Inside Financial News
Lithium shares have seen some excitement as of late, rallying on the closure of CATL in China. The mine was a substantial source of lithium carbonate, contributing approximately 5% to the world and 20% to China’s lithium supply. Additionally, Rio Tinto (NYSE:RIO) announced on October 9th that it had entered into an agreement to purchase Arcadium Lithium (NYSE:ALTM) for $6.7 billion. And most recently, this week, Sayona (ASX:SYA) and Piedmont (Nasdaq:PLL) announced their US $623 Million Merger to build North America’s largest lithium producer.
Lithium explorers, developers, and their shareholders are uniquely positioned to capitalize on the recent rally in lithium, including but not limited to Rio Tinto Group (NYSE:RIO), Arcadium Lithium PLC (NYSE:ALTM), Q2 Metals Inc. (TSXV:QTWO), Patriot Battery Metals (TSX:PMET), and American Salars Lithium Inc. (CSE:USLI) (OTC:USLIF).
AMERICAN SALARS ACQUIRES HIGHLY PROSPECTIVE PROPERTY WITHIN SAYONA MINING’S TANSIM LITHIUM MINE, QUEBEC
The Company announced it has signed a Mineral Claims Purchase Agreement (the “Agreement”) with an arm’s-length vendor to acquire 100% of the Lac Simard Nord Project, consisting of 286 acres covering 2 claim blocks, directly contiguous to Sayona Mining Limited’s (ASX:SYA) (“Sayona”) “Tansim” Project. This project comprises the Viau-Dallaire and Viau Showings, estimated by Sayona as having the potential to contain between 5 to 25 million tons of Li₂O @ 1.2-1.3%.
This acquisition brings the Company’s holdings in Canada’s only producing lithium camp to 3,958.75 acres at Lac Simard, Quebec.
Sayona and Piedmont Limited (“Piedmont”) announced a merger this week to create a USD $623 million (CAD $870 Million) lithium giant after announcing continued record production at the North American Lithium (NAL) operation in Quebec.
American Salars CEO & Director R. Nick Horsley states, “This was a great opportunity to acquire strategic ground in close proximity to a known lithium showing inside Sayona's Tansim project. We will continue the hunt for low cost / high value lithium projects. Furthermore, the merger of Sayona and Piedmont shows that there is a strong appetite for M&A in the lithium space.”
According to American Salars’ website and corporate presentation, team members from American Salars have been involved corporately or technically in multiple projects that have developed into lithium M&A events, including the $962 Million acquisition of the Pozuelos Salar by Gangfeng, the $825 Million acquisition of the Rincon project by Rio Tinto, the $265 Million acquisition of Lithium X, and the $313 Million acquisition of Alpha Lithium by Tecpetrol.
With lithium prices known to make meteoric rises when there is tension in the market, majors like Rio Tinto (NYSE:RIO) and Arcadium Lithium (NYSE:ALTM), smaller consolidators and developers like American Salars (CSE:USLI) (OTC:USLIF), and project explorers and developers like Q2 Metals (TSXV:QTWO) and Patriot Battery Metals (TSX:PMET) know the time to acquire and develop is now while lithium prices are relatively low. Market valuations are expected to appreciate as lithium prices rise, according to Citi analysts.
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