Metals Update 18/06/2021

Cerro de Pasco increases loan financing to $1.5-million

Cerro de Pasco Resources Inc. has entered into an amended and restated agreement to increase the capital amount under an existing convertible loan financing from $1-million to $1.5-million. For details regarding the original loan, please refer to the press release of the company dated Oct. 16, 2020.

The loan is repayable in one year with interest at 10 per cent per year. The loan will be used for general working capital purposes in advancing the company’s Quiulacocha tailings retreatment project in Peru. The loan is convertible, at the option of the lender, in common shares of the company, at 50 cents per share, which represents approximately 50 per cent premium over the closing price of the company’s shares on June 14, 2021. An aggregate of 1,857,143 common share purchase warrants were also issued to the lender. Each warrant entitles the holder to acquire an additional common share at a price of 50 cents until June 15, 2023. The warrants were issued in replacement of the warrants issued under the original loan, which could be exercised at a price of 60 cents until Oct. 15, 2022.

Critical Elements hires Goldspot for exploration

Goldspot Discoveries Corp. has been engaged by Critical Elements Lithium Corp. to apply it proprietary machine learning technology and geoscience expertise on Critical Elements’ extensive property package located in James Bay, Quebec.

Globally, any resource

Goldspot works with leading exploration and mining clients across all commodities and deposit types to apply cutting-edge artificial intelligence algorithms to significantly increase the efficiency and success rate of mineral exploration across resources.

Goldspot will work closely with the technical team at Critical Elements to analyze geoscience data sets to develop and refine smart targets at the company’s 100-per-cent-owned exploration projects, which feature multiple lithium showings, as well as nickel, copper and gold.

One strength of the Goldspot Smart approach of AI and geoscience methods to exploration is the ability to take large land packages and distill all available geological information to identify the most efficient and cost-effective way to explore prospective terrane. As is standard in Goldspot’s work flow, most of all available public geoscience data will be compiled and synthesized for the permits of scope and surrounding areas. Structural, geological, metamorphism, hydrothermal footprint, geophysical and remote sensing components will all be analyzed through Goldspot’s proprietary AI tools to produce high-priority targets for field prospecting. Additionally, machine-learning-based outcrop detection will be achieved to better orient the field investigations.

“Our engagement with Critical Elements showcases Goldspot’s ability to work with mining leaders across resources to identify new mineral exploration targets,” said Denis Laviolette, executive chairman and president of Goldspot. “Significant global capital is being invested throughout the electric vehicle supply chain, which will drive demand for high-quality lithium sources. We are excited to work with the Critical Elements team to capitalize on their existing infrastructure and exploration potential as well as demonstrate our advanced analytical technology.”

Jean-Sebastien Lavallee, Critical Elements’ chief executive officer, commented: “We are really excited to be able to work with Goldspot to apply their exclusive technology to generate targets on our projects from geological and geochemical data, as well as more recent geophysical data acquired during our last survey. Resumption of exploration work on our different projects covering more than 700 square kilometres aiming to show the full potential is part of the development plan put in place by our team to become a large and responsible lithium producer.”

Critical Elements’ primary focus remains on advancing and derisking the Rose project. In February, 2021, the Environmental and Social Impact Review Committee (COMEX) held public hearing sessions in Matagami, Eastmain and Nemaska. As a follow-up to those public hearing sessions, the COMEX communicated to the company a list of questions and undertakings based on the observations and comments expressed by the participants during the public hearing sessions. The company is currently working on duly responding to those questions and fulfilling the undertakings set out in the COMEX’s correspondence, which is part of the environmental and social impact assessment and review procedure. The COMEX’s mission is to contribute to the protection of human health and the environment and the economic and social well-being of the peoples inhabiting the territory governed by the James Bay and Northern Quebec agreement (JBNQA) that lies south of the 55th parallel. The Rose property (where the Rose lithium-tantalum project is proposed) is located in Northern Quebec’s administrative region, on the territory of Eeyou Istchee James Bay. It is located on Category III land, on the traditional lands of the Cree nation of Eastmain. Once the environmental and social impact assessment and review procedure is completed, the COMEX will make a recommendation in respect of the authorization of the project by provincial authorities.

Globe says Critical Elements Lithium cut to “hold”

The Globe and Mail reports in its Friday, June 18, edition that Stifel analyst Anoop Prihar downgraded Critical Elements Lithium to “hold” from “buy” in response to recent share price appreciation. The Globe’s David Leeder writes in the Eye On Equities column that Mr. Prihar, however, continues to see the potential in its “attractive” Rose Spodumene project in Northern Quebec. Mr. Prihar continues to target the shares at $1.50. Analysts on average target the shares at $2 average. Mr. Prihar says in a note: “Critical Elements management is waiting to receive federal and provincial environmental permits for the project. The permits were originally expected at the end of Q1/21 and management now anticipates receiving them by the end of Q2/21. We believe management’s primary focus is on finding a strategic partner for the project. A financial advisor has been retained to help with this initiative. In light of the current momentum in the lithium sector as well as recent investment activity specific to Quebec (Livent Corporation partnering with the New Nemaska and Piedmont Lithium investing in Sayona Mining), we believe the potential may exist for Critical management to secure the capital needed to advance the project.”