This Week (9.8-9.12) Overseas Lithium News [SMM New Energy Overseas Weekly News]

[Codelco and SQM Expected to Finalise Lithium Mine Joint Venture Agreement]

Chilean state-owned copper mining giant Codelco and the world's second-largest lithium producer SQM are nearing completion of a landmark partnership to jointly develop lithium resources in the Atacama Salt Flat.

The agreement, initially signed in December 2023, stems from President Gabriel Boric's national lithium strategy, which requires Codelco to lead operations in all strategic salt flats. Under the agreement, SQM will transfer the majority of its equity in the Atacama operations to Codelco in exchange for an extension of its mining rights until 2060.

The agreement is expected to be formally reached within weeks, but still requires antitrust approvals, including regulatory clearance from China, which SQM anticipates will be completed later this month or in October.

Supporters argue that the partnership will help Codelco diversify its revenue; currently, the company faces significant financial pressure due to declining copper production and major cost overruns in expansion projects. By entering the lithium industry, Codelco can tap into a market experiencing rapid growth driven by the global energy transition. Partnering with SQM, which already has infrastructure and expertise, is expected to reduce costs and accelerate the timeline to production.

Critics warn that the agreement sacrifices too many benefits. Economist Marcela Vera described the deal as a "cession of sovereignty," noting that despite Chilean law prohibiting the concession of lithium resources, SQM would retain nearly half of the future proceeds from Atacama.

In a commentary, Vera mentioned that Rio Tinto's acquisition of Argentina's Arcadium Lithium for $6.7 billion, which has only half the capacity of SQM's Chilean operations, indicates that Chile has undervalued its own assets.

She wrote: "Based on multiple price and production scenarios, state revenues could range between $45 billion and $365 billion under a full nationalisation model or an international tender model. Coupled with a loss of at least $6.7 billion in 'upfront payment'... the potential fiscal damage is enormous."

Source: ming.com

[Nevada Lithium Resources Submits Technical Report for Bonnie Claire Lithium Project Preliminary Economic Assessment]

Nevada Lithium Resources Inc. is pleased to announce that it has filed an independent technical report on SEDAR+ entitled "NI 43-101 Technical Report Preliminary Economic Assessment for the Bonnie Claire Lithium Project, Nye County, Nevada" (the "PEA").

The PEA results indicate that Bonnie Claire can annually produce over 62,300 mt of lithium carbonate and 129,500 mt of boric acid over a 61-year mine life. The project investment metrics show an after-tax internal rate of return (IRR) of 32.3%, a payback period of 2.8 years, and a capital intensity of $34,080/mt of lithium carbonate; with the by-product boric acid valued at $1,973/mt, the operating cost for lithium carbonate is reduced to $6,800/mt.

Bonnie Claire PEA Highlights:

• Post-tax net present value (NPV) of $6.829 billion (discount rate 8%)

• Average annual production: 62,354 mt of lithium carbonate (Li₂CO₃), 129,534 mt of boric acid, mine life of 61 years

• Post-tax internal rate of return: 32.3%

• Initial capital expenditure of $2.125 billion (including $354 million in contingency)

• Capital intensity: $34,080/mt lithium carbonate

• Payback period: 2.8 years

• Price assumptions: lithium carbonate at $24,000/mt, boric acid at $950/mt

• Operating cost: $6,800/mt lithium carbonate

• All-in sustaining cost (AISC): $7,936/mt lithium carbonate

• Break-even price (IRR=0): $8,560/mt lithium carbonate

Source: Junior of ming

[Jindalee Lithium to Create US-Listed Lithium Miner]

Australian lithium firm Jindalee Lithium has signed a letter of intent to merge its US subsidiary, which holds the flagship McDermitt project, with a special purpose acquisition company (SPAC) sponsored by private equity firm Antarctica Capital, thereby creating a new publicly listed company in the US.

The letter of intent is part of Jindalee's strategic fundraising process initiated in April this year, aimed at attracting US funding for its project located on the border of Oregon and Nevada. Previously, the McDermitt project was listed by the Trump administration as one of the first 10 "transparent projects" eligible for the FAST-41 streamlined permitting process.

The Australian miner stated that after a "competitive selection process" involving multiple institutions and proposals, it ultimately chose SPAC company Constellation Acquisition as the counterparty for the transaction.

Under the terms of the letter of intent, Jindalee will receive 50 million new shares in the merged company, priced at $10 per share, corresponding to an equity value of $500 million. The transaction also plans to raise no less than $20 million to $30 million, with Antarctica-affiliated companies committing approximately $4 million.

Upon completion of the transaction, the new company is expected to list on a US national stock exchange, with Jindalee's existing shareholders retaining a majority stake, projected to exceed 80%.

Jindalee Managing Director and CEO Ian Rodger commented: "Since the Trump administration strongly emphasized boosting domestic production of critical minerals and McDermitt was designated as a FAST-41 transparent project, we have observed strong interest from US investors."

The company noted in its press release that the letter of intent sets a 90-day exclusive negotiation period, during which the parties will conduct due diligence and strive to sign a binding business combination agreement in Q4 2025. The final closing remains subject to customary conditions, including regulatory and shareholder approvals, and is expected to be completed as early as H1 2026.

Source: ming.com

[Sprott Expands ETF Lineup with Launch of Actively Managed Metals Fund]

Sprott Inc. has launched an actively managed exchange-traded fund (ETF) designed to provide investors with exposure to the mining industry, particularly enterprises related to strategic metals.

The fund listed on Nasdaq this Wednesday under the ticker symbol "METL." It opened at $19.92 per share on its first trading day and reached an intraday high of $20.09.

Sprott stated that the fund will employ value and contrarian investment strategies, aiming to achieve long-term capital appreciation for investors throughout the mining life cycle, with a focus on mining companies deemed "undervalued," recycling enterprises, as well as royalty and streaming companies.

The company noted that METL's portfolio management team brings decades of industry experience and has the flexibility to allocate across equities covering a diverse range of metal assets.

Sprott CEO Whitney George said in a press release, "Sprott's multidisciplinary investment team conducts approximately 200 management meetings annually in the mining sector and evaluates asset potential, identifies challenges, and explores geological opportunities through as many as 30 field trips to mine sites each year."

A significant portion of METL's portfolio will consist of companies involved in or investing in the production of strategic metals, which are poised to benefit from structural demand in key growth areas such as renewable energy, electric vehicles (EVs), nuclear power, and infrastructure development.

George added, "Sprott is uniquely positioned to build a dynamic portfolio encompassing critical materials like copper, uranium, silver, steel, and lithium, which are essential for energy independence, national security, and emerging industries."

METL becomes the latest addition to Sprott's expanding ETF lineup. The fund combines active management expertise with the flexibility of ETFs, including daily transparency, liquidity, and potential tax efficiency.

Source: ming.com