Categories: General Market Commentary
Topics: General Market Commentary

Gaining that lithium Advantage

Gaining that lithium Advantage

Daniel Gleeson

Initially set up as a shell (named North South Petroleum) to steal a march on the oil and gas market by taking on former state-owned assets in Mexico, renamed TSX-V-listed Advantage Lithium now finds itself in one of the hottest places in lithium town, Nevada.

Having closed a transaction to earn up to 70% of three assets in the Clayton Valley and 50% of another two in the renowned basin – for payments totalling C$3.8 million (US$2.9 million) – this month, the company is joining a swathe of juniors taking advantage of the booming market.

As battery-grade lithium prices have surged in the past year – from around US$7,000 per tonne in mid-2015 to US$20,000/t more recently in China – the number of market entrants has accelerated. 

It appears every other junior listed in Toronto and Australia has lithium exposure, which they are all using to raise cash.

With a team that includes Dev Randhawa and Ross McElroy of Fission Uranium fame, start-up specialist David Sidoo and experienced geologist Doug Leishman, Advantage Lithium hopes it has the experience to stand out from this growing crowd.

Randhawa, who is taking on interim CEO duties at the company, has seen such booms before, having been involved in the uranium sector since 1996 during a period of pricing peaks and troughs.

He knows the only way to make investors take a company seriously during such a period is to carry out serious exploration – something he feels is missing from a lot of Advantage Lithium’s peers.

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