Fabled Copper Corp. (FABL:CSE) is looking to diversify its portfolio by branching out into another element important to the green economy transition: lithium.
The company announced it has entered into two letters of intent and a purchase agreement to acquire three separate lithium claim blocks in Quebec.
While waiting for drilling permits for copper, silver, and gold projects in British Columbia, the company is moving to balance its holdings.
"Quebec is going to become the lithium hub of North America, unequivocally," President and Chief Executive Officer Peter Hawley told Streetwise Reports. "They're building the infrastructure and the various plants."
Other companies are seeing success there looking for the element in the province, and Canada's federal budget released on Tuesday included a 30% tax credit for extracting, processing or recycling critical minerals essential for clean technology.
The global lithium market is expected to reach US$19 billion by 2030, according to a report from Research and Markets.
"Rising investments in lithium mining and related technologies are projected to remain a key trend in the market," the report said. "Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries."
The Catalyst: Possible Lithium Deposits
One of the properties, the OHM property, is made up of 51 cells over more than 2,800 hectares about 70 kilometers south of Val-d'Or. Fabled Copper entered into a letter of intent to acquire it from arm's length vendors, which Hawley said included a group of geologists and miners.
At least ten pegmatite outcrops, which host many lithium deposits in the region, have been documented there.
Under the terms of the agreement, Fabled may be granted an option to acquire the property after making cash payments of CA$500,000, issuing 1.2 million common shares, and spending CA$1.2 million in exploration costs over two years.
Fabled will also grant the vendors a 3% net smelter return (NSR) royalty. The company can purchase 2% back at any time for CA$2 million under the agreement.
The global lithium market is expected to reach US$19 billion by 2030, according to a report from Research and Markets.
Fabled also entered into a letter of intent to acquire the VOLT 1 property in the James Bay Lithium District from arm's length vendors. VOLT 1 is made up of nine cells over 504 hectares.
Fabled may be granted an option to acquire VOLT 1 after making cash payments of CA$200,000, issuing 1.4 million common shares, and spending CA$550,000 in exploration costs over two years.
The VOLT 1 vendors will also be granted a 3% NSR royalty, of which Fabled can purchase 2% back at any time for CA$2 million.
The company also entered into a purchase agreement with arm's length vendors to buy two nearby lithium claims totaling 112 hectares for a one-time payment of CA$1,000. It is calling that property VOLT 2.
The VOLT 2 project was bought outright, but the OHM and VOLT 1 agreements are dependent on the company securing financing and regulatory approvals, Fabled said.
A Great Neighborhood
Patriot Battery Metals Inc.'s (PMET:CA) Corvette lithium project is also in the James Bay district. The company discovered a 4.3-kilometer trend of spodumene pegmatite in 2017. It said it has discovered more than 70 lithium pegmatite outcrops in six distinct clusters over 20 kilometers of trend it has evaluated to date. More than 20 kilometers of trend remains to be explored.
Its market cap was nearly CA$500 million last fall. Now, it's CA$1.34 billion.
Other companies, such as Allkem Ltd. (OROCF;OTCMKTS), Critical Elements Corp. (CRE:TSX.V), and Investissement Québec and Livent Corp. (LTHM:NYSE) have had success developing lithium deposits in the James Bay area.
Hawley said another advantage for the area is infrastructure and support from local governments.
He said they have had to use helicopters for as much as CA$5,000 per day to get to exploratory sites in British Columbia.
In Quebec, "you just drive, and you're there," Hawley said.
Exploration work is expected to begin on the sites this year, with drone work, LiDAR, ground mapping, and sampling.
Element Needed for Energy Transition
The world needs lithium and other critical elements like copper to help fuel its transition to green energy. Lithium is a soft, silvery metal with highly reactive and flammable properties. It is a major component of electric vehicle (EV) batteries. It’s also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.
The deficit between lithium demand and production and highly probable and probable lithium projects will be over 3.5 Mt by 2040, according to Benchmark Mineral Intelligence.
"Government regulations and subsidies are working on expanding clean energy," Research and Markets wrote. "Thus, energy storage systems represent a huge opportunity for investors."
One out of five vehicles sold worldwide could be an EV in less than two years, and Ford and General Motors have set a goal of achieving 40–50% of their sales from EVs in the U.S. by 2030.
To qualify for tax credits under new U.S. laws, a significant percentage of batteries and minerals in batteries must come from the U.S. or Canada.
Streetwise Ownership Overview*China only has less than a quarter of the world’s lithium resources but controlled about two-thirds of the world’s lithium processing and refining capacity in 2021, Rystad Energy said.
"Government regulations and subsidies are working on expanding clean energy," Research and Markets wrote. "Thus, energy storage systems represent a huge opportunity for investors."
Ownership and Share Structure
According to Yahoo Finance, about 3% of the company is held by insiders. They include Director Luc Pelchat with 1.19% or 2.06 million shares, David Smalley with 0.86% or 1.5 million shares, and President and CEO Hawley with 0.65% or 1.12 million shares, Reuters said.
The rest, 97%, is retail.
Fabled Copper's market cap is CA$1.74 million, with 173.7 million shares outstanding, 168.8 million of them floating. It trades in a 52-week range of CA$0.055 and CA$0.005.
Sign up for our FREE newsletter
Disclosures
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Fabled Silver Gold Corp. and Fabled Copper Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fabled Copper Corp., a company mentioned in this article.
