Five Top Ways to Invest in the Race for Lithium Supply April 12, 2023 - Baystreet.ca Major automakers are securing lithium deals as the battle for supply heats up. General Motors (NYSE: GM) is investing $650 million in Lithium Americas (NYSE: LAC) to help develop a lithium deposit in Nevada. According to Barron’s, “The mine, referred to as Thacker Pass, is projected to begin lithium production in the second half of 2026. The Thacker Pass investment should amount to all the lithium GM needs to meet its goal of selling 1 million EVs in North America by mid-decade.” Then, just this week, General Motors announced that GM Ventures is leading a $50 million Series B financing round in EnergyX, and has entered into a strategic agreement to develop EnergyX's lithium extraction and refinery technology. The collaboration is focused on unlocking the North American supply of lithium, a critical material for EV batteries, by using EnergyX's innovative process to maximize efficiency while improving sustainability for GM's rapidly scaling EV production. It just goes to show the race for lithium is still red hot. The news should also help fuel upside for Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), Livent Corporation (NYSE: LTHM), and Albemarle (NYSE: ALB). We also have to remember that governments all over the world are pushing for a greener future. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years. In doing so, they all want millions of electric vehicles on the roads. But to do so, more lithium is required. It’s also the reason major auto companies, like General Motors is investing in lithium miners. Look at Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), For Example Usha Resources Ltd., a North American mineral acquisition and exploration company focused on the development of drill-ready lithium and other battery and precious metal projects, is pleased to provide an update on its on-going drill program at the Jackpot Lake Lithium Brine Property. Drill hole JP22-02 has been completed to a depth of 1,801 ft (core length). The Company is pleased to report that this drill hole has returned the highest grades of lithium encountered in drilling and reported historically to date on the Property, with shallow soils within the upper 500 feet averaging 334 ppm Li, almost twice the historical reported average of 175 ppm, and a high of 820 ppm, almost four times the historical average and 50% higher than the historical reported high of 550 ppm. The core assay results from JP22-02 demonstrates the potential for Jackpot Lake to host higher-grade intervals at deeper depths within the basin and confirms that lithium-rich sediments are present in the upper portion of the basin which could theoretically concentrate and enrich a brine at depths over time. “These drill results continue to demonstrate and validate the immense potential we saw when we first reviewed Jackpot Lake.” said Deepak Varshney, CEO of Usha Resources. Mr. Varshney continued: “We have always looked to Clayton Valley as a reference for our own geological model and the leaching of enriched lithium clays within a basin is one of the primary mechanisms by which lithium is believed to have been introduced into the brine at Albemarle’s Silver Peak operation. Our reported historical average of 175 ppm Li in the surficial soils illustrated the potential of our project as it was very comparable to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment in Clayton Valley. These higher grades further confirm our belief that there is a strong potential source for brine enrichment across the entire Jackpot Lake basin as well.” The Company is also pleased to announce that it has also encountered very favourable stratigraphy in the second hole, with evaporitic crystallization, indicative of a brine-forming environment, present throughout the core similar to the first hole as interbedding, veining and inclusions but also as a thick layer of massive evaporites from 1,346 to 1,504 feet. Furthermore, the second hole has a thicker zone of the higher-porosity clayey sand, sand and conglomerate, with at least 273 feet of this zone present in an interval that begins at 1,528 feet that extends to the bottom of the hole at 1,801 feet. The conglomerate encountered at 1,696 feet and below grades from smaller to larger clast sized at depth and is supported with a sandy matrix, creating a thick basal conglomerate sequence. The identification of a larger sand-conglomerate zone within the second hole is a key finding as it demonstrates that this zone, which should contain the greatest porosity within the basin aquifer, is present in both drilled locations at sufficiently large intervals to serve as a potentially viable pumping zone for a large operation and is further evidence the basal conglomerate will persist across the entire basin floor. Per the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley project, their sand and conglomerate zone was identified to contain a large volume of brine with superior grades, and so the Company is making the identification of this zone throughout the basin a priority for its drill program. “The core from the second hole was a significant part of our decision to exercise our 100% option at Jackpot Lake prior to receiving assays.” said Deepak Varshney, CEO of Usha Resources. “The drilling to date has provided strong support that the Jackpot Lake system is in a similar geologic setting to that of Clayton Valley. Almost 150 feet of evaporites overlying several hundred feet of higher-porosity sand and conglomerate shows that this area not only has the right conditions for the formation of enriched brines, but that we also have a significant zone into which these fluids could drain and be pumped from. We are very much looking forward to completing this hole and proceeding with sampling as we work towards what we believe will be the next American lithium discovery.” The Company also announces that, after reviewing the findings of the drill program to-date and discussion with the drill contractors, the Company has elected to use a larger, more powerful rig to install a deeper exploration well, instead of completing a shallower well installation at the current depth of 1,801 feet. Usage of this new rig will allow for drilling to continue to a depth of 2,000 feet, thereby expanding on the 273-foot interval of sand and conglomerate already identified in JP22-02 where the Company believes the best potential brines may be present. Furthermore, the Company is also pleased to announce that, as a gesture of goodwill, the drill contractors, Harris Exploration Ltd., an Earth Drilling Co. Ltd. Company, has confirmed that they will also advance JP22-01 to a depth of 2,000 feet using the larger rig at no cost to the Company, thereby potentially greatly expanding on the 99-foot higher-porosity sand and conglomerate zone already identified in JP22-01. Based on the conceptual basin model, JP22-1 is approximately 200 feet closer to the eastern basin edge than JP22-2, which should result in a thicker basal conglomerate than JP22-2, so there should be another 170 feet of basal conglomerate at JP22-1 (JP22-1 was terminated at 1,728 feet). Because bedrock has not been encountered in JP22-2, 170 feet of additional basal conglomerate in JP22-1 may be a conservative estimate and this zone may extend beyond the maximum drilling depth of 2,000 feet. The rig is anticipated to arrive within the next two weeks and the Company anticipates that both holes will be completed to 2,000 feet and sampled within the first half of May. Other related developments from around the markets include: Livent Corporation reported results for the fourth quarter and full year of 2022. Fourth quarter revenue was $219.4 million, down 5% and up 79% from the third quarter of 2022 and the prior year's quarter, respectively. Reported GAAP net income was $82.7 million, compared to $77.6 million and $7.5 million in the previous quarter and the prior year's quarter, respectively, or 39 cents per diluted share. Adjusted EBITDA was $107.6 million, 3% below the previous quarter and nearly four times higher than the prior year's quarter, and adjusted earnings per diluted share were 40 cents. Continued strength in lithium market conditions and customer demand resulted in higher sequential volumes, the impact of which was partially offset by a less favorable customer mix. Lithium Americas commenced construction at its 100%-owned Thacker Pass lithium project in Humboldt County, Nevada, following the receipt of notice to proceed from the Bureau of Land Management. “Starting construction is a momentous milestone for Thacker Pass and one we have been working towards for over a decade,” said Jonathan Evans, President and CEO. “We are excited about the prospect of generating economic growth in Northern Nevada and playing a major role in the domestic lithium supply chain for electric vehicles.” Albemarle notes the announcement to the ASX by Liontown Resources on March 28, 2023, and confirms that it submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for A$2.50 or US$1.66 per share in cash, which values Liontown at A$5.2 or US$3.4 billion on an enterprise basis. Albemarle believes the proposal is a compelling opportunity for Liontown shareholders with the per share consideration representing a substantial premium to Liontown shareholders and a material premium over relevant benchmarks: 63% premium to Liontown's closing share price on March 27, 2023; 69% premium to the 30-day VWAP; 184% premium to the 52-week low share price; 41% premium to the median broker price target. Energy Exploration Technologies Inc. and General Motors Co. announced that GM Ventures is leading a $50 million Series B financing round in EnergyX, and has entered into a strategic agreement to develop EnergyX's lithium extraction and refinery technology. The collaboration is focused on unlocking the North American supply of lithium, a critical material for EV batteries, by using EnergyX's innovative process to maximize efficiency while improving sustainability for GM's rapidly scaling EV production. EnergyX's direct lithium extraction (DLE) technology portfolio can make lithium metal directly from brine and potentially in anode-ready form for EV batteries, which enables more cost-effective and sustainable lithium recovery to unlock a vast lithium supply chain in North America that may otherwise be unviable. GM is investing in every stage of the battery supply chain in North America, from raw materials, to processing, to cell components and full battery cell production. Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Usha Resources Ltd. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Usha Resources Ltd. Please click here for disclaimer. Contact: Ty Hoffer Winning Media281.804.7972[email protected]
Five Top Ways to Invest in the Race for Lithium Supply April 12, 2023 - Baystreet.ca Major automakers are securing lithium deals as the battle for supply heats up. General Motors (NYSE: GM) is investing $650 million in Lithium Americas (NYSE: LAC) to help develop a lithium deposit in Nevada. According to Barron’s, “The mine, referred to as Thacker Pass, is projected to begin lithium production in the second half of 2026. The Thacker Pass investment should amount to all the lithium GM needs to meet its goal of selling 1 million EVs in North America by mid-decade.” Then, just this week, General Motors announced that GM Ventures is leading a $50 million Series B financing round in EnergyX, and has entered into a strategic agreement to develop EnergyX's lithium extraction and refinery technology. The collaboration is focused on unlocking the North American supply of lithium, a critical material for EV batteries, by using EnergyX's innovative process to maximize efficiency while improving sustainability for GM's rapidly scaling EV production. It just goes to show the race for lithium is still red hot. The news should also help fuel upside for Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), Livent Corporation (NYSE: LTHM), and Albemarle (NYSE: ALB). We also have to remember that governments all over the world are pushing for a greener future. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years. In doing so, they all want millions of electric vehicles on the roads. But to do so, more lithium is required. It’s also the reason major auto companies, like General Motors is investing in lithium miners. Look at Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), For Example Usha Resources Ltd., a North American mineral acquisition and exploration company focused on the development of drill-ready lithium and other battery and precious metal projects, is pleased to provide an update on its on-going drill program at the Jackpot Lake Lithium Brine Property. Drill hole JP22-02 has been completed to a depth of 1,801 ft (core length). The Company is pleased to report that this drill hole has returned the highest grades of lithium encountered in drilling and reported historically to date on the Property, with shallow soils within the upper 500 feet averaging 334 ppm Li, almost twice the historical reported average of 175 ppm, and a high of 820 ppm, almost four times the historical average and 50% higher than the historical reported high of 550 ppm. The core assay results from JP22-02 demonstrates the potential for Jackpot Lake to host higher-grade intervals at deeper depths within the basin and confirms that lithium-rich sediments are present in the upper portion of the basin which could theoretically concentrate and enrich a brine at depths over time. “These drill results continue to demonstrate and validate the immense potential we saw when we first reviewed Jackpot Lake.” said Deepak Varshney, CEO of Usha Resources. Mr. Varshney continued: “We have always looked to Clayton Valley as a reference for our own geological model and the leaching of enriched lithium clays within a basin is one of the primary mechanisms by which lithium is believed to have been introduced into the brine at Albemarle’s Silver Peak operation. Our reported historical average of 175 ppm Li in the surficial soils illustrated the potential of our project as it was very comparable to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment in Clayton Valley. These higher grades further confirm our belief that there is a strong potential source for brine enrichment across the entire Jackpot Lake basin as well.” The Company is also pleased to announce that it has also encountered very favourable stratigraphy in the second hole, with evaporitic crystallization, indicative of a brine-forming environment, present throughout the core similar to the first hole as interbedding, veining and inclusions but also as a thick layer of massive evaporites from 1,346 to 1,504 feet. Furthermore, the second hole has a thicker zone of the higher-porosity clayey sand, sand and conglomerate, with at least 273 feet of this zone present in an interval that begins at 1,528 feet that extends to the bottom of the hole at 1,801 feet. The conglomerate encountered at 1,696 feet and below grades from smaller to larger clast sized at depth and is supported with a sandy matrix, creating a thick basal conglomerate sequence. The identification of a larger sand-conglomerate zone within the second hole is a key finding as it demonstrates that this zone, which should contain the greatest porosity within the basin aquifer, is present in both drilled locations at sufficiently large intervals to serve as a potentially viable pumping zone for a large operation and is further evidence the basal conglomerate will persist across the entire basin floor. Per the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley project, their sand and conglomerate zone was identified to contain a large volume of brine with superior grades, and so the Company is making the identification of this zone throughout the basin a priority for its drill program. “The core from the second hole was a significant part of our decision to exercise our 100% option at Jackpot Lake prior to receiving assays.” said Deepak Varshney, CEO of Usha Resources. “The drilling to date has provided strong support that the Jackpot Lake system is in a similar geologic setting to that of Clayton Valley. Almost 150 feet of evaporites overlying several hundred feet of higher-porosity sand and conglomerate shows that this area not only has the right conditions for the formation of enriched brines, but that we also have a significant zone into which these fluids could drain and be pumped from. We are very much looking forward to completing this hole and proceeding with sampling as we work towards what we believe will be the next American lithium discovery.” The Company also announces that, after reviewing the findings of the drill program to-date and discussion with the drill contractors, the Company has elected to use a larger, more powerful rig to install a deeper exploration well, instead of completing a shallower well installation at the current depth of 1,801 feet. Usage of this new rig will allow for drilling to continue to a depth of 2,000 feet, thereby expanding on the 273-foot interval of sand and conglomerate already identified in JP22-02 where the Company believes the best potential brines may be present. Furthermore, the Company is also pleased to announce that, as a gesture of goodwill, the drill contractors, Harris Exploration Ltd., an Earth Drilling Co. Ltd. Company, has confirmed that they will also advance JP22-01 to a depth of 2,000 feet using the larger rig at no cost to the Company, thereby potentially greatly expanding on the 99-foot higher-porosity sand and conglomerate zone already identified in JP22-01. Based on the conceptual basin model, JP22-1 is approximately 200 feet closer to the eastern basin edge than JP22-2, which should result in a thicker basal conglomerate than JP22-2, so there should be another 170 feet of basal conglomerate at JP22-1 (JP22-1 was terminated at 1,728 feet). Because bedrock has not been encountered in JP22-2, 170 feet of additional basal conglomerate in JP22-1 may be a conservative estimate and this zone may extend beyond the maximum drilling depth of 2,000 feet. The rig is anticipated to arrive within the next two weeks and the Company anticipates that both holes will be completed to 2,000 feet and sampled within the first half of May. Other related developments from around the markets include: Livent Corporation reported results for the fourth quarter and full year of 2022. Fourth quarter revenue was $219.4 million, down 5% and up 79% from the third quarter of 2022 and the prior year's quarter, respectively. Reported GAAP net income was $82.7 million, compared to $77.6 million and $7.5 million in the previous quarter and the prior year's quarter, respectively, or 39 cents per diluted share. Adjusted EBITDA was $107.6 million, 3% below the previous quarter and nearly four times higher than the prior year's quarter, and adjusted earnings per diluted share were 40 cents. Continued strength in lithium market conditions and customer demand resulted in higher sequential volumes, the impact of which was partially offset by a less favorable customer mix. Lithium Americas commenced construction at its 100%-owned Thacker Pass lithium project in Humboldt County, Nevada, following the receipt of notice to proceed from the Bureau of Land Management. “Starting construction is a momentous milestone for Thacker Pass and one we have been working towards for over a decade,” said Jonathan Evans, President and CEO. “We are excited about the prospect of generating economic growth in Northern Nevada and playing a major role in the domestic lithium supply chain for electric vehicles.” Albemarle notes the announcement to the ASX by Liontown Resources on March 28, 2023, and confirms that it submitted a non-binding proposal to acquire all outstanding shares of Liontown by way of scheme of arrangement for A$2.50 or US$1.66 per share in cash, which values Liontown at A$5.2 or US$3.4 billion on an enterprise basis. Albemarle believes the proposal is a compelling opportunity for Liontown shareholders with the per share consideration representing a substantial premium to Liontown shareholders and a material premium over relevant benchmarks: 63% premium to Liontown's closing share price on March 27, 2023; 69% premium to the 30-day VWAP; 184% premium to the 52-week low share price; 41% premium to the median broker price target. Energy Exploration Technologies Inc. and General Motors Co. announced that GM Ventures is leading a $50 million Series B financing round in EnergyX, and has entered into a strategic agreement to develop EnergyX's lithium extraction and refinery technology. The collaboration is focused on unlocking the North American supply of lithium, a critical material for EV batteries, by using EnergyX's innovative process to maximize efficiency while improving sustainability for GM's rapidly scaling EV production. EnergyX's direct lithium extraction (DLE) technology portfolio can make lithium metal directly from brine and potentially in anode-ready form for EV batteries, which enables more cost-effective and sustainable lithium recovery to unlock a vast lithium supply chain in North America that may otherwise be unviable. GM is investing in every stage of the battery supply chain in North America, from raw materials, to processing, to cell components and full battery cell production. Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Usha Resources Ltd. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Usha Resources Ltd. Please click here for disclaimer. Contact: Ty Hoffer Winning Media281.804.7972[email protected]