Liberty One Lithium Corp

(LBY:CA)

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Liberty One Lithium Corp. is an emerging exploration company focused on the acquisition and development of high grade lithium brine deposits around the world.

  • Initial prospect located in Utah’s Paradox Basin
  • Located in a historic source of high grade lithium-bearing oilfield brines.
  • Historic resource indicates potential to produce large volumes of brine on-site.
  • Decrease in lithium grades and resources, plus tightening water restrictions at Nevada’s Clayton Valley is prompting juniors to look elsewhere in North America for lithium brine reserves.
  • Brine in Utah appears to meet commercial concentrations.
  • Exploration & production-friendly jurisdiction (permits potash and extensive uranium mining)
  • Previous oil & gas exploration offers historic data and attractive re-entry economics utilizing existing exploration wells.
  • No complex water issues. Numerous exploratory wells in-situ offer excellent re-entry options.
  • Exceptional climate for evaporation purposes, existing infrastructure and year-round access to road and rail.
  • 750 miles west of Tesla’s ‘gigafactory’ battery production facility.
  • Experienced management, solid business and financial leadership.

Liberty One believes that access to strategic lithium resources are the key to a robust national energy strategy to protect domestic economic stability.

Why Lithium?

The Company believes that global resources are the key to a robust energy strategy to protect economic stability worldwide.Lithium accounts for only about 5% of the materials in some car batteries, and for less than 10% of their cost. But the element is a vital component of batteries that power everything from cars to smartphones, laptops and power tools. With demand for such high-density energy storage set to surge as vehicles become greener and electricity becomes cleaner, Goldman Sachs recently called lithium “the new gasoline”.

That has made it the world’s hottest commodity. The price of battery grade 99%-pure lithium carbonate imported to China escalated from around US$7,000/tonne in mid-2015 to over well over US$20,000/tonne as recently as June, 2016.

The rise mostly reflected concerns about the future liquidity of China’s spot market. China gets much lithium from spodumene rock in Australia, an alternative to South American brine. Albermarle, an American miner, and Tianqi, its Chinese joint-venture partner, plan to use spodumene from a big Australian mine to process more battery-grade lithium carbonate and hydroxide. That will mean less ore available on the spot market in China.

The current industry is concentrated, which adds concerns. Last year Albermarle, the world’s biggest lithium producer, bought Rockwood, owner of Chile’s second-biggest lithium deposit. It and three other companies—SQM, FMC of America and Tianqi—account for most of the world supply of lithium salts, according to Citigroup. What is more, a big lithium-brine project in Argentina, run by a joint venture of Orocobre, an Australian miner, and Toyota, Japan’s largest carmaker, is behind schedule. Though the Earth contains plenty of lithium, extracting it can be costly and time-consuming, so higher prices may not automatically stimulate a surge in supply.

Demand is also on the upturn. At the moment, the main lithium-ion battery-makers are Samsung and LG of South Korea, Panasonic and Sony of Japan, and ATL of Hong Kong. But China also has many battery-makers. Its government is stepping up the promotion of lithium-ion batteries and electric vehicles, with the biggest emphasis on buses. Sales of “new energy” vehicles in China almost tripled in the first ten months of 2015 compared with the same period in 2014, to 171,000.

Additionally, Tesla Motors, is building its “Gigafactory” in Nevada, which it has stated it hopes to supply lithium-ion batteries for 500,000 cars a year within five years. J.B. Straubel, Tesla’s chief technical officer, says the firm wants to secure supplies of many battery materials, not just lithium. “There’s so much hype in the lithium market right now…people look at it as this magical element,” he says. Nonetheless, in August Bacanora, a Canadian firm, said it had signed a conditional agreement to supply Tesla with lithium hydroxide from a mine that it plans to develop in northern Mexico. Bacanora’s shares jumped on the news—though analysts noted that shipping fine white powder across the United States border would need careful handling.

Bigger carmakers also have a growing appetite for lithium. In a recent shift, Toyota has begun offering lithium-ion batteries instead of heavier nickel-metal hydride ones in its Prius hybrid. Tougher emissions standards in Europe and America are likely to boost carmakers’ need for lithium.

Another big source of demand may be for electricity storage. The holy grail of renewable electricity is batteries cheap and capacious enough to overcome the intermittency of solar and wind power—for example, to store enough power from solar panels to keep the lights on all night. Tesla recently announced it will start installing “Powerwall” battery packs in American and Australian homes to store solar energy, at a cost of $3,000. Enel, an Italian utility, is launching similar storage products this year in South Africa, where homes and businesses suffer frequent black-outs.

Power utilities will increasingly use giant battery packs, charging them at times of low demand and tapping them to provide short bursts of electricity at peak times, an alternative to building a fossil-fuel plant that will sit idle the rest of the time. AES Energy Storage, a big provider of energy storage, won a contract in 2014 to provide a “peaker plant” in Southern California that will provide up to 100 megawatts (MW) of power into the grid at moments of maximum demand. In December, the firm agreed to buy, over several years, enough lithium-ion batteries from LG to provide ten times this level of peak power—that is, 1 gigawatt, or more than the output of an entire, typical-size coal-fired power station. “We’re hybridising the power grid,” says John Zahurancik, its boss.

In summary, a number of market forces are at work that all link to lithium as an in-demand metal for the foreseeable future. Liberty One Lithium Corp. sees it as an opportunity to participate in the diversification and continued growth (and protection) of a robust global energy policy.

Liberty One aims to aid a strategic policy that assures access to lithium, for a better future for everyone.

With edited notes from “An increasingly precious metal” – The Economist, (2016)

Why Now?

According to data collected by Benchmark Mineral Intelligence, the price of lithium carbonate so far in 2016 is 47% higher than last year’s average.

A recent report from Goldman Sachs Group Inc. calls Lithium the” New Gasoline,” while another report by Goldman notes that lithium demand could triple by 2025 to 570,000 tons, driven principally by smartphone and electric-car applications.

Against the backdrop of year-over-year increase in demand for Lithium, principally fueled both by insatiable demand for handheld technology, as well as the growth in electric vehicles, the biggest game-changer in the nation is Tesla Motors massive battery factory in Nevada.

Goldman Sachs estimated that Gigafactory #1 could require the equivalent of 15,000 to 25,000 t of lithium carbonate annually at full capacity, which is ~17% of current lithium output globally. This massive lithium-ion battery-cell factory is projected to cost $5 billion, slated to be fully operational by 2017/2018. Additional lithium demand in Nevada may come from new endeavors such as the proposed electric vehicle startup company Faraday Future (“FF”), which announced a $1 billion investment into phase-1 of its “groundbreaking,” “state-of-the-art automotive production plant” in North Las Vegas. While recent news indicates Faraday’s plans are on hold, the fact remains that there is global potential for future growth in the sector (see graphic below), and America is ideally suited to address a growing national demand with a uniquely domestic resource.

Both Tesla and any future American competitor would currently have to import most of their required lithium compounds from Mexican, South American and/or Asian sources, a demand projected to be 15,000-25,000 t of lithium carbonate required annually by Tesla alone, starting next year.

“In August Bacanora, a Canadian firm, said it had signed a conditional agreement to supply Tesla with lithium hydroxide from a mine that it plans to develop in northern Mexico. Bacanora’s shares jumped on the news —though analysts noted that shipping fine white powder across the United States border would need careful handling.” (The Economist)

Several companies are working on the development of alternatives to conventional solar evaporation production processes which may offer improved options to improve production economics as new technologies become available.

Argentina

Liberty One Lithium’s prospect is located in the

Pocitos Salar in Los Andes Department, Western Salta Province, Argentina

and consists of over 39,000 acres in the middle of the lithium

triangle. Information currently available for the Pocitos basin, as

released by other lithium companies in the region, demonstrates that

this is an exploration target with a high probability to host high grade

lithium- bearing brines at depth.

Highlights

  • Near Enirgi’s Rincón project and their future Lithium plant designed to produce 50,000 tonnes of LCE.
  • The Project is located in the middle of all the current lithium Projects of the region
  • Mining friendly jurisdiction
  • Known geological district with important Li & K grades
  • The distance from Salta Capital is only 160 Km, accessible by National and Provincial roads.
  • Near Pocitos town (Access to labour)
  • Near an international pass to Chile
  • The Project has access to high quality regional and site infrastructure facilitating project development, with road, rail, port facilities and power generation services such as electrical and natural gas.

The Pocitos Salar is located in Los Andes Department, in Western Salta Province, directly in the middle of the well known lithium triangle. The Liberty One Lithium project area is located in the western portion of the salar and can be accessed via national Route N 51 passing by way of San Antonio de los Cobres and continuing to Provincial Route Nº 27 which crosses the project area.

The claim area covers a total area of 15,857 Ha (approx.39,000 acres) along the western portion mid-basin.

The Project area comprises these claims: Pocitos 200 File Nº 20166, Pocitos 201 File.Nº 20167, Pocitos 202 File. Nº 20168, Pocitos 203 File Nº 20169, Pocitos 204 File Nº 20170, Pocitos 205 File Nº 20171, Pocitos 206 File. Nº 20172, Pocitos 207 File. Nº 20173, Pocitos 208 File Nº 20174, Pocitos 209 File Nº 20175 y Pocitos 211 File Nº 20177.

History

Directly east of the Liberty One Lithium Property within a contiguous alluvial region, DGFM Argentina conducted a 12-drill hole study (est. at 20 meters depth) in 1979. Typically, studies at this time were carried out at, or near surface, as there was no knowledge of how deep the salars are, information that is more commonly understood today.

A 2010 program* indicated brine assays ranging from 100 to 300 ppm within two northerly trending zones of lithium and potassium concentrations (“Anomalies”). The West Anomaly shows lithium ranging from 100ppm to 200ppm and has a Mg:Li ratio of 10.

This anomaly is up to 6 kilometers (3.6 miles) long and 2 kilometers (1.2 miles) wide, and as with the East Anomaly, the full areal extent of the West Anomaly is unknown. These anomalies have a direct correlation with geophysical Brine Targets 2 and 3 respectively.

The Company is focused on the coincident relationship between the lithium-potassium anomalies and the geophysical target zone aquifers in confirming the Pocitos Property has significant brine resource potential.

Conclusions

The Company is not treating historical estimates as current mineral resources or reserves. The Company has not undertaken any independent investigation of the drill results or resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources. The Company believes that these historical results and estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration.

Summary

  • Liberty One holds 39,000 acres in the Pocitos salar in a region of significant exploration and production.
  • Only the surface of Pocitos salar has been sampled, by DGFM in 1979 and by Li3 Energy Inc, in 2010.
  • Both companies identified lithium anomalies close the surface of the salar.
  • The geophysics carried out for Li3 Energy, Inc. confirms that the salar extends beneath the alluvial fan from the West trending towards Liberty One property.
  • The basin is at least 500 meters deep.
  • Pocitos salar is an exploration target with high potential to host lithium–bearing brine at depth.
  • The property holds potential as a major lithium resource able to meet growing global demand.

Comparables

Click to enlarge

Utah

The geology and controls of mineralization in the immediate area of the Liberty One Lithium property are reasonably well known as a result of mapping and extensive oil and gas drilling. The presence of the adjacent Cane Creek mine which has been producing potash for 45 years uses a similar process as envisioned for mining lithium at Liberty One indicates that this form of production should be feasible. The recovery of lithium and other products from the supersaturated brines should also be feasible since globally, similar brines are the primary source of the world’s lithium.

While not yet sufficiently well-defined for mining purposes, the lithium resource appear to be extensive, based on historic oil and gas well data, and on brine studies from the 1960’s.

Available data, indicates clearly that mineralization exists and represents a substantial resource as shown by the drilling, sampling and geologic modeling done by prior operators on the property. Historic resource estimates are not currently NI 43-101 compliant, but the Company aims to work towards compliance by additional drilling and examination of additional data by a “Qualified Person.”

As a result of a review of current prices and near-term market projections for the anticipated products, particularly lithium, as well as advances in recovery technology beyond the basic methods used at the adjacent Cane Creek potash mine, it is the Company’s opinion that this property has a reasonable likelihood of being profitably exploited.

The available data from the area of the Liberty One Lithium property is a strong indication of the potential for it to become a producer of lithium and other products. In order to confirm those indications, additional work will be necessary.

Management

Bradley Hoeppner, President & Director

Mr. Hoeppner has participated in a variety of roles within the public markets sector and with a number of publicly listed companies for over 10 years. During this time, he has been instrumental in the successful closing of more than 100 million dollars of public company financing’s. Bradley has played a key role in re-structuring public companies and has been a director of King’s Bay Gold Corp., a TSX-V listed company focused on the exploration of cobalt and other specialty and rare minerals in eastern Canada, principally slated for commercial activities within the burgeoning technology sector (February 2016 to present). Bradley is also a director of Berkwood Resources Corp., a TSX-V listed company involved in the exploration for graphite in Quebec. Previously, he enjoyed a period of service with a Member of Canada’s Parliament, and a turn spent successfully speculating in the real estate market.


Morgan Tincher, Interim CFO & Director

Mr. Tincher brings +20 years of corporate finance experience and +12 years of finance advisory expertise in the technology, entertainment and natural resources sectors with a focus on public and private financing, corporate governance, merger structure, acquisitions and IPOs. Mr. Tincher’s responsibilities include all financial operations management, stakeholder engagement, compliance and regulatory matters. Prior to Liberty One Lithium Corp., he served as CEO, President and Director of Oculus Ventures Corporation (2012 to 2014) through reverse merger acquisition and capitalization ($20MM) of Toronto based Slyce Inc. (now Pounce Technologies Inc.). During the same period, Mr. Tincher assisted in the capitalization ($10MM) of Trace Intelligent Systems of Venice, CA, which led to the acquisition of Draganfly Innovations Inc. Mr. Tincher served (2007-2011) as VP Finance at Probe Resources Ltd. (now Rooster Energy Ltd.) assisting in raising >$50MM in capital via both debt and equity offerings. Mr. Tincher also served as a Director of Inform Resources Corp. (September 2013 to October 2015) and currently serves on the boards of two privately held companies.


Patrick Whibley, Director

Mr. Whibley is a finance professional with over 17 years of capital market experience. Prior to joining Liberty One Lithium, Mr. Whibley served extensively as an Investment Advisor with PI Financial and Global Securities in Vancouver. He has assisted in raising a significant amount of capital for venture companies, many in the go-public stage. Mr. Whibley has built his career by cultivating strong relationships and networks with both retail and high-net worth clients, brokers, analysts and investment bankers.


Kyle Stevenson, Director

Mr. Stevenson is currently the President and a Director at Millennial Lithium Corp. (TSX.V: ML) (FRA: A3N2) (OTCQB: MLNLF) and brings over 15 years of experience in finance, marketing and operations to the team at Liberty One. Kyle has filled several high-profile roles over the years, including; President/Director of RuralCom Networks, a licensed Canadian Telecom provider acquired by Investel Capital in 2016, Founder/Director of Liquid Media Group, Director of Waterproof Studios, a top tier animation and visual effect studio, and Founder/President/Director of High North Resources, an oil and gas producer focused on western Canada.


Additional Information


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Liberty One Lithium Corp

Profile

Liberty One Lithium Corp. is an emerging exploration company focused on the acquisition and development of high grade lithium brine deposits destined for use by global business interests. The Company believes that strategic resource access is the key to a robust energy strategy to protect economic stability worldwide.

Contact Information

Website: www.libertyonelithium.com
Email: info@l1lithium.com
Main Phone: +1 604 343-4547
Address: 1920 - 1177 W Hastings Street
State: BC
City / Town: Vancouver
Country: CAN
Postal Code: V6E 2K3

Issuer Information

Exchange: CDX
CEO: Bradley Hoeppner
Issuer Type: CS - Common Stock
Sector/Industry: Basic Materials
NAICS: All Other Metal
$ 0.67 $ 0.03 (4.69%)
Last Price 0.67 Change $ 0.03 Change % 4.69 Tick N/A
Bid 0.67 Bid Size 20,000.00 Ask 0.67 Ask Size 16,000.00
Open N/A High N/A Low N/A Prev Close 0.64
Last Trade Volume 438,858 52 Wk Hi 0.70 52 Wk Low 0.025
Market Cap 29.9 mi Ex-Div Date N/A Div Rate N/A Yield N/A
Shares 44,664,800.00 EPS (TTM) 0.00 PE Ratio N/A Exchange TSXV