Lithium X bulks up for lithium boom

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Good morning from Cartagena, my favorite city.

I’m with about 20 friends for a week off including Brian Paes-Braga and Frank Giustra, Lithium X Energy Corp’s co-founders.

The last time this group went on a trip together — Summer 2015 — Brian told me about his ambition in the lithium business.

He had a good lead on a starter asset in Nevada’s Clayton Valley, home to North America’s only lithium producer and a plan to consolidate the lithium space ahead of a huge potential clean energy trend: growth in lithium-ion batteries.

There were some doubters with us but I was not among them. Brian had a talent for building relationships, more energy than his peers, and a positive outlook. With Frank's support, I thought he could make things happen.

Here’s a look at the LIX timeline since:

  • October 2015 – Paul Matysek, one of Canada’s most successful mining entrepreneurs, joins as Executive Chairman
  • November 30, 2015 – Lithium X launches on the TSXV after closing a $1.754 million financing at 15 cents
  • December 29, 2015 – Another $3.2475 million raised at 30 cents
  • February 16, 2016 – Acquires a second Clayton Valley asset and becomes the largest land holder in the Basin
  • March 3, 2016 – Acquires up to 80% of Sal De Los Angeles in Argentina, one of the world’s ten largest known lithium salars in another all stock deal. It’s the new cornerstone asset for the company and more on that in a minute.
  • March 11, 2016 – announced $7.65 million financing at $1.02 per share

Sal De Los Angeles has the potential to be a large-scale and long-life lithium producer. It showed strong economics in a historical (2011) PEA at $5000 per ton lithium carbonate pricing. Prices have doubled to quadrupled since depending on who you ask. LIX expects to publish a new PEA in the next few months and complete a Feasibility Study mid-2017 contemplating production scenarios.

Management aren’t finished acquiring assets and building the team, according to a new interview. They will also continuing being proactive in telling the story to potential investors.

An hour after we land in Vancouver from Colombia on Friday, Brian and Paul fly to Australia, where the lithium boom is raging, for a roadshow through Perth, Sydney and Melbourne.

In Nevada, LIX expects to commence drilling and prove up an initial resource this year.

If you are one of the 15 cent Lithium X placees, your stock comes free trading on March 27 and congratulations. That’s why we’re in this business and probably why you’re reading CEO.CA.

It’s logical to expect some profit taking and I am totally biased — but I don’t see LIX stalling. Management are executing too well and the space is too promising — at least for me — to sell out at a ~$55 million market cap. That’s why I’m adding to my position.

Read: How Good Management Creates Value, by @KeithSchaefer

Make it a great day.