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@observer842,
nothing concrete, although this implies take back (could of course be buy) still it suggests the Bacanora concessions are the focus:
https://eldiariodecoahuila.com.mx/2022/08/14/pugna-en-puerta-por-fiebre-de-litio/
Proven its wealth in minerals such as lithium, the Mexican government is getting ready to take back the concessions delivered by PAN and PRI administrations to private parties; Bacanora Lithium , located in Sonora , seems to be the most attractive project.
However, there is another area where lithium appears on the surface, and that federal officials refuse to see: the one located on the slopes of Cerro Prieto, in the Mexicali Valley.
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It would make sense with recent news and potential for the Mexican car industry through foreign investment.
Still a little more clarification would be welcome.
Anyone found the source/verified this article yet? It's a fairly reputable news outlet from what I can see, but I always prefer the horses mouth! :-)
https://www.reddit.com/r/CadenceMinerals/comments/wljuxm/mexico_energy_minister_reveals_name_of_state/
https://www.bnamericas.com/en/news/mexico-energy-minister-reveals-name-of-lithium-state-company
It's this quote that I'm looking to verify: “Mexico looks to buy out existing additional rights held by UK exploration giant Bacanora”.
Big news for us if true...
yep… with mexico coming in though… they may need 3 now…
doesn’t the fs fig 15.4.1 meet at piecework.quench.jams… with the plant at leisurely.photon.magnificent… fifo of convertible.fresh.vitality…
To be clear I'm talking 50ktpa Lithium Hydroxide Monohydrate (LiOH.H20) = 44ktpa LCE, which is the optimised, and efficiency savings I anticipate on the original 35ktpa LCE mining plan and plant designs, similar to what Ganfeng were able to achieve for Thacker Pass.
@tomcat. I personally believe two 50ktpa operations in Sonora is quite likely, one in the North of the pit, mostly on the LV area, and one in the South of the pit, 100% on our JV area, the two meeting in the middle. The only real question I have at this stage is will we accept an offer before or after Ganfeng announce these plans in their updated DFS? I suspect they'll want us accepting an offer before then, but we may decline if not sufficiently attractive, happily waiting until the after the updated DFS is made public.
Pretty certain deals are in the air - IMHO it's only a matter of time before the market gets wind of them, through official channels or otherwise... ;-)
oops 100ktpa… ;)
nearly… but i was thinking more along the lines of plan a…
bacanora sell msb (la ventana) to fund our ($2bn @$6,500/t lce) mexilit scoping study debt free… we sell our 30% mexilit jv to tesla… tesla get their lohm for $6,000/t… job done… 100tpa sonora lithium plant fills a huge gap in the lithium supply chain…
All of it, clearly we would sell the job lot for the right price, and Ganfeng already put the feelers out for a "strategic stake", it would make sense for Mex gov to take 30% of it all, allowing us to sell out and Ganfeng to own 70% of it all.
Exclusive: Ganfeng eyes US OEMs for “strategic” stake in Mexican lithium project | Benchmark Mineral Intelligence
https://www.reddit.com/r/CadenceMinerals/comments/tz8dyd/exclusive_ganfeng_eyes_us_oems_for_strategic/
what’s for sale…
4.515mt drilled out reserves (fs page 130 table 15.4.2)…
msb… 1.718mt (38.05%)…
mexilit (bcn)… 1.9579mt (43.36%)…
mexilit (kdnc)… 0.8391mt (18.58%)…
8.819mt drilled out resource (fs page 122 table 14.15.2)…
msb… 3.904mt (44.27%)…
mexilit (bcn)… 3.441mt (39.01%)…
mexilit (kdnc)… 1.475mt (16.72%)…
10 concessions (fs page 22 table 4.3.1)…
3 owners… msb / mexilit / megalit…
8.819mt drilled out resource…
4.515mt drilled out reserves…
who owns what…
that’s correct daz… maybe a bargaining chip… as that would need to be moved over to megalit before any potential acquisition of msb by litio para mexico could go through…
@TC, "now here’s another thought… what if msb… la ventana… is the surplus… not mexilit/megalit…
The Megalit concession is held under MSB until it gets 'Title approval'.
and at the same time buy kdnc out of the mexilit and megalit jv’s… or they and / or we farm in another jv partner who is looking to buy lohm for about $6,000/t… directly and / or via kdnc’s 30% jv’s… ;)
ganfeng bought a fully funded project off bcn’s shareholders… and only needed to fund their half of the dfs project… they could use the proceeds from the sale of msb (cash already in mexico - so no international transfer from ganfeng china) to fund what was their remaining half of the dfs project plus their short term expansion plans… but 100% mined from mexilit…
80% npv without a fs… ?% npv with a fs…
http://www.ganfenglithium.com/ir_detail_en/id/2525.html …
now here’s another thought… what if msb… la ventana… is the surplus… not mexilit/megalit…
unlike megalit… la ventana has a saleable value… feasibility study page 10 table 1.14.1… npv8 $1,253m…
part nationalisation… not full as you said earlier… although that is a thought in itself… buy out existing additional rights could mean the whole of sonora… not just the additional bits ganfeng don’t need for their long term expansion plans… although it does specifically say bacanora not ganfeng… so part nationalisation seems most likely…
The title of this thread = nationalisation, in my book. What else can it mean?
they’re not… according to the translation… the 10 sonora concession are excluded… and it seems mexico is looking to buy into sonora… as this thread title… wake up…
Can someone please explain how Kdnc will get full value for its lithium asset in Mexico if a full scale nationalisation is going to take place? Why are folk getting excited about this?
What's at stake!
https://www.bloomberg.com/news/articles/2022-08-04/amlo-s-cabinet-big-hitters-lead-bid-to-avoid-trade-arbitration
Of course we now have USMCA plus the inflation reduction act -just three days after the above and a great deal has happened since the July 12th meeting with Joe Biden.
https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/07/12/remarks-by-president-biden-and-president-lopez-obrador-of-mexico-before-bilateral-meeting-2/
A_L.O:
It’s also important to mention that, two months ago, we took the sovereign decision of nationalizing lithium in Mexico. This is a fundamental mineral, a fundamental input to advance in our purpose not to depend on fossil fuels. And this will be available for the technological modernization of the automotive industry among our great countries — the countries of the USMCA
' you've got to be in it to win it'
(cringe)
Definitely sensed something positive today and watching kdnc not even move even though Emh has risen by 30% in a month is encouraging.
indeed @tomcat-14, the state lithium company being named, as far as the the buying of existing additional rights goes that was another link that should be treated with a little caution until further clarification as below:
August 11th
https://www.bnamericas.com/en/news/mexico-energy-minister-reveals-name-of-lithium-state-company
China’s Gangfeng has the rights to the country’s sole active lithium project, in Sonora state, with investors hoping it may become profitable in the next decade.
Mexico looks to buy out existing additional rights held by UK exploration giant Bacanora
@observer842 did mention this on the first post in the current thread.
Hopefully something will appear to back this up, it would make sense for Mexico to secure the concessions in this way as the USMCA is not going to favour them, it could jeopardise the entire NA Mexican car industry trading with Canada and the US.
fingers crossed for out of trading hours news!
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Thanks @EV_Bull,
BYD blade batteries are rolling off the production line in Berlin next month in the model Y - just amazing progress in 2022 for EV's - clearly the second stage of disruption is upon us with the battery tech development racing ahead.
GLA