Update: The pilot plant is expected to be operational end of June 2024 (Source: LithiumBank).
Reminder: 3,000,000 Common Shares will be issued to Go2Lithium after the plant has processed lithium brine for at least 100 hours of continuous operation in the province of Alberta, which is called the “First Milestone”. The business model of Lithium Bank is not to become a Lithium producer, but to sell its assets to project developers.
Outlook: According to my information the Boardwalk project and the Park Place project will have a "feasibility and permit ready status" by the end of 2024. The value of theses projects is difficult to calculate imo, but the following might give an idea: LithiumBank recently sold the Estevan project: 90,883 acres at $165/acre for CAD $15 million. The Boardwalk and the Park Place projects, which will be far more advanced by end of 2024, have a size of 405,585 acres + 1,405,376 acres = 1,810,961 acres. If they can be sold for the same price per acre, then the combined value is approx. 300,000,000 CAD. I reckon that CNQ will indirectly hold 3,500,000 LithiumBank shares by end of 2024. If the assumptions are correct, these shares will have a massive impact on the valuation of CNQ. Fingers crossed.
CNQ Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
