(via Thenewswire.ca)
January 2016
Vancouver, BC - via TheNewswire.ca
Dear new and existing shareholders. We open 2016 by taking prudent steps to diversify our company's asset base and business strategy. We are in the process of a name change to Nevada Energy Metals Inc. to properly reflect our stake in the, "green energy metals" sector. In short, we've breathed new life and cash liquidity into the company.
We're very pleased by the recently announced joint venture with Dajin Resources Corp., granting us an option to earn up to a 60% interest in the Alkali Lake lithium exploration project located in the heart of the lithium play, Esmeralda County, Nevada.
After the success of an initial refinancing in the last quarter of 2015, where $225,000 was raised, the company was able to announce and close within 4 days, a second non-brokered, oversubscribed private placement for gross proceeds of $900,000. This capital injection strengthened our balance sheet. We now have a healthy treasury with over $1,000,000 in capital to fund exploration of Alkali Lake and for general corporate purposes including an aggressive acquisition program to add new lithium projects to our portfolio.
Alkali Lake is located just 12 km (7 miles) northeast of Rockwood's Silver Peak lithium brine operation, the only producer in North America. Lithium has been one of the very few bright spots in the entire commodities complex. We fully expect to see a lot more activity in southern Nevada as investors and management appear to be intently focused on Nevada's expanding, "Lithium Hub," the location of Tesla's $5 billion lithium-ion battery gigafactory currently under construction, as well as the soon to be built Faraday Future $1 billion electric car plant.
In order to broaden our shareholder base we are now listed in the US OTC Markets as OTC PINK:SSMLF and are fully DTC eligible.
Our goal is to be a part of the solution to the problems of climate change and the unacceptable air pollution troubling global cities. Lithium, used in the aptly named lithium-ion battery, effectively ties together the green energy metals revolution. Lithium-ion batteries bridge the gap between localized use of intermittent renewable energy sources like solar & wind, to wide-scale adoption.
While gasoline prices have halved, geopolitical tensions in the Mid East seem only to grow. The budding lithium-ion battery is rapidly becoming the reigning technology - as such, very difficult to unseat anytime soon. Over a timeframe measured in decades, fears of security of supply from the Mid East, Russia, China & Venezuela, will almost certainly drive prices higher once again.
A quick scan of the automotive landscape suggests that a tipping point is at hand for lithium-ion battery use in automobiles. Every major manufacturer has new plug-in hybrid electric & fully electric vehicles hitting the streets. This could result in bottlenecks in lithium supply over the next several years. Evidence of lithium's growing role in the world's economy can be found in the short-term tripling in spot prices in China. That's a tremendous move given that every other commodity price has fallen, if not collapsed.
One might assume that a tripling in the spot price of lithium would cause producers to ramp up supply. Surprisingly, one would be wrong. It turns out that the current green energy metals market is plagued by highly uncertain fundamentals.
Will we be seeing a perfect storm? Lithium demand is increasing at a torrid pace, yet limited new capacity is coming online. The reasons for the muted supply response span the realm of geopolitical, funding, environmental and logistical concerns.
I'm proud of the team we've assembled. I'm confident that we have the right people in the right place at the right time. We believe Nevada's "lithium hub" will stake its rightful claim among existing lithium basins in Australia, China, Argentina & Chile.
This is why we're witnessing a frenzied land grab in Clayton Valley and surrounding counties. We are right in the thick of it. We also have an aggressive program in place in a plan to add new lithium and green energy metals to our project base.
I would like to thank shareholders for their patience as we move into a new direction by diversifying into a new line of business. I look forward to staying in front of shareholders through an entirely revamped website that will be updated monthly, through social media outlets, and press releases.
I sincerely hope that stakeholders share our excitement and optimism.
On behalf of the board of directors we would like to thank you for your ongoing support.
Regards,
Harry Barr
Chairman and CEO
For further reading about this exciting new direction:
An increasingly precious metal: Amid a surge in demand for rechargeable batteries, companies are scrambling for supplies of lithium: http://www.economist.com/news/business/21688386-amid-surge-demand-rechargeable-batteries-companies-are-scrambling-supplies
Panasonic Will Bet Big on Gigafactory: Consumer electronics company says it plans to spend up to $1.6 billion on advanced battery factory: http://www.wsj.com/articles/panasonic-will-bet-big-on-gigafactory-1452189826
6 Types of Lithium-ion Batteries: From iron phosphate to nickel manganese cobalt oxide, there's more than one type of lithium ion battery out there: http://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/6-types-of-lithium-ion-batteries/
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