How to Play the Coming Lithium Boom for Maximum Profit Potential
Source: Benchmark Mineral Intelligence
Experts now predict that by 2030, electric cars will make up 58% of the light vehicle market…a massive increase from the 7% market share for EVs today.i
And while demand for lithium continues to increase…even a minor shortfall in supply could cause a significant spike in lithium prices.
Investors looking for the best way to play the global shift to electric vehicles – and the ongoing surge in lithium demand – should consider one company unlike any other in the lithium space: E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A).
E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) is an Alberta-based company that offers investors a chance to invest in a company with three defining traits:
(1) E3 Metals Corp. is sitting on a potentially large resource – reportedly the 6th largest current lithium resource in the world – according to available information – with room to expand …
(2) The Company resides in an excellent location – one that is optimal for permitting and operations with significant existing infrastructure, and…
(3) E3 Metals Corp. has developed a proprietary technology designed to consistently supply a pure lithium product to market in the midst of historic lithium demand.
And what’s more, compared to others in the lithium space, E3 Metals Corp. appears to be significantly undervalued – at least for the time being.
Experts in the market are now beginning to take note of E3 Metals Corp. and its significant upside potential.
In fact, just recently, expert Alex Grant – one of the world’s foremost experts on lithium production technology – wrote a bulletin that was published by Keith Schaefer, editor of Oil & Gas Investments Bulletin.
In this bulletin, Grant wrote about the potential for hot brine plays – and E3 Metals Corp. in particular.
Here’s what Alex had to say…
It’s still a nuclear winter for junior lithium stocks—especially for the South American salar (evaporation) projects—but a very different kind of project has been heating up in North America.
Surprisingly, they are deep, hot brine plays, which didn’t get much attention during the lithium bull run of 2016-2017. Investors were much more focused on high altitude, shallow salars in South America or hard rock spodumene in Australia and Africa.
E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) with a 6.7Mt LCE lithium brine resource in the middle of the Alberta oil patch, announced in September an up to $US 5.5M investment by Livent, one of the world’s largest lithium producers and a technology leader in the industry.
Standard Lithium (SLL-TSXv) is starting up a demonstration plant in southern Arkansas to extract lithium from an already flowing brine producing bromine, and they announced in October a $US 3.75 million convertible loan from Lanxess (LXS-ETR, LNXSF-OTC), their German chemical partner who operates the plant.
“We are excited to have Livent’s technical expertise on board. Their expertise with E3 will move this project towards construction faster than many other options. Their lithium development group are leaders in the space. This is really like building a development arm to our company for no cost,” says E3 CEO Chris Doornbos.
Brine technology is new, whereas evaporating lithium out of salars is a 12th century technology. Investors are always leery of new processes in mining. Also, both E3 and Standard Lithium were early stage plays in the lithium bull run of 2016-2017—another hurdle for investors.
But brines—also called DLE—Direct Lithium Extraction—arguably have three advantages over the more traditional high-elevation salars—speed, scale and simplicity. That could account for why they are getting funded while the more traditional salar projects languish.
Both E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) and Standard Lithium:
1. Are located in North America,
2. Have arranged partnerships with large chemical companies
3. Developed DLE technologies that unlock their brines for economic lithium extraction that don’t require evaporation ponds and are expected to require minimal freshwater and space.
4. Are brownfield projects that take advantage of already flowing brine or already drilled wells to produce lithium from brines known to other industries but not previously considered to be a relevant source of the metal.
5. Located in regions with lots of industrial infrastructure and skilled workforce who are familiar with extractive and chemical industries.
It’s still a nuclear winter for most lithium juniors, but hot brine has created a spring thaw for two of them.
E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) Holds a Lithium Resource Reported to Be the World’s 6th Largest
The first thing you notice about E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) is the potentially massive lithium resource it owns in Alberta, Canada.
At 6.7 million tons of lithium carbonate equivalent (LCE) – and at an average grade of 75 milligrams per liter – the company’s resource has already been shown to be one of the largest on the planet.
But the size of E3 Metals Corp’s lithium resource could be even larger as presently only 34% of the resource over their permit area has been delineated – accounting for the 6.7 metric tons of LCE.
If the remaining 66% of the property were to be accounted for, we might not be talking about the world’s 6th largest lithium resource…but instead potentially the largest.
Just what type of potential could be associated with the 6.7 metric tons of LCE that E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) has already accounted for in Alberta?
One industry comparable is Standard Lithium (TSX.V: SLL), who owns just a percentage of a smaller resource than E3 Metals Corp. yet has a market cap of $74.7 million as opposed to E3 Metals Corp.’s market cap of just $12.4 million.
That means there’s plenty of upside potential as word begins to spread of what’s happening with E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A).
E3 Metals Corp. Announces Joint Development Agreement with Livent Corporation to Advance Extraction Process in Alberta
On September 18, E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A) announced that it has entered into a Joint Development Agreement with a wholly-owned subsidiary of Livent Corporation to advance E3 Metals’ proprietary Ion-Exchange Direct Lithium Extraction process.
Livent is the world’s largest pure-play lithium producer – a pioneer in the industry for over 60 years – and is well-known for being one of the lowest-cost producers of lithium carbonate. With facilities across the globe, Livent holds technical expertise in the extraction and production of various lithium products.
E3 Metals Corp. believes that this collaboration will accelerate the advancement of the innovative technology it has developed to date. And it demonstrates E3’s commitment to the commercialization of lithium in Alberta.
Alberta Offers an Ideal Location for E3 Metals Corp.
While the size of E3 Metals Corp.’s resource is impressive – as is the company’s proprietary extraction technology – it’s also worth noting that the company is located in an ideal location for lithium production.
Alberta, Canada is an extremely industry-friendly region for the oil and gas industry and offers existing regulations and permitting processes.
E3 Metals Corp.’s permit area in Alberta is blanketed with a vast network of pipelines, wells and roads that are available for the company to repurpose for the production and processing of lithium brine.
E3 Metals Corp. is looking to leverage Alberta’s existing infrastructure and know-how, while setting a global standard for environmental performance in lithium production.
E3 Metals Corp.’s Proprietary Ion Exchange Direct Lithium Extraction Technology Offers a Huge Advantage
E3 Metals Corp.’s high-performing proprietary Ion Exchange Direct Lithium Extraction Process produces a purified lithium concentrate from brines deep beneath the surface in the Leduc Reservoir.
The Leduc Reservoir offers a network of existing oilfield infrastructure that is available to be repurposed into lithium production. The reservoir is expected to deliver brine at an equivalent rate to 50,000 tons/year LCE for over 35 years in the Clearwater Area of Alberta alone.
E3 Metals Corp.’s proprietary direct lithium extraction process offers a number of critical advantages, including…
- It is designed to extract high-purity lithium from lower concentration brine,
- Takes advantage of high flow rates,
- Concentrates the lithium into a high-grade solutuion,
- Removes over 99% of impurities from the brine, and
- Reduces water handling volumes
The company’s technology has advanced rapidly – with limited capital spending to date – with a stated goal of producing battery-grade lithium carbonate or hydroxide that can be used directly within lithium-ion batteries, allowing E3 Metals Corp. to secure top value for its product.
Just recently – in a May 29, 2019 news release – E3 Metals Corp. announced that it had successfully produced lithium hydroxide in the Alessi Lab at the University of Alberta where the purified lithium solution was crystallized into lithium hydroxide.
The lithium concentrate was produced using E3 Metals Corp.’s proprietary direct lithium extraction process and the results provide confidence in the validity of the company’s process flowsheet and represent another important step toward demonstrating the commercial viability of the project.
E3 Metals Corp. is Led by an Experienced Team with a Proven History of Success in the Energy Industry
When evaluating the potential for any energy exploration investment, it’s important to examine the quality of the company’s management.
Investors should look for a history of success and innovation in the energy exploration space in order to feel confident about a company’s future prospects. And in the case of E3 Metals Corp. (TSX.V: ETMC); (OTC: EEMMF); (FSE: OU7A), the company has a wealth of both experience and success.
Chris Doornbos (P.Geo) – President, CEO, Director
Chris is the CEO and Director of E3 Metals Corp, a lithium development company. Chris founded E3 Metals, now publicly listed (TSXV: ETMC) with the goal of delivering Alberta’s first commercial production of lithium. Chris has experience in capital raising both privately and publicly, founding of public junior mining companies and the sale and acquisition of mineral properties. Chris emphasises risk management, developing and managing an exceptional technical team and well-strategized project development. Chris has successfully driven projects through to the development stages including a very successful track record of capturing value for shareholders by using innovative and out of the box thinking. Chris is a registered professional geologist with a broad range of experience in developing mineral projects across the globe. Previously, Chris was the CEO of Revere Development Corp, the Vice-President of Exploration for MinQuest Ltd and a key member of the early development of the Fort Hills Project in Alberta.
Liz Lappin (P.Geo) – VP, Corporate Affairs and Exploration
Liz is a Professional Geologist with a solid background in capturing value from Alberta’s energy industry. Liz brings this experience to the E3 Metals team as she drives the technical team towards the development of our lithium brine projects. As a great believer in collaboration, Liz is focused on maximizing asset value through technical excellence and creative cooperation between disciplines. Working across Western North America, Liz has gained a foundation of technical experience with oil and gas majors such as Cenovus, Encana and Suncor. More recently, Liz was the founder and principal consultant at Castle Rock Consulting Ltd., which specializes in geothermal value creation for the energy industry in Canada. Liz is a Fellow of the Energy Futures Lab, and was honored to receive a Young Woman in Energy Award in 2017 for her dedication to challenging industry norms by pursuing a broader energy mix in Alberta.
Greg Florence (CPA, CMA) – CFO & Company Secretary
Greg has over thirty-seven years of business experience including upstream oil and gas, green technologies, industrial supplies, and agribusiness. In addition to 12+ years as a CFO, Greg has held a number of senior management positions including Corporate Secretary, Director Investments and Vice President Marketing and Corporate Development. His expertise includes finance and accounting, budgeting and forecasting, regulatory compliance, corporate finance, portfolio investment and management and corporate governance. Greg has sat as a director of public companies, private companies and not-for-profits. He is a member of the Chartered Professional Accountants of Alberta.
Mike O’Hara (P.Eng) – Director
Mike is an oil & gas executive and registered professional engineer with 35 years’ experience in founding, developing and managing profitable, growth oriented oil and gas companies. He has a solid track record in the evaluation, negotiation and acquisition of high quality oil & gas properties and joint venture opportunities. Formerly, Mike was the President of Bernum Petroleum Ltd, President, Director and Founder of Xergy Processing Inc and CEO, President, Director & Founder of Calahoo Petroleum Ltd., a TSX listed E&P company, sold in 2000 to Samson Petroleum for ~$130M.
Peeyush Varshney LL.B – Director
Peeyush has been actively involved in the capital markets since 1996 and has been a principal of Varshney Capital Corp., a private merchant banking, venture capital and corporate advisory firm since 1996. Mr. Varshney obtained a Bachelor of Commerce degree (Finance) in 1989 and a Bachelor of Laws in 1993, both from the University of British Columbia. He then articled at a large regional business law firm in Vancouver, British Columbia, from 1993 to 1994, and has been a member of the Law Society of British Columbia since September 1994. Mr. Varshney is also director of TSX listed Mountain Province Diamonds Inc. and TSX Venture Exchange listed Canada Zinc Metals Corp. and Margaret Lake Diamonds Inc.
Paul Reinhart – Director
Paul brings his over 30 years of experience in providing early stage project financing and advisory services. Paul’s experience and expertise in the resource exploration business includes Kokanee Explorations, Far West Mining and Bearing Resources. He is currently CEO of Sora Capital Corp, an Investment Issuer focused on the technology industry. He is also President of Vanhart Capital Corporation, a privately held investment company, specializing in funding and advisory services for early stage companies.