INV4
7 months ago
Nevada Lithium Commences Seismic Reflection Survey at 100% Owned Bonnie Claire Lithium Project, Nevada
PRESS RELEASE GlobeNewswire | Oct. 17, 2023
VANCOUVER, British Columbia, Oct. 17, 2023 (GLOBE NEWSWIRE) -- Nevada Lithium Resources Inc. (CSE: NVLH; OTCQB: NVLHF; FSE: 87K) (“Nevada Lithium” or the “Company”) is pleased to announce that a new seismic reflection survey across portions of the 100% owned Bonnie Claire lithium project (the “Project” or “Bonnie Claire”) has commenced. The survey is part of the overall work program designed to support the investigation for potential lithium brines within strata at Bonnie Claire.
Nevada Lithium’s CEO, Stephen Rentschler, comments: “We are pleased to report that Hasbrouck Geophysics, Inc. has advised us that the seismic reflection survey is now underway at Bonnie Claire. Data from this survey will play a major role in increasing the Company’s understanding of the stratigraphy at Bonnie Claire and aid drill targeting in our newly funded brine exploration program. This geophysical program complements the ongoing metallurgical and geological work programs which are advancing the Project towards completion of a Pre-Feasibility Study (PFS) of Bonnie Claire.”
Join Stephen Rentschler, CEO of Nevada Lithium for a LIVE virtual event to learn more about the details of the Company’s seismic reflection survey, and ask questions during the interactive Q&A.
Date and time: Wednesday, October 18th at 12 pm ET / 9 am PT
Highlights:
There will be an 11.0 line-km two-dimensional (2D) reflection seismic survey along three lines over a portion of the Bonnie Claire, Nevada claims. The reflection seismic survey will map stratigraphy, bedrock topography, structures within the sediments and bedrock, and the dip, continuity, and extent of aquifer units.
The survey will be a collaboration between Hasbrouck Geophysics, Inc., Prescott, Arizona, Bird Seismic Services, Inc., Globe, Arizona, Matrix Surveys, Inc., Denver, Colorado and Columbia Geophysical, LLC, Englewood, Colorado.
2D reflection seismic data will be acquired along three lines as shown in Figure 1 (below)
Figure 1: Proposed reflection seismic lines
Li-rich brine systems are common in closed basins like Clayton Valley and Bonnie Claire, which display a salar or salt crust. The brines exist in subsurface aquifers, comprising alluvial gravels and sands (1). Closed-basin brine deposits are commonly localized along active high-angle intrabasinal faults that control the distribution of aquifers and also influence groundwater movement patterns. These intrabasinal faults are known from boreholes and have no surface expression (2).
The survey is intended to model the stratigraphic package at Bonnie Claire and identify potential blind high-angle intrabasinal faults that displace the Bonnie Claire stratigraphic package and may focus Li-rich brine fluid flow. The identification of these faults will guide drill targeting to examine the potential for lithium bearing brines at Bonnie Claire.
(1) Munk, et al. 2016, Lithium Brines: A Global Perspective, Reviews in Economic Geology, v. 18, pp. 339–365
(2) Bradley, et al. 2013 A Preliminary Deposit Model for Lithium Brines, USGS Open-File Report 2013–1006 File
Seismic Survey Underway
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it holds a 100% interest.
Bonnie Claire has a current NI 43-101 inferred mineral resource of 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18.372 million tonnes (Mt) of contained lithium carbonate equivalent (LCE), at a cut-off grade of 700 ppm Li1.
The PEA for Bonnie Claire indicates a Net Present Value (8%) of $1.5 Billion USD (after tax) using $13,400 USD per tonne LCE and after-tax IRR of 23.8%. With an LCE price of $30,000 USD per tonne, the Net Present Value (8%) of the Project is $5.9 Billion USD (after tax) and an IRR of 60.3% 1.
For further information on Nevada Lithium and to subscribe for updates about Nevada Lithium, please visit its website at: https://nevadalithium.com/
QP Disclosure
The technical information in the above disclosure has been reviewed and approved by the designated Qualified Person under National Instrument 43-101, Dr. Jeff Wilson, PhD, P.Geo, Vice President of Exploration for Nevada Lithium. Dr. Wilson is not independent of Nevada Lithium, as he is Vice President of Exploration for Nevada Lithium.
1See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada authored by Terre Lane, J. Todd Harvey, MBA, PhD, Hamid Samari, PhD and Rick Moritz (Effective date of August 20, 2021, and Issue date of February 25, 2022) (the “PEA” or the “Preliminary Economic Assessment”) as summarized in Nevada Lithium’s news release dated October 13, 2021, which are available on Nevada Lithium’s SEDAR+ profile at www.sedarplus.ca. Results of the Preliminary Economic Assessment represent forward-looking information. This economic assessment is, by definition, preliminary in nature and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Preliminary Economic Assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
“Stephen Rentschler”
Stephen Rentschler, CEO
For further information, please contact:
Nevada Lithium Resources Inc.
Stephen Rentschler, CEO and Director
Phone: (647) 254-9795
E-mail: sr@nvlithium.com
Media Inquiries
E-mail: email@nvlithium.com
Find Nevada Lithium on Twitter
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this news release. The Canadian Securities Exchange has not approved or disapproved of the contents of this news release.
https://markets.businessinsider.com/news/stocks/nevada-lithium-commences-seismic-reflection-survey-at-100-owned-bonnie-claire-lithium-project-nevada-1032711944
$NVLHF
INV4
9 months ago
Nevada Lithium holds key to unlocking America’s clean energy future with Bonnie Claire project
Published: 06 Sep 2023
The Bonnie Claire project is positioned to become part of a lithium rush that could redefine America's energy future.
Bonnie Claire has an inferred NI 43-101 compliant mineral resource estimate of approximately 18.4 million tonnes and an average lithium grade of 1,013 parts per million.
Beneath the vast expanse of Nevada's open skies lies a hidden treasure that could reshape the world's energy landscape: lithium. Known as the Silver State for its historical silver mining, Nevada is now poised to become a global leader in a different kind of mining – one that powers the clean energy revolution.
Nevada Lithium Resources Inc (CSE:NVLH, OTCQB:NVLHF), a mineral exploration and development company, has set its sights on harnessing the immense lithium potential that lies beneath its rugged terrain. At the core of their ambitions is the Bonnie Claire lithium project, one of the largest deposits in North America with both sediment-hosted lithium and brine targets. Put simply, Bonnie Claire is positioned to become part of a lithium rush that could redefine America's energy future.
The journey began with Nevada Lithium's acquisition of 20% ownership of Bonnie Claire. The transformative acquisition, finalized in July 2023, granted the company 100% complete control over one of North America's most extensive lithium deposits. What makes Bonnie Claire truly remarkable is its sheer scale: with an Inferred NI 43-101 compliant mineral resource estimate of approximately 18.4 million tonnes and an average lithium grade of 1,013 parts per million, the project is a geological giant, covering an area nearly 1.25 times the size of Manhattan.
However, the real story lies in the numbers generated by the preliminary economic assessment (PEA). At a lithium carbonate equivalent (LCE) price of US$13,400 per tonne, the project revealed a post-tax net present value (NPV8) of US$1.5 billion and a post-tax internal rate of return (IRR) of 23.8%. These figures alone signal the immense economic potential of Bonnie Claire.
Since then, LCE spot prices have surged to recently reach around US$41,000/t, and Bonnie Claire’s NPV responds well to rising lithium prices. At US$20,000/t LCE Bonnie Claire has a post-tax NPV8 of US$3.2 billion and a post-tax IRR of 39.5%. At US$30,000/t, those figures would increase to a staggering post-tax NPV8 of US$5.9 billion and IRR of 60.3%.
Multibillion dollar potential
Nevada Lithium CEO Stephen Rentschler puts it bluntly: “This is a multibillion-dollar project.”
“It moves the needle for large mining houses,” the CEO told Proactive. “It has a mine life of 40 years that can be upsized – currently, we're only using 4% to 6% of the resource. We will also likely bring the grade up as we continue to do infill drilling.”
The economics are in place, even without any company initiatives to bring down costs in the metallurgical lab, and the company has already proven it can produce battery grade lithium carbonate. “There are a lot of things that we can do to make the economics even better,” Rentschler said, such as optimizing reagent costs, which would have a big impact on the IRR.
Filling the lithium supply gap
Nevada Lithium's strategic positioning in the lithium sector aligns perfectly with the surging demand from the electric vehicle (EV) sector. Major automakers like Ford, General Motors, Tesla, and Stellantis have secured supply agreements with lithium producers, recognizing the critical role lithium plays in the EV revolution. With their sights set on a sustainable future, these companies prefer working with entities that have majority ownership over a project, such as Nevada Lithium's 100% control over Bonnie Claire.
The challenge for car companies – and their biggest demand – is how quickly they can get their hands on this lithium. Albemarle Corporation, the US’s sole lithium producer, raised its forecast for 2030 global lithium demand to 3.7MMt LCE – an increase of 15% from its previous forecast due to the impact of the US Inflation Reduction Act and strong EV demand. Albemarle also foresees an 800,000 tonne supply deficit. A project like Bonnie Claire, with its vast resource, could go a long way in helping to fill that gap.
A veteran natural resource investor for institutions in New York, Rentschler thinks there are multiple ways to generate shareholder value. “Can we build it ourselves? Sure, the NPV would certainly make it worthwhile,” the CEO said. “But I’ve seen companies at a similar stage to us that de-risk their projects and receive a significant percentage of the project’s net present value in a much shorter time frame. Either outcome would be great for investors.”
Looking ahead to a sustainable energy future
The story goes beyond economic potential; it's a tale of sustainability and environmental stewardship. Nevada Lithium’s PEA is committed to eco-friendly practices. Their borehole mining technique should minimize surface impact, and they are adopting a recovery process that avoids the use of sulfuric acid. Moreover, the region's abundant renewable energy sources, including solar and hydroelectric power, ensure a minimal greenhouse gas footprint.
Looking ahead, Nevada Lithium has significant milestones in store. The company is pursuing additional metallurgical results, upgrading the confidence level of its resource through a 2023 in-fill drill program, and targeting a prefeasibility study by the end of 2024.
As Nevada's lithium potential gains momentum, Bonnie Claire is a prime example of the kind of deposit that is required for a cleaner, greener energy future. Nevada's lithium rush has just begun, and the world is watching, for the future of clean energy may well be written in the rocks beneath its sun-drenched deserts.
https://www.proactiveinvestors.com/companies/news/1025704/nevada-lithium-holds-key-to-unlocking-america-s-clean-energy-future-with-bonnie-claire-project-1025704.html?region=ca
$NVLHF
Oleblue
9 months ago
What’s the most sustainable way to mine the largest known lithium deposit in the world?
The McDermitt Caldera in Nevada and Oregon could hold up to 100 megatons of lithium. Now companies are proposing a new method for mining it.
By Rahul Rao | Published Aug 30, 2023 4:30 PM EDT
Environment
Technology
Lithium samples from the proposed Thacker Pass mining site in the McDermitt Caldera lithium deposit
The clay mixture from which lithium would be extracted if a mine were to be permitted in Nevada's Thacker Pass. Carolyn Cole / Los Angeles Times via Getty Images
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At first glance, the McDermitt Caldera might feel like the edge of the Earth. This oblong maze of rocky vales straddles the arid Nevada-Oregon borderlands, in one of the least densely populated parts of North America.
But the future of the modern world depends on the future of places like the McDermitt Caldera, which has the potential to be the largest known source of lithium on the planet. Where today’s world runs on hydrocarbons, tomorrow’s may very well rely on the element for an expanding offering of lithium-ion batteries. The flaky silver metal is a necessity for these batteries that we already use, and which we’ll likely use in far greater numbers to support mobile phones, electric cars, and large electric grids.
Which is why it matters a ton where we get our lithium from. A new study, published in the journal Science Advances today, suggests that McDermitt Caldera contains even more lithium than previously thought and outlines how the yet-to-be-discovered stores could be extracted. But these results are unlikely to ease the criticisms about the environmental costs of mining the substance.
[Related: Why solid state batteries are the next frontier for EV makers]
By 2030, the world may require more than a megaton of lithium every year. If previous geological surveys are correct, then the McDermitt Caldera—the remnants of a 16-million-old volcanic supereruption—could contain as many as 100 megatons of the metal.
“It’s a huge, massive feature that has a lot of lithium in it,” Tom Benson, one of the authors of the new paper and a volcanologist at Columbia University and the Lithium Americas Corporation.
One high-profile project, partly run by Lithium Americas Corporation, proposes a 17,933-acre mine in the Thacker Pass, on the Nevada side of the border at the caldera’s southern edge. The project is contentious: Thacker Pass (or Peehee Mu’huh in Northern Paiute) sits on land that many local Indigenous groups consider sacred. Native American activists are continuing to fight a plan to expand the mine-exploration area in court.
But not all of the lithium under McDermitt’s rocky sands ranks the same. Most of the desired metal there comes in the form of a mineral called smectite; under certain conditions, smectite can transform into a different mineral called illite that can sometimes also be processed for lithium. Benson and his colleagues studied samples of both smectite and illite drilled from the ground throughout the caldera. “There’s lithium everywhere you drill,” he says.
Previously, geologists assumed that you could find both smectite and illite in a wide distribution across the caldera, but the authors only found the latter in high concentrations in the caldera’s south, around Thacker Pass. “It’s constrained to this area,” explains Benson.
McDermitt Caldera map with colored dots for lithium mining assays
Benson et al. (2023)
That’s important. Benson and colleagues think that the caldera’s illite formed when lithium-rich fluid, heated by the underlying volcano, washed over smectite. In the process, the mineral absorbed much of the lithium. Consequently, they project the illite in Thacker Pass holds more than twice as much lithium than the neighboring smectite.
“That’s really helpful to change exploration strategy,” Benson says. “Now we know we have to stick in the Thacker Pass area if we want to find and mine that illite.”
Some of Thacker Pass’s proponents believe that would result in fewer costs and less damage from mining. Anyone who deals with lithium is, on some level, aware of the environmental costs. The recovery process produces pollutants like heavy metals, sucks up water, and emits tons of greenhouse gases. By one estimate, fitting a new electric vehicle with its lithium battery can result in upwards of 70 percent more carbon emissions than building an equivalent petrol-powered car (although the average electric car will more than make up the difference with day-to-day use).
That said, not all extraction is the same. There are two main types of lithium sources: brine recovery and hard-rock mining. Some of the lithium we use comes from super salty pools. Over millions of years, rainwater percolates through lithium-containing rocks, dissolves the metal, and carries it to underground aquifers. Today, humans pump brine to the surface, evaporate the water, add a slurry of hydrated lime to keep out unwanted metals, and extract the lithium that’s left behind. Much of the world’s brine lithium today comes from the “lithium triangle” of Argentina, Bolivia, and Chile—one of the world’s driest regions.
Alternatively, we can directly mine lithium ores from the earth and process them as we would with most other metals. Separating lithium from ore typically involves crushing the rock and heating it up to temperatures of more than 1,000 degrees Fahrenheit. Getting to those high temperatures often requires fossil fuels in the first place. This method is less laborious and costly than brine extraction, but also far more carbon-intensive.
[Related: Inside the high-powered process that could recycle rare earth metals]
McDermitt Caldera’s smectite and illite belong to what some lithium watchers see as a new third category of extraction: volcanic sedimentary lithium. When volcanic minerals containing lithium flow into nearby valleys and react with the loose dirt, they leave behind lithium-rich sediments that require little energy and processing to separate.
With the new alternative, mining proponents claim they can drastically reduce the environmental impact of their current and future activities at Thacker Pass. And the research by Benson’s team seems to suggest that, if lithium companies probe in the right places, they might get rewarded more for their efforts.
But this is likely little comfort to lithium-mining opponents in Oregon and Nevada, whose criticisms will be considered as the Bureau of Land Management maps out drilling in the deposit. Their case parallels those of Indigenous Chileans who oppose lithium extraction near their homes in the Atacama and locals fighting a lithium mining project near Portugal’s northern border. Together, they’re fighting a world that’s growing hungrier for lithium, along with new ways and places to exploit it.
https://www.popsci.com/environment/lithium-mining-mcdermitt-caldera/
INV4
10 months ago
Nevada Lithium Updates 2023 Exploration Program Progress at 100% Owned Bonnie Claire Lithium Project, Nevada, USA
Press Release | 08/09/2023
Vancouver, British Columbia--(Newsfile Corp. - August 9, 2023) - Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) ("Nevada Lithium" or the "Company") is pleased to provide an update on the 2023 mineral exploration and development work on its 100% owned Bonnie Claire Lithium Project (the "Project" or "Bonnie Claire"), located in Nye County, Nevada. The work program is designed to support a Pre-Feasibility Study (PFS), building upon the Company's 2022 NI 43-101 Preliminary Economic Assessment (as defined below) for Bonnie Claire. The PEA (as defined below) indicates a Net Present Value (8%) of $1.5 Billion USD and 23.8% IRR (both after tax) using a $13,400 USD per tonne LCE price1.
Highlights:
Core drilling program designed to follow-up on the successful 2022 program which returned high grade lithium values at Bonnie Claire, including 3,201 ppm Li over 520 ft (158 m) within a wider interval of 1,315 ppm Li over 2,000 ft (610 m) (see the Company's news release dated December 7, 2022).
Expand upon the recent production of marketable battery grade lithium carbonate with the production of marketable battery grade lithium hydroxide and other marketable products (see the Company's news release dated February 27, 2023).
Examine the potential for lithium bearing brines at Bonnie Claire through the extension of select core holes past 2,000 feet (610 meters) to the geological "basement" combined with results from planned 3D seismic surveys.
Nevada Lithium CEO, Stephen Rentschler, comments: "Following the success of our recently completed financings, we are excited to provide an update on the 2023 work program. The 2023 program is designed to propel the Project towards Pre-feasibility Study (PFS) completion. We will also investigate the potential for lithium bearing brines on the Project and look forward to the possibility of adding even more value for shareholders."
2023 Work & Exploration Program
The Company is pleased to announce that drilling is expected to commence shortly on the Project. Site preparations have begun under the Plan of Operations (the "Plan") that was approved by the US Bureau of Land Management (BLM) last year (see the Company's news release dated November 22, 2022). The permitted exploration area covers 4,146 acres (16.78 square kilometers), of which, 3,271 acres (13.24 square kilometers) are salt playa.
Having the baseline environmental and related studies in place will aid in advancing further permitting of the Project. The Plan is anticipated to be further expanded in 2023.
The core drilling program will test to depths of 2,000 feet (610 meters) and gather material for metallurgical testing, and geochemical sampling, to support a targeted increase in mineral resource confidence from the inferred category to the indicated and measured categories. As part of the program, geological core logging, geotechnical analysis, and water sampling will be completed. Geophysical surveying of the core holes will also be completed and aid in targeting permeable zones ahead of pumping tests.
Additional testing on two of these core holes will be performed to support the Company's examination of the potential for lithium bearing brines at Bonnie Claire. As part of this testing, two of the core holes will be extended past 2,000 feet (610 meters) to the geological "basement". Information from these holes will be combined with the results from a detailed 3d seismic survey that is expected to commence before the end of the year. Interpretation of these combined results will determine next steps in this re-examination, which are anticipated to be the drilling of one or more wells targeting brine at Bonnie Claire.
Ongoing metallurgical testing is being conducted by Hazen Research Inc. ("Hazen") under the guidance of Global Resource Engineering Ltd. The metallurgical work program being advanced by Hazen resulted in the production of marketable battery grade lithium carbonate, as announced earlier this year (see the Company's news release of February 27, 2023). The source material for ongoing metallurgy is core from last year's drilling and will be supplemented with material from the pending 2023 drill program.
Hazen continues to build upon the work completed as part of the PEA, including the essential components required to support a Prefeasibility Study on the Project. This includes further derisking and demonstration of the flowsheet through to the production of marketable battery grade lithium hydroxide and other marketable products, including sulfate of potassium fertilizer.
The Company had previously contracted Barr Engineering Company of Minneapolis to design and execute a demonstration test program for borehole mining at Bonnie Claire. This ongoing work is being supplemented by the work of Kinley Exploration LLC, located in Overland Park, Kansas. Geotechnical information collected from core holes and down-hole well testing will be used to design and carry-out the borehole test. A borehole mining approach offers the opportunity to significantly reduce surface disturbance compared to a conventional open pit operation.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it holds a 100% interest.
Bonnie Claire has a current NI 43-101 inferred mineral resource of 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18.372 million tonnes (Mt) of contained lithium carbonate equivalent (LCE), at a cut-off grade of 700 ppm Li1.
The PEA for Bonnie Claire indicates a Net Present Value (8%) of $1.5 Billion USD (after tax) using $13,400 USD per tonne LCE and after-tax IRR of 23.8%. With an LCE price of $30,000 USD per tonne, the Net Present Value (8%) of the Project is $5.9 Billion USD (after tax) and an IRR of 60.3% 1.
For further information on Nevada Lithium and to subscribe for updates about Nevada Lithium,
please visit its website at: https://www.nvlithium.com/
QP Disclosure
The technical information in the above disclosure has been reviewed and approved by the designated Qualified Person under National Instrument 43-101, Jeff Wilson, PhD, P.Geo, Vice President of Exploration for Nevada Lithium. Dr. Wilson is not independent of Nevada Lithium, as he is Vice President of Exploration for Nevada Lithium.
1See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada authored by Terre Lane, J. Todd Harvey, MBA, PhD, Hamid Samari, PhD and Rick Moritz (Effective date of August 20, 2021, and Issue date of February 25, 2022) (the "PEA" or the "Preliminary Economic Assessment") as summarized in Nevada Lithium news release dated October 13, 2021, which are available on Nevada Lithium's SEDAR profile at www.sedar.com. Results of the Preliminary Economic Assessment represent forward-looking information. This economic assessment is by definition preliminary in nature and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Preliminary Economic Assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
"Stephen Rentschler"
Stephen Rentschler, CEO
For further information, please contact:
Nevada Lithium Resources Inc.
Stephen Rentschler, CEO and Director
Phone: (604) 416-4099
E-mail: sr@nvlithium.com
Media Inquiries
E-mail: email@nvlithium.com
Find Nevada Lithium on Twitter
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this news release. The Canadian Securities Exchange has not approved or disapproved of the contents of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. These statements relate to matters that identify future events or future performance. Often, but not always, forward looking information can be identified by words such as "could", "pro forma", "plans", "expects", "may", "will", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.
The forward-looking statements contained herein include, but are not limited to statements regarding: the performance of the Project and results of the Plan (including, without limitation, its mineral resources, current claims and its ability to utilize global lithium needs); and the performance of lithium as a commodity, including the sustained lithium demand and prices.
In making the forward looking statements in this news release, Nevada Lithium has applied several material assumptions, including without limitation: market fundamentals that result in sustained lithium demand and prices; the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of Bonnie Claire in a timely manner; the availability of financing on suitable terms for the development; construction and continued operation of Bonnie Claire; the Project containing mineral resources; and Nevada Lithium's ability to comply with all applicable regulations and laws, including environmental, health and safety laws.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect Nevada Lithium's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of managements considered reasonable at the date the statements are made. Although Nevada Lithium believes that the expectations reflected in such forward-looking statements are reasonable, such information involves risks and uncertainties, and under reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements expressed or implied by Nevada Lithium. Among the key risk factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Project; estimation or realization of mineral reserves and mineral resources, requirements for additional capital; future prices of precious metals and lithium; changes in general economic, business and political conditions, including changes in the financial markets and in the demand and market price for commodities; possible variations in ore grade or recovery rates; possible failures of plants, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays or the inability of Nevada Lithium to obtain any necessary approvals, permits, consents or authorizations, financing or other planned activities; changes in laws, regulations and policies affecting mining operations; currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities; risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on Nevada Lithium's business; as well as those factors discussed under the heading "Risk Factors" in Nevada Lithium's latest Management Discussion and Analysis and other filings of Nevada Lithium with the Canadian Securities Authorities, copies of which can be found under the respective party's profile on the SEDAR+ website at www.sedarplus.ca.
Should one or more of these risks or uncertainties materialized, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Nevada Lithium has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Nevada Lithium does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
https://www.otcmarkets.com/stock/NVLHF/news/Nevada-Lithium-Updates-2023-Exploration-Program-Progress-at-100-Owned-Bonnie-Claire-Lithium-Project-Nevada-USA?id=410168
To view the source version of this press release, please visit:
https://www.newsfilecorp.com/release/176543
$NVLHF
INV4
11 months ago
Nevada Lithium Completes Acquisition of 100% Ownership of Bonnie Claire Lithium Project, Nevada USA with Robust PEA Economics of USD $1.5 Billion NPV (After Tax) and Receives Proceeds from $11.3M Concurrent Financings
Vancouver, British Columbia--(Newsfile Corp. - July 10, 2023) - Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) ("Nevada Lithium") and Iconic Minerals Ltd. (TSXV: ICM) (OTCQB: BVTEF) (FSE: YQGB) ("Iconic") are pleased to announce that they have completed the previously announced plan of arrangement under the Business Corporations Act (British Columbia) (the "BCBCA"), whereby Nevada Lithium acquired Iconic's 50% interest in the Bonnie Claire lithium project (the "Bonnie Claire Project") located in Nye County, Nevada (the "Arrangement"). Upon completion of the Arrangement, Nevada Lithium now holds a 100% interest in the Bonnie Claire Project. In connection with the completion of the Arrangement Nevada Lithium will receive the gross proceeds from the Concurrent Offerings (as defined below) totalling $11,320,998, which included participation from several investors.
Stephen Rentschler, Chief Executive Officer of Nevada Lithium, stated: "We are pleased to announce the completion of the previously announced transaction with Iconic resulting in 100% ownership of the Bonnie Claire lithium deposit by Nevada Lithium, and welcome the new shareholders who have been created as a result of this transaction. Nevada Lithium is currently engaged in Pre-Feasibility Study work, as well as strategic dialog with lithium end-users. Consolidation of asset ownership has been one of the key factors in discussions, and we are confident that this transaction will be instrumental in unlocking shareholder value."
Richard Kern, President/CEO of Ionic and Chief Operating Officer and director of Nevada Lithium, added: "The Bonnie Claire lithium deposit has developed into a resource of potential global significance with its size, grade and location in Nevada, USA. Consolidation of 100% ownership within Nevada Lithium will provide a more efficient and effective structure for the continued advancement of the Bonnie Claire Project and allow Iconic shareholders to continue to participate in future value creation as shareholders of Nevada Lithium."
Mr. Rentschler continued, "Lithium Carbonate Equivalent (LCE) prices are now many times higher than the assumed prices used in our robust Preliminary Economic Assessment, where at a base case pricing assumption of $13,400 USD / tonne LCE the Bonnie Claire Project returned an NPV of $1.5 Billion USD (ATAX 8%)1. Recent 2022 drill program results have also returned the highest lithium values ever recorded at the Bonnie Claire Project, including 3,201 ppm Li over 520 ft (158 m) within a wider interval of 1,315 ppm Li over 2,000 ft (610 m)2. With a projected annual production rate of over 30,000 tonnes of LCE, and a resource base that indicates the ability to upsize potential production further, the Bonnie Claire Project has the potential to play a significant role in meeting global lithium needs."
1 See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada authored by Terre Lane, J. Todd Harvey, MBA, PhD, Hamid Samari, PhD and Rick Moritz (Effective date of August 20, 2021, and Issue date of February 25, 2022) as summarized in Nevada Lithium news release dated October 13, 2021, which are available on Nevada Lithium's SEDAR profile at www.sedar.com. Results of the Preliminary Economic Assessment (PEA) represent forward-looking information. This economic assessment is by definition preliminary in nature, and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Assumes 68% recovery by borehole.
2 See Nevada Lithium news release dated December 7, 2022.
Bonnie Claire Project
The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) as well as a 475 m (1560 ft) vertical intercept averaging 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource of 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent (LCE), at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
Nevada Lithium's 2022 NI 43-101 Preliminary Economic Assessment shows attractive investment metrics even at low LCE prices. At $13,400 USD per tonne LCE, the Net Present Value of the Project is $1.5 Billion USD (after tax) using an eight percent (8%) discount rate and the Bonnie Claire Project has after tax IRR of 23.8%. With an LCE price of $30,000 USD per tonne, the Net Present Value (8%) of the Bonnie Claire Project is $5.9 Billion USD and the IRR is 60.3% (after tax)3.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
3 See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada authored by Terre Lane, J. Todd Harvey, MBA, PhD, Hamid Samari, PhD and Rick Moritz (Effective date of August 20, 2021, and Issue date of February 25, 2022) as summarized in Nevada Lithium news release dated October 13, 2021, which are available on Nevada Lithium's SEDAR profile at www.sedar.com. Results of the Preliminary Economic Assessment (PEA) represent forward-looking information. This economic assessment is by definition preliminary in nature, and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Assumes 68% recovery by borehole.
Summary of the Arrangement
The Arrangement was carried out pursuant to the terms of a definitive arrangement agreement dated March 24, 2023, as amended (the "Arrangement Agreement"), between Nevada Lithium, Iconic, a wholly-owned subsidiary of Nevada Lithium, 1406917 B.C. Ltd. ("Nevada Lithium MergeCo") and a wholly-owned subsidiary of Iconic, 1259318 B.C. Ltd. ("Iconic MergeCo").
In connection with the completion of the Arrangement, the parties carried out, among other things, the following:
a. Iconic's 50% interest in the Bonnie Claire Project, that was previously held through Iconic's Nevada subsidiary, Bonaventure Nevada Inc., has been transferred to a newly incorporated Nevada subsidiary of Iconic MergeCo, Bonnie Claire Lithium Resources Corp.;
b. Iconic filed articles of amendment in accordance with the BCBCA to amend its authorized share structure (the "Iconic Capital Alteration") to provide for the following:
I. all of the issued and unissued common shares in the capital of Iconic (each, an "Iconic Common Share") were renamed and redesignated as "Class A common shares without par value", and the special rights and restrictions attached to those shares were varied to provide the holders thereof with two votes in respect of each share held;
II. a new class consisting of an unlimited number of "common shares without par value" was created (each, an "Iconic New Common Share") with terms and special rights and restrictions identical to those of the Iconic Common Shares immediately prior to the effective time of the Arrangement; and
III. following the Iconic Share Exchange (as defined below), all of the issued Iconic Common Shares were cancelled and the authorized share structure of Iconic was altered by eliminating the Iconic Common Shares;
c. each of the issued and outstanding Iconic Common Share (as renamed and redesignated Iconic Class A common shares) was exchanged for:
I. one Iconic New Common Share; and
II. a fractional amount of an Iconic MergeCo share, such that after giving effect to the Iconic Share Exchange, each shareholder of Iconic held a proportionate interest in Iconic MergeCo, provided that Iconic retained a 10% interest in Iconic MergeCo (the "Iconic Share Exchange");
d. Iconic MergeCo amalgamated with Nevada Lithium MergeCo and continued as one corporation under the BCBCA;
e. Nevada Lithium issued an aggregate of 66,912,827 common shares as consideration for the Arrangement (the "Consideration Shares"), of which 60,221,528 Consideration Shares were received by the Iconic shareholders and 6,691,299 were received by Iconic, representing, in the case of the Iconic shareholders, 0.4082576248 Consideration Share for each one Iconic common share held;
f. 1406923 B.C. Ltd. ("Nevada Lithium Subco") and 1396483 B.C. Ltd. ("Nevada Lithium FinCo") amalgamated and continued as one corporation under the BCBCA. Upon closing of the Arrangement, each Nevada Lithium FinCo common shares and each Nevada Lithium FinCo common share purchase warrant was exchanged on a one-for-one basis, respectively, for common shares in the capital of Nevada Lithium (the "Nevada Lithium Shares") and Nevada Lithium Warrants (as defined below);
g. Nevada Lithium issued to Iconic an aggregate of 4,000,000 Nevada Lithium warrants, each of which entitle the holder thereof to purchase one Nevada Lithium Share for a period of two years from the closing of the Arrangement at an exercise price of $0.20 per Nevada Lithium Share (the "Nevada Lithium Warrants");
h. Nevada Lithium granted to certain eligible persons associated with Iconic an aggregate of 3,930,000 stock options, bearing the same terms as the Nevada Lithium stock options that were outstanding immediately prior to the completion of the Arrangement, including as to duration and exercise price;
i. Nevada Lithium paid to Iconic a $500,000 structuring fee and reimbursed certain expenses and contractual obligations of Iconic in respect of the Bonnie Claire Project arising prior to the effective date of the arrangement, including legal, contract management and other professional fees incurred by Iconic in connection with the Arrangement;
j. the board of directors of Nevada Lithium was reconstituted to consist of five members, comprised of: Stephen Rentschler, Scott Eldridge, Richard Kern, Keturah Nathe and Jerry Wang; and
k. Mr. Stephen Rentschler will continue to serve as CEO of Nevada Lithium; Mr. Richard Kern, the current CEO of Iconic, has been appointed the COO of Nevada Lithium; Mr. Kelvin Lee resigned as the CFO of Nevada Lithium and Ms. Catherine Lathwell was appointed as the CFO of Nevada Lithium in Mr. Lee's stead.
Concurrent Financings
In connection with the completion of the Arrangement, the gross proceeds totaling $11,320,998, derived from Nevada Lithium's February 24, 2023 non-brokered private placement of 36,680,000 subscription receipts ("FebruaryOffering") and Nevada Lithium's June 20, 2023 non-brokered private placement offering of 41,333,333 subscription receipts (the "June Offering" and together with the February Offering, the "Concurrent Offerings") were released from escrow and the subscription receipts issued pursuant to the February Offering (the "February Subscription Receipts") and the subscription receipts issued pursuant to the June Offering (the "June Subscription Receipts") were automatically converted into units of Nevada Lithium, as described in Nevada Lithium's press releases dated February 24, 2023 and June 20, 2023 respectively. PowerOne Capital Markets Limited acted as finder in connection with the Concurrent Offerings.
The holders of promissory notes of Nevada Lithium (the "Promissory Notes") in the principal amount of $535,998 entered into debt conversion agreements whereby immediately prior to the closing of the Arrangement, the principal amount outstanding under the Promissory Notes was converted into units of Nevada Lithium on the same terms as the February Subscription Receipts.
Nevada Lithium intends to use the net proceeds from the February Offering and the June Offering for exploration activities at the Bonnie Claire Project as well as for working capital requirements and other general corporate purposes.
The securities distributed pursuant to the Arrangement, the February Offering and the June Offering have not and will not be registered under the U.S. Securities Act of 1933 or any U.S. state securities laws and may not be offered or sold in the United States unless the securities have been registered under the U.S. Securities Act of 1933 and any applicable state securities laws, or in compliance with the requirements of an exemption therefrom.
Legal Advisors
Garfinkle Biderman LLP acted as legal counsel to Nevada Lithium in connection with the Arrangement.
Lotz & Company acted as legal counsel to Iconic in connection with the Arrangement.
Qualified Person
The technical information in the above disclosure has been reviewed and approved by the designated Qualified Person (QP) under National Instrument 43-101, Jeff Wilson, PhD, P.Geo, Director & Vice President of Exploration for Nevada Lithium. Dr. Wilson is independent of Iconic but is not independent of Nevada Lithium, as he is a director and Vice President of Exploration for Nevada Lithium.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it holds a 100% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and Nevada Lithium is actively advancing the Bonnie Claire Project towards Pre-Feasibility. Learn more: https://www.nvlithium.com.
About Iconic Minerals Ltd.
Iconic is a mineral exploration and development company with several quality lithium and gold exploration projects located throughout Nevada, USA. For further information on Iconic, please visit its website at www.iconicminerals.com.
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
"Stephen Rentschler"
Stephen Rentschler, CEO
On behalf of the Board of Directors of Iconic Minerals Ltd.
"Richard Kern"
Richard Kern, President and CEO
For further information, please contact:
Nevada Lithium Resources Inc.
Stephen Rentschler, CEO and Director
Phone: (604) 416-4099
Email: sr@nvlithium.com
Iconic Minerals Ltd.
Keturah Nathe, VP Corporate Development
Phone: (604) 336-8614
Email: keturah@simcoservices.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) or the Canadian Securities Exchange accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the Arrangement and has not approved or disapproved of the contents of this news release.
Cautionary Note to United States Investors
Iconic prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this news release are defined in accordance with NI 43-101 under the guidelines set out in CIM Standards. The U.S. Securities and Exchange Commission (the "SEC") has adopted amendments effective February 25, 2019 (the "SEC Modernization Rules") to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934.
As a result of the adoption of the SEC Modernization Rules, the SEC will now recognize estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", which are defined in substantially similar terms to the corresponding CIM Standards. In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be substantially similar to the corresponding CIM Standards.
U.S. investors are cautioned that while the foregoing terms are "substantially similar" to corresponding definitions under the CIM Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Standards. Accordingly, there is no assurance any mineral resources that Nevada Lithium may report as "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had Nevada Lithium prepared the resource estimates under the standards adopted under the SEC Modernization Rules.
In accordance with Canadian securities laws, estimates of "inferred mineral resources" cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. These statements relate to matters that identify future events or future performance. Often, but not always, forward looking information can be identified by words such as "could", "pro forma", "plans", "expects", "may", "will", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved.
The forward-looking statements contained herein include, but are not limited to statements regarding: the anticipated benefits and results of the Arrangement; the performance of the Bonnie Claire Project after the completion of the Arrangement (including, without limitation, its mineral resources, current claims and its ability to utilize global lithium needs); and the performance of lithium as a commodity, including the sustained lithium demand and prices.
In making the forward looking statements in this news release, Iconic and Nevada Lithium have applied several material assumptions, including without limitation: Iconic obtaining final TSX Venture Exchange acceptance; market fundamentals that result in sustained lithium demand and prices; the receipt of any necessary permits, licenses and regulatory approvals in connection with the future development of the Bonnie Claire Project in a timely manner; the availability of financing on suitable terms for the development; construction and continued operation of the Bonnie Claire Project; the Bonnie Claire Project containing mineral resources; and Iconic and Nevada Lithium's ability to comply with all applicable regulations and laws, including environmental, health and safety laws.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect Iconic and Nevada Lithium's respective management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of managements considered reasonable at the date the statements are made. Although Iconic and Nevada Lithium believe that the expectations reflected in such forward-looking statements are reasonable, such information involves risks and uncertainties, and under reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements expressed or implied by Iconic and Nevada Lithium. Among the key risk factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: operating and technical difficulties in connection with mineral exploration and development and mine development activities at the Bonnie Claire Project; estimation or realization of mineral reserves and mineral resources, requirements for additional capital; future prices of precious metals and lithium; changes in general economic, business and political conditions, including changes in the financial markets and in the demand and market price for commodities; possible variations in ore grade or recovery rates; possible failures of plants, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays or the inability of Iconic and Nevada Lithium to obtain any necessary approvals, permits, consents or authorizations, financing or other planned activities; changes in laws, regulations and policies affecting mining operations; currency fluctuations, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation, environmental issues and liabilities; risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on Iconic and Nevada Lithium's business; risks related to joint venture operations; the potential impact of the announcement or consummation of the Arrangement on relationship, including with regulatory bodies, employees, suppliers, customers and competitors; and risks related to the integration of acquisitions, as well as those factors discussed under the heading "Risk Factors" in Iconic and Nevada Lithium's latest Management Discussion and Analysis and other filings of Iconic and Nevada Lithium with the Canadian Securities Authorities, copies of which can be found under the respective party's profile on the SEDAR website at www.sedar.com.
Should one or more of these risks or uncertainties materialized, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Iconic and Nevada Lithium have attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Iconic and Nevada Lithium do not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
https://www.otcmarkets.com/stock/NVLHF/news/story?e&id=2572897
https://ca.finance.yahoo.com/news/nevada-lithium-completes-acquisition-100-110000270.html
https://www.newsfilecorp.com/release/172900
$NVLHF
INV4
11 months ago
Nevada Lithium and Iconic Minerals Enter into Arrangement Agreement to Consolidate 100% Ownership Interest In the Bonnie Claire Lithium Property, Nevada
Vancouver, British Columbia–March 27, 2023 – Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) (“Nevada Lithium” or the “Company“) and Iconic Minerals Ltd. (TSXV: ICM) (OTCQB: BVTEF) (FSE: YQGB) (“Iconic“) are pleased to announce that they have entered into a definitive arrangement agreement dated March 24, 2023 (the “Arrangement Agreement“), whereby Nevada Lithium will acquire, by way of a plan of arrangement under the Business Corporations Act (British Columbia), Iconic’s 50% interest in the Bonnie Claire Lithium Project (the “Project” or the “Bonnie Claire Project“) located in Nye County, Nevada (the “Arrangement“). After the closing of the Arrangement, Nevada Lithium will hold a 100% interest in the Project.
Stephen Rentschler, Nevada Lithium’s CEO, commented, “We are pleased to announce the signing of the Arrangement Agreement with Iconic for the Bonnie Claire Project. In concert with our recently announced production of battery grade lithium carbonate1, 100% consolidated ownership will significantly enhance the Company’s ability to negotiate with strategic investors and lithium end-users. Signing of the Arrangement Agreement is a key to unlocking shareholder value as the Company continues on its path towards completion of its Pre-Feasibility Study.“
Richard Kern, Iconic’s President and CEO, added, “Combining of the two joint venture partner’s interests will allow Iconic’s shareholders to participate in the newly consolidated Company whose primary business activity will be to move Bonnie Claire forward through Pre-Feasibility and beyond.”
Mr. Rentschler continued, “Lithium Carbonate Equivalent (LCE) prices are now many times higher than the assumed prices used in our robust Preliminary Economic Assessment, where at a base case pricing assumption of $13,400 USD / tonne LCE the Project returned an NPV of $1.5 Billion USD (ATAX 8%)2. Recent 2022 drill program results have also returned the highest lithium values ever recorded at Bonnie Claire, including 3,201 ppm Li over 520 ft (158 m) within a wider interval of 1,315 ppm Li over 2,000 ft (610 m)3. With a projected annual production rate of over 30,000 tonnes of LCE, and a resource base that indicates the ability to upsize potential production further, Bonnie Claire has the potential to play a significant role in meeting global lithium needs.”
1 See Nevada Lithium news release dated February 27th, 2023.
2 See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada (Effective date of August 20th, 2021, and Issue date of February 25th, 2022) as summarized in Nevada Lithium news release dated October 13th, 2021, which are available on Nevada Lithium’s SEDAR profile at www.sedar.com. Results of the Preliminary Economic Assessment (PEA) represent forward-looking information. This economic assessment is by definition preliminary in nature, and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Assumes 68% recovery by borehole.
3 See Nevada Lithium news release dated December 7th, 2022.
Summary of the Arrangement
Under the Arrangement:
• the authorized share structure of Iconic will be altered (the “Iconic Capital Alteration“) as follows:
all of the issued and unissued Iconic common shares will be renamed and redesignated as “Class A common shares without par value,” and the special rights and restrictions attached to those shares will be varied to provide the holders thereof with two votes in respect of each share held; and
a new class consisting of an unlimited number of “common shares without par value” will be created with terms and special rights and restrictions identical to those of the current Iconic common shares;
• Iconic’s 50% interest in the Project, that is held through Iconic’s Nevada subsidiary, Bonaventure Nevada Inc. (“Bonaventure“), will be transferred to a newly incorporated Nevada subsidiary, Bonnie Claire Lithium Resources Corp. (“Iconic MergeCo Subsidiary“), which Iconic holds through a wholly-owned British Columbia subsidiary, 1259318 B.C. Ltd. (“Iconic MergeCo“);
• each of the issued and outstanding Iconic common shares (as renamed and redesignated Iconic Class A common shares) will be exchanged (the “Iconic Share Exchange“) for (i) one Iconic new common share; and (ii) a fractional amount of an Iconic MergeCo share, such that after giving effect to the exchange, each Iconic shareholder will hold a proportionate interest in Iconic MergeCo, provided that Iconic will retain a 10% interest in Iconic MergeCo;
• Iconic MergeCo will amalgamate with a wholly owned subsidiary of Nevada Lithium, 1406917 B.C. Ltd. (“Nevada Lithium MergeCo“), and continue as one corporation (the “Amalgamation“); and
• the Iconic MergeCo shareholders will receive shares of Nevada Lithium in exchange for their Iconic MergeCo shares, such that immediately following the completion of the Amalgamation (the “Closing“) the shareholders of Iconic MergeCo as a group and the shareholders of Nevada Lithium as a group will each hold 50% of the issued and outstanding Nevada Lithium shares (“Nevada Lithium Shares“), on a non-diluted basis (after giving effect the Debt Settlement (as defined below) but prior to giving effect to the Concurrent Financing (as defined below).
The Arrangement Agreement contains representations, warranties and conditions of each party customary in transactions of this nature. Under the Arrangement
Agreement, the terms of the Arrangement are as follows:
• at Closing, Nevada Lithium will have paid and/or settled all outstanding liabilities and debts, such that it has no outstanding liabilities (the “Debt Settlement“);
• Iconic will retain a 10% interest in Iconic MergeCo, and will therefore receive 10% of the Nevada Lithium Shares issued to the holders of Iconic MergeCo shares;
• prior to the Closing, 1406923 B.C. Ltd. (“Nevada Lithium Subco“) and 1396483 B.C. Ltd. (“Nevada Lithium FinCo“) will amalgamate and continue as one corporation, where, upon Closing, each Nevada Lithium FinCo Share (as defined below) and each Nevada Lithium FinCo Warrant (as defined below) will be exchanged on a one-for-one basis for, respectively, Nevada Lithium Shares and Nevada Lithium Warrants (as defined below);
• Nevada Lithium will become the sole operator of the Project, and the balance of any funds held by Iconic in reserve on account of payments made by Nevada Lithium for exploration expenditures will be transferred to Nevada Lithium, net of a CAD $500,000 structuring fee and any expenses and contractual obligations of Iconic in respect of the Project arising prior to Closing, including legal fees incurred in connection with the Arrangement;
• the board of directors of Nevada Lithium will be comprised of five members, consisting of Stephen Rentschler, Scott Eldridge, Richard Kern, Keturah Nathe and a nominee to be determined at the closing of the transactions;
• Mr. Stephen Rentschler would continue to serve as CEO of Nevada Lithium, and Mr. Richard Kern, the current CEO of Iconic, would be appointed the COO of Nevada Lithium;
• Nevada Lithium will grant to certain eligible persons associated with Iconic that number of Nevada Lithium stock options as is equal to the aggregate number of Nevada Lithium stock options outstanding immediately prior to Closing, with the same terms as the Nevada Lithium stock options, including as to duration and exercise price;
• Nevada Lithium will issue to Iconic 4,000,000 Nevada Lithium Warrants, each of which will entitle the holder thereof to purchase one Nevada Lithium Share for a period of two years from Closing at $0.20 per Nevada Lithium Share; and
• if Nevada Lithium desires to issue common shares or securities convertible into common shares (each, an “Equity Financing“) at any time after Closing (excluding certain exempt issuances) until the earlier of (i) the first anniversary of Closing; or (ii) Nevada Lithium having completed Equity Financings in the aggregate amount of $3,000,000 (excluding the Concurrent Financing), then the Equity Financing will be completed on a rights offering basis, subject to certain exceptions (including an Equity Financing conducted at an offering price equal to or greater than the Issue Price (as defined below)).
Completion of the Arrangement is subject to approval of the Arrangement (including the Iconic Capital Alteration, the Iconic Share Exchange and the Amalgamation) by the Supreme Court of British Columbia and the affirmative vote of Iconic shareholders at a special meeting that is expected to be held in June 2023 (the “IconicMeeting“).
Pursuant to the terms of the Arrangement Agreement, the Arrangement is also subject to the satisfaction of various conditions precedent, including: (i) the receipt of all necessary regulatory approvals, authorizations and consents, including, as applicable, acceptance of the Arrangement by the TSX Venture Exchange and the Canadian Securities Exchange; (ii) the receipt of all necessary corporate and shareholder approvals by the parties; and (iii) other conditions provided in the Arrangement Agreement. The Arrangement Agreement also provides for a payment of a termination fee of $500,000 payable by Iconic or Nevada Lithium to the other in certain circumstances.
Further details regarding the terms of the Arrangement are set out in the Arrangement Agreement, a copy of which will be filed under each of Nevada Lithium’s and Iconic’s SEDAR profiles at www.sedar.com. Additional information in respect of the Arrangement (and the Iconic Capital Alteration, the Iconic Share Exchange and the Amalgamation) will be provided in the management information circular to be prepared by Iconic in connection with the Iconic Meeting, which will be provided to Iconic’s securityholders by mail or notice and access and filed under Iconic’s SEDAR profile at www.sedar.com.
Nevada Lithium $5.12 Million Financing
In connection with the Arrangement, Nevada Lithium and Nevada Lithium FinCo closed a non-brokered private placement offering for aggregate gross proceeds of $5,120,998, comprised of an aggregate of 38,330,000 subscription receipts (“Subscription Receipts“) at a price of $0.125 per Subscription Receipt (the “Issue Price“) and the issue and sale of promissory notes of Nevada Lithium (the “Promissory Notes“) in the principal amount of $304,748 (collectively, the “Concurrent Financing“). PowerOne Capital Markets Limited and Primary Capital Inc. along with certain other eligible persons acted as finders in connection with the Concurrent Financing.
The Subscription Receipts issued pursuant to the Concurrent Financing will automatically convert, without payment of any additional consideration or further action on the part of the holder thereof, as follows: (i) each Subscription Receipt of Nevada Lithium will be converted into one unit (“Nevada Lithium Units“), consisting of one Nevada Lithium Share and one-half of one Nevada Lithium Share purchase warrant (each whole warrant, a “Nevada Lithium Warrant“); and (ii) each Subscription Receipt of Nevada Lithium FinCo shall be converted into one unit (“Nevada Lithium FinCo Units“), consisting of one common share of Nevada Lithium FinCo (a “Nevada Lithium FinCo Share“) and one-half of one share purchase warrant of Nevada Lithium FinCo (each whole warrant, a “Nevada Lithium FinCo Warrant“). Upon completion of the Arrangement, each Nevada Lithium FinCo Share and each Nevada Lithium FinCo Warrant will be exchanged on a one-for-one basis for, respectively, Nevada Lithium Shares and Nevada Lithium Warrants. Following completion of the Arrangement, each Nevada Lithium Warrant will entitle the holder thereof to acquire one additional Nevada Lithium Share at a price of $0.20 until the date that is 24 months following the closing of the Arrangement.
In connection with the issue and sale of the Promissory Notes, Nevada Lithium entered into debt conversion agreements with the holders of the Promissory Notes, providing for the conversion of the principal amounts owing under the Promissory Notes into Nevada Lithium Units upon closing of the Arrangement.
The net proceeds from the sale of the Subscription Receipts will be released to Nevada Lithium on Closing.
For further details regarding the Concurrent Financing, please refer to the press release of Nevada Lithium dated February 24, 2023, a copy of which is available on SEDAR at www.sedar.com.
Legal Advisors
Garfinkle Biderman LLP is acting as legal counsel to Nevada Lithium.
Lotz & Company is acting as legal counsel to Iconic.
Qualified Persons
Darren L. Smith, M.Sc., P. Geo., Vice President of Exploration of Nevada Lithium, and a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101“), supervised the preparation of the technical information in this news release. Mr. Smith is not independent as he is the Vice President of Exploration of Nevada Lithium.
Richard Kern, B.Sc., M.Sc.,P.Geo, CEO of Iconic, and a qualified person as defined by NI 43-101, has reviewed and approved the technical information contained in this news release. Mr. Kern is not independent as he is the President and CEO of Iconic.
Bonnie Claire Project
The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li.
The Bonnie Claire Project is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. 4 Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
4 See Preliminary Economic Assessment NI 43-101 Technical Report, Bonnie Claire Lithium Project, Nye County, Nevada (Effective date of August 20, 2021), available on Nevada Lithium’s SEDAR profile at www.sedar.com.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the company is actively advancing the Project towards Pre-Feasibility. Learn more: https://www.nvlithium.com.
About Iconic Minerals Ltd.
Iconic is a mineral exploration and development company with several quality lithium and gold exploration projects located throughout Nevada, USA and currently owns 50% interest in the Bonnie Claire Lithium Project. For further information on Iconic, please visit its website at www.iconicminerals.com.
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
“Stephen Rentschler”
Stephen Rentschler, CEO
On behalf of the Board of Directors of Iconic Minerals Ltd.
“Richard Kern”
Richard Kern, President and CEO
For further information, please contact:
Nevada Lithium Resources Inc.
Stephen Rentschler, CEO
Phone: (604) 416-4099
Email: sr@nvlithium.com
Iconic Minerals Ltd.
Keturah Nathe, VP Corporate Development
Phone: (604) 336-8614
Email: keturah@simcoservices.ca
https://iconicminerals.com/news/nevada-lithium-and-iconic-minerals-enter-into-arrangement-agreement-to-consolidate-100-ownership-interest-in-the-bonnie-claire-lithium-property-nevada/
INV4
11 months ago
Bureau of Land Management Approves Exploration Plan of Operations for the Bonnie Claire Lithium Project, Nevada
NEWS PROVIDED BY
Nevada Lithium Resources Inc
22 Nov, 2022, 12:30 ET
VANCOUVER, BC, Nov. 22, 2022 /PRNewswire/ - Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) ("Nevada Lithium" or the "Company") and its 50% partner in the Bonnie Claire Lithium Project (the 'Project' or 'Property'), Iconic Minerals Ltd. (TSX-V: ICM) (OTCQB: BVTEF) (FSE: YQGB) ("Iconic"), are pleased to announce that the Bureau of Land Management ("BLM") has approved the Company's exploration Plan of Operations ("PoO") for the Project, located in Nye County, Nevada.
The field studies completed in support of the PoO were carried-out by EM Strategies, a WestLand Resources, Inc. Company of Reno, Nevada, while working closely with the BLM. The work included a series of site surveys covering cultural, biological, and other environmental aspects and will serve as the basis for continued advancement of the Project through the exploration and pre-development phases.
Nevada Lithium CEO, Stephen Rentschler, commented: "We are pleased to report that our 50% partner, Iconic, who is operator of our initial joint work program, has advised us of our Plan of Operations approval for Bonnie Claire. We are excited that this extensive environmental campaign found no significant issues and indicates our exploration program will have minimal impact on the area."
The newly permitted exploration area covers 4,146 acres (16.78 square kilometers), of which, 3,271 acres (13.24 square kilometers) are salt playa. This area includes permitting for 100 acres (0.405 square kilometers) of disturbance, of which, 10.0 acres (0.04 square kilometers) is for drill sites. This is expected to cover future drilling of up to 109 holes during Phase I activities; the number of holes to be drilled under subsequent phases is currently unknown and will be determined by the Phase I results.
The lack of endangered plants or animals, significant cultural sites, paleontological resources, raptors, migratory birds, desert tortoise, and wild horses show a major benefit of the Project's location on a salt flat. Having the baseline environmental and related studies in place will aid in advancing further permitting of the Project. The PoO is anticipated to be further expanded in 2023.
QP Disclosure
Darren L. Smith, M.Sc., P. Geo., Vice President of Exploration of the Company, and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Bonnie Claire Property
The Bonnie Claire Property is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the Company is actively advancing the Project towards Prefeasibility. Learn more: https://www.nvlithium.com/
ON BEHALF OF THE BOARD OF DIRECTORS:
Stephen Rentschler
CEO
https://www.prnewswire.com/news-releases/bureau-of-land-management-approves-exploration-plan-of-operations-for-the-bonnie-claire-lithium-project-nevada-301685476.html
INV4
11 months ago
2022 Drilling Program Update on Bonnie Claire Lithium Project, Nevada
NEWS PROVIDED BY
Nevada Lithium Resources Inc
16 Sep, 2022, 14:00 ET
VANCOUVER, BC, Sept. 16, 2022 /PRNewswire/ - Nevada Lithium Resources Inc. (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) ("Nevada Lithium" or the "Company") and its 50% partner in the Bonnie Claire Lithium Project (the 'Project' or 'Property'), Iconic Minerals Ltd. (TSX-V: ICM; OTCQB: BVTEF; FSE: YQGB) ("Iconic") are pleased to provide an update on their 2022 mineral exploration and development plans for the Project, located in Nye County, Nevada.
Nevada Lithium CEO, Stephen Rentschler, comments: "We are pleased to report that our 50% partner, Iconic, who is operator of our initial joint work program, has provided an update on the Bonnie Claire Lithium Project 2022 drilling program. This initial work program, estimated to cost $5mm USD, has been fully funded as part of the Option Agreement, whereby Nevada Lithium obtained its 50% ownership of the Project. We are excited that the work program is providing additional data and material that is furthering development of the Project. We firmly believe that Bonnie Claire is one of the most attractive global lithium assets remaining in junior developers' hands."
Drill Hole BC2201C
Core hole BC2201C reached a final vertical depth of 2001 feet (610 meters), which had a piezometer inserted for groundwater study. All samples not collected for engineering use were submitted to ALS in Reno for geochemical analysis. Logging has been completed and two thick zones of dark green claystone usually indicative of lithium-rich sediments, have been identified. Initial assay results are expected within a couple weeks.
Drill Hole BC2202C
Core hole BC2202C is located 1,759 feet (536 meters) west of BC2201C. The hole is further out on the playa than BC2201C to test whether higher grade lithium (+1000 ppm Li) is closer to the surface than holes near the margins of the alluvial cover. As of September 14th, the rig had drilled to 1,443 feet (440 meters) and will drill to a total depth of approximately 2,000 feet (610 meters). Although not logged yet, dark green claystone was encountered within 25 feet (7.6 meters) of the surface.
Drill Hole BC2203C
Close to the completion of BC2201C, a second core rig arrived on site and is set up 1,840 feet (561 meters) south of BC2201C. This drill hole is also located further out on the playa than BC2201C and will also test whether higher grade lithium (+1000 ppm Li) is close to the surface. The hole has been completed to a total depth of 1,998 feet (609 meters). The drill hole is currently being prepared for geophysical logging. The core shows dark green claystone commencing at 17 feet (5 meters) below the surface.
Drill Hole BC2201
This mud/rotary drill rig is on site and has drilled to 80 feet (24 meters) and set casing. This vertical hole will be drilled to a depth of approximately 2000 feet (610 meters) and is located 20 feet (6 meters) from BC2201C. This hole will be geochem sampled and compared with assays from the adjacent core hole (BC2201C). Based on previous drilling, the Company anticipates that the core lithium values may be 10-15% higher than the mud/rotary hole (see Company's Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Issue date of February 25th, 2022). Once drilling is complete, downhole geophysics will be conducted to determine high permeability zones along with other data. Water samples will be collected and analyzed, and Barr Engineering will perform pumping tests on the permeable zones identified. This well will also be used as a water source for future drilling.
QP Disclosure
Darren L. Smith, M.Sc., P. Geo., Vice President of Exploration of the Company, and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Bonnie Claire Property
The Bonnie Claire Property is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A recently completed NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the Company is actively advancing the Project towards Pre-Feasibility. Learn more: https://www.nvlithium.com/
ON BEHALF OF THE BOARD OF DIRECTORS:
Stephen Rentschler
CEO
https://www.prnewswire.com/news-releases/2022-drilling-program-update-on-bonnie-claire-lithium-project-nevada-301626397.html
INV4
11 months ago
Threatened by shortages, electric car makers race for supplies of lithium for batteries
Threatened by possible shortages of lithium for electric car batteries, automakers are racing to lock in supplies of the once-obscure “white gold” in a politically and environmentally fraught competition from China to Nevada to Chile
ByJOE McDONALD AP Business Writer
June 28, 2023, 8:10 AM
BEIJING -- Threatened by possible shortages of lithium for electric car batteries, automakers are racing to lock in supplies of the once-obscure “white gold” in a politically and environmentally fraught competition from China to Nevada to Chile.
General Motors Co. and the parent company of China’s BYD Auto Ltd. went straight to the source and bought stakes in lithium miners, a rare step in an industry that relies on outside vendors for copper and other raw materials. Others are investing in lithium refining or ventures to recycle the silvery-white metal from used batteries.
A shortfall in lithium supplies would be an obstacle for plans to ramp up sales to tens of millions of electric vehicles a year. It is fueling political conflict over resources and complaints about the environmental cost of extracting them.
“We already have that risk” of not being able to get enough, GM’s chief financial officer, Paul A. Jacobson, said at a Deutsche Bank conference in mid-June.
“We’ve got to have partnerships with people that can get us the lithium in the form that we need,” Jacobson said.
Ford Motor Co. has signed contracts stretching up to 11 years into the future with lithium suppliers on two continents. Volkswagen AG and Honda Motor Co. are trying to reduce their need for freshly mined ore by forming recycling ventures.
Global lithium output is on track to triple this decade, but sales of electric SUVs, sports cars and sedans that rose 55% last year threaten to outrun that. Each battery requires about eight kilograms (17 pounds) of lithium, plus cobalt, nickel and other metals.
“There will be a shortage of EV battery supplies,” said Joshua Cobb, senior auto analyst for BMI.
Adding to uncertainty, lithium has emerged as another conflict in strained U.S.-Chinese relations.
Beijing, Washington and other governments see metal supplies for electric vehicles as a strategic issue and are tightening controls on access. Canada ordered three Chinese companies last year to sell lithium mining assets on security grounds.
Other governments including Indonesia, Chile and Zimbabwe are trying to maximize their return on deposits of lithium, cobalt and nickel by requiring miners to invest in refining and processing before they can export.
GM is buying direct access to lithium by investing $650 million in the Canadian developer of a Nevada mine that is the biggest U.S. source. In return, GM says it will get enough for 1 million vehicles a year.
Conservationists and American Indians are asking a federal court to block development of the Nevada mine, which the Biden administration has embraced as part of its clean energy agenda. Opponents say it might poison water supplies and soil and pollute nesting grounds for birds.
Despite rising output, the industry may face shortages of lithium and cobalt as early as 2025 if enough isn’t invested in production, according to Leonardo Paoli and Timur Gul of the International Energy Agency.
“Supply side bottlenecks are becoming a real challenge,” Paoli and Gul said in a report last year.
Automakers might be putting in their own money to reassure “notoriously risk-averse” miners, according to Alastair Bedwell of GlobalData. He said miners are reluctant to “go all out” on lithium until they are sure the industry won’t switch to batteries made with other metals.
Even if they do, developing lithium sources is a yearslong process.
Worldwide lithium resources are estimated at 80 million tons by the U.S. Geological Survey.
Bolivia’s are the biggest at 21 millions tons, followed by Australia with 17 million and Chile with 9 million.
Forecasts of annual production range as high as 1.5 million tons by 2030. But demand, if EV sales keep rising at double-digit annual rates, is forecast to increase to up to 3 million tons.
EV sales took off in 2021, more than doubling over the previous year to 6.8 million, according to EV Volumes, a research firm. Last year’s sales rose to 10.5 million.
China accounted for 60% of last year’s sales, two-thirds of production and three-quarters of battery manufacturing.
President Joe Biden last year announced an official goal for half of all new cars sold in the United State to be electric or other zero-emissions technology by 2030.
As sales rise, so does official anxiety, especially in Washington and Beijing, about access to lithium and other minerals and the potential for strategic competition.
Volkswagen’s battery unit, PowerCo, signed an agreement with Canada last August to develop suppliers of “critical raw materials” including lithium, cobalt and nickel.
The German chancellor, Olaf Scholz, in a statement welcomed cooperation with “close friends” on “raw material security.”
China’s government has accused the United States, Canada, Japan and other governments of misusing phony security concerns to hurt Chinese competitors in electric cars, smartphones, clean energy and other emerging technologies.
Other governments welcome Chinese investment. China’s biggest lithium producer, Ganfeng Lithium Co., bought Argentina’s Lithea Inc. last year for $962 million.
About two-thirds of the world’s lithium comes from mines. That involves crushing rock and using acids to extract metals. It leaves toxic heaps of chemical-laced tailings.
The rest is extracted from salt lakes or salt flats. That can require vast evaporation ponds.
The industry is working on technology to extract lithium from hot springs and clay deposits with less environmental impact.
As they ramp up supplies, automakers face another bottleneck: Lack of refining capacity to purify raw lithium into battery material.
Tesla Inc. is building a refinery in Texas. Others including BMW AG are buying stakes in refiners.
As for GM, “I don’t know” whether it will build its own refinery, Jacobson said.
https://abcnews.go.com/Business/wireStory/threatened-shortages-electric-car-makers-race-supplies-lithium-100433156
INV4
11 months ago
Nevada Lithium Closes $6,200,000 Financing led by Strategic Investor, Marcel Boekhoorn
Canada NewsWire
VANCOUVER, BC, June 20, 2023
VANCOUVER, BC, June 20, 2023 /CNW/ - Nevada Lithium Resources Inc. ("Nevada Lithium" or the "Company") (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) is pleased to announce that it has closed a non-brokered private placement offering of 41,333,333 Subscription Receipts (as defined below) at a price of $0.15 per Subscription Receipt (the "Issue Price") for aggregate gross proceeds of $6,200,000 (the "Offering").
Nevada Lithium Resources Inc. Logo (CNW Group/Nevada Lithium Resources Inc)
The Offering included a strategic lead investment by SF Investments I BV (the "Lead Investor"), an entity owned by Mr. Marcel Boekhoorn. Mr. Boekhoorn is a Dutch entrepreneur, investor, philanthropist and founder/owner of Ramphastos Investments which has a wide array of business interests in the Netherlands and globally. Ramphastos Investments is a venture capital and private equity firm dedicated to driving topline growth in enterprises through all stages of their evolution: from start-ups to scale-ups to high-growth medium-sized companies and mature enterprises. It currently holds interests in over 30 companies with a combined annual revenue of almost €5 billion, employing more than 9,000 people across a range of sectors varying from financial and business services, gaming, health care, new materials, advanced manufacturing and energy spanning all continents. Mr. Boekhoorn started his career in 1981 with Deloitte & Touche as a chartered accountant, going on to become its youngest partner to date in 1991 before founding Ramphastos Investments N.V. in 1994. By focusing on value creation through incubating and growing market-leading companies, Marcel and his team have had many successful exits including Bakker Bart, Cocachoc, Boemer Groep, Novaxess, Telfort, Motip Dupli, Sim Industries, Vereenigde Havezathen and the High Tech Campus Eindhoven. Mr. Boekhoorn's philanthropic interests include wildlife preservation and promoting sport globally, among others.
Stephen Rentschler, CEO of Nevada Lithium stated, "We are excited to welcome Mr. Boekhoorn as a strategic investor. Mr. Boekhoorn's investment acumen is globally admired and spans many areas. Mr. Boekhoorn's investment provides Nevada Lithium with additional capital and also expands Nevada Lithium's access to proven, strategic lithium investors. We look forward to working with Mr. Boekhoorn, as we all believe that the Bonnie Claire Project, one of the largest lithium resources in North America, located in the premier mining jurisdiction of Nevada, is one of the most attractive undeveloped lithium assets in the world."
The Subscription Receipts issued pursuant to the Offering will automatically convert, without payment of any additional consideration or further action, and subject to adjustment, into one unit of the Company (a "Unit") upon completion of the Transaction (as defined below). Each Unit is comprised of one common share in the capital of the Company (a "Share") and one common share purchase warrant of the Company (a "Warrant"), each Warrant exercisable into one Share at a price of $0.25 per Share for a period of 3 years from the completion of the Transaction. The Subscription Receipts were issued pursuant to and are governed by the terms of a subscription receipt agreement dated June 20, 2023 (the "Subscription Receipt Agreement").
The Offering was undertaken in connection with the Company's previously announced consolidation of 100% ownership interest of the Bonnie Claire Lithium project (the "Bonnie Claire Project"), which is currently jointly held by Iconic Minerals Ltd. ("Iconic") and Nevada Lithium, by way of a court approved plan of arrangement (the "Transaction"). For further details regarding the Transaction, please refer to the Company's press releases dated January 9, January 23 and March 27, 2023, copies of which are available on SEDAR at www.sedar.com.
PowerOne Capital Markets Limited acted as a finder in connection with the Offering. The Company paid eligible finders (each, a "Finder") a cash finder fee equal to 7% of the gross proceeds raised by each Finder, payable upon closing of the Transaction, and finder warrants (the "Finder Warrants") equal to 8% of the number of Subscription Receipts sold by each Finder. Each Finder Warrant will entitle the holder thereof to acquire one Unit at an exercise price of $0.15 for a period of three years following satisfaction of the escrow release conditions set forth in the Subscription Receipt Agreement.
In connection with the Offering, the Company entered into an investor rights agreement (the "Investor Rights Agreement") with the Lead Investor providing that, among other things, during the period commencing upon completion of the Transaction and ending on the 24-month anniversary thereof, the Lead Investor shall be entitled to designate up to two nominees to serve as directors of the Company for election or appointment to the board of directors of the Company, provided that each nominee meets the eligibility criteria set forth in the Investor Rights Agreement.
The use of the net proceeds from the Offering were determined in consultation with the Lead Investor, and include exploration activities at the Bonnie Claire Project, working capital requirements and other general corporate purposes.
The securities issued in connection with the Offering are subject to a statutory hold period of four months and one day from the date of issuance.
The securities distributed pursuant to this Offering have not and will not be registered under the U.S. Securities Act of 1933 or any U.S. state securities laws and may not be offered or sold in the United States unless the securities have been registered under the U.S. Securities Act of 1933 and any applicable state securities laws, or in compliance with the requirements of an exemption therefrom.
Bonnie Claire Project
The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li. Bonnie Claire is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
A 2022 NI 43-101 Preliminary Economic Assessment returned attractive investment metrics at low LCE prices. The Net Present Value of the Project (100% basis) is $1.497 Billion USD after tax (ATAX) using an eight percent discount rate (8%) and $13,400 USD per tonne LCE price. The IRR (ATAX) using the same LCE price ($13,400 USD per tonne) is 23.8%.1
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
1 Results of the PEA represent forward-looking information. This economic assessment is by definition preliminary in nature, and it includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. Source: "Preliminary Economic Assessment NI 43-101 Technical Report, Bonnie Claire Lithium Project, Nye County, Nevada" (Issue date of February 25, 2022).
The technical information in the above disclosure has been reviewed and approved by the designated Qualified Person (QP) under National Instrument 43-101, Jeff Wilson, PhD, P.Geo, Director & Vice President of Exploration for the Company.
Early Warning Disclosure
Pursuant to the Offering, the Lead Investor acquired 16,666,667 Subscription Receipts for aggregate consideration of $2,500,000. Prior to completion of the Offering, the Lead Investor did not have beneficial ownership of any securities of the Company. Following completion of the Transaction, the Lead Investor will have ownership and control of 16,666,667 Shares and 16,666,667 Warrants. The Lead Investor and the Company anticipate that upon completion of the Transaction, this will represent approximately 7.91% of the issued and outstanding Shares and approximately 14.66% on a partially diluted basis, subject to certain assumptions as to the Company's post-Transaction capitalization.
The Subscription Receipts were acquired for investment purposes. In the future, the Lead Investor may acquire additional Shares and/or other equity, debt or other securities or instruments in the open market or otherwise and reserves the right to dispose of any or all of such securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to such securities, the whole depending on market conditions, the business and prospects of the Company and other relevant factors.
The Company's address is Suite 1570 – 505 Burrard Street, Vancouver, BC, V7X 1M5. The Lead Investor's address is Grebbeweg 111 Postbus 126, 3911 AV Rhenen 3910 AC, Rhenen, Netherlands. A copy of the Early Warning Report can be obtained from Lindsay Clements, Partner, Cassels Brock & Blackwell LLP (416.869.5491) or on the SEDAR profile of the Company at www.sedar.com.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it currently holds a 50% interest. A 2022 NI 43-101 Preliminary Economic Assessment returned attractive investment metrics and the Company is actively advancing the Project towards Pre-Feasibility. Learn more: https://www.nvlithium.com/.
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
"Stephen Rentschler"
Stephen Rentschler, CEO
SOURCE Nevada Lithium Resources Inc
https://www.otcmarkets.com/stock/NVLHF/news/Nevada-Lithium-Closes-6200000-Financing-led-by-Strategic-Investor-Marcel-Boekhoorn?id=404976
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