North American Lithium 2.0: High-Grade Lithium Concentrations Attract Global Financing Attention

News provided by

Dec 05, 2023, 08:00 ET

FN Media Group Presents GlobalInvestmentDaily.com Market Commentary

LONDON, Dec. 5, 2023 /PRNewswire/ -- Lithium 2.0 is all about North America and some of the biggest new discoveries in the world. While this may be against the backdrop of bad times for lithium stocks overall, it has actually created a situation in which lithium companies are significantly undervalued, yet of critical importance to our energy transition future. Mentioned in today's commentary includes: FMC Corporation (NYSE: FMC), Livent Corporation (NYSE: LTHM), Freeport-McMoRan Inc. (NYSE: FCX), Compass Minerals International, Inc. (NYSE: CMP), Rio Tinto Group (NYSE: RIO).

That makes for the best buying opportunity in this space in years. And the best of the best opportunities, where the risk-reward ratio is the most potentially rewarding for investors, are found in the juniors who make big discoveries, particularly in lithium-starved North America.

Canadian EMP Metals Corp (EMPS, EMPPF) has gained significant traction over the past three quarters, testing the highest lithium concentrations in brine in Canada to-date, attracting one of the biggest names in battery metals financing, and gearing up for pilot production in the first-quarter of 2024.

>200,000 Acres in 3 Key Project Areas in Mining-Friendly Saskatchewan Saskatchewan is one of the most important lithium hubs in North America, and in energy transition terms, it's a vital critical minerals venue of national security urgency to both the U.S. and Canada. It's awash with everything from lithium and graphite to nickel, cobalt, aluminum and manganese. And it's a long-time high-producing area for uranium, potash and helium.

EMP Metals has over 200,000 acres here in the most advantageous area of South Saskatchewan's Williston Basin: The Duperow formation, which is fast becoming the flashpoint for North American battery metals.

While explorers have been descending upon two separate formations here—Duperow and Leduc—the advantage goes to the former because of its generally higher grades of lithium and shallower drilling depths, which in turn allow for operating cost advantages in the quicker to production direct lithium extraction (DLE) scenario compared to hard rock mining.

One of the Highest-Grade Lithium Drills in Canadian History

EMPS has already completed its NI 43-101 Inferred Resources Assessment for its Mansur and Viewfield areas, and the results are some of the most remarkable in the lithium space.

Viewfield and Mansur tested up to 259 mg/L and 148 mg/L respectively, lithium in brine. The preliminary assessment confirmed a high-quality Inferred Resource of 1.2 million tonnes of lithium carbonate equivalent (LCE) at a weighted average grade of 143 mg/L.

To put these concentrations into perspective, the 259 mg/L EMPS tested at Viewfield is the highest concentration among explorers in the Leduc/Duperow Lithium area, and among the highest on record in North America.

New Strategic Investor Validates Assets

The fact that this is a massive, ~200,000-acre play with an inferred resource of 1.2-million-tonne LCE testing at impressively high grades has now netted EMP Metals a new strategic investor that changes everything.

On November 1, after six months of the type of heavy-handed due diligence investors like to see, London-based Tembo Capital private equity group took a 19.9% stake in EMP Metals, gaining a seat on the board to steward their investment.

The deal shored up EMP Metals' accounts with $9,757,600, as well as expertise from a private equity group focused on sustainable natural resources and clean energy metals, with an impressive track record of identifying and supporting the best-emerging resource companies.

Since 2021, after raising $380 million for its third mining fund, Tembo has been increasing its mining bets in North America, eyeing critical battery metals. That same year, Tembo took a 50% stake in Cherish Metals, in partnership with U.S.-based Black Mountain Metals, to advance the Lanfranchi nickel mine in Western Australia. Tembo took a 34.6% stake in US-based copper developer Arizona Sonora, along with giant Rio Tinto, in 2022.

Saskatchewan, and the Duperow formation in particular, is the place to be for North American lithium, and while junior explorers are rushing to this scene, EMP Metals passed the Tembo selection, with high grades, the best lithium well drill yet in Canada and its plans to use DLE, a more environmentally sustainable method while producing lithium at faster speeds with high recovery rates.

In a further boost of confidence for investors, Karl Kottmeier and Craig Foggo, Tembo's Investment Director since 2014, will now be joining the board of directors. Both bring over 20 years of experience in the industry, ranging from operations, finance and administration.

Adding to the news flow, on November 20, EMP Metals announced a new COO for the team. Paul Schubach, P Eng. spent over ten years for $11-billion-market-cap Mosaic Potash (MOS), working onsite at its Mosaic Potash Belle Plaine, the world's largest potash solution mine. He brings 12 years of top-dollar engineering experience to add shareholder value.

The Next Big Push: Pilot Production in 2024

With all their ducks in order, one of the biggest names in battery metals, a new world-class board member and a new COO joining EMP right from a $11B market cap company, EMP Metals is ready to take off.

After consulting with several direct lithium extraction (DLE) providers, in early Q4, EMP Metals selected their two preferred, with ongoing brine testing at both. They've also consulted with three CRC (concentration, refinement, and crystallization) providers, and are running a detailed evaluation of the preferred provider proposal.

The engineering partner has already been selected in the form of Sproule Associates Limited, with resource to be developed by multi-lateral horizontal wells of shallow depths from 1500-3000 meters.

By the first quarter of next year, EMP Metals plans to have its field pilot plant up and running and is in the process of acquiring the DLE permit, with Viewfield evaluation to continue in the first two quarters of the New Year.

At the beginning of the year, onlookers could see EMP Metals start drilling horizontal wells to test for flow rates and pressures in multiple zones, and some expect that all the while they will continue new land acquisitions.

EMP Metals is currently evaluating proposals for the DLE commercial plant, based on lithium concentration, impurity removal, CAPEX/OPEX costs, availability and guarantees of scale of production.

At the same time, drilling will continue with multilateral horizontal wells in the higher concentration Upper Wymark zones, continually building on EMP Metals' high-grade hits to date.

Junior Discoveries Are Key for the North American Supply Chain

On the mining scene, and particularly deep in the battery metals playing field, the speculative junior explorers have the potential to offer investors the biggest rewards, for investors with the necessary risk appetite.

In the case of EMP Metals (EMPS, EMPPF), we've already got high-grade test results that break Canadian records for lithium drill holes. We've got a huge play in one of the most advantageous mining and metals hubs, Saskatchewan. This play is highlighted by shallower drilling depths and projects that are amenable to direct lithium extraction which offers a faster cheaper, and more sustainable process than traditional hard-rock lithium mining.

With concentrations up to 259 mg/L, the economic drivers on this one are stronger than usual for a junior play, and investor confidence is buoyed in the aftermath of the 19.9% stake acquisition by a global name in battery metals financing—Tembo Capital, which is also brining on an industry veteran to serve as a board member to help guide this project through to a successful production scenario.

Major Miners Are Making Moves

Compass Minerals International (CMP), based in Overland Park, Kansas, is a leading provider of essential minerals, including salt, sulfate of potash, magnesium chloride, and even sustainable lithium. The company's product mix serves a wide range of markets, including agriculture, consumer deicing, water conditioning, and industrial applications.

Freeport-McMoRan Inc. (FCX), based in Phoenix, Arizona, is one of the world's leading mining companies, with significant reserves of copper, gold, and molybdenum. The company's sizeable asset base includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant mining operations in the Americas.

Rio Tinto (RIO), a global leader in the mining and metals sector, is known for its operational efficiency and commitment to sustainable development. The UK-Australian corporation operates in around 35 countries and has assets across several commodities including aluminum, copper, coal, iron ore, and uranium.

FMC Corporation (FMC), based in Philadelphia, Pennsylvania, is a global agricultural sciences company that delivers innovative technology to growers around the world. While not a mining company in the traditional sense, FMC has a significant stake in lithium, a critical component in rechargeable batteries and other high-tech applications.

FMC's commitment to innovation and sustainability is noteworthy, and the company's products contribute to increased yield and quality, making it a significant player in addressing global food security issues. In recent years, FMC has benefited from robust demand for its protection products.

Livent Corporation (LTHM), a spin-off from FMC Corporation, is a leader in lithium technology, powering the electric vehicle revolution. The Philadelphia-based company supplies lithium used in batteries for electric vehicles, mobile devices, and other consumer electronics. Livent's position in the high-growth lithium market makes it a compelling option for investors seeking exposure to the green energy transition.

** IMPORTANT NOTICE AND DISCLAIMER -- PLEASE READ CAREFULLY! **

PAID ADVERTISEMENT. This article is a paid advertisement. FTB Capital and its owners, managers, employees, and assigns (collectively "the Publisher") is often paid by profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by EMP Metals Corp (EMPS-EMPPF) to conduct investor awareness advertising and marketing. EMP Metals paid the Publisher to produce and disseminate this article and related banner ads for $23,500. This compensation should be viewed as a major conflict with our ability to be unbiased.

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public, and does not (to the Publisher's knowledge, as confirmed by EMP Metals Corp) contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

FORWARD-LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies' actual results of operations. Factors that could cause actual results to differ include, but are not limited to, the size and growth of the success of the company's drilling explorations, the market for the company's products and services, the company's ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http://GlobalInvestmentDaily.com/Terms-of-Use. If you do not agree to the Terms of Use http://GlobalInvestmentDaily.com/Terms-of-Use, please contact GlobalInvestmentDaily.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY. GlobalInvestmentDaily.com is the Publisher's trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.

DISCLAIMER: GlobalInvestmentDaily.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with GlobalInvestmentDaily.com or any company mentioned herein. The commentary, views and opinions expressed in this release by GlobalInvestmentDaily.com are solely those of GlobalInvestmentDaily.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Contact Information:

Media Contact e-mail: [email protected]
U.S. Phone: +1(954)345-0611

SOURCE GlobalInvestmentDaily.com