Despite dominating the lithium landscape and controlling the world’s biggest lithium deposits,1 China is encountering BIG challenges as it seeks to snap up more lithium supplies for the future.2,3,4
Seeing China’s struggles, the world’s No. 2 lithium producer, SQM, stated it expects lithium prices to stay high into 2023.5
Now everyone’s racing to reduce global reliance on China’s lithium,6 greenlighting ambitious new operations including:
- Sibanye-Stillwater’s US$619 million lithium mine and refinery in Finland;7
- Imerys’ US$1.05 billion lithium mine in France;8
- Sigma Lithium’s US$123.1 million (Phase 1) lithium mine in Brazil.9
This is why astute investors should keep a careful eye on Noram10 Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF), whose high-grade Zeus Lithium Project is located next door to the only lithium producer in the United States in Nevada, where a Preliminary Economic Assessment (PEA) was completed in 2021, and is now moving toward the completion of a Pre-Feasibility Study.
The global frenzy to secure and control battery metals has cornered the US Government into action, earmarking US$675 million to expand domestic critical materials supply chains,11 and another US$12 million to help shore up a domestic supply of battery-grade lithium.12
With a promising project that’s hitting all the necessary milestones so far, it’s worth taking the time for a deeper look at Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) and its Zeus Lithium Project, and why it is positioned to make an impact in the race to secure domestic lithium.
7 Reasons
Investors Should Strongly Consider Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF)
1
Optimal Timing Within Global Lithium Scramble: With the lithium market predicted to remain in structural shortage until 2025,13 and shocking acute lithium shortages forecast by 203514 Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is strategically positioned with great timing ahead of the perfect storm for an emerging ‘Lithium Supercycle’.15
2
Top Ranked Mining Jurisdiction: Nevada is consistently ranked among the top mining jurisdictions in the world, recently being ranked #1 by the Fraser Institute in 2020, and #3 in 2021.16 By setting up in a globally-recognized mining jurisdiction, Noram Lithium is incredibly well-positioned ahead of the current ‘Lithium Supercycle’. The Zeus project is located next to a paved highway, with power lines running through the middle of its project, and adjacent to the ONLY currently producing lithium operation in the USA.
3
ROBUST PEA (After-Tax) in Place for ZEUS Lithium Project: Through the Zeus Project, Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) has set up a shallow, low-cost sedimentary extraction operation that takes advantage of minimal crushing/grinding requirements, a low stripping ratio, that can scale to support long mine life. The PEA has highlights an after-tax NPV(8%) US$2.67B, an IRR of 52%, a CAPEX of US$528M, and over a 40-year life of mine (LOM). This calculation uses a modeled lithium carbonate equivalent (LCE) of US$14,250/tonne, well below the long term forecasted price.
4
Solid 43-101 Resource (LCE) in Place: 1.8 MT Measured & Indicated with 3.9 MT Inferred. Noram Lithium completed a very successful drill program in 2022, which based on the announced results, should significantly increase the Measured & Indicated tonnage in the planned mineral resource update. For reference the entire country of Canada has an estimated 2.9 million tonnes of lithium resources (measured & indicated inclusive of reserves).17
5
Well Funded: With ~$15.3 million (as at October 31, 2022), Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is well-funded with no debt, and a low burn rate. The company is advancing towards the pre-feasibility stage and its 6th Resource Model update pending. The company is well funded to advance towards a Feasibility Study, which is the single most important study in the industry for any company, with no additional dilution anticipated until ~2024.
6
Favorable Share Structure and Stakeholder Make-Up: Among the shareholder make-up of the company’s outstanding shares, ~12% of issued shares are held by Management, and ~16% strategic investment put in place in Q1 2022. As it stands, the company has less than 90 million shares issued, with significant re-rate upside as it pushes to complete two of its biggest catalysts.
7
EXPERT Leadership Team:Set to steer Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) through the waters ahead towards its goals is a highly-capable team that includes resource industry experts, with international mining experience in engineering, geology, and capital markets.
Global Scramble for Lithium Assets Firmly Underway, Amid Increasing Demand
If the USA wants to achieve its ambitious climate goals, it’s going to need all hands on deck. The White House has committed to deploying $3 billion to boost domestic production of EV batteries and the minerals that make them.18
Tesla announced plans in October to build a lithium refinery on Texas’ Gulf Coast to help supply his company’s Gigafactory in Nevada.19
But the USA isn’t alone in working to ramp up its capabilities. Since 2010, lithium consumption has quadrupled.20
Situated in the same state as both the Tesla Gigafactory and the only lithium mine currently producing in the USA, Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) and its Zeus Lithium Project are in the eye of the storm. With its PEA in place, and an all-important Pre-Feasibility Study21 on the horizon, Noram’s future looks very bright indeed. No better time to take a look at this developing story as they push aggressively to their potentially biggest year in their corporate history.
We’re truly living through a lithium seller’s market, with no end in sight, as lithium buyers are putting their pieces on the chess board. For example, Amara Raja Batteries’ plans to invest US$1.15 billion for a lithium-ion battery Gigafactory in India,22 and China’s CATL—the world’s largest lithium-ion battery supplier—in talks to establish a manufacturing hub in North America.23
Benchmark Intelligence has sounded the alarm, stating the lithium sector needs US$42 billion—invested annually at US$7 billion over 6 years—by the end of the decade in order to meet battery-making materials demand.24
Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is Adjacent to the Only Lithium Producer in the USA
In the United States in early 2021, the then-Trump administration approved plans for a $1 billion open-pit mine at Nevada’s Thacker Pass. The project is expected to receive all final permits in early 2023 and be well into construction soon after in Nevada.
Right now, the USA’s only producing mine is the Silver Peak mine, owned and operated by Albemarle.
Within Albemarle’s latest Q3 2022 financials, the company stated that new wells and expansion projects at Silver Peak continue to progress ahead of schedule, where the mine is expected to double production in the very near future from 6,000 tonnes per year of LCE to 12,000 tonnes. Of note, Noram Lithium’s Zeus project highlights close to 32,000 tonnes per year when it gets into production with a mine life of 40 years.25
Noram Lithium Corp.’s (TSXV:NRM) (OTCQB:NRVTF) Zeus Lithium Project claims are located within just 1-mile of Albemarle’s lithium brine operations.26 Noram’s land position in Clayton Valley, Nevada, consists of 146 placer claims and 136 lode claims, covering 1,133 hectares (2,800 acres).
Press Releases
- Noram Lithium Engages SRK Consulting to Optimize Zeus Mine Plan
- Noram Lithium Strengthens Technical Team
- Noram Lithium Appoints New Chief Executive Officer to Lead Next Stages of Development of Zeus
- Noram Highlights Milestones During 2022
- Noram Announces Strategic Addition To The Advisory Board; Pre-Feasibility Study In Final Stages
Between Albemarle’s operations and Noram Lithium’s (TSXV:NRM) (OTCQB:NRVTF) land position lies a property comparable in size to the Zeus Property, that’s held by Cypress Development.
In February 2022, Cypress commenced its own Feasibility Study on its Clayton Valley Lithium Project, engaging Wood Plc as its independent lead author,27 and later engaging Thyssenkrupp Nucera for design and engineering of its Chlor-Alkali Plant also as part of the Feasibility Study.28
Given its favorable positioning, Noram Lithium is gearing up for its own Feasibility Study, working towards increasing its Resource along the way.
Taking into consideration Noram Lithium’s (TSXV:NRM) (OTCQB:NRVTF) optimal location of the Zeus Lithium Project, and the respectable resource already estimated so far, it’s worth looking at the sector and potential comparables also operating in the United States.
When you look at Noram Lithium’s (TSXV:NRM) (OTCQB:NRVTF) stock price performance over the last six months compared to some of its peers, it’s evident that this company can weather market storms. And at a price of $0.52 as of December 13, the stock is trading at a discount compared to its neighbors.
Onward March To Feasibility:
The Industry’s Single Most Important Study
As mentioned above, neighboring Noram Lithium Corp.’s (TSXV:NRM) (OTCQB:NRVTF) Zeus Lithium Project is Cypress Development’s Clayton Lithium Project which has a Feasibility Study underway.
Because Feasibility Studies are crucial along the journey towards building an operating mine, it’s worth looking at how serious Noram is about reaching that stage in the near term.
Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) already has a Preliminary Economic Assessment (PEA) in place, which was so significant that the company immediately commenced engineering and resource modeling to push to a PFS and a subsequent Definitive Feasibility (FS) study.
According to the robust PEA, Noram Lithium’s Zeus Lithium Project (After-Tax) has a US$2.67 Billion NPV (8%), 52% IRR, CAPEX of US$528 Million, for a 40-year Life of Mine (LOM).
This is based off of the 43-101 Resource (LCE) in place of 1.8 MT Measured & Indicated, and 3.9 MT Inferred.32
Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) completed its Phase VI exploration program consisting of 12 holes on time and within budget in the summer of 2022. The program focused on upgrading the existing inferred resources into the measured and indicated categories to be utilized in the company’s upcoming Pre-Feasibility Study (PFS).33,34
ALL of the drill holes from the program intersected high grade lithium over significant lengths, and upon completion in the upcoming weeks, Noram anticipates a robust 6th resource model that may align the company with its peers regarding contained M&I resources of lithium carbonate equivalent (LCE).
Well-Funded for Upcoming Milestones To 2024
Thanks to closing a US$14 million strategic financing in Q1 2022, at a premium to market, with no warrant and no finder’s fee or commission, Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is well-financed through 2023.
Solid Share Structure with Key Strategic Investors
Much of the credit for Noram Lithium Corp.’s (TSXV:NRM) (OTCQB:NRVTF) current financial situation goes to Waratah Capital Advisors who led the strategic investment in Q1 2022 at C$0.825 per share at a premium to the market with no attached warrant, which highlights the significant nature of Noram’s Zeus Lithium Project and its robust economics.
Between Lithium Royalty Corp. and Waratah Capital Advisors, approximately 16% of Noram’s issued shares were acquired, with the former purchasing a 1% Gross Overriding Royalty (GOR) for US$5M.
There is an option embedded to purchase an additional US$9M at C$1.50 up to a maximum of 19.9%; and if Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) trades at C$1.50, LRC/Waratah will have only 30 days to exercise their options.
Proven and Focused Leadership Team
Leading the way for Noram Lithium Corp. (TSXV:NRM) (OTCQB:NRVTF) is a very capable team in Management and the Board of Directors, with many decades of experience and accomplishments in the mining industry, and includes: