The publically listed chemical company's shareholders approved an investment in Metalstech. After being dicked around by another Chinese company this is what sets the investment in stone, when this deal was first announced priced rocketed to 40c it's still at 17.5c and nothing has changed. So firstly it's in a country of overly polite Canadians rather than warlords, corruption and poverty.
~8M market cap (figure from marketindex) with a 15-25Mt 1-2% Lithium Independent Resource targed at Cancet. Cancet land has been expanded massively many more prospective outcrops. Currently drilling is the nearby Adina which had up to 3.12% surface Lithium. JORC compliant Cancet drilling is in the next few months. Also there is Terre Des Montagnes, but the real kicker is the soon to be spun off/practically free carried Cobalt. Bay Lake/Rusty Lake has some RIDICULOUS high cobalt grades with bonus Nickel and Silver (read Announcements), and is spun off into a ~35% Metalstech owned iCobalt IPO with a silly low EV of 4.5 Million+4.5 Million starting cash. Apart from the free carry, Metalstech shareholders get priority for iCobalt, and you only need to own $3500 of MTC at current price to get guaranteed for 10,000 iCobalt shares. Given 2017 IPO listings have averaged 62% gains, best prepare for this to be oversubscribed af resulting in instant gains. Record date to get the priority offer is within the next few weeks and I believe this will be a pronounced peak. All these goodies, for ~8M market cap is quite ridiculous. To put this into perspective Tawana owns 50% of a 18.9Mt at 1.18% and is sitting at 220 Million MC. I believe once Metalstech fully defines its resources it can be a 30-50M MC very easily, and iCobalt taking off may add another bag on top of that. Clearly at this market cap with this many projects there isn't exactly a long way to fall if things go sideways, but a LOT of headroom.
You may be wondering why a chemicals company not a battery company is the strategic partner. You know how the giants KDR and ORE are partnering up for Lithium Hydroxide beneficiation? MTC is considering the same, with structure in place for additional buying up by Wuxi Baichuan. Have a look at the weak market depth and you'll see it really won't take much for this to move, top 20 holds 65% and the volumes have been very low, which is why the current low is so pronounced, at the recent prices only a few k got traded around.
As always consider your financial situation, this is not advice just my opinion.
If you liked this extremely basic summary please chuck me a thumbs up/great analysis vote and if I get 50+ I'll take the time to write out some of my real saucy geological, financial and economic analysis.
MTC Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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