Today, Maxtech Venture Inc. announced the acquisition of the Lac Patu Property in Québec, Canada. This represents the company’s first North American vanadium project as Maxtech already owns attractive vanadium and manganese projects in Brazil and Zambia.
The Lac Patu Property (3,420 hectares or 34 km²) is located directly north and along the trend of Uranor’s Lac Minowean Property. In 2008, Uranor (with the collaboration of Areva Quebec Inc.) conducted an airborne geophysical survey over the Lac Minowean Property and outlined several distinct areas of high magnetism.
Consequently in 2009, Uranor (now a subsidiary of Areva) conducted a follow up VTEM (Versatile Time Domain Electro Magnetic) survey over the area locating several targets, however only those with indications of radioactivity were drilled.
9 drill holes on the east side of Lac Minowean found uranium, copper, cobalt and vanadium. Geochemical values from drilling were reported as much as 8.03% vanadium (14% V2O5), 1.76% cobalt and 1.5% copper over 0.5 m in the underling dolomite.
Apparently, follow-up drilling to find a potential vanadium-cobalt-copper deposit was not in the interest of Uranor/Areva as they were searching exclusively for uranium some 10 years ago, long before the battery metals vanadium and cobalt were getting attractive.
Maxtech’s Lac Patu Property is situated in the area of the highest electromagnetic response identified by the VTEM survey, which is 3 km from Uranor’s discovery drilling. As the northern claims (now Maxtech) showed only low radioactivity, no follow up work has been completed on them. Back then, Uranor/Areva’s land package was so large that once the uranium moratorium began, they let the northern most mineral claims lapse but have spent enough money on southernmost claims to keep in good standing.
The property is located on the brink of the Labrador Trough and consists of mineralized horizons of sedimentary terrain. Rock types in the area are paleoproterozoic in age and consist of dolomite, mudstone, conglomerates and pyroclastics. More localized outcrops of amphibolite and gabbro can be found along the riverbanks.
To secure the Option Agreement and acquire 100% of the property over a 2 year period, Maxtech has agreed to pay to the vendors, Zimtu Capital Corp. and Soraya Jamal, a total of $185,000 CAD and 3,250,000 common shares of Maxtech on or before September 30, 2020, plus a 2% NSR (Net Smelter Royalty) on production with Maxtech having the option to buy back half the respective NSR for $1 million CAD. Zimtu Capital today announced that for its participation in the transaction, it will receive $92,500 CAD and 1,625,000 Maxtech shares, as well as half of the above referenced NSR.
Today’s acquisition fits perfectly into Maxtech‘s strategy of growing and advancing an attractive exploration and mining portfolio focused on the tech metals sector, first and foremost battery metals.
As the initiating coverage revealed, Maxtech‘s management team has strong ties to the mining industry and, within short time, has established a compelling network of key strategic partners for its manganese projects in Brazil and Zambia to advance to the next level as the latest news demonstrates that the company prepares for trial mining of manganese in Brazil. Last month in July, Maxtech acquired another highly interesting vanadium project next to one of the world’s lowest cost vanadium miners.
2017 was a great year for battery metals and the talk of the town was clearly cobalt when its price more than doubled. Lithium prices were also surging and even nickel and copper prices were in an uptrend. However since the beginning of this year, all of them are taking a breather, correcting in tandem.
There‘s another battery metal, which rose even stronger than cobalt last year and continues to surge this year: Vanadium, the extremely hard yet ductile and malleable silvery-grey metal named after Vanadis, the Scandinavian goddess of beauty.
And the beauty of vanadium is not only its impressive price performance (+700% since 2015 and +300% since 2017) but that supply and demand look all the more bullish. Demand has increased significantly over the last years, whereas supply is steadily decreasing due to mine depletion and environmental restrictions.
In late 2017, China applied new steel reinforcement standards to fight floods and earthquakes, with new regulations requiring a doubling of vanadium content in the steel used for high-rise constructions, for example. About 90% of global vanadium supply is used to harden steal, however the metal is also used to prevent global warming, that is to say in an increasing fashion.
With lithium being the metal of choice for powering electric vehicles, vanadium could become its counterpart for powering stationary batteries such as large utility-scale systems to store mass energy from wind and solar parks. Similar to zinc-air flow batteries, vanadium batteries offer tremendous advantages against large stationary lithium-ion battery systems.
At Tesla‘s shareholder meeting in June 2018, Elon Musk said: “The rate of stationary storage is going to grow exponentially. For many years to come each incremental year will be about as much as all of the preceding years, which is a crazy, crazy growth rate.“
The vanadium battery market may lack a flashy promoter like Elon Musk, but nonetheless vanadium batteries already have 2 major backers who bet big on the future of vanadium batteries: Glencore, the world‘s biggest commodity trader with vanadium mines in Brazil and South Africa. And then there is Robert Friedland, the renowned billionaire and legendary mining magnate who controls VRB Energy, a fast-growing Canadian vanadium redox battery (“VRB“) technology developer and manufacturer, who proclaimed:”Vanadium flow batteries are revolutionizing modern electricity grids in the way that lithium-ion batteries are enabling the global transition to electric vehicles.“
Lithium versus Vanadium
“Lithium batteries are now common place in your phone or notebook. They are self-contained, storing their energy in cells that get hot. Vanadium flow batteries on the other hand, store their energy in tanks. Doubling the size of a lithium system doubles the price, according to Renewable Energy World, while with vanadium you just build a bigger tank and the cost per kilowatt hour goes down. Vanadium Redox batteries can be charged and discharged 35,000 times and could have a 35 year lifetime, while lithium batteries last around 3 to 5 years.“ (Source: IG Markets Ltd.)
“Flow batteries may offer a superior alternative to lithium ion technology for stationary grid support energy storage. Lithium ion batteries are capturing an increasing share of power grid support applications. Obviously, flow batteries are large in size and require pumps and electrolyte holding tanks. Thus, they are used primarily for stationary applications. They are particularly effective for load leveling and frequency control in electric power grids when batteries with both high power and high capacity are required. Flow batteries are capable of many thousands of charge and discharge cycles (higher than lithium ion). They also are capable of sitting unused for many months before starting with little or no preparation and, unlike lithium ion batteries, can be discharged 100% without damage. Numerous utility-scale projects are underway worldwide using flow batteries of various types in full and micro-grid configurations, particularly with renewable power generation.“ (Source: DesignNews)
“The global renewable energy sector is experiencing unprecedented growth due to sharp reductions in the cost of wind and solar power generation and enhanced policy efforts by governments worldwide. For example, the cost of building utility-scale solar power plants has fallen by 50% in the past five years. The International Energy Agency projects that renewables will remain the fastest-growing source of electricity generation, with their share growing to 28% in 2021 from 23% in 2015. Electricity generated by wind and solar varies throughout the day, depending on local resource conditions. These fluctuations mean that balancing is required in the system in order for electricity generation to meet consumption on a consistent basis. Energy storage provides fast-responding balancing to the grid, improving frequency and voltage, meeting peak demand spikes, and firming wind and solar output. The vanadium flow battery, also known as the vanadium redox battery, is a grid-scale storage technology that is ideal for supporting this growth in renewables... While lithium-based batteries are well suited to consumer electronics and electric vehicles, their lifetimes can be limited.“ (Source: VRB Energy)
Maxtech Ventures Inc.
#702 - 595 Howe Street
Vancouver, BC, V6C 2T5 Canada
Phone: +1 604 484 8989
Shares Issued & Outstanding: 54,314,862
Canadian Symbol (CSE): MVT
Current Price: $0.135 CAD (08/20/2018)
Market Capitalization: $7 Million CAD
German Symbol / WKN (Frankfurt): M1NA / A1W3JE
Current Price: €0.09 EUR (08/20/2018)
Market Capitalization: €5 Million EUR
Report #2 “Maxtech Goes With The Flow And Acquires Vanadium Projects Right Next To A World-Class Mine In Brazil"
Report #1 “On the Fast Track to Production of Manganese Projects with Network of Key Strategic Partners"
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and Maxtech Ventures Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Maxtech´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Maxtech´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds does not hold shares or any other interest in Maxtech Ventures Inc., but may initiate a long position shortly, and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in Maxtech Ventures Inc.