Written by Tommy Humphreys via CEO.ca
Good morning from Cartagena, my favorite city.
I’m with about 20 friends for a week off including Brian Paes-Braga and Frank Giustra, Lithium X Energy Corp’s co-founders.
The last time this group went on a trip together — Summer 2015 — Brian told me about his ambition in the lithium business.
He had a good lead on a starter asset in Nevada’s Clayton Valley, home to North America’s only lithium producer and a plan to consolidate the lithium space ahead of a huge potential clean energy trend: growth in lithium-ion batteries.
There were some doubters with us but I was not among them. Brian had a talent for building relationships, more energy than his peers, and a positive outlook. With Frank’s support, I thought he could make things happen.
Here’s a look at the LIX timeline since:
- October 2015 – Paul Matysek, one of Canada’s most successful mining entrepreneurs, joins as Executive Chairman
- November 30, 2015 – Lithium X launches on the TSXV after closing a $1.754 million financing at 15 cents
- December 29, 2015 – Another $3.2475 million raised at 30 cents
- February 16, 2016 – Acquires a second Clayton Valley asset and becomes the largest land holder in the Basin
- March 3, 2016 – Acquires up to 80% of Sal De Los Angeles in Argentina, one of the world’s ten largest known lithium salars in another all stock deal. It’s the new cornerstone asset for the company and more on that in a minute.
- March 11, 2016 – announced $7.65 million financing at $1.02 per share
Sal De Los Angeles has the potential to be a large-scale and long-life lithium producer. It showed strong economics in a historical (2011) PEA at $5000 per ton lithium carbonate pricing. Prices have doubled to quadrupled since depending on who you ask. LIX expects to publish a new PEA in the next few months and complete a Feasibility Study mid-2017 contemplating production scenarios.
Management aren’t finished acquiring assets and building the team, according to a newinterview. They will also continue leaving no stone unturned to tell the story to potential investors.
An hour after we land in Vancouver from Colombia on Friday, Brian and Paul fly to Australia, where the lithium boom is raging, for a roadshow through Perth, Sydney and Melbourne.
In Nevada, LIX expects to commence drilling and prove up an initial resource this year.
If you are one of the 15 cent Lithium X placees, your stock comes free trading on March 27 and congratulations. That’s why we’re in this business and probably why you’re reading CEO.CA.
It’s logical to expect some profit taking and I am totally biased — but I don’t see LIX stalling. Management are executing too well and the space is too promising — at least for me — to sell out at a ~$55 million market cap. That’s why I’m adding to my position.
Read: How Good Management Creates Value, by @KeithSchaefer
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. LIX is a high-risk venture stock and not suitable for most investors. Do your own due diligence and consult a licensed investment advisor prior to making investment decisions. Consult Lithium X’s SEDAR profile for important risk disclosures.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.