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Critical Elements Lithium Corp V.CRE

Alternate Symbol(s):  CRECF

Critical Elements Lithium Corp is a Canada-based mining exploration company. The Company is engaged in the acquisition, exploration, development and processing of critical minerals mining properties in Canada. Its projects include Rose Lithium-Tantalum, Rose North, Rose South, Arques, Bourier, Dumulon, Duval, Nisk, Lemare, Caumont, and Valiquette. The Rose Lithium-Tantalum property consists of over 473 claims covering a total area of over 246.55 square kilometers (km2). It lies in the northeastern part of Superior Province, within the Eastmain greenstone belt. The Rose North property consists of about 31 claims covering a total area of over 16.14 km2. The Arques Property is composed of one block totaling around 136 claims covering an area of 6,840.93 hectares (ha) over 18 kilometers (kms) in length in a Southwest-Northeast direction. The Bourier Property is comprised of over 304 claims with an area of 15,616.47 ha for over 30 kms. The Rose South property consists of over 280 claims.


TSXV:CRE - Post by User

Comment by illusion81on Aug 16, 2024 10:11am
357 Views
Post# 36182410

RE:RE:No guarantees as to the timing....

RE:RE:No guarantees as to the timing....I spoke with JSL the other week.  The financing package is literally the last thing holding them back at the moment to put shovels in the ground.  Everything else is in advanced enough stages to get the work started.  I believe its 20 months to production once the first shovels hit the ground, so they will still be within their projected timeline even if the first shovel doesn't hit the ground until later this year.  My gut feeling is that the partner side of the deal is already locked down (equity), but the financing part (debt) is what's tricky in the current environment.  The Banks want certainty that they will get their investment back and certainty just isn't a thing in the Li market at the moment, one can argue it never was given the crazy price swings over just the last 5 years alone.  The Li story is still in its infancy, especially in the West, as China had a big head start and is not shy about doing anything in its power to keep the prices down for as long as they can.  Lepidolite crashed the first upswing, but that will only work for China for a matter of time before the next upswing hits.  The only reason they are able to keep this going at the moment is due to their vertically integrated model.  They will take a loss at the producer and converter stages to make it up later up the chain.  This is not sustainable, but something that the OEMs in the West need to learn from.  That's why the smart OEMs in the West that have been paying attention have been signing deals.  This is the time to get the deals in place and not when Li starts its run up again.  And this is why they look at future forecasted pricing vs. current spot price as the OEMs need their producers and converters in the West to survive if they want batteries for their vehicles.  Also, it is important to consider that the West is all about ethically sourced products etc.  If you're driving an EV that has a battery in it that used Lepidolite for its Li content, then you are more than likely driving a vehicle that a child in Africa had to risk their life for to help create.  Not even considering the environmental impacts.  All you need is the West to sanction these unethically sourced materials and your only option is to source materials from producers that have the appropriate permits, tools, and processes in place.  China has gotten away with this for now, but I feel that it is only a matter of time before it comes crashing down.  CRE is not sitting around waiting for better times, but they will also not sign a bad deal either.  This is something that we as investors need to appreciate as announcing a bad deal earlier in the year would have had the same effect on the share price.  They are cashed up until end of 2025 an there is absolutely no need to go out to the market to keep the lights on and continue to push forward on securing the financing and all the other things that are required to get this operation off the ground.  This is something that many juniors cannot claim in this market and will be shutting their doors, potentially for good.  

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