A copper spin out and a wealth of lithium extraction process experience empowers the green energy storage industry
As we are about to enter 2019 most informed investors now know that electric cars are inevitable. Bloomberg’s forecasts suggest 30 million new light duty electric vehicles (EVs) to be sold per annum by 2030 and 60 million per annum by 2040. The EV revolution is going to hit the car market even harder and faster than what many had thought. Lithium is perhaps the most important metal required for the lithium-ion batteries needed in this EV revolution.
Wealth Minerals Ltd. (TSXV: WML | OTCQX: WMLLF) is in the business of empowering the green energy storage industry and the fast growing EV market with its world class lithium projects in Chile. The company holds a lithium brine portfolio of over 75,000 hectares and is now transitioning from and asset acquirer to a developer.
Wealth Minerals-ENAMI Joint Venture
In 2018, Wealth Minerals hit several key milestones that have laid the groundwork for future value. Foremost is the strategic alliance with the fully state-owned National Mining Company of Chile (ENAMI). Under the current regulatory framework, a state partner is a key to achieving all the necessary requirements for a successful lithium mining operation in Chile. ENAMI has also partnered up with the state agency, the Chilean Nuclear Energy Commission (CCHEN), so as to add value to lithium projects in Chile. CCHEN is the government body responsible for granting lithium export quotas. The Wealth Minerals-ENAMI JV is to develop the Atacama and Laguna Verde projects with Wealth having 90% share and ENAMI 10% share.
Two new experienced experts have joined the Wealth Minerals team
The Company believe the Atacama Salar is the best place to be with the next producer there having a unique opportunity to set a precedent for the next generation of lithium projects, ideally using the latest extraction processes. Wealth is examining such technologies which promise to be highly efficient in term of recoveries and costs. Stefan Schauss who has decades of experience in battery technology has been invited to the board for this reason. Cesar Jil, previously Manager of Lithium Extraction Technologies at Albemarle Corporation, has been appointed General Manager for all of Wealth’s operations in Chile. Both appointments will bring a wealth of extraction process experience to the company.
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Wealth Mineral’s Executive Director, Chile, Marcelo Awad, commented: “The addition of Cesar Jil to the team is also a major event for Wealth, as he brings unrivaled knowledge on lithium recovery technologies, which plays an ever important role in how lithium projects are developed worldwide.”
Wealth Minerals copper spin-out
Earlier in December 2018, Wealth Minerals announced they had entered into two letters of intent with respect to the acquisition of interests in two Chilean copper projects. This will be held by a newly formed subsidiary of Wealth (“Wealth Copper”). Wealth intends to proceed with a restructuring transaction whereby it would spin-out Wealth Copper to shareholders of Wealth Minerals, with the intent of listing Wealth Copper on the TSX Venture Exchange. This is being undertaken to allow Wealth Minerals shareholders to benefit from Wealth Mineral’s exposure to Chilean mining deals and operational expertise. Wealth Minerals will continue to remain focused on its Chilean lithium assets.
Henk Van Alphen, Wealth’s CEO, said: “The copper spin-out opportunity has tremendous potential and allows management to provide Wealth shareholders with additional value. Furthermore, Wealth’s exposure to lithium is intimately tied to the success of battery technology, in which copper plays a key role.”
Henk Van Alphen Wealth CEO, summed up by saying “No one ever said building a major player in the lithium sector would be easy! The whole team is pulling to get results out and advance our projects, and the groundwork to do so has been firmly laid during 2018. I look forward with great enthusiasm to 2019, and in closing off 2018 I say to all happy holidays.”
Wealth Minerals currently offers investors large exposure to lithium in Chile, and as a bonus some copper assets to be spun-out. At a current market cap of just CAD $48 million the stock looks attractive.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>