Plateau Energy responds to $600 million funding talks

The Falchani property in Peru. Credit: Plateau Energy Metals

Plateau Energy Metals (TSXV: PLU) issued a statement on Monday to confirm that the company is aware of the news circulating around regarding a significant project funding in Peru, though it says there is “no material information” to be released at the moment.

Earlier in the day, Reuters reported that the Canadian-based junior miner has raised nearly $600 million to develop Peru’s sole lithium project and expects to start mining in 2023, a year later than planned due to the covid-19 pandemic.

According to reports, European mutual funds have provided $597 million to help the company develop its Falchani deposit in the Puno region near the border with Bolivia. Plateau will provide the rest of the total $844 million.

It was also reported that work on an environmental impact study would start this month, with the company looking to seek official approval for construction permits in 2022.

For the first three years, production of lithium carbonate from the project is expected to be about 25,000 tonnes annually, gradually rising to 80,000 tonnes by the sixth year, according to a Reuters interview with a company official.

The official also mentioned that “a series of foreign companies” had approached the company about partnering in the development of Falchani, but it did not plan to surrender control.

Plateau Energy Metals’ stock jumped 4.5% by noon EST on the TSX Venture Exchange. The lithium and uranium explorer has a market capitalization of C$24.6 million.

(With files from Reuters)

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