Lithium Acquisition Expands Company Portfolio in Quebec's Key Mining Region

Source: Streetwise Reports 12/17/2024

American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) announced its acquisition of the Xenia West and East lithium projects in Quebec. Read about the strategic addition to the company’s portfolio and the 92 mining claims it includes.

American Salars Lithium Inc. (USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN) announced its acquisition of the Xenia West and East lithium projects in Quebec. The move marks a strategic addition to the company’s portfolio. The projects, consisting of 92 mining claims and spanning approximately 5,382 hectares, are located 30 kilometers southeast of Val-d’Or, with direct access via the regional 117 highway.

The newly acquired properties are adjacent to projects held by Sayona Mining Limited and Brunswick Exploration, prominent players in Quebec’s lithium sector. This region, situated within the Pontiac Geological Subprovince and in proximity to the Réservoir Decelles Batholith, has recently emerged as a target for lithium exploration. Historically prospected for copper-nickel deposits, the presence of muscovite-pegmatites linked to lithium-bearing pegmatites in the area is considered highly prospective.

American Salars’ CEO, R. Nick Horsley, emphasized the strategic value of the acquisition in the news release, stating, “We are pleased to have added yet another highly prospective low-cost lithium pegmatite project to our growing portfolio of Quebec-based projects. The recent merger of Sayona and Piedmont and Rio Tinto’s acquisition of Arcadium demonstrate strong M&A appetite in the lithium space.”

Quebec’s growing importance as a lithium hub enhances the appeal of this acquisition. The province is set to house North America’s only fully integrated lithium supply chain outside of Asia, producing battery-grade lithium carbonate and hydroxide. Nearby operations, such as Sayona/Piedmont’s North American Lithium (NAL) project, are already producing spodumene concentrate, with additional smelters under construction.

The acquisition agreement involves American Salars acquiring a 100% interest in the Xenia West and East projects from Quartier Mineral Ltd. through the issuance of 50,000 common shares.

Government Support and Recycling Innovation Drive Lithium Industry Resilience

According to Fastmarkets on November 27, the lithium battery recycling market in Europe is undergoing expansion despite ongoing price pressures and market difficulties. Industry participants like SungEel HiTech and Huayou Cobalt are actively exploring capacity increases for black mass refining in Europe, aligning with proposed regulatory changes by the European Commission. Nils Steinbrecher, managing director of SK tes EMEA, remarked that while the lithium market is “in a dip,” there remains an expectation that it “will take off.”

Despite price volatility, long-term prospects for lithium remain robust as demand accelerates. Fastmarkets further noted that lithium carbonate prices averaged US$10.56–11.33 per kilogram in November 2024, reflecting a notable decline year-over-year. Chetan Jain, senior vice president of Lohum, emphasized the pressures facing margins, adding that feedstock costs have not decreased proportionally to commodity prices.

Battery recycling has emerged as a key trend to address sustainability concerns while improving supply chain resilience. Allied Analytics reported on November 28 that the lithium-ion battery recycling market is forecast to grow at a 36% compound annual growth rate (CAGR), reaching US$38.21 billion by 2030. This surge is fueled by the increasing adoption of EVs and renewable energy storage solutions, underscoring lithium’s continued role as a cornerstone of clean energy technologies. Asia-Pacific was highlighted as the fastest-growing region, with Europe maintaining a dominant share in recycling efforts.

In the United States, government-backed projects have played a significant role in advancing lithium exploration and production. In a November 30 report, Energy Capital highlighted President Donald Trump’s instrumental role in approving a major lithium resource on the Nevada-Oregon border in 2021. The site, described as the remnants of an ancient caldera, is estimated to hold between 20 and 120 megatons of lithium ore—significantly more than the current global reserves of approximately 80 megatons. The report indicated that federal support for lithium independence remains strong, with a recent US$2.6 billion loan from the Department of Energy further bolstering industry efforts.

Strategic Acquisition Positions American Salars in Quebec’s Growing Lithium Hub

American Salars’ expansion into the Quebec lithium market aligns with its broader strategy, as outlined in its investor presentation, to develop accessible, low-cost projects in lithium-rich regions. The Xenia projects’ proximity to Sayona Mining’s operations offers potential synergies, particularly given the area’s geological similarities and infrastructure advantages. The presence of muscovite-pegmatites, a key indicator of lithium-bearing deposits, positions the Xenia claims as promising targets for further exploration.

The company’s long-term focus remains on advancing its NI 43-101 lithium brine resources in Salta, Argentina. However, the Xenia acquisition underscores a tactical approach to building a diversified lithium portfolio across jurisdictions with robust downstream infrastructure. As Quebec continues to attract global investment in its lithium supply chain, American Salars’ presence in this strategic region could facilitate future partnerships or development milestones. [OWNERSHIP_CHART-11095]

Further exploration work and updates on the Xenia projects are anticipated as the company conducts due diligence and begins assessing the properties’ potential for resource expansion.

Ownership and Share Structure

American Salars said it has 28.8 million shares outstanding and 5.5 million warrants, according to the company.

As for insiders, the CEO Horsley owns about 1.83 million, or about 7.37%, with 4666,666 warrants. Strategic investor Hillcrest Merchant Partners owns 1 million shares or 4.03%. There are no institutional investors, and the rest is retail.

Its market cap is CA$2.01 million. It trades in a 52-week range of CA$0.45 and CA$0.06.

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Important Disclosures:

1. American Salars Lithium Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Salars Lithium Inc.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: USLI:CSE; USLIF:OTC; Z3P:FWB; A3E2NY:WKN, )

Source: https://www.streetwisereports.com/article/2024/12/17/lithium-acquisition-expands-company-portfolio-in-quebecs-key-mining-region.html