Ahead of results from lithium upgrader

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Yesterday, MGX Minerals Inc. closed a $3.3 million CAD financing (over-subscribed), with a big chunk coming from a renowned institutional investor, Sprott Asset Management. According to MGX´s latest CSE filing, Canada´s leading independent asset management company invested $1.5 million CAD into MGX (Sprott has dedicated a total of approximately $7.3 billion to small and mid-cap resource companies; as at September 30, 2016, according to the company).

This is a highly positive endorsement for the highly ambitious "petrolithium" developer, MGX, which has raised some $8,8 million CAD in the last 6 weeks. Cashed up, MGX is now in a position to move ahead even faster with its projects. 

Most interestingly, about 2 weeks ago on June 1, MGX Minerals Inc. started to ship lithium concentrate (30% lithium chloride) to an upgrader. MGX and its partner PurLucid produced this lithium concentrate with a proprietary technology, or processing method, that promises to selectively extract lithium from highly-contaminated brines, with a current focus on oil and gas production wastewaters.

The upgrader, a tolling company, is currently analyzing the MGX samples for its suitability for upgrading to 99% lithium carbonate (industrial-grade) as well as for direct processing into lithium hydroxide (battery-grade), both of which lithium compounds are highly sought-after in today´s lithium market, and probably well into the future. 

Results from the upgrader are eagerly-awaited because if indeed MGX´s lithium concentrate qualifies for an upgrading to industrial- or even battery-grade lithium product, then it would be interesting to find out at what costs. Then, even more interesting it would be to find out MGX´s costs of producing such a lithium concentrate. Production costs from South-American and Chinese brines range roughly between $2,000-$5,000 USD/t LCE ("Lithium Carbonate Equivalent"). Anywhere in between could eventually become a game-changer for MGX, its shareholders and maybe even the lithium industry as a whole. With LCE prices hovering around $10,000 USD/t, even high-cost producers in the $7,000 USD/t range could get a chance for a chunk of this market in high demand.

Interesting times ahead for MGX. Time to bet, at least according to Sprott.

About MGX

"MGX is currently manufacturing small commercial plants of 750 BWPD for the rapid lithium extraction of lithium and other valuable minerals from brine. This cleantech process separates minerals, heavy metals and hydrocarbons from wastewater brine pumped to the surface during traditional oil and gas operations. In April, the Company received third party verification of its rapid lithium extraction process from the Saskatchewan Resources Council (see press release dated April 20, 2017)."  

Company Details

MGX Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735

Shares Issued & Outstanding: 64,400,729


Canadian Symbol (CSE): XMG
Current Price: $0.99 CAD (06/14/2017)
Market Capitalization: $64 Million CAD


German Symbol / WKN (Tradegate): 1MG / A12E3P
Current Price: €0.665 EUR (06/14/2017)
Market Capitalization: €43 Million EUR 

Previous Coverage

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“ 

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“ 

Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“ 

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“ 

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author hold a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc.

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Name: MGX Minerals Inc.
Canada Symbol: XMG
Germany Symbol / WKN: 1MG / A12E3P
Shares Issued & Outstanding: 64,400,729
Phone: +1 604 681 7735

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