Critical Elements Corp. Compelling Risk/Reward In Lithium??

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Critical Elements Corp.  (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) is an emerging specialty metals company focused on its Rose Lithium-Tantalum (“RL-T”) project near James Bay, in northern Quebec. Last year the Company signed a strategic Collaboration Agreement with a leading global chemical company that includes 100% take-or-pay off-take for all products produced, at market prices

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Critical Elements Corp.’s (“CEC”) PEA highlights a 99.98% purity, low-cost, hard rock lithium project with a pre-tax NPV(8%) & IRR of C$488 million & 33%, respectively (assuming a US$6k/Mt Lithium Carbonate (“LC”) price). The RL-T project benefits from a source of very low-iron spodumene concentrate, ideally suited for the glass & ceramic markets. Both technical & battery-grade lithium production is planned, with technical grade likely available in 2018 and battery-grade 12-18 months thereafter. If successful, this would allow CEC to generate cash flow to support development and commercialization of battery-grade lithium products.

CEC began drilling the RL-T property in late 2009 and has been prudently advancing it towards full Feasibility ever since. Over the years, the Company has been meaningfully de-risked. So much so, that management believes it is within 6 months of nailing down project financing. As part of the above mentioned Collaboration Agreement, CEC’s strategic partner has the option to acquire a 25% interest in the equity capital of the project. A 100% take-or-pay off-take agreement with a large, creditworthy counter-party, should facilitate the Company’s efforts in obtaining debt financing. 

Critical Elements Corp (“CEC”) on the Move

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Disclosures: CRITICAL ELEMENTS CORP. has a small market cap. Small market cap stocks are highly speculative, not suitable for ...

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