SAN FRANCISCO, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Advantage Lithium Corp. (AAL:TSX.V; AVLIF:OTCQX) is positioning itself to take advantage of this burgeoning demand for lithium.
Company mentioned: Advantage Lithium
The company has five properties in Argentina, with Cauchari, located in Jujuy province, serving as its flagship asset. The Cauchari-Olaroz Basin is a major lithium center and the world's second largest brine producing basin, behind the Atacama in Chile.
Advantage has engaged Goldman Sachs to evaluate strategic partnerships and financing alternatives for its portion of the capex for the Cauchari JV. Advantage CEO David Sidoo told Streetwise Reports, "Goldman Sachs has been involved with major battery and lithium manufacturers in Asia, including CATL (Contemporary Amperex Technology), Tianqi Lithium and Ganfeng Lithium."
Sidoo noted that Goldman Sachs was interested in a small-cap like themselves "because of the asset and the PEA; the firm is confident that it can introduce us to the right strategic partner."
The strategic partner, according to Sidoo, would likely do two things: provide Advantage with some equity at a premium to the market to take a small piece of Advantage—10 to 15%—to provide the company with the $400 million project funding needed to build the facility that would produce 20,000 tons of lithium carbonate annually for the next 25 years.
Second, a partner could eventually have the appetite to buy the company out or consolidate the entire basin, Sidoo noted.
Continue reading this article: What Four Analysts and Goldman Sachs See in This Small-Cap Lithium Explorer
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