Thought you folk's over on AJM would also like to further analyse the information contained in my post on SYA and as it will no doubt relate to AJM in the not to distant future in regards the BID for NAL ( North American Lithium ) . The second post ( attached below ) is to show the succinct similarities between the recent Sigma Lithium DFS and the ' Authier ' Lithium Deposit and how it may relate to NAL's operations considering the common ties through the engineering , processing , Quality , and Financing side of the proceedings.
For me it's a no brainer that they chose ' Primero ' . Just as it's equally interesting that their General Manager , Jacques Parent is actually French Canadian . What's even more interesting is the fact that they have already been heavily involved with Altura's Pilgangoora mine. Makes you wonder just how long this whole plan centered NAL , Sayona , and a Quebec Lithium Hub has been in the making. Remembering that most of the earlier announcements from Sayona had mentioned the possibilities of sending their Spod off to TWO other potential concentrator / processors in the Province ( being Nemaska or NAL ) . Then you have James Brown's visit to Sayona last Feb / Mar etc...etc.
So for me the the most poignant comments and indicators from the latest Announcements are these 4 with particular focus on the highlighted area's :-
“ Primero has shown at Altura’s Pilgangoora mine and other projects they have the engineering excellenceto ensure a successful operation, and that’s exactly what is needed at NAL,” Mr Lynch said.
" Welcoming the partnership with Sayona, Primero Group Americas General Manager, Jacques Parent said:“Primero is pleased to work with Sayona on the NAL project in Québec. "
" In addition to the design,construction and operation of multiple hard rock lithium projects in Australia, this NAL project isstrengthened by Primero Americas’ cold weather and local lithium experience. Primero looks forward todelivering a successful project together with the strong team Sayona has assembled.”
“ With the added advantage of combining lithium to be produced from our emerging Authier LithiumProject, Sayona has all the ingredients in place to deliver positive outcomes for the people of Québec,enhancing the government’s push to develop a complete lithium value chain in the province.”
So after reviewing these comments , it go me thinking of the time remaining for the BID to come together - particularly on the financial side of the ledger. All the while there was something nagging the back of my brain asking me repeatedly .....' what is the common denominator in terms of relationships and current business ties which will see this BID over the line ' It began with the comment by our Executive team over in Quebec who stated that they ran it by our Partners , and they said " if you go we will follow " So this prompted me to ask the question as to who is ' the PARTNERS ie who is the ' WE ' , and how are they in turn related to the whole package. So obviously there is Altura Mining . But there is more to this obvious tie-up than meets the eye.
In order to dissect it , you have to go back on some of the history of the off-takes surrounding NAL. These investigations would then reveal that originally before CATYL took over ( who has now gone to PLS for it's held up supply with NAL ) , There was Burwill Holdings who broke off an off-take arrangement with NAL and subsequently went immediately to the Bald Hill Project in W.A for a 5 year deal.
What's really interesting is that at exactly the same time as CATYL took over and bought NAL ( Mar 2018 ) , Burwill created a Joint Venture Company ( see attached Burwill deal below ) with none other than our very own 2017 MOU Partner China Minmetals !! This is of course the current ' Arms Length off-take arrangement which Altura still has in place.
02/12/2018
STRATEGIC AGREEMENT
BCL, a wholly-owned subsidiary of the Company( Burwill Holdings Limited ) , entered into a strategic agreement withHunan Changyuan, a subsidiary of China Minmetals, on 9 February 2018 to jointly develop the upstream and downstream of the new energy materials industry. The alliance will seek cooperation in the area of supply of lithium battery cathode materials etc..
The Board of Burwill Holdings Limited is pleased to announce that BCL, a wholly-owned subsidiary of the Company, entered into a strategic agreement with Hunan Changyuan on 9 February 2018 to jointly develop the upstream and downstream of the new energy materials industry.Particularly in the area of lithium batteries, 江西寶江鋰業有限公司, the Company's joint venture company, will provide Hunan Changyuan with stable lithium carbonate and lithium hydroxide products in the long run so as to meet the production expansion plan of its cathode materials and make it become one of the largest and most technologically advanced lithium battery cathode material manufacturers in PRC.
REASONS AND BENEFITS FOR THE COLLABORATION
As one of the ten priority industries in the "Made in China 2025" strategy implemented by the Chinese government, the new energy vehicle sector has become a catalyst for economic development and its effective supply of new energy materials will be key to ensuring the rapid growth of the industry. Following the Company's business transformation to enter the upstream lithium resources area in the previous year, the entering into the strategic agreement with relevant subsidiary under China Minmetals, which will fully coordinate and utilize China Minmetals' competitive advantage in the whole industry chain, not only strengthens the Company's integration of resources for both upstream and downstream of new energy materials, but also enhances the cooperation between China Minmetals and the Company.
INFORMATION OF THE COMPANY AND BCL
The Company is an investment holding company. The Company and its subsidiaries are principally engaged in international metal and lithium concentrate trading, processing and sales and mineral resources investment. BCL, a wholly-owned subsidiary of the Company, is principally engaged in lithium concentrate procurement, lithium carbonate processing and sales. BCL has exclusive selling rights to the lithium concentrate flowing from the Bald Hill Project in Western Australia for a five year term and pre-emptive rights to the same for subsequent five years and such Project is on track to commence lithium concentrate production in 1st Quarter, 2018; meanwhile BCL has cooperated with Jiangxi Jiangte Mining Development Co., Ltd. (江西江特矿业发展有限公司 ("Jiangte Mining") for the formation of a joint venture company, 江西寶江鋰業有限公司, which is held as to 50% by BCL and 50% by Jiangte Mining. Such joint venture company has already started to establish production lines with annual production scale of up to 10,000 tons of lithium carbonate and 5,000 tons of lithium hydroxide.
INFORMATION OF CHINA MINMETALS
China Minmetals Corporation is China's largest and the world's leading metal mineral conglomerate, ranking 120th in the world's top 500 enterprises. In 2017, it achieved a revenue of RMB500 billion and a total profit of RMB13 billion. It principally engaged in exploration and development, refining and processing, trading of metal and mineral products, as well as providing financial services, real estate construction, and mining and metallurgy technologies. China Minmetals ranked the world's top ten in copper and zinc production and reserves, and took the world's top place in tungsten, antimony and bismuth resources.
INFORMATION OF HUNAN CHANGYUAN
湖南長遠鋰科有限公司(Hunan Changyuan Lico Co. Ltd.), a wholly-owned subsidiary of China Minmetals, is a member of China Electric Vehicle Alliance. It principally engaged in research and production of highly efficient battery materials. Main products include lithium cobalt oxide, lithium manganese oxide and cathode materials of ternary composite lithium ion battery. The company currently has a production capacity of 16,000 tons of cathode materials per annum and plans to expand its total production capacity to 45,000 tons per annum by 2018.
So there you have it people - these are the connections with our MOU partner together with Burwill Holdings subsidiary coming complete circle back to NAL through Sayona Quebec and partners to potentially secure the ' off-take ' financial side of the current BID. The only question now is how much will they bring to the table in regards the BID - but my guess is somewhere in the vicinity of 50 - 75 million. Perhaps as high as $100 million if CATYL agrees to remain on in the ' status quo ' of it's current level of financial risk exposure to this project.
On top of of this information , there is also the similarities in the following recent DFS completed by Sigma Lithium as detailed in it's announcement on 1st October 2019 . Note some of the key common similarities as highlighted. Note also the similarities in size and most importantly ' Quality ' of the proposed project - Very very close to Authier deposit , and strongly supports the BID emphasis of the quality and processing point which has now been confirmed by the link to Altura - Sayona - Primero.
My conclusion would be that we will see a similar ' off-take ' structure with Minmentals as we see here with Sigma and Mitsui.
The resulting outcomes of all this should see the Sayona SP quickly re-rate to the critical 3 cent mark or slightly above given the recent ' Controlled Placement ' being calculated at the defacto 3 cent level with Acuity Capital. .......
08/11/19
09:38
Post #: 41313613