IGO revises chemical plant project cost at Greenbushes to $579m
The plant at Greenbushes lithium mine is expected to cost about A$880 million.
Canadian lithium junior American Salars (CNSX: USLI) (OTC: USLIF) has announced the acquisition of the Lac Simard South lithium project in Quebec, marking a significant step in the company’s expansion into the lithium market.
The deal grants American Salars a 100% interest in the mineral claims associated with the project, which consists of around 36.7 sq. km covering 64 claim blocks.
Lac Simard South is close to several of Sayona Mining’s (ASX: SVA) lithium projects, which together have an indicated resource of 111 million tonnes grading 1.14% lithium. It also holds the province’s only producing mine, North American Lithium, in a 75%-25% joint venture with Piedmont Lithium (ASX: PLL).
The Vancouver-based developer, which bought the project from Quartier Mineral, said it plans for a comprehensive work program to identify and test areas of immediate interest, though its primary focus is Argentina.
“This is the company’s first re-entry point into Quebec with the intention of building a strategic portfolio of hard rock lithium projects to compliment our lithium brine assets,” chief executive and director Nick Horsley said in the statement.
Prices for lithium, a crucial component of the batteries that power electric vehicles (EVs), have slumped over 80% since the start of last year on oversupply and weaker-than-expected EV demand.
Yet, analysts and sectorial actors trust that lithium’s long-term outlook will justify efforts. At the very least, they say, it will encourage more merger and acquisition (M&A) interest, as companies look for deeper-pocketed backers to ride out the downturn. As cases in point, they quote Codelco’s purchase of Australia’s Lithium Power International and Rio Tinto’s recent $6.7 billion acquisition of US-based Arcadium Lithium.
“The company’s long-term belief in a lithium price rebound is steadfast and now is the time to build a multi-jurisdictional lithium company,” Horsley noted.
Shares in the company jumped 25% on the announcement to close Wednesday at C$0.13 each. This leaves it with a market capitalization of C$3.9 million ($2.8m).
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