I saw this tweet and associated announcement the other day and it's been on my mind.
NAL or otherwise known in the lithium community by the name of its mining asset Val-D'oR is a mine that has failed 3 times.
It hasn't been a good run and I couldn't see how a company with a market cap of ~$18 million and a share price of 0.01c was going to make it happen. It seems unrealistic and perhaps it is more likely that Sayona is riding the coat tails of the carve up for publicity.
Looking around Canada it doesn't look that great for the lithium industry.
And with NAL their current financial status looks like this:
"The main creditors of North American Lithium are Investissement Québec ($ 100 million), the Chinese company CATL ($ 50 million) and the Ministry of Energy and Natural Resources ($ 23 million).
The company also owes $ 24.4 million to many suppliers, including several from Abitibi-Témiscamingue, according to the list published by the controller, Raymond Chabot.
The main creditors in the region are GG Mining Contractors ($ 10.8 million), which carried out mining operations, Galarneau General Contractor ($ 989,810) and Galarneau Crushing ($ 884,714), all of which have the same address in Rouyn- Noranda, as well as Moreau Industries ($ 932,023) and Moreau Électrique ($ 360,760), also from Rouyn-Noranda.
North American Lithium also owes $ 491,624 to ABF Mines of Val-d'Or, 424,249 to Excavation DG of Barraute and $ 293,072 to the Municipality of La Corne."
"To date, our mining plan still provides a life of 13 years, but our deposit contains many resources that have not yet been converted into economically exploitable reserves," said Yves Desrosiers.
From my perspective looking at Galaxy got Mt Cattlin (a challenging asset on its own) back up and running, producing excellent product that has customers maintaining shipments with I think it's 60,000 tonnes for this quarter alone.
Challenge is Galaxy's middle name.
But of course I am not going to sell you on the idea of bidding for the mine.
Further research into the assets of NAL have revealed a 23,000 tonne converter.
We could get the mine up and running then bring the converter online whilst we build James Bay. Perhaps CATL would be happy to come onboard for an offtake, surely that was their reason for investing $50 million.
Of course as you all know I love a bit of speculation w with the odd conspiracy, but thinking about this it has to the conclusion that perhaps Galaxy should place a bid, think about it they seem like the most logical group to get Canada producing lithium.
I am sure Investissement Québec would want to see experience too.
