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Rox Resources And Venus Metals To Consolidate Interests In Youanmi Gold Project, WA
March 30, 2023
Rox Resources Limited (“Rox” ASX:RXL) and its joint venture partner Venus Metals Corporation Limited (“Venus” ASX:VMC) are pleased to advise that they have entered into a binding agreement to consolidate their respective ownership interests in the Youanmi Gold Project in Western Australia.
Transaction Highlights
The parties have agreed that, subject to conditions precedent:
- Rox to acquire, for consideration of 110 million Rox shares:
- Venus’ interests in the OYG JV, giving Rox a 100% interest in OYG; and
- all of Venus’ gold interests in its other joint ventures covering other regional areas
- Venus’ interests in the OYG JV, giving Rox a 100% interest in OYG; and
- Venus to undertake an in-specie distribution of 55 million Rox shares to Venus shareholders, while retaining 55 million Rox shares, subject to 12 months voluntary escrow
- Venus Managing Director, Matthew Hogan, to be appointed to Rox’s Board
- Transaction simplifies the ownership structure for the Youanmi Gold Project, maximising value potential for Rox and Venus shareholders
Under the agreement, Rox will acquire Venus’ gold interests in each of its Youanmi joint ventures (30% of OYG JV (all minerals), 45% of Youanmi JV and Currans Find JV, and 50% of Venus Metals JV) (collectively the “Youanmi Gold Project”) for consideration of 110 million fully paid ordinary shares in Rox (“Rox Shares”) (“the Transaction”), subject to the conditions precedent (as summarised below) being met. Venus will retain its non- gold interests in the Youanmi JV, Currans Find JV and Venus Metals JV, as well as its interests in its non- Youanmi gold assets.
The Transaction will see all gold rights held by Rox and Venus consolidated under a simplified, single ownership structure, providing a strong platform to progress the development of the Youanmi Gold Project.
Venus shareholders will, following completion of the Transaction, have the opportunity to benefit from the Transaction through:
- Eligible Venus shareholders (as at a record date to be advised) receiving Rox Shares through Venus proposed in-specie distribution of Rox Shares; and
- Retaining their Venus shares, and therefore, retaining an indirect interest in the Rox Shares retained by Venus and continue to participate in the value of Venus’ non-Youanmi assets (which include gold, lithium, base metals and rare earths projects).
By simplifying the ownership structure, streamlining the development decision making process and increasing scale and market relevance, the parties believe that this structure will provide Rox with greater market appeal and access to capital, which is expected to unlock value for both Rox and Venus shareholders.
Management Comments
Rox Resources Managing Director, Mr Rob Ryan commented:
“Consolidating the gold interests under the Youanmi Gold Project under Rox’s ownership is a logical transaction that is expected to deliver compelling value for both sets of shareholders and we are enormously excited about the strong foundation this transaction creates for the Project’s ongoing exploration and development. The transaction provides investors and financiers with a clearer ownership structure and access to the full value of the Youanmi Gold Project.
“Building on our existing high-grade resource base and our recent exploration success at Midway and Youanmi South, this simplified ownership structure will enable Rox and Venus shareholders to share in the future growth of Rox as we work to unlock the full potential of the Youanmi Gold Project.”
“2023 is set to be a milestone year at Youanmi, with drilling underway to convert existing Inferred Resources to Indicated status to support the Pre-Feasibility Studies. We are also very excited to see ongoing results from the Midway and Youanmi South discoveries, which are potential gamechangers for the Youanmi Gold Project.”
Venus Managing Director, Mr Matthew Hogan, commented:
“This is a win-win transaction for all shareholders in both companies, unlocking considerable value and dramatically simplifying the development pathway for the Youanmi Gold Project.
I’m extremely confident in the capabilities of the Rox Board and Management team, and very excited to be joining forces with them with the aim of bringing the Youanmi Gold Mine back into production in the near future.”
Pictured above, Rox Managing Director, Mr Rob Ryan and Venus Managing Director, Mr Matthew Hogan.
Transaction Rationale
Both the Rox and Venus Boards consider there to be strong strategic rationale for the Transaction. Venus shareholders will retain their exposure to the Youanmi Gold Project both as Rox and Venus shareholders, while also allowing the market to fully recognise the value of the remaining assets held by Venus.
Click here for the full ASX Release
This article includes content from Venus Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Lithium InvestingPalladium Investingasx:vmcplatinum investingrare earth investingvenus metals corporation ltd
VMC:AU
2h
Appointment of Strategic Advisor
White Cliff Minerals Limited (“WCN” or the “Company”) is pleased to announce the appointment of John Hancock (“John”) as a Strategic Advisor to the Board of White Cliff Minerals Ltd. The Company expects significant growth with its current and future portfolio of projects in the coming 12 months and is working now to secure appropriate personnel to assist with this.
About John Hancock
John’s experience in the mining and exploration industry began more than 40 years ago visiting Pilbara iron ore prospects with his grandfather, Lang Hancock. During the 1990s he was part of marketing missions representing the Hope Downs Iron Ore project to customers and investors in China, Japan and Germany, including co-presenting the project at the 1997 Iron and Steel Conference held in Berlin. After two years working in South Africa with Iscor Mining (now Kumba) and on return to Australia completing an MBA, John transitioned to the role of investor and over the last 20 years has built a record of successful early stage investments in Lithium and Uranium, including substantial holdings in Vulcan Energy and Aura Energy. His experience in international resource development and capital markets includes the role of Senior Advisor to The Lind Partners, a US fund that during his tenure has deployed more than $500m to small-cap companies in both Australia and Canada, particularly within the mining industry.
The Board views John’s appointment at this pivotal time in the Company’s evolution to be a logical next step as we move to complete our stated strategy of a three-project portfolio in Canada as well as significantly expand our exploration work at both Great Bear Lake and the Rae Copper (Nunavut-Coppermine) Project.
“Attracting someone of John’s experience and calibre is a great development for White Cliff. John has an extensive international network and is a successful resources veteran with deep roots within the mining industry. I look forward to working with John as we execute this next corporate step and continue to unlock the untapped potential of all of the Company’s projects”
Troy Whittaker - Managing Director
“I am not alone in looking for copper, and have been searching for an early-stage investment to complement my exposure to lithium and uranium. Copper is a vital ingredient to a clean energy transition and as my grandfather said, ‘minerals don’t grow on trees, every year you need to find more’ and today this means searching further and further afield. White Cliff have secured a large holding in an area with historical production and exciting preliminary indications which led me to become an investor and now Strategic Advisor to the Board. I, like Troy and the Board are looking forward to the upcoming assay results from our maiden campaign where we have visually identified numerous highly prospective areas”
John Hancock
Click here for the full ASX Release
This article includes content from White Cliff Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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18 July
Top 3 ASX Lithium Stocks of 2024
Global demand for lithium-based power presents a significant opportunity for Australia, the top lithium-producing nation. As countries and companies establish their positions in the battery value chain, Australia has the ability to leverage its strong output and vast reserves to shape the industry landscape into the 2030s.
The future of lithium demand relies heavily on the growth of the electric vehicle (EV) market, and in recent years its rapid expansion has led to much higher mining of the commodity — so much so that the market has entered a surplus.
This oversupply kept lithium prices subdued in the first half of 2024, but experts continue to forecast a bright long-term outlook for the essential battery material as countries around the world pursue net-zero goals.
Here the Investing News Network looks at the top three ASX-listed lithium companies by year-to-date gains. The list below was generated using TradingView’s stock screener on July 16, 2024, and includes companies that had market caps above AU$10 million at that time. Read on to learn more about their activities over the past year.
1. Prospect Resources (ASX:PSC)
Year-to-date gain: 57.38 percent; market cap: AU$64.62 million; share price: AU$0.14
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets located in Zimbabwe, Zambia and Namibia. The company’s lithium projects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities at the projects. The company reported strong assay results from Phase 4 diamond drilling at Step Aside, and shared results from follow-up Phase 2 drilling at Omaruru.
In a release, Managing Director Sam Hosack highlights the significant mineralisation potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project. The company believes it can monetise Step Aside in the near term to aid in this goal.
Company shares rose to an H1 high of AU$2.05 on May 27.
2. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 53.79 percent; market cap: AU$867.55 million; current share price: AU$4.46
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilising a proprietary alumina-based adsorbent-type direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimisation plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant consistently exhibited over 90 percent lithium extraction efficiency.
Vulcan will now prepare the 40 million euro facility for commercial production. The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
Shares of Vulcan marked an H1 high on May 22, trading for AU$5.54.
3. Anson Resources (ASX:ASN)
Year-to-date gain: 11.11 percent; market cap: AU$200.03 million; share price: AU$0.15
Anson Resources holds a portfolio of projects in the US and Western Australia. Its primary asset is the Paradox lithium project in Utah, which Anson is transforming into a major lithium production operation for the North American market.
On May 8, Anson received approval from Utah's Department of Natural Resources to source water, or brine, for lithium extraction at its Green River lithium project. The permit allows the non-consumptive use of 19 cubic feet of brine, which the company will process and then return to its original geological formation.
This is the company’s first permit approval for lithium production from brine in Utah.
In late June, Anson partnered with Koch Technology Solutions to use Koch's Li-Pro process for a pilot Lithium Selective Sorption unit at the Green River lithium project.
The pilot project, funded jointly by Anson Resources and Koch through a convertible note, will be used to collect data for the potential launch of a commercial-scale plant using the technology. It is expected to enter pilot production in July.
Shares of Anson marked a year-to-date high of AU$0.16 on July 10.
FAQs for investing in lithium
What is lithium?
Lithium is the lightest metal on the periodic table, and it is used in a wide variety of applications, including lithium-ion batteries, pharmaceuticals and industrial applications like glass and steel.
How do lithium-ion batteries work?
Rechargeable lithium-ion batteries work by using the flow of lithium ions in the battery's cell to power a device.
A lithium-ion battery has one or more cells, depending on the amount of energy storage it is capable of, and each cell has a positive electrode and negative electrode with an electrolyte separating them. When the battery is in use, lithium ions flow from the negative electrode to the positive electrode, running out of power once all have transferred. When the battery is charging, ions flow the opposite way.
Where is lithium mined?
Lithium is mined from two types of deposits, hard rock and evaporated brines. Most of the world's lithium production comes out of Australia, which hosts the Greenbushes hard-rock lithium mine. The next-largest producing country is Chile, which like Argentina and Bolivia is located in South America's Lithium Triangle.
Lithium in this famed area comes from evaporated brines, including the Salar de Atacama. Lithium can also be found in sedimentary deposits, but currently none are producing.
Where is lithium found in Australia?
Australia is the world’s top producer of lithium, and its lithium mines are all located in Western Australia except for one, which is Core Lithium’s (ASX:CXO,OTC Pink:CXOXF) Finniss mine in the Northern Territory. Western Australia accounts for around half of global lithium production, and the state is looking to become a hub for critical elements.
Who owns lithium mines in Australia?
Several companies own lithium mines in Australia, including some of the biggest ASX lithium stocks. In addition to the entities discussed above, others include: Pilbara Minerals (ASX:PLS,OTC Pink:PILBF) with its Pilgangoora operations; Arcadium Lithium with the Mount Cattlin mine; Jiangxi Ganfeng Lithium (HKEX:0358), which owns the Mount Marion mine alongside Mineral Resources (ASX:MIN,OTC Pink:MALRF); and Tianqi Lithium (SZSE:002466), which is a partial owner of Greenbushes via its stake in operator Talison Lithium.
Who is Australia’s largest lithium producer?
Australia’s largest lithium producer is Albemarle (NYSE:ALB), which has interests in both the Greenbushes and Wodgina hard-rock lithium mines. Greenbushes is the world’s largest lithium mine, and Albemarle holds 49 percent ownership of operator Talison Lithium’s parent company.
Albermarle also has 60 percent ownership of Mineral Resources’ Wodgina mine, and owns the Kemerton lithium production facility as part of a 60/40 joint venture with Mineral Resources.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Georgia Williams, currently hold no direct investment interest in any company mentioned in this article.
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18 July
Further IOCG, Copper and Epithermal Mineralisation Discovered at Great Bear Lake U-Cu-Ag-Au Project
Works commence at Nunavut Cu-Ag-Au Project
White Cliff Minerals Limited (“WCN” or the “Company”) is pleased to announce that further widespread, IOCG-U polymetallic, mineralisation has been visually observed during the maiden fieldwork program at the 100% owned Great Bear Lake U-Cu- Au-Ag Project in northern Canada and that works have now commenced at the 100% owned Nunavut Cu-Ag-Au Project.
- A total of 4 large IOCG hydrothermal systems now identified and sampled within the Project area, all prospects are visibly mineralised with chalcopyrite +/- bornite and associated copper secondary minerals
- Newly discovered “Cleaver” project, a broad zone of chalcopyrite bearing alteration at surface indicating a large and fertile IOCG system is in place.
- Cleaver includes large scale deep seated structures with widespread earthy hematite alteration (including Uranium up to 4000 counts per second (CPS)) and secondary copper
- Further groundwork at Spud Bay (north) has identified widespread copper mineralisation along a structural corridor that can be traced for 450m N/S before disappearing under cover that including surficial bornite
- This newly identified structure at Spud Bay adds to the existing 700 m E/W trend and native silver occurrence discovered just 530 meters along strike from the historic Bonanza and El Bonanza silver mines
- The Company’s subcontractor Expert Geophysics has completed the MobileMT airborne geophysical program at Great Bear Lake and has now mobilised and will commence work at the Nunavut Cu-Ag-Au Project.
- Assay results from the sampling program to follow with all samples now with the Laboratories for multi- element analysis with results expected in the coming weeks
“The IOCG potential of this project continues to grow. As we have seen from this latest round of exploration, we continue to discover targets that represent newly identified, spatially separate mineralised systems, indicating the opportunity for multiple discoveries.
The completion of MobileMT survey delivers another significant milestone for stakeholders. The Data returned from this detailed survey is expected to work well given the outcropping mineralisation fresh rock and lack of overburden. We will, integrate this information into our planning and in conjunction with the field observations and having a clear understanding of the topography and local onsite conditions we will have a complete and detailed understanding in readiness for our upcoming drilling campaign and various site visits that are planned.
Adding to the excitement of these discoveries at Great Bear Lake - works will shortly commence in Nunavut where we are targeting high-grade, volcanic hosted copper-silver lodes which are prospective for high grade vein fill and bulk tonne sedimentary hosted copper deposits. To date we have executed a seamless and zero injury first pass programme at Great Bear thanks to our highly professional consultants as well as our staff. Next is planning and preparations for drilling at Great Bear and the completion of the first pass field activities and surveys at Nunavut. All in all things could not have gone better and we look forward to drilling later this season”
Troy Whittaker - Managing Director
In relation to the disclosure of visual mineralisation, the Company cautions that visual estimates of sulphide and oxide material abundance should never be considered a proxy or substitute for laboratory analysis. Laboratory assay results are required to determine the widths and grade of visible mineralisation reported in sampling. The Company will update the market when laboratory analytical results become available, which are expected within 3-5 weeks.
Click here for the full ASX Release
This article includes content from White Cliff Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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17 July
Top 6 Lithium Stocks of 2024
Now that Q2 has come to a close, it's time to look at the year's best-performing lithium stocks on Canadian, US and Australian exchanges.
While oversupply and weak prices kept some companies from registering big gains during the first half of 2024, others like those below still saw share price grow.Unlike the fluctuations observed in 2023, the lithium market has exhibited greater stability during the first half of 2024.
However, influenced by weak prices in China, the lithium hydroxide market has seen prices remain lower than anticipated.
Market oversupply prompted some lithium producers to trim 2024 output targets in hopes that some of the excess would be absorbed in the market.
Spending for project expansions and new developments was also put on the back burner to allow the market to rebalance.
“Several factors will play a crucial role in shaping the trajectory of lithium hydroxide prices,” notes a June report from Fastmarkets. “These include the pace of EV adoption globally, advancements in battery technology that may affect lithium hydroxide demand, geopolitical tensions that could impact lithium supply chains and environmental policies that may influence mining and production practices."
Despite some of the challenges the lithium market faced in the first half of the year, the companies profiled below have all seen significant gains so far in 2024.
The list was generated using TradingView’s stock screener and data was gathered on July 16, 2024. While US lithium companies were considered for the list, none were up year-to-date at the time data was gathered. All top lithium stocks had market caps above $10 million in their respective currencies when data was gathered.
1. Lithium Chile (TSXV:LITH)
Year-to-date gains: 32.08 percent; market cap: C$148.56 million; share price: C$0.70
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina. Presently, the explorer is working to delineate the deposit at its Salar de Arizaro property in Argentina.
In early April, Lithium Chile announced a 24 percent increase in the resource estimate for its Salar de Arizaro project in Argentina, according to an updated NI 43-101 compliant resource report. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent (LCE), categorized as follows: 261,000 MT in the measured category, 2.24 million MT in the indicated category and 1.62 million MT in the inferred category.
On April 18, the company reported the creation of two wholly owned Canadian subsidiaries, Lithium Chile 2.0 and Kairos Gold, as part of a spinout to separate its Chilean and Argentinian assets. Lithium Chile will retain its Argentinian lithium projects, and transfer its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold assets in Chile to Kairos Gold.
After trending upwards through Q1, shares of Lithium Chile reached a year-to-date high of C$0.88 on March 21.
2. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 32 percent; market cap: C$28.46 million; current share price: C$0.325
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2's portfolio is the Stellar lithium property, comprising 77 claims and located 6 kilometers north of the Mia property.
This year, Q2 has also focused on exploring the Cisco lithium property, located in the same region, after entering into an option agreement on February 29. The news caused Q2's share price to skyrocket, and it reached a year-to-date high of C$0.54 on March 4.
In mid-May, Q2 released re-assayed results from 2023 drilling conducted at Cisco by the property's vendors using the analytical method Q2 applies to its Mia drill cores.
“We are pleased with the positive outcome of the re-analysis of the Cisco drill results,” said Q2 Metals VP of Exploration Neil McCallum. “A thorough review of the quality control measures has solidified that the new results are more accurate than the original results previously announced. It’s not an unexpected change as the analytical methods now used are more accurate at higher grades above roughly 1.5 percent Li2O and we have several samples above that range.”
Later that month the company announced the start of its summer drill program at the Cisco property, and has since released multiple significant updates, including the confirmation of eight new mineralized zones on July 8.
Q2 closed the acquisition in June and now owns a 100 percent interest in Cisco.
3. Rock Tech Lithium (TSXV:RCK)
Year-to-date gain: 14.81 percent; market cap: C$163.05 million; current share price: C$1.55
Rock Tech Lithium is developing upstream and downstream lithium capabilities. The company’s approach includes the production of sustainably sourced spodumene feedstock from its Ontario-based Georgia Lake project, as well as the construction of lithium hydroxide converters starting with its Guben Converter in Brandenburg, Germany.
In May, Rock Tech received its construction and operations permits for Guben, which has a planned annual capacity of 24,000 MT of lithium hydroxide monohydrate. In the years to come, the company expects to source raw material from recycling discarded batteries, pledging to have 50 percent of its feedstock at its German convertors come from recycled lithium by 2030.
On June 24, Rock Tech received a binding letter of intent from Brandenburg's Minister for Economic Affairs for up to 90 million euros in subsidies for its Guben Convertor.
Additionally, the company’s application for federal funding from the German Railway Authority is progressing well, potentially securing another 10 million euros in grants. Rock Tech plans to use this funding to help shift transport from road to rail.
Shares of Rock Tech reached a H1 high of C$2.01 on June 5.
1. Prospect Resources (ASX:PSC)
Year-to-date gain: 57.38 percent; market cap: AU$64.62 million; share price: AU$0.14
Africa-focused explorer Prospect Resources holds a diversified portfolio of assets located in Zimbabwe, Zambia and Namibia. The company’s lithium projects, Omaruru and Step Aside, are in Namibia and Zimbabwe, respectively.
In late June, Prospect released an update on its exploration activities at the projects. The company reported strong assay results from Phase 4 diamond drilling at Step Aside, and shared results from follow-up Phase 2 drilling at Omaruru.
In a release, Managing Director Sam Hosack highlights the significant mineralization potential at both projects.
Moving forward, Prospect plans to slow down spending at its lithium projects as it turns to its newly acquired Mumbezhi copper project. The company believes it can monetize Step Aside in the near term to aid in this goal.
Company shares rose to an H1 high of AU$2.05 on May 27.
2. Vulcan Energy Resources (ASX:VUL)
Year-to-date gain: 53.79 percent; market cap: AU$867.55 million; current share price: AU$4.46
Europe-focused Vulcan Energy Resources aims to support a carbon-neutral future by producing lithium and renewable energy from geothermal brine. The company is currently developing the Zero Carbon lithium project in Germany's Upper Rhine Valley. Vulcan is utilizing a proprietary alumina-based adsorbent-type direct lithium extraction process to produce lithium with an end goal of supplying sustainable lithium for the European EV market.
On April 11, Vulcan announced the commencement of lithium chloride production at its lithium extraction optimization plant in Germany. According to the company, the milestone marks the first lithium chemical production in Europe using local supply. The plant consistently exhibited over 90 percent lithium extraction efficiency.
Vulcan will now prepare the 40 million euro facility for commercial production. The company already has binding lithium offtake agreements in place with major automakers and battery manufacturers, and expects to supply enough lithium for 500,000 EVs during the first phase of production.
Shares of Vulcan marked an H1 high on May 22, trading for AU$5.54.
3. Anson Resources (ASX:ASN)
Year-to-date gain: 11.11 percent; market cap: AU$200.03 million; share price: AU$0.15
Anson Resources holds a portfolio of projects in the US and Western Australia. Its primary asset is the Paradox lithium project in Utah, which Anson is transforming into a major lithium production operation for the North American market.
On May 8, Anson received approval from Utah's Department of Natural Resources to source water, or brine, for lithium extraction at its Green River lithium project. The permit allows the non-consumptive use of 19 cubic feet of brine, which the company will process and then return to its original geological formation.
This is the company’s first permit approval for lithium production from brine in Utah.
In late June, Anson partnered with Koch Technology Solutions to use Koch's Li-Pro process for a pilot Lithium Selective Sorption unit at the Green River lithium project.
The pilot project, funded jointly by Anson Resources and Koch through a convertible note, will be used to collect data for the potential launch of a commercial-scale plant using the technology. It is expected to enter pilot production in July.
Shares of Anson marked a year-to-date high of AU$0.16 on July 10.
FAQs for investing in lithium
How much lithium is on Earth?
While we don't know how much total lithium is on Earth, the US Geological Survey estimates that global reserves stand at 22 billion MT. Of that, 9.2 billion MT are located in Chile, and 5.7 billion MT are in Australia.
Where is lithium mined?
Lithium is mined throughout the world, but the two countries that produce the most are Australia and Chile. Australia's lithium comes from primarily hard-rock deposits, while Chile's comes from lithium brines. Chile is part of the Lithium Triangle alongside Argentina and Bolivia, although those two countries have a lower annual output.
Rounding out the top five lithium-producing countries behind Australia and Chile are China, Argentina and Brazil.
What is lithium used for?
While the lithium-ion batteries that power electric vehicles, smartphones and other tech have been making waves, it is also used in pharmaceuticals, ceramics, grease, lubricants and heat-resistant glass. Still, it is largely the electric vehicle industry that is boosting demand.
How to invest in lithium?
Unlike many commodities, investors cannot physically hold lithium due to its dangerous properties. However, those looking to get into the lithium market have many options when it comes to how to invest in lithium.
Lithium stocks like those mentioned above could be a good option for investors interested in the space. If you’re looking to diversify instead of focusing on one stock, there is the Global X Lithium & Battery Tech ETF (NYSE:LIT), an exchange-traded fund (ETF) focused on the metal. Experienced investors can also look at lithium futures.
How to buy lithium stocks?
Lithium stocks can be found globally on various exchanges. Through the use of a broker or an investing service such as an app, investors can purchase individual stocks and ETFs that match their investing outlook.
Before buying a lithium stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it's critical to complete due diligence before making any investment decisions.
It's also important for investors to keep their goals in mind when choosing their investing method. There are many factors to consider when choosing a broker, as well as when looking at investing apps — a few of these include the broker or app's reputation, their fee structure and investment style.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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17 July
Top 5 Canadian Lithium Stocks of 2024
Continued surpluses in the lithium market have weighed down prices and impeded the sector’s growth during the second quarter of 2024. The excess has been attributed to heightened production in 2021 and 2022 amid higher lithium prices.
According to a July Fastmarkets report, increased lithium demand is fully priced into the market. China's lithium carbonate equivalent production from lepidolite rose by 126 percent year-over-year in April, while spodumene production increased by 109 percent. The accumulation of inventory suggests that there is no immediate supply shortage, but time is needed for demand to absorb the surplus.
With so much excess in the market, many lithium producers and explorers have struggled to see positive share price activity. However, several Canadian-listed lithium companies were able to see some growth during the first half of the year.
The Investing News Network has created an overview of the top 5 Canadian lithium stocks listed on the TSX, TSXV and CSE. This list was created on July 16, 2024, using TradingView‘s stock screener, and all data was current at that time. Only companies with market caps above C$10 million for TSX and TSXV and above C$5 million for CSE are included.
1. Volt Lithium (TSXV:VLT)
Year-to-date gains: 36.96 percent; market cap: C$31.41 million; share price: C$0.315
Volt Lithium is a lithium development and technology company aiming to become a premier North American lithium producer utilizing its unique technology to extract lithium from oilfield brine.
Shares of Volt Lithium reached an H1 high of C$0.36 on April 25, 2024.
On April 29, Volt announced a strategic investment of US$1.5 million by an unnamed company operating in the Delaware Basin in West Texas. This investment is earmarked for the deployment of a field unit to produce lithium hydroxide monohydrate using Volt's proprietary direct lithium extraction technology.
The company's share price retreated in the second half of Q2, but July 17 news that Volt increased its processing capacity at its operations in Alberta, Canada, by 100 fold to 96,000 liters per day caused its price to shoot up more than C$0.08 during trading that day.
Volt stated in the press release that it is on track to deploy its first field unit at its Canadian operations in Q3.
2. Lithium Chile (TSXV:LITH)
Year-to-date gains: 32.08 percent; market cap: C$144.43 million; share price: C$0.70
South America-focused Lithium Chile owns several lithium land packages in Chile and Argentina. Presently, the explorer is working to delineate the deposit at its Salar de Arizaro property in Argentina.
In early April, Lithium Chile announced a 24 percent increase in the resource estimate for its Salar de Arizaro project in Argentina, according to an updated NI 43-101 compliant resource report. The new total for the project is 4.12 million metric tons (MT) of lithium carbonate equivalent (LCE), categorized as follows: 261,000 MT in the measured category, 2.24 million MT in the indicated category and 1.62 million MT in the inferred category.
On April 18, the company reported the creation of two wholly owned Canadian subsidiaries, Lithium Chile 2.0 and Kairos Gold, as part of a spinout to separate its Chilean and Argentinian assets. Lithium Chile will retain its Argentinian lithium projects, and transfer its 111,978 hectares of Chilean lithium properties to Lithium Chile 2.0 and its portfolio of gold assets in Chile to Kairos Gold.
After trending upwards through Q1, shares of Lithium Chile reached a year-to-date high of C$0.88 on March 21.
3. Foremost Lithium (CSE:FAT)
Year-to-date gains: 18.99 percent; market cap: C$22.49 million; share price: C$4.01
Foremost Lithium is an exploration company with several hard rock lithium properties, which it calls the Lithium Lane projects, in the Snow Lake district of Manitoba, Canada, as well as the Lac Simard South project in Québec, Canada.
In January, Foremost received its third C$300,000 grant from the Manitoba Mineral Development Fund. The funds have been earmarked for continued exploration and drilling at the Snow Lake property.
Shares of the company hit a year-to-date high of C$4.51 in late February, when Foremost released promising intercepts from its winter drill program at its Zoro lithium project in Manitoba.
In May, the company completed the winter drill program at the Zoro project, which encompassed 21 diamond drill holes. According to the statement, the preliminary results “demonstrated the continuity of lithium mineralization along Dyke 1.”
In early June, Foremost announced plans to spin out its Winston gold-silver project in New Mexico, US, into a new wholly-owned subsidiary, Rio Grande Resources. Winston includes three historic mine sites.
4. Q2 Metals (TSXV:QTWO)
Year-to-date gain: 18 percent; market cap: C$36.12 million; share price: C$0.295
Exploration firm Q2 Metals is exploring its flagship Mia lithium property in the Eeyou Istchee James Bay region of Québec, Canada. The property contains the Mia trend, which spans over 10 kilometers. Also included in Q2's portfolio is the Stellar lithium property, comprising 77 claims and located 6 kilometers north of the Mia property.
This year, Q2 has also focused on exploring the Cisco lithium property, located in the same region, after entering into an option agreement on February 29. The news caused Q2's share price to skyrocket, and it reached a year-to-date high of C$0.54 on March 4.
In mid-May, Q2 released re-assayed results from 2023 drilling conducted at Cisco by the property's vendors using the analytical method Q2 applies to its Mia drill cores.
“We are pleased with the positive outcome of the re-analysis of the Cisco drill results,” said Q2 Metals VP of Exploration Neil McCallum. “A thorough review of the quality control measures has solidified that the new results are more accurate than the original results previously announced. It’s not an unexpected change as the analytical methods now used are more accurate at higher grades above roughly 1.5 percent Li2O and we have several samples above that range.”
Later that month the company announced the start of its summer drill program at the Cisco property, and has since released multiple significant updates, including the confirmation of eight new mineralized zones on July 8.
Q2 closed the acquisition in June and now owns a 100 percent interest in Cisco.
5. Rock Tech Lithium (TSXV:RCK)
Year-to-date gain: 8.89 percent; market cap: C$156.98 million; share price: C$1.47
Rock Tech Lithium is developing upstream and downstream lithium capabilities. The company’s approach includes the production of sustainably sourced spodumene feedstock from its Ontario-based Georgia Lake project, as well as the construction of lithium hydroxide converters in Europe.
In the years to come, the company expects to source raw material from recycling discarded batteries, pledging to have 50 percent of its feedstock at its German converters come from recycled lithium by 2030.
On June 24, Rock Tech received a binding letter of intent from Brandenburg's Minister for Economic Affairs, Joerg Steinbach, for up to 90 million Euros in subsidies for the Guben project located in Germany.
Additionally, the company’s application for federal funding from the German Railway Authority is progressing well, potentially securing another 10 million Euros in grants. This funding, expected under the "Anschlussbahnförderung," will aid in shifting transport from road to rail, a key element of the project's logistics strategy.
Shares of Rock Tech reached a H1 high of C$2.01 on June 5, 2024.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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15 July
At-The-Market Raise
Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has utilised its At-the-Market Subscription Agreement (“ATM”) with Acuity Capital (see announcements on 12 April 2024 and 14 May 2024) to raise $1,100,000 (inclusive of costs) by agreeing to issue 7,050,000 fully paid ordinary GLN.ASX shares to Acuity Capital at an issue price of $0.156 per share.
The 7,050,000 Galan shares will be issued out of the Company’s LR7.1A capacity. The issue price of $0.156 represents a discount of 8.8% to the 15-day VWAP of $0.171 to Friday 12 July 2024 (inclusive).
The funds raised will be put towards the further development of its Hombre Muerto West lithium brine project in Argentina and working capital.
In addition, Galan is pleased to advise that in accordance with Resolution 10 at its General Meeting held on Friday 12 July 2024 it has placed an additional 7,950,000 fully paid ordinary shares to Acuity Capital to top up the shares held as security against the ATM. The shares were issued for nil cash consideration and bring the total number of shares held as security held by Acuity Capital to 15,000,000 (“Collateral Shares”).
Galan has to date utilised the ATM to raise a total of $3,350,000 (see announcement dates above). The remaining standby equity capital available under the ATM is $11,650,000 and the ATM expiry date is 31 January 2029.
Please note there is no requirement on Galan to utilise the ATM and there were no fees or costs associated with the increase in Collateral Shares. The Company may at any time cancel the ATM, including buying back and cancelling the Collateral Shares for nil cash consideration (subject to shareholder approval).
Click here for the full ASX Release
This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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