations. From 1989 to 2019, she worked for Alcan, which company became Rio Tinto Aluminium in 2007. Maysa ending as General Manager / Vice-President Joint Ventures with full governance and fiscal accountability for nine joint venture operations globally, featuring $2 billion in revenues, $400 million in EBITDA and 1,900 direct and indirect employees. This included the oversight of the successful design and implementation of an $850 million mine expansion project in Guinea. Maysa holds Bachelor and Master degrees in Chemical Engineering from McGill University in Montréal, as well as an International Masters Program in Practicing Management (IMPM) which is offered in partnership by INSEAD, McGill University, and 3 others universities.

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Critical Elements Lithium Commences Summer Exploration Program

Critical Elements Lithium Commences Summer Exploration Program

Critical Elements Lithium Corporation (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) ("Critical Elements" or the "Corporation") is pleased to announce that a summer exploration program is underway on its highly prospective, 700 square kilometre land portfolio, including resource expansion drilling on the advanced Rose Lithium-Tantalum Project ("Rose" or "Rose Project

The Corporation commenced a surface exploration program on the Nemaska belt portion of the portfolio in early June and plans to pursue a prospecting, mapping, and sampling program until late August. Goldspot Discoveries Corp. ("Goldpspot") has been mandated to complete the targeting work that was initiated in 2021, to extend coverage to the entire 100%-owned portfolio using Artificial Intelligence ("AI") to assess potential target areas.

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Approval of the Rehabilitation and Restoration Plan Concerning the Rose Lithium-Tantalum Mining Project

Approval of the Rehabilitation and Restoration Plan Concerning the Rose Lithium-Tantalum Mining Project

Critical Elements Lithium Corporation (the "Company" or "Critical Elements") (TSXV:CRE)(OTCQX:CRECF)(FSE:F12) is pleased to announce that the Québec Minister of Energy and Natural Resources (the "Minister") has approved the rehabilitation and restoration plan concerning the Rose Lithium-Tantalum Mining Project (the "Rose Lithium-Tantalum Project" or the "Project

The approval of the rehabilitation and restoration plan is a prerequisite to the granting of the mining lease that will be necessary to move forward with the Project. The rehabilitation and restoration plan contains, in particular the description of the rehabilitation and restoration work relating to the Project and a detailed estimate of the expected costs to be incurred for completing the work. Now that the rehabilitation and restoration plan is approved, the Corporation must furnish a guarantee covering the anticipated cost of completing the work required under the rehabilitation and restoration plan, in accordance with the schedule of payments established pursuant to applicable laws.

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Critical Elements conclut un placement public par voie de prise ferme de 30 millions de dollars d'unités

Critical Elements conclut un placement public par voie de prise ferme de 30 millions de dollars d'unités

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MONTRÉAL, QC / ACCESSWIRE / 3 décembre 2021 / Corporation Lithium Éléments Critiques (TSXV:CRE)(FSE:F12) (« Critical Elements » ou la « Société ») annonce aujourd'hui la clôture de son financement par prise ferme (le « Placement ») précédemment annoncé. En vertu du Placement, Critical Elements a émis 17 152 250 unités de la Société (les « Unités ») au prix de 1,75 $ l'Unité (le « Prix d'émission ») pour un produit brut de 30 016 437,50 $. Ce total comprend 2 237 250 Unités émises dans le cadre de l'exercice complet de l'option de surallocation accordée aux Preneurs fermes (tels que définis ci-dessous) en vertu du Placement.

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Critical Elements Closes $30 Million Bought Deal Public Offering of Units

Critical Elements Closes $30 Million Bought Deal Public Offering of Units

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Critical Elements Lithium Corporation (TSXV:CRE)(FSE:F12) ("Critical Elements" or the "Corporation") announces that it has closed today its previously announced bought deal financing (the "Offering"). Pursuant to the Offering, Critical Elements issued 17,152,250 units of the Corporation (the "Units") at a price of $1.75 per Unit (the "Offering Price") for gross proceeds of $30,016,437.50. This includes 2,237,250 Units issued in connection with the exercise in full of the over-allotment option granted to the Underwriters (as defined below) under the Offering

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Critical Resources

Oman Block 4 and Block 5 Exploration Licenses Update

Critical Resources Limited (ASX:CRR) (“Critical Resources” or the “Company”), advises that further to the announcements dated 9 April 2021, 2 August 2021, 10 August 2021 and 26 August 2021 the Company has reached a mutually agreeable outcome with the Ministry of Energy and Minerals, Sultanate of Oman (Minerals Department) regarding license fees for the ongoing exploration of Block 4 and Block 5, Sohar Copper Project in Oman.

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European Lithium

European Lithium Partners with BMW AG to Supply Battery Grade Lithium Hydroxide

European Lithium Limited (ASX: EUR, FRA: PF8, OTC: EULIF) (EUR or the Company) is pleased to announce it has signed a non-binding memorandum of understanding (MoU) with European auto manufacturer BMW AG (BMW) to secure EUR’s first offtake of battery grade Lithium Hydroxide (LiOH).

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electric vehicle charging

Lithium Market Update: Q2 2022 in Review

Click here to read the previous lithium market update.

After rallying to all-time highs in 2021, lithium prices began to stabilize in the first few months of 2022.

Demand for the battery metal is expected to soar in the coming decades, with questions about supply increasing.

How did lithium perform in the second quarter of 2022, and what’s ahead for the commodity in the near term? The Investing News Network (INN) asked experts about the main news that impacted the lithium market in Q2, plus a look at what investors should watch for during the rest of the year.

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person touching high point on digital representation of rising chart

Albemarle's Lithium Sales Jump in Q2 on Better Pricing, Strong Demand

Top lithium producer Albemarle (NYSE:ALB) saw its lithium sales increase 178 percent year-on-year in the second quarter on the back of firm demand and higher lithium prices.

Lithium net sales reached US$891.5 million, an increase of US$571.2 million from the previous year, as the company renegotiated contracts and as prices for the battery metal stayed at high levels.

"We delivered another strong quarter throughout the current turbulent market environment, thanks to strong demand and pricing trends, particularly for lithium and bromine,” CEO Kent Masters said. “Over the past year, we have shifted our lithium contracting strategy to realize greater benefits from these strong market dynamics."

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electric vehicle charging

Electric Vehicle Market Update: Q2 2022 in Review

Click here to read the previous electric vehicle market update.

The electric vehicle (EV) revolution has been top of mind for battery metals investors for quite some time now, with demand for EVs increasing significantly in 2021.

But in 2022, China’s fresh COVID-19 lockdown measures, the Russia-Ukraine war, cost increases and other constraints hit the market, and carmakers are under pressure to keep production levels up.

Given the importance of the EV narrative for battery metals and all the commodities associated with the EV supply chain, the Investing News Network (INN) reached out to analysts and experts in the space to ask for their thoughts on what's happened so far this year and what’s on the horizon.

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batteries standing up; some have green lights on them

Greenfields Exploration and the Lithium Supply Shortage

The lithium market is booming. Rechargeable lithium-ion batteries were already critical to devices such as smartphones and laptops, but as the push towards decarbonization and electric vehicles continues to gain ground, demand for the critical battery metal has gone through the roof.

The market simply cannot keep up. Estimates have historically varied as to precisely when demand will outstrip supply, but many experts believe that day will come sooner rather than later. Some have even gone so far as to suggest that, with the current strong outlook of electric vehicles, this could even happen in 2022.

The problem isn't that the supply isn't there. Rather, the issue lies primarily with current production methods. Currently, the majority of global lithium production comes from continental brine deposits, which account for roughly half of the world's known lithium reserves. Sedimentary lithium deposits are also a source, at roughly 8 percent of total reserves.

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