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Chile Opens Lithium Reserves to Explorers Amid Rising Demand

The country aims to open up its 9.2 million tonnes of lithium reserves to pump out 450,000t of lithium carbonate…



This article was originally published by Stockhead

RThe Chilean Government is trying to boost lithium production and attract more explorers as demand surges for clean energy and lithium-based technologies.

The Ministry of Mining recently launched Special Operation Contracts (CEOL) for quotas to produce a total of 400,000 tonnes of marketable lithium metal, divided into five quotas of 80,000 tonnes each.

The country is aiming to open up its massive 9.2 million tonnes of lithium reserves to increase production to 450,000 tonnes of lithium carbonate per year by 2030.

It’s a bold move for the country, which has been accused of rushing through new contracts in the lead up to elections this month – and with President Sebastian Pinera facing impeachment proceedings.

Not to mention the potential environmental issues, with major producer Sociedad Química y Minera de Chile SA’s (NYSE:SQM) application to expand its operations blocked by a Chilean court back in 2019 after Indigenous groups protested that the company was overdrawing brine and affecting water reserves.


More lithium means supply chain security

Historically, it hasn’t been easy to get mining permits in Chile – with complex processes pushing explorers to turn to Argentina instead.

But political instability aside, Fundamental Research Corp vice president and head of research Sid Rajeev said it’s a very positive development for the sector, and makes the country an appealing jurisdiction for explorers and developers, which is good news for the EV supply chain.

“Lithium is a key component of EV batteries, and it is very important for battery and EV manufacturers to be able to access long-term/stable supply of lithium,” he said.

“More lithium supply will provide security to the supply chain.

“Chile holds more than 50% of global reserves and has the potential to be a major long-term supplier of lithium going forward – its government sees this potential.”

And Chile holds lithium brines, which have typically lower exploration costs than hard rock, which is another benefit for explorers.

“We are going to see more explorers moving to Chile,” Rajeev said.

Expect to see more M&A plays

Fundamental forecasts that EV sales will increase to 25-30 million per year by 2030 – up from 3 million in 2020 – and lithium demand is expected to grow from 275,000 tonnes to 1.9 million tonnes annually.

“The lithium market is expected to move to a deficit starting 2024,” Rajeev said.

“Chile’s plans to open 400,000 tonnes of reserves will not be sufficient to meet the supply deficit we expect by the end of this decade.”

Rajeev also said he expects to see M&A increase in the lithium sector going forwards.

Orocobre Limited (ASX:ORE) and Galaxy Resources’ merger triggered M&A activities in the sector,” he said.

“China’s Ganfeng (SZSE:002460) is acquiring Bacanora (AIM:BCN) for US$350 million.

“And Millennial Lithium (TSXV:ML) is getting acquired.

“We are expecting M&A to increase in this sector.”

Contracts to be announced this year

The Ministry says the CEOL tender maintains the condition of lithium as a strategic mineral as the country seeks to facilitate the entry of national and/or foreign companies, boosting production and supporting the development of new technologies.

But getting a CEOL is only the first step.

Companies will have to find the place to develop their projects, define technologies, comply with all applicable regulatory and environmental requirements demanded by environmental institutions, and generate the enabling environment through relationships with communities.

Plus, companies must make an economic offer to obtain the quota, in addition to paying a variable amount during the production phase.

But according to Bloomberg, 57 companies are already waiting in the wings, with Mining and Energy Minister Juan Carlos Jobet expecting to have news on the contracts later this year, ahead of a change of government in March.



One ASX company already has a foothold

SQM and Albemarle Corp (NYSE:ALB) – who plan to start sales from its new Chilean plant in 2022 – are the main producers in Chile.

And on the exploration side, Lithium Power International (ASX:LPI) has a leg-up on the competition.

The company holds a 51% interest in the Maricunga JV project and updated the measured and inferred resources in September by 90% to 1,905,000 tonnes of Lithium Carbonate Equivalent (LCE) to a depth of 200m for the Stage One (Old Code) mining properties.

Essentially the Old Code properties of Cocina 19-27, Salamina, Despreciada and San Francisco were constituted under the 1932 Chilean mining law and have grandfathered rights for the exploitation, production, and sale of lithium.

The company’s New Code properties host 979,000 tonnes of LCE already included on the 2019 DFS, which is being updated and scheduled for release by the end of 2021.

LPI is now progressing Stage One financing, but with 57 other companies considering exploring in the country it better get a move on.



The post Chile opens lithium reserves to explorers amid rising demand and political tension appeared first on Stockhead.

orocobre limited

Author: Emma Davies

Energy & Critical Metals

EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…


TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”

Author: Editor

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Base Metals

Vision Lithium to Buy The Cadillac Canadian Lithium Property

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada.  Combined with an…

Vision Lithium Property Portfolio
Cadillac lithium property located approximately 40 km west of Val-d’Or. Source: Vision Lithium

Canadian-based exploration company Vision Lithium agreed to acquire 100% interest in 215 contiguous mining claims in Quebec, Canada. 

Combined with an additional 105 stakes claimed by the company, the group of claims will be collectively referred to as The Cadillac lithium property.  

Details of the agreement include the vendor groups receiving an aggregate cash consideration of $102,427.92 from Vision Lithium, as well as ​​issue a total of 4,300,000 common shares of the company. The shares are not divided evenly, with 1.5 million each going to the CMH Group and Fancamp, the Leblanc-Lavoie Group will receive 1 million and 300,000 Shares will go to the Tremblay Group. The company will also pay each vendor group a 2% net smelter return royalty on the claims. 

President & CEO of Vision Lithium Yves Rougerie commented in a press release, “The Cadillac lithium project is an exciting addition to our growing portfolio of lithium properties. The Property is located 10 km south of the Trans-Canada highway and only metres from the secondary road, ensuring easy access for logistics, materials and qualified manpower.”

The claims acquired by Vision Lithium combined with the additional 105 claims staked, means the property holds a total of 320 claims covering 18,378 hectares. The property is easily accessible year-round in an area with well-maintained roads. This is especially helpful since Quebec can become covered in snow for multiple months of the year, and established infrastructure gives the company a head start.

There are also at least 4 pegmatite dikes which are spaced approximately 100 metres apart and traced for at least 300 metres along on the property. 

Rougerie continued “The property hosts a cluster of close-spaced parallel lithium-bearing dikes. Spodumene has been observed in the outcropping dikes and we believe there are likely more dikes in the cluster. The dikes have seen surprisingly little historical exploration with only a handful of samples and no drilling to date.” 

High Potential for Additional Lithium Discoveries

Lithium crystals have been observed on all four dikes of the property, with even a few large crystals visible. 

The property is located approximately 10 km south of Cadillac, a historic mining town, and about halfway between the major mining centres of Rouyn-Noranda and Val-d’Or in Quebec. 

“We believe the potential for additional lithium discoveries within the main cluster area is excellent and the larger property also has tremendous upside potential for discovery. The entire area acquired and staked is very large at almost 200 square kilometres. We plan to aggressively explore the Property over the winter by drilling the main cluster of dikes and to plan and complete field work next summer over the large tract of land,” Rougerie said. 

There are a number of closing conditions and post-closing obligations for the company until the transaction is officially completed. This includes the execution of certain deeds and instruments of conveyance, and the approval of joining the TSX Venture Exchange. Completion of the transaction is expected to be finished in the coming days. 

Vision Lithium focuses on exploring and developing mineral assets such as lithium and copper in different parts of Canada. Other than the claims they have just received in the recent transaction, the company has operations in Manitoba, and multiple properties in New Brunswick and Quebec. The first drill program at the company’s Dome Lemieux copper property in Quebec has commenced. Vision has also recently completed the Red-Brook copper and zinc drill program in New Brunswick. 

Vision Lithium is focused on developing their Sirmac lithium project in Quebec which is a hard rock source of lithium. Lithium can either come from hard rock sources or brines, and about 50% of each make up the world’s lithium compound production. Both sources can produce battery-grade lithium, but the extraction process is very different. The company plans on using existing methods to extract lithium for the battery market. This is a key area for the company as demand for battery materials is soaring in the middle of a global energy transition. 


The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The post Vision Lithium to Buy The Cadillac Canadian Lithium Property appeared first on MiningFeeds.

Author: Matthew Evanoff

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Energy & Critical Metals

NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors…

As all eyes turn to Chinese stocks today, Chinese electric vehicle (EV) producer Nio (NYSE:NIO) is in the spotlight. Indeed, as NIO stock slides, investors are left to ponder the news coming out of the Securities and Exchange Commission (SEC) as well as what it might mean for the EV industry as a whole.

Source: Sundry Photography /

So, what is this big news?

Chinese stocks that trade on major U.S. exchanges have been sliding since markets opened this morning, a direct result of the recent news from the SEC. The regulatory agency has announced that it will be implementing a new law that will require all international companies that trade on the NYSE or Nasdaq to turn over their financial books to U.S. regulators upon request or face being delisted.

One major stock has already delisted and others seems poised to follow. These events have cast a cloud of uncertainty over markets, and investors have many questions about their Chinese investments. Investors have a lot to think about as NIO stock falls, in terms of the future of both the company and its industry.

What’s Happening With NIO Stock

Like most China-based companies that trade in the U.S., NIO stock has been falling all day. As of this writing, it is down by almost 9%. Despite an earlier uptick, it isn’t showing signs of rebounding. The stock has been declining since December began, but yesterday’s news has caused it to plunge, pulling it into the red by more than 20% for the month. It’s clear that since news broke of Chinese ride-sharing giant Didi Global (NYSE:DIDI) making the move to delist from the NYSE, investors are nervous, bracing for a selloff.

Nio isn’t the only Chinese EV manufacturer that hasn’t been enjoying the ride today. Its peers XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) have seen worse declines. Both are down as of this writing, by 9% and 13%, respectively.

Why It Matters

While this news has sent Chinese stocks across many different sectors into a downward tailspin, there are other factors that are worth considering. Nio filed for an additional listing on a Hong Kong exchange in early 2021, but the decision was delayed for months, stretching into 2022 with little information provided by the company as to the reasons behind it. If the company was already planning to list in another market, this news from the SEC could prove the incentive it needs to delist in order to expedite the process. It’s hard to pinpoint exactly what this means for NIO stock.

Wall Street hates uncertainty. And since an important international company decided to comply with unprecedented orders from its government, uncertainty has reigned supreme. Nio’s incentive to delist is likely high, and if one industry leader makes a decision, others may follow. Adding to the turbulent market outlook is the fact that many Chinese business leaders haven’t said much since news broke of the SEC’s decision, leaving investors to wonder what the immediate future will look like.

The fact that Chinese EV stocks are slipping across the board indicates that this news is serious. The EV race, in which China’s companies have played a key role, has come to define investing in 2021 and looks set to continue into the new year. If such a prominent sector can feel the strain of this news, no industry is immune.

What It Means

The road ahead looks bumpy for all Chinese stocks that trade on U.S. markets, not just the EV sector. The emerging threat of the omicron variant was already casting doubt over markets, as investors braced for what will likely be known as the “omicron winter.” Now they have an even shorter-term concern to field.

With all this in mind, there are plenty of factors that contribute to a stock making the move to delist. We don’t know for sure what this news will mean for NIO stock, but it is certainly a name to watch as Chinese companies make decisions and trends start to develop.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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The post NIO Stock Alert: One Big Reason EV Maker Nio Is Plunging Today appeared first on InvestorPlace.

Author: Samuel O'Brient

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