Lithium X brings a resurgence to the Toronto Venture
Exchange
Introduction
Whether you are a resource investor or not, LIX.V deserves a great
amount of appreciation for bringing back lots of investors who were
sidelined when the resource sector got beaten-up. Lithium X has
been on a tear since its IPO on November 30, 2015 creating a huge
amount of shareholder value. LIX initially raised at $0.15, opened
up double that, and closed Thursday, April 28, 2016 at $1.94.
Credibility arises from an amazing management team with loads of
mining experience and knowing how to structure such deals to
produce large returns. Frank Giustra is the real deal, and most of
you already know about his background and no need to further
explain. Lithium X Executive Chairman, Paul Matysek, was quoted: At
the end of the day, Frank likes to get involved in a project if he
sees a massive shift in an industrys fundamentals. Lithium X is
certainly showing all the right signs!
Lithium Market Analysis
So let's talk Lithium. The commodity was the only to show
positive price increases in 2015, and there are no signs of slowing
down. Demand for Lithium is expected to steadily increase,
especially given Tesla's giga factory, battery storage, Powerwall,
and other products. It is also a cleaner commodity, and has a high
demand from China. Here's a quote from Elon Musk, In order to
produce a half million cars per yearwe would basically need to
absorb the entire worlds lithium-ion production." Electric vehicles
are being produced by many large players outside of Tesla,
including Google and Apple. There is ample innovation in tech which
requires lithium. So, there is ample demand for lithium. This is
why big investors are stepping into the space, as can be seen with
LIX.
LIX is definitely battling for some lithium market share.
Investors are encouraged by the opportunity LIX provides with the
acquisition of a well-studied Large, High-Grade Lithium
Brine Project in Argentina thru Joint Venture with Aberdeen
International, and a drill ready land position with permits to
drill near the heart of United States lithium production in Clayton
Valley. Lithium extracted from brine's, or salt water has proven to
be a cost-effective methodology, and sourcing enough of the
commodity in the U.S., is a major competitive advantage for demand
from big players such as Tesla. Spiking demand is allowing new
players to supply lithium, which is mainly supplied by 3 major
players now.
These are considered very high-quality properties and are prized
assets for Lithium miners. It was smart move for management to move
quickly and strategically acquiring properties in these regions.
This is all happening before our eyes. Clayton Valley is the only
producing Lithium area in all of the U.S. LIX is the largest land
holder in Clayton Valley. Lithium X has over 15,000 acres in
Clayton Valley, adjacent to the north and south of Albermarles
Silver Peak mine, the only American lithium producer currently, and
about three hours from Teslas gigafactorytalk about a strategic
location. Undoubtedly, Argentina and Clayton Valley are key areas
for increased market share for new entrants, with plenty of brine
in Nevada, and a large sizeable lithium land in Argentina.
For Nevada Clayton Valley:
Lithium X has received the necessary work permits from the
Bureau of Land Management to complete four drill holes at its
Clayton Valley North Lithium Project in Nevada. The work
begins phase 1 exploration program at Clayton Valley North and
results, if positive, will be incorporated into a maiden resource
estimate. Historic and present drilling programs surrounding the
Clayton Valley South Expansion suggest the potential for discovery
of lithium-bearing brine's. The Company expects to drill these
holes to a depth that will intersect the gravel aquifer in the
lower part of the basin, which is expected to be approximately 350
meters.
For Higher grade lithium-potash brine in Argentina:
Lithium X entered into a binding letter of agreement with
Aberdeen International Inc. to acquire up to 80% of Potasio y Litio
de Argentina SA, which owns 100% of the Sal de los Angeles
lithium-potash brine project. The Sal de los Angeles Project covers
more than 95% of the Salar de Diablillos property located in Salta
province at an average elevation of approximately 4,050 meters
above sea level. Sal de los Angeles is 2.8 million tonnes LCE and
11.3 million tonnes KCI. The grade is 592 mg/L Lithium.
Paul, Executive Chairman, stated "The acquisition of Sal de los
Angeles is a special opportunity for Lithium X," said Executive
Chairman, Mr. Matysek, It is one of the few known lithium brines
that is amenable to conventional processing. The project has both
near-term development potential and scale. Salta province is a
mining-friendly part of Argentina where we have enjoyed previous
successes and maintain good relationships."
David Stein, President of Aberdeen, stated, "We see Sal de los
Angeles becoming the flagship asset of a new dynamic, multi-project
lithium company with the potential to deliver strong returns for
our shareholders over the longer-term."
"The acquisition is another milestone as Lithium X moves towards
our goal of becoming the world's go-to pure play lithium company,"
said CEO Mr. Paes-Braga.
Lithium-X is well financed to continue exploring its reserves.
Initially, LIX raised $1.754M at $0.15, on Nov. 30, 2015. On
December 29, 2015, another $3.2475 million raised at 30 cents. On
March 11, 2016, $8.449M was raised at $1.02all oversubscribed.
Investors clearly have no issue investing in this well managed,
strategically located, and timely company.
LIX expects to publish a new PEA in the next few months and
complete a Feasibility Study in mid-2017 contemplating production
scenarios.
Lithium X Management Team
Executive Chairman: Paul Matysek
Mr. Matysek is a corporate entrepreneur, professional geochemist
and geologist with over 30 years of experience in the mining
industry. He is currently President and CEO of Goldrock Mines Corp.
and has previously held senior executive and director positions
with several natural resource exploration and development companies
and is a proven company builder. He was recently President and CEO
of Lithium One Inc., whose world class lithium development project
(Sal de Vida) was in northern Argentina. In July 2012, Lithium One
merged with Galaxy Resources of Australia via $112M plan of
arrangement to create an integrated lithium company.
VP of Project Development: William Randall
Mr. Randall is a professional geologist and qualified person
with extensive executive and technical experience in lithium
exploration and development in the Clayton Valley and in South
America.
For almost a decade Mr. Randall has led numerous exploration
programs, including drill campaigns in Nevada's Clayton
Valley and high-altitude salars throughout South America.
Founder & CEO:Brian Paes-Braga
Mr. Paes-Braga, CIM, is founder and CEO of LiTHIUM X. Brian has
spent almost a decade in the international financial sector working
with firms ranging in services from underwriting, mergers and
acquisitions, asset management, venture capital and private equity.
He has held various positions focused on deal origination and
capital raising including VP of Retail Sales of a Canadian Broker
Dealer as well as Managing Director of a Boutique Merchant
Bank.
Founder & Corporate Advisory: Fiore Management &
Advisory
Fiore Management and Advisory Corp (lead by Gord Keep and Frank
Giustra) is an advisory company responsible for equity financing's,
corporate structures in creation of new natural resource companies
and public company administration.
Financials:
Shares Outstanding: 52.37M
Market Capitalization: CAD $123.61M
Share Price (April 28, 2016): CAD $1.94
Conclusion: Lithium X is building a world class management
team and acquire best in class assets, giving investors exposure to
a pure play lithium company with multiple assets across diverse
jurisdictions. The above analysis shows that the timing, the
management team, and investor group show a very promising growth
story for Lithium X. The team is building Lithium X to be the best
pure play in the growing Lithium industry, with a very visionary
management team that is executing very fast.
Further News here - http://www.lithium-x.com/news-release/lithium-x-enters-into-pilot-production-joint-venture-agreement-for-the-sal-de-los-angeles-deposit-with-salta-exploraciones-s-a/