MAX Power is Powering The Way Dear Investor, The savvy Sassy team is certainly charged up, having just entered into a Binding Letter of Intent (LOI) to option its Nicobat Property in Northwest Ontario to privately held MAX Power Mining Corporation (MAX Power). This deal would make Sassy the largest shareholder in this new battery metals-focused company which plans to list for public trading on a Canadian exchange in the coming months.
But before we highlight the favourable details in today's Sassy Report, let's first take a look at the pent-up demand for nickel in the battery metals market. Looking back at 2020, COVID-19 precautionary measures globally brought pressure to nickel consumption and nickel has historically been a one-trick pony with major consumption being in the fabrication of stainless steel, and small appliances (e.g., cell-phones) nickel-cadmium (NiCd) batteries and rechargeable nickel-metal hydride (NiMh) batteries. However, the one-trick pony is now a two-trick pony and the driving force for future nickel demand are the batteries for electric vehicles.
Wood Mackenzie principal analyst for transportation and mobility, Ram Chandrasekaran predicts that worldwide electric vehicle sales will be close to 4 million (up 74% from 2020) this year due to the stimulus programs in many countries including EV support in plans to offset the economic impact of the pandemic. (Mining – E. Davies, 01/07/21). Although the total numbers of EVs forecast for sales in the coming year are relatively small compared to petrol-based motor vehicles, the trend for electrification is obvious and with government-mandated policies to reduce GHGs, the road ahead is mapped out to be carbon-free. Also, taking into account the need to rebuild infrastructure and continued growth in the emerging markets, the demand for nickel in fabricating alloys, steel production, and power generation facilities will rise commensurately with this growth.
Now let’s take a U-turn and take a look at a few of the highlights in the LOI where MAX Power can earn a 100% interest in Nicobat by incurring $1 million in exploration expenditures on the property over a 4-year period while also issuing five (5) million shares in the company to Sassy upon obtaining a listing on a Canadian exchange with the Nicobat as a qualifying property. These shares will be released to Sassy in stages over a three-year period while Sassy will also be granted one million warrants, exercisable at 25 cents, to purchase an additional one million shares in MAX Power within 36 months.
Mark Scott, CEO, quite accurately clarifies management’s position: “This deal allows Sassy to focus operationally and financially on its flagship Foremore Project in the Eskay Camp, in particular the Westmore discovery, and its growing Newfoundland project through wholly-owned subsidiary Gander Gold. Sassy’s significant share position in MAX Power gives our shareholders the opportunity to benefit substantially from the expected growth and success of this new battery metals company.”
But MAX Power is not the only reason to be charged up about Sassy’s path forward. Jumping from the Nicobat in Ontario to Newfoundland and onto the Gander North property, we find that the Sassy Resources team is pleased, in fact, ecstatic to announce that it has received drilling permit approval from the province to undertake an exploration program including diamond drilling on the recently optioned Gander North group of claims. Plans are for approximately eight drill holes to be completed during a Phase 1 reconnaissance program to commence this spring as soon as conditions allow.
Now, whether or not you drive an electric vehicle, it’s important that you keep plugged into Sassy across our social media channels and more so with an eye on the expected release of an update on Sassy’s 100%-owned flagship Foremore Project in the Eskay Camp during the second half of March, including final 2020 drill results from the Westmore gold-silver discovery.
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