Neo Lithium

Overview

Neo Lithium (TSXV:NLC,OTCQX:NTTHF,FSE:NE2) has positioned itself to become one of the world’s most sustainable lithium producers. As transportation becomes increasingly electric, the lithium industry is expected to face a significant surge in demand. Neo Lithium expects to meet this demand with energy-efficient facilities that minimize freshwater consumption and carbon dioxide production, promoting a sustainable future for both surrounding communities and the industry at large.

The company’s 3Q project is located in South America’s Lithium Triangle, an area that produces over 40 percent of the world’s lithium supply. Neo Lithium controls 100 percent of one of the largest lithium brine deposits in the world. Globally, the 3Q deposit hosts the third-highest lithium brine grade and the lowest rate of combined sulfate and magnesium impurities. The project benefits from excellent access, a trained workforce, and significant infrastructure. The area has no inhabitants, including Aboriginal communities.

Waldo Perez, the company’s president and CEO, commented, “3Q is one of the best lithium brine projects under any metric. In terms of grade, it is in the top three worldwide. In terms of size, it is the seventh largest brine project with significant blue-sky potential. Finally, in terms of impurities, it has the lowest impurities of any known salar. These qualities would allow us to develop a low-cost process with a very low capital intensity when compared to other brine projects worldwide.”

In May 2019, GHD Chile and Groundwater Insight Canada completed a 43-101 Independent Technical Report and prefeasibility study( PFS) as a comprehensive geological, technical, operational and economic assessment of Neo Lithium’s 3Q project. Key parameters include 4.0 mt lithium carbonate equivalent (LCE) in the Measured and Indicated category, 3.0 mt LCE in the Inferred category and 1.3 mt LCE in the Proven and Probable Reserves category. A full feasibility study is currently underway. PFS results show an after-tax net present value (NPV) of over US$1.8 billion.

The company has formed a strategic partnership with Contemporary Amperex Technology (CATL) (SZSE:300750), a global leader in the development and manufacturing of lithium-ion batteries. Neo Lithium’s CEO commented, “We are delighted to receive an endorsement from a globally recognized, leading industry player such as CATL as we continue to further advance our strategic objectives at the 3Q project. As we have said many times, we believe it’s extremely important to have a strategic partner with unique knowledge of the expected end-market demand before concluding the definitive feasibility study. We are confident that CATL will help us define the battery-grade quality and certification of the final product to the highest levels.”

Neo Lithium’s management team offers strong domestic lithium experience and has a proven track record in global exploration, resource development, business planning and financing capabilities. All permits have been acquired and the company is currently awaiting EIA approval.

Global lithium consumption is projected to multiply between three to five times over the next decade, placing significant pressure on the battery supply chain and the lithium market as a whole. As global battery producers continue to expand manufacturing operations, Neo Lithium is well-prepared to capitalize on a surge in demand.

Neo Lithium’s Company Highlights

• As transportation becomes increasingly electric, the lithium industry is expected to face a significant surge in demand within the next decade.
• Neo Lithium’s 3Q project is located in South America’s Lithium Triangle, an area responsible for more than 40 percent of the world’s lithium supply.
• The company controls 100 percent of one of the largest high-grade, low-impurity lithium brine deposits in the world.
• Key 43-101 parameters include 1.0 mt LCE in the Measured and Indicated category, 3.0 mt LCE in the Inferred category and 1.3 mt LCE in the Proven and Probable Reserves category.
• The company has completed a prefeasibility study and is currently conducting a definitive feasibility study.
• Neo Lithium has formed a strategic partnership with China-based CATL, a global leader in the development and manufacturing of lithium-ion batteries.