Lithium mining and extraction companies have made several recent high profile moves to increase their production of the metal, which is used to make the batteries in many stationary energy storage systems and EVs.
This includes the acquisition of a lithium mining operation in Nevada, US, home of Tesla’s Gigafactory, by Toronto Venture Stock Exchange (TSX-V) -listed LiCo Energy Metals, which has also signalled its intent to acquire exploitation concessions for lithium in Chile. Meanwhile, US-headquartered Albemarle Corporation, which owns the only existing lithium mine in the US – also in Nevada – announced that it too is seeking a big win in Chile, striking a deal to increase its lithium production from an existing facility.
LiCo Energy Metals announced on Friday that it had brokered a deal, subject to stock exchange approval, with exploration company Nevada Energy Metals, for 199 placer claims in the Black Rock Desert of Nevada. LiCo would earn an undivided 70% interest, while paying a 3% net smelter return royalty to Nevada Energy Metals. LiCo will pay the exploration company the sum of US$170,000 and issue it with 1.5 million shares upon approval by TSX-V. Then in the first year of the deal it would give Nevada Energy Metals another 1.5 million shares and then the same amount again in the second year. Before the third year LiCo will pay out a US$1,250,000 work commitment as well as paying a cash finder’s fee of US$75,000.
The Black Rock site covers about 2,000 square kilometres. The area in question contains lithium values “well below those of producing lithium brines”, but do represent a “significant source of metal available for evaporative concentration,” LiCo said.
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