Big picture - Why invest in Liberty One Lithium Corp
Liberty One Lithium Corp Snapshot
Lithium accounts for only about 5% of the materials in some car batteries, and for less than 10% of their cost. But the element is a vital component of batteries that power everything from cars to smartphones, laptops and power tools. With demand for such high-density energy storage set to surge as vehicles become greener and electricity becomes cleaner, Goldman Sachs recently called lithium “the new gasoline”.
That has made it the world’s hottest commodity. The price of battery grade 99%-pure lithium carbonate imported to China escalated from around US$7,000/tonne in mid-2015 to over well over US$20,000/tonne as recently as June, 2016.
The rise mostly reflected concerns about the future liquidity of China’s spot market. China gets much lithium from spodumene rock in Australia, an alternative to South American brine. Albermarle, an American miner, and Tianqi, its Chinese joint-venture partner, plan to use spodumene from a big Australian mine to process more battery-grade lithium carbonate and hydroxide. That will mean less ore available on the spot market in China.
The current industry is concentrated, which adds concerns. Last year Albermarle, the world’s biggest lithium producer, bought Rockwood, owner of Chile’s second-biggest lithium deposit. It and three other companies—SQM, FMC of America and Tianqi—account for most of the world supply of lithium salts, according to Citigroup. What is more, a big lithium-brine project in Argentina, run by a joint venture of Orocobre, an Australian miner, and Toyota, Japan’s largest carmaker, is behind schedule. Though the Earth contains plenty of lithium, extracting it can be costly and time-consuming, so higher prices may not automatically stimulate a surge in supply.
Demand is also on the upturn. At the moment, the main lithium-ion battery-makers are Samsung and LG of South Korea, Panasonic and Sony of Japan, and ATL of Hong Kong. But China also has many battery-makers. Its government is stepping up the promotion of lithium-ion batteries and electric vehicles, with the biggest emphasis on buses. Sales of “new energy” vehicles in China almost tripled in the first ten months of 2015 compared with the same period in 2014, to 171,000.
Additionally, Tesla Motors, is building its “Gigafactory” in Nevada, which it has stated it hopes to supply lithium-ion batteries for 500,000 cars a year within five years. J.B. Straubel, Tesla’s chief technical officer, says the firm wants to secure supplies of many battery materials, not just lithium. “There’s so much hype in the lithium market right now…people look at it as this magical element,” he says. Nonetheless, in August Bacanora, a Canadian firm, said it had signed a conditional agreement to supply Tesla with lithium hydroxide from a mine that it plans to develop in northern Mexico. Bacanora’s shares jumped on the news—though analysts noted that shipping fine white powder across the United States border would need careful handling.
Bigger carmakers also have a growing appetite for lithium. In a recent shift, Toyota has begun offering lithium-ion batteries instead of heavier nickel-metal hydride ones in its Prius hybrid. Tougher emissions standards in Europe and America are likely to boost carmakers’ need for lithium.
Another big source of demand may be for electricity storage. The holy grail of renewable electricity is batteries cheap and capacious enough to overcome the intermittency of solar and wind power—for example, to store enough power from solar panels to keep the lights on all night. Tesla recently announced it will start installing “Powerwall” battery packs in American and Australian homes to store solar energy, at a cost of $3,000. Enel, an Italian utility, is launching similar storage products this year in South Africa, where homes and businesses suffer frequent black-outs.
Power utilities will increasingly use giant battery packs, charging them at times of low demand and tapping them to provide short bursts of electricity at peak times, an alternative to building a fossil-fuel plant that will sit idle the rest of the time. AES Energy Storage, a big provider of energy storage, won a contract in 2014 to provide a “peaker plant” in Southern California that will provide up to 100 megawatts (MW) of power into the grid at moments of maximum demand. In December, the firm agreed to buy, over several years, enough lithium-ion batteries from LG to provide ten times this level of peak power—that is, 1 gigawatt, or more than the output of an entire, typical-size coal-fired power station. “We’re hybridising the power grid,” says John Zahurancik, its boss.
In summary, a number of market forces are at work that all link to lithium as an in-demand metal for the foreseeable future. Liberty One Lithium Corp. sees it as an opportunity to participate in the diversification and continued growth (and protection) of a robust global energy policy.
Liberty One aims to aid a strategic policy that assures access to lithium, for a better future for everyone.
With edited notes from “An increasingly precious metal” – The Economist, (2016)
The “Pocitos West” prospect consists of over 39,000 acres in the middle of the renowned lithium triangle. It is located in the Pocitos Salar, Los Andes Department, Western Salta Province, Argentina.
Liberty One Lithium’s prospect is located in the Pocitos Salar in Los Andes Department, Western Salta Province, Argentina and consists of over 39,000 acres in the middle of the lithium triangle. Information currently available for the Pocitos basin, as released by other lithium companies in the region, demonstrates that this is an exploration target with a high probability to host high grade lithium- bearing brines at depth.
- Near Enirgi’s Rincón project and their future Lithium plant designed to produce 50,000 tonnes of LCE.
- The Project is located in the middle of all the current lithium Projects of the region
- Mining friendly jurisdiction
- Known geological district with important Li & K grades
- The distance from Salta Capital is only 160 Km, accessible by National and Provincial roads.
- Near Pocitos town (Access to labour)
- Near an international pass to Chile
- The Project has access to high quality regional and site infrastructure facilitating project development, with road, rail, port facilities and power generation services such as electrical and natural gas.
The Pocitos Salar is located in Los Andes Department, in Western Salta Province, directly in the middle of the well known lithium triangle. The Liberty One Lithium project area is located in the western portion of the salar and can be accessed via national Route N 51 passing by way of San Antonio de los Cobres and continuing to Provincial Route Nº 27 which crosses the project area.
The claim area covers a total area of 15,857 Ha (approx.39,000 acres) along the western portion mid-basin.
The Project area comprises these claims: Pocitos 200 File Nº 20166, Pocitos 201 File.Nº 20167, Pocitos 202 File. Nº 20168, Pocitos 203 File Nº 20169, Pocitos 204 File Nº 20170, Pocitos 205 File Nº 20171, Pocitos 206 File. Nº 20172, Pocitos 207 File. Nº 20173, Pocitos 208 File Nº 20174, Pocitos 209 File Nº 20175 y Pocitos 211 File Nº 20177.
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Directly east of the Liberty One Lithium Property within a contiguous alluvial region, DGFM Argentina conducted a 12-drill hole study (est. at 20 meters depth) in 1979. Typically, studies at this time were carried out at, or near surface, as there was no knowledge of how deep the salars are, information that is more commonly understood today.
A 2010 program* indicated brine assays ranging from 100 to 300 ppm within two northerly trending zones of lithium and potassium concentrations (“Anomalies”). The West Anomaly shows lithium ranging from 100ppm to 200ppm and has a Mg:Li ratio of 10.
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Salars are areas topographically depressed and surrounded by hills and mountains. The salar basins are filled with surface runoff and subsurface flow from the surrounding high terrain. The sediments are the product of erosion of the mountain around the salars, which are masking the actual size of the salt flats we see today.
Most of the advanced stage projects In Argentina are extending the resource below the alluvial fans.
Lithium Americas extended the resource below the Archibarca alluvial fan which divides the Olaroz and Cauchari salars. Archibarca is a large source of fresh water at surface, above concentrated brine beneath the fan sediments. Eramet in Centenario salar discovered that most of the Lithium resource is beneath the west alluvial fans. Lithium X in their Sal de los Angeles Project at the Diablillos salar is extending the resource to the North as stated in a Press Release from 30-Aug-2016, and the north portion of Diablillos salar is comprised of a large alluvial fan.
The geophysics profile shows very clearly that the body of brine extends toward the West beneath the alluvial fans on-trend with the Liberty One property.
This profile shows that the basin is around 500 meters deep, and could be deeper, and that the higher resistivity could be massive halite, as is shown in the electrical profiles of salars nearby.
According to documented information released by nearby producers, beneath the massive halite body of the salar (with high resistivity indicated) it is possible to find an aquifer of gravel and sand with good hydraulic condition.
The resistivity profile shows towards the west a deep aquifer (target area 1) with lower resistivity which is interpreted as more concentrated brine in the west side of the salar.
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The Company is not treating historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the drill results or resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources. The Company believes that these historical results and estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration.
Liberty One holds 39,000 acres in the Pocitos salar in a region of significant exploration and production.
Only the surface of Pocitos salar has been sampled, by DGFM in 1979 and by Li3 Energy Inc, in 2010.
Both companies identified lithium anomalies close the surface of the salar.
The geophysics carried out for Li3 Energy, Inc. confirms that the salar extends beneath the alluvial fan from the West trending towards Liberty One property.
The basin is at least 500 meters deep.
Pocitos salar is an exploration target with high potential to host lithium–bearing brine at depth.
The property holds potential as a major lithium resource able to meet growing global demand.
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The “North Paradox” property consists of 233 placer claims encompassing 4,480 acres located upon the Paradox Basin in Grand County, Utah, 15 km west of the town of Moab, in southeastern Utah.
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Bradley Hoeppner, President & Director
Mr. Hoeppner has participated in a variety of roles within the public markets sector and with a number of publicly listed companies for over 10 years. During this time, he has been instrumental in the successful closing of more than 100 million dollars of public company financing’s. Bradley has played a key role in re-structuring public companies and has been a director of King’s Bay Gold Corp., a TSX-V listed company focused on the exploration of cobalt and other specialty and rare minerals in eastern Canada, principally slated for commercial activities within the burgeoning technology sector (February 2016 to present). Bradley is also a director of Berkwood Resources Corp., a TSX-V listed company involved in the exploration for graphite in Quebec. Previously, he enjoyed a period of service with a Member of Canada’s Parliament, and a turn spent successfully speculating in the real estate market.
Morgan Tincher, Interim CFO & Director
Mr. Tincher brings +20 years of corporate finance experience and +12 years of finance advisory expertise in the technology, entertainment and natural resources sectors with a focus on public and private financing, corporate governance, merger structure, acquisitions and IPOs. Mr. Tincher’s responsibilities include all financial operations management, stakeholder engagement, compliance and regulatory matters. Prior to Liberty One Lithium Corp., he served as CEO, President and Director of Oculus Ventures Corporation (2012 to 2014) through reverse merger acquisition and capitalization ($20MM) of Toronto based Slyce Inc. (now Pounce Technologies Inc.). During the same period, Mr. Tincher assisted in the capitalization ($10MM) of Trace Intelligent Systems of Venice, CA, which led to the acquisition of Draganfly Innovations Inc. Mr. Tincher served (2007-2011) as VP Finance at Probe Resources Ltd. (now Rooster Energy Ltd.) assisting in raising >$50MM in capital via both debt and equity offerings. Mr. Tincher also served as a Director of Inform Resources Corp. (September 2013 to October 2015) and currently serves on the boards of two privately held companies.
Fiscal Year End: Dec 31
Shares Outstanding (02/16/17): 32.73M
Liberty One Lithium Corp
1920 -1177 W Hastings Street
Vancouver, BC V6E 2K3 Canada
T (604) 343-4547
Legal Counsel (Canada): McMillan LLP
Legal Counsel (USA): Greenberg Traurig, LLP
Auditors: Dale Matheson Carr-Hilton Labonte LLP.
Transfer Agent: (Canada) CST Trust Company
Transfer Agent: (USA) American Stock & Trust Company, LLC