As the United States ratchets-up its trade disputes against its allies, even going as far as taking its grievances over counter-tariffs to the World Trade Organization, North America’s lithium industry finds itself urgently needing outside help. Stockhouse has written in-depth on the surging lithium demand for batteries in the electric vehicle space as well as for phones and laptops. If all were to go smoothly, demand is expected to outweigh supply … but all isn’t going smoothly. The U.S. is battling over billions of dollars worth of trade with China, who happens to control half of the global production of lithium.
Canadian Company Belmont Resources Inc.(TSX: V.BEA, Forum) is offering an option to alleviate the strain on the industry while boosting its own business. The Company recently entered into a property option agreement with diversified Canadian resource business MGX Minerals, who has interests in advanced material and energy assets throughout North America. Under this joint venture, MGX will acquire an initial 25% interest in Belmont’s 100%-owned Kibby Basin, Nevada lithium property. In return, MGX will provide exploration funding of up to $300,000 for drilling and testing the first deep hole in the potential lithium brine deposit anomaly, indicated in the Spartan MT survey carried out in January 2018. Drilling is scheduled to start now.
In March 2018; the geophysical report was released and found a “significantly higher conductivity” than similar lithium exploration projects in the region. The report also stated that the conductivity appears greater the deeper it goes. MGX could obtain an additional 25% interest in the Kibby property if initial drill results are favorable, by funding up to $300,000 the drilling of a second deep test-hole into the anomaly.
Under the full option agreement, Belmont plans to explore the Kibby Basin further, including additional exploration drilling, well testing operations and installing an extraction plant. Through the JV, Belmont would have access to MGX’s rapid lithium extraction technology, which uses nano-filtration and a proprietary design process that concentrates lithium, magnesium and other minerals from a variety of brines, including oil and gas wastewater, natural brine and industrial plant wastewater.
In a news statement, Belmont CEO James Place stated that this agreement puts the Company on secure footing to fund the next stage of evaluation of the Kibby Property while giving a significant “leg up” on lithium production by partnering with one of the leaders in extraction technology.
Both companies could benefit and MGX is investing seriously into Belmont to advance its business and will acquire four million Belmont shares and four million warrants. MGX would own roughly 18 million shares of Belmont if it exercised all its warrants.
This JV unites two companies at the right time to capitalize on a demand for lithium that has become so crucial, it has been added to the USGS’ list of minerals deemed critical to U.S. national security and the economy.
BelmontResources.com
FULL DISCLOSURE: Belmont Resources Inc. is a paid client of Stockhouse Publishing.