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especially once they’ve exercised their 50% option...
This could apply to Sonora and the Borates...which have previous with Rio Tinto
(Reuters) - Rio Tinto Plc (RIO.L) is studying ways to extract lithium from waste rock at a mine it controls in California, making it the latest company trying to produce the battery metal in the United States for the fast-growing electric vehicle market.
FILE PHOTO: A Rio Tinto logo is displayed on the front of a wall panel during a news conference in Sydney November 29, 2012. REUTERS/Tim Wimborne
The move by Rio comes as U.S. politicians and regulators push to expand domestic mining of so-called strategic minerals used to make EV batteries and other high-tech equipment. China is the world’s largest producer and consumer of many of these minerals.
Rio has produced borates - a group of minerals used to make soaps, cosmetics and other consumer goods - for nearly a century in the Mojave Desert, about 120 miles (195 km) north of Los Angeles.
That has left behind decades’ worth of waste rock, known in the industry as tailings. Rio said it had been probing the tailings for gold and discovered lithium at a concentration higher than rival U.S. projects under development, although the company declined to give the exact percentage.
“The material being used has already been mined, so this will be a low-energy option for the production of lithium,” Bold Baatar, Rio’s chief executive of energy and minerals, said in a statement to Reuters.
The company is spending $10 million to build a pilot plant that will extract the white metal using a heat-and-leaching process involving a kiln heated to 1,740°F (949°C).
The pilot plant will only produce about 10 tonnes annually. If that step is successful, Rio said it would consider spending $50 million to build an industrial-scale plant to make 5,000 tonnes of lithium annually.
That would be roughly the same production capacity as a lithium brine project in Silver Peak, Nevada, controlled by, Albemarle Corp (ALB.N) - the world’s largest lithium producer.
Rio said its facility could eventually be the largest lithium producer in the United States, though it did not give any long-term output estimates.
If brought into commercial production, the Rio facility would make battery-grade lithium, the type of the metal sought by Panasonic Corp (6752.T) and other cathode producers, who in turn supply the battery part for use in Teslas (TSLA.O) and other electric vehicles.
Rio also controls Utah’s Kennecott copper mine and a lithium deposit in Serbia that has yet to be developed.
Other companies developing U.S. lithium projects include Lithium Americas Corp (LAC.TO), Standard Lithium Ltd (SLL.V), Texas Mineral Resources Corp (TMRC.PK), Piedmont Lithium Ltd (PLL.AX) and ioneer Ltd (INR.AX), which is developing a Nevada lithium project also containing a large concentration of borates.
if it had since been transferred elsewhere... wouldn’t it say so... i quite fancy ganfeng having a vested interest in unleashing the monster...
LoL @tomcat: "page 59... both mexilit and megalit have the same ‘*’ against them...", that's because that was the case on the date the table documents (30 June 2019). The graphic on page 19 is what is currently the case (from 14 August 2019). I'm near 100% certain that Ganfeng doesn't have a claim over Megalit, other than indirectly via their 29.99% in BCN, and if you find anything which might indicate to the contrary in the report I'm almost certain to view it as a typo or a clerical oversight as IMHO there's little to no chance they've accidentally or surreptitiously got their hands on the potential monster that is Megalit behind the market's back. Surely you can't think so? Oh the fun we have. ;-)
' Notification of Ganfeng International Trading (Shanghai) Limited as a person with significant control on 18 October 2019'
Sonora Lithium limited at companies house
and it states above the graphic on page 19... on 14th august... bacanora lithium plc transferred it’s shareholding in bacanora minerals ltd to sonora lithium ltd...
page 59... both mexilit and megalit have the same ‘*’ against them...
@tomcat you'll have to provide me with some evidence. As far as I can see BCN's LV and 70% of the Mexilit JV are owned by SLL (Sonora Lithium Ltd being currently owned by 77.5% BCN, 22.5% Ganfeng). Whereas 70% of the Megalit JV is owned by BCN / the group. If it was arranged how you suggest then I would have thought Megalit would appear on the diagram on page 19 of the 2019 accounts. Since Megalit is not part of the Sonora Lithium Project (owned by SLL) it doesn't.
does that put the likelihood of gfl exercising the 50% option on sll much higher up the scale of certainty... if there was much doubt anyway... does it put the value / price for the remaining 27.5% up or down...
i don’t think bcn shareholders own 100% of bacanora minerals ltd anymore... so if bml owns 70% of megalit... as it does mexilit... then gfl will own some of megalit too... 54.25% bcn / 15.75% gfl...
I don't think it matters. For all intents and purposes BCN shareholders own 70% of Megalit, KDNC shareholder own 30%. Page 19 of the 2018 accounts.
Bacanora Lithium Plc was incorporated on 6 February 2018. On 23 March 2018, a new Canadian company 1976844
Alberta Ltd. issued 197,471,292 share of nominal value CAD$1 per share to Bacanora Lithium Plc. At the same time
1976844 Alberta Ltd. amalgamated with Bacanora Minerals Ltd. to create a new amalgamated entity in Canada
renamed as Bacanora Minerals Ltd. Concurrently, Bacanora Lithium Plc purchased the combined assets of Bacanora
Minerals Ltd and 1976844 Alberta Ltd. through the purchase of 100% of the share capital of the new amalgamated
company and thus became the new Parent Company of the Group. In return, a 1 for 1 ************** occurred
whereby all shareholders of the original Bacanora Minerals Ltd were issued shares in Plc.
they obviously don’t want us to know for sure... they refer to ‘the group’ on page 75... but state that megalit is held by bacanora minerals ltd on page 59... so it looks like bml to me?...
Don't the 'Group' own 70%.....isn't that Sonora lithium,Ltd .are we included in that as well?
We own 30% of it. BCN own the other 70%. But I'm guessing you have another answer in mind. :-)
yeh... that’s the transfer from msb to megalit... but who owns megalit...
Looks like it happened in 2018 and we (I at least!) missed it.
The remaining three concessions, Buenavista, Megalit and San Gabriel, cover 89,235 hectares, and are
subject to a separate agreement between the Company and Cadence. As at June 30, 2017, Buenavista
and San Gabriel concessions are owned by Megalit, while the Megalit concession was in the process of
being transferred to Megalit. The Megalit concessions is currently owned by MSB. Megalit is owned 70%
by Bacanora and 30% by Cadence.
The remaining three concessions, Buenavista, Megalit and San Gabriel, were outside of the scope of the Sonora
Project Feasibility Study. They cover 89,235 hectares and are subject to a separate agreement between the
Company and Cadence. As at 30 June 2018, Buenavista, Megalit and San Gabriel concessions were owned by
Megalit. Megalit is owned 70% by the Group and 30% by Cadence.
Three concessions, in Sonora Mexico, Buenavista, Megalit and San Gabriel, fall outside of the scope of the Sonora
Lithium Project Feasibility Study. They cover 89,235 hectares and are subject to a separate agreement between
the Company and Cadence. As at 31 December 2019, Buenavista, Megalit and San Gabriel concessions were owned
by Megalit. Megalit is owned 70% by the Group and 30% by Cadence.
Presumably they meant 30 June 2019...
btw... can you see who owns megalit...
would the hmrc let them pick and choose like that...
"Personally I think basing the cost to take Ganfeng's percentage holding of SLL to 50% on the market cap of BCN rather than the share price of BCN makes more sense." But I suppose Ganfeng could have insisted it were based on the share price rather than the market cap as a hedge/disincentive against BCN diluting their 30% holding in BCN?
I think I see what you are saying @tomcat, and it had crossed my mind, but the wording is:
"The valuation of any additional investment by Ganfeng would be based on the share price of Bacanora Lithium Plc at the time of the additional purchase."
"The valuation of any additional investment by Ganfeng would be based on the market capitalisation of Bacanora Lithium Plc at the time of the additional purchase."
which it should have said for what you are suggesting to be the case.
I really don't know why some companies have a hard time at being clear... Personally I think basing the cost to take Ganfeng's percentage holding of SLL to 50% on the market cap of BCN rather than the share price of BCN makes more sense. But what do I know? :-)
36,977,840 shares in sll for £1.42/share... would cost them £52,508,532... wouldn’t it...
but if bcn’s sp is £1... with 192,065,236 shares in issue... bcn is worth £192,065,236... meaning the market value of sll is £192,065,236... with 134,464,872 sll shares issued currently... that would give them a value per share of £1.42...
36,977,840 shares in sll for £1/share... would cost them £36,977,840... i think...
this bit... The valuation of any additional investment by Ganfeng would be based on the share price of Bacanora Lithium Plc at the time of the additional purchase... which applied when the shares were synchronised... but not it’s not...