I don't think it will take that long for the ' Chilean ' connections to play out. But it would be more along the lines of this alternative. A key strategic stake , and like yesterday's supposition , it would come with a LOT more upside , for a LOT LESS upfront investment. And that's what you really want here.
And as I alluded to in my post yesterday
( Post #: 65765051 ), The Minister of Innovation , Science , and Industry Francois-Phillippe Champagne ordered the Chinese to divest 3 of their interest in their Lithium Projects back in November 2022 ( officially 2nd November.) . The reasons were more specifically related to the National Security Review section of the provisions of the Investment Canada Act ( ICA ).
Since then and with the assumed 90 days statutory period prevailing and looming on February 2nd , the only Entity to act quickly on that order was Power Metals who divested to Winsome Resources ( another Australian based Ally Nation ) .
So back then it was stated by Minister Champagne that " The Government of Canada will work to ' Attract ' foreign direct investments from partners who share our interests and values "
And ,
That the Government's Critical Minerals Strategy is intended to position Canada as " the global supplier of choice for critical minerals "
So Canada ordered Chengze Lithium International to divest its 19.35% interest in Lithium Chile which it acquired in May 2022 for C$27.9 million , and which was an increase from its previous 5.14% held.
As of last night trading , that Chinese stake is worth C$25.5 million .
So this is another major selection for me of the M&A reasonings that Guy has flown to Santiago for his pilgrimage north to the Chilean and Argentinean Salars.
Because we know that Lithium Chile Inc has major ground in BOTH Chile and Argentina , as well as being further along the PRODUCTION curve to actually streaming some major revenues. Especially if you factor in a higher level of ' Collaboration ' and some additional joint capital.
This move would obviously fall into the bucket classification of ....BIGGER STEPS .....QUICKLY , and would certainly fast-track accretive valuation as well as substantially increased earnings and strategic partners.
When we speak of partners we can also reflect back on how Guy mentioned his lunch in Ottawa was a ' Reuniting ' of sorts when Champagne's name was mentioned , and then next thing you know , he ( Guy ) is seen in Santiago Chile sporting his Sayona Polo shirt.
Now I don't know about all of you , but if these points don't meet the definition of joining the dots , then I don't know what that should really mean in its intended use of the phrase.
Even the TSX is wading into the debate which you can see by the excerpt of an article from the financial post only 2 days ago where you can see by Lithium Chile's CEO Stephen Cochrane , that they have had no less than a ' DOZEN ' approach.
And you wouldn't think that we ( Sayona ) would NOT be one of those.......
Published Jan 17, 2023
The Toronto Stock Exchange has called on Canada’s government to do more to replace lost capital after Ottawa ordered three Chinese companies to divest their stakes in Canadian producers of critical minerals.
Dean McPherson, head of business development for mining at TSX’s operator TMX Group Inc., said the intervention by Justin Trudeau’s government risked harming the free flow of capital on which mining companies rely to explore and develop resources.
The TSX and TSX Venture Exchange are important for the mining industry, hosting more metal extraction groups than any other exchange in the world and 43 per cent of the world’s publicly listed mining groups with a combined market capitalization of US$558 billion.
At the time of the decision, Industry Minister François-Philippe Champagne said “the federal government is determined to work with Canadian businesses to attract foreign direct investments from partners that share our interests and values,”
While there has been no wider pullback by other Chinese investors, McPherson said he was disappointed that Ottawa had targeted companies with assets outside of North America. Ultra Lithium and Lithium Chile own mines in Latin America.
Power Metals Corp. has already managed to sell the stake held by Hong Kong-based Sinomine Resources Group Co. Ltd. to Winsome Resources Ltd., an Australian lithium exploration company, while Lithium Chile said it had received more than a dozen inquiries from companies and individuals about buying Chengze’s block of shares.
(20min delay)