Volt Lithium Corp - VLTLF stock
About Volt Lithium Corp[edit]
Volt Lithium Corp. (TSXV: VLT, OTCQB: VLTLF) is a company that specializes in lithium development and technology. Their primary focus is on the production of lithium hydroxide monohydrate and lithium carbonates derived from oilfield brine. The company holds ownership stakes in various projects, including the Rainbow Lake Property in Northwest Alberta, Canada, as well as the Silver King project in Nevada and the Stateline project in Utah, both located in the United States. Volt Lithium Corp. is headquartered in Calgary, Canada.[1]
Strategy[edit]
Volt Lithium Corp. is a lithium development and technology company that aims to become the first commercial producer of lithium hydroxide and lithium carbonates in North America using oilfield brine. The company has around 430,000 acres of permitted land in Rainbow Lake, Alberta, with a substantial lithium reservoir containing an estimated 99.0 billion barrels of lithium-infused brine, reaching concentrations of up to 121 mg/L. They utilize their proprietary Direct Lithium Extraction (DLE) technology, which achieves high lithium recoveries of 93% at low costs.[2]
Their strategy involves leveraging the management team's hydrocarbon experience and existing infrastructure to extract lithium deposits from existing wells, thereby reducing capital costs, minimizing risks, and supporting the global transition to clean energy.[2]
Pure Play Lithium Developer[edit]
In August, 2023, Volt Lithium declared the end of two prior option agreements concerning copper assets inherited from its antecedent company, which were not aligned with Volt’s direction. By ending these agreements, Volt has refined its asset portfolio, providing investors with an opportunity to invest in a burgeoning lithium-focused company. Their goal is to become North America's inaugural commercial manufacturer of lithium hydroxide and lithium carbonates sourced from oilfield brine. The terminated agreements pertain to the Stateline Property under a 2022 agreement with Cloudbreak Discovery, Tarsis Resources and Alianza Minerals Ltd, and a 2021 option agreement with Goodsprings Exploration LLC, Robert Cole, Lori Cole and 1269280 BC Ltd. for the Silver King Property.[3]
Resource Report[edit]
A resource report for the Rainbow Lake Property was completed in May, 2023. The report, prepared in accordance with National Instrument 43-101, reveals an inferred mineral resource of 4.3 million tonnes of lithium carbonate equivalent (LCE). The property holds an estimated 99.0 billion barrels of brine, with lithium concentrations as high as 121 mg/L and an average concentration of 51 mg/L. This substantial resource is 215 times the estimated peak production of 20,000 tonnes per year, highlighting its immense size and potential. Volt's pilot project results are expected by the end of Q2/23. The company holds a significant land position of approximately 430,000 acres at Rainbow Lake, with over 1,300 producing wells to extract brine. Volt plans to prioritize development in areas with the highest lithium concentrations, which exhibit concentrations between 101 and 121 mg/L in the Muskeg Formation, offering strong economic returns and robust cash flows.[4]
Pilot Project[edit]
Volt Lithium successfully completed a pilot project to test its direct lithium extraction (DLE) technology under simulated commercial conditions. The project, initiated in March 2023, aimed to confirm the economic viability of extracting lithium at concentrations of up to 120mg/L, similar to those found in the Muskeg aquifer at the Rainbow Lake Property. The pilot demonstrated that Volt achieved lithium recoveries of 90% at concentrations as low as 34mg/L. Additionally, the company simulated operating conditions at 120mg/L concentrations, achieving recoveries of up to 97% with operating costs below C$4,000 per tonne. These results assume sustained annual production of 20,000 tonnes of lithium hydroxide monohydrate (LHM).[5]
In January, 2024, the company announced the successful production of 99.5% battery-grade lithium carbonate, a commercial and saleable lithium product, at its permanent Demonstration Plant in Calgary. Volt utilized its proprietary direct lithium extraction technology to process oilfield brine from the Keg River formation at its Rainbow Lake, Alberta asset, resulting in the production of lithium carbonate.[6]
Partnerships[edit]
Volt Lithium Corp. has partnerships with an established oil and gas producer that owns $100 million worth of infrastructure and is already extracting lithium-infused brine, as well as a chemical company partner with expertise in lithium extraction. Their goal is to begin commercial production by mid-2024. The company's shares are listed on , and FSE (I2D).[2]
Funding[edit]
Volt Lithium secured $6.8 million through a public offering. As part of the offering, Volt issued a total of 14,956,590 units known as "HD Units" at a value of $0.22 per HD Unit, along with 11,262,500 flow-through units referred to as "FT Units" at a price of $0.24 per FT Unit. This activity generated approximately $6 million in gross proceeds. Additionally, upon the closing of the Offering, specific subscribers acquired 266,666 FT Units at a rate of $0.24 per FT Unit and 3,287,931 HD Units at $0.22 per HD Unit through a private placement mechanism. This private placement, known as the "Concurrent Private Placement," brought in around $787,345 in gross proceeds. The HD Units and FT Units distributed through the Concurrent Private Placement are under a four-month hold period, set to conclude on December 5, 2023. Combining the results of the Offering and the Concurrent Private Placement, Volt successfully raised a total of approximately $6.8 million. Furthermore, the Company provided the Agents involved with an option to purchase up to an additional 4,090,909 HD Units. This option remains open for 30 days from the present date, serving to cover potential over-allotments and for the purpose of stabilizing the market. If the Over-Allotment Option is exercised in its entirety, the gross proceeds from the Offering could experience an increase of $900,000.[7]
In March, 2024, Volt completed a non-brokered private placement of 6,818,182 units which were issued to an unnamed investor. The price per unit was US$0.22 and the resulting capital raise totaled US$1,500,000. Each unit consists of one share of stock and one warrant. Warrants can be exercised at US$0.35 until May 1, 2026.
Financial Performance[edit]
Volt Lithium has not produced any revenue in the past three years.[8]
| Year Ending | Total Revenue | Net Income | Earnings per Share | Cash Balance | Total Liabilities |
|---|---|---|---|---|---|
| 6/30/2023 | $0 | ($5,462,000) | ($0.08) | $678,000 | $581,000 |
| 6/30/2022 | $0 | ($3,887,000) | ($0.13) | $2,845,000 | $647,000 |
| 6/30/2021 | $0 | ($913,000) | ($0.02) | $5,000 | $2,315,000 |
| 6/30/2020 | $0 | ($3,956,000) | ($0.01) | $23,000 | $1,431,000 |
| OTC Tier: OTCQB | Related ticker symbols: TSXV: VLT
- ↑ Yahoo Finance. VLTLF Stock Profile. Retrieved on 7/2/2023.
- ↑ 2.0 2.1 2.2 voltlithium.com. About Volt Lithium. Retrieved on 7/2/2023.
- ↑ GlobeNewswire. VOLT LITHIUM ANNOUNCES TRANSITION TO PURE-PLAY LITHIUM DEVELOPER WITH TERMINATION OF OPTION AGREEMENTS FOR COPPER ASSETS. August 17, 2023.
- ↑ Globenewswire. VOLT LITHIUM CORP. ANNOUNCES RESOURCE REPORT INDICATING 4.3 MILLION TONNES OF LITHIUM RESOURCE AT ITS RAINBOW LAKE PROPERTY WITH CONCENTRATIONS UP TO 121 mg/L. May 18, 2023.
- ↑ The Assay. Volt Lithium’s Successful Pilot Project, Confirming Unprecedented Breakthrough. June 25, 2023.
- ↑ GlobeNewswire. Volt Lithium Announces Successful Production of Battery-Grade Lithium Carbonate at the Company’s Permanent Demonstration Plant in Calgary, Alberta. January 31, 2024.
- ↑ GlobeNewswire. VOLT LITHIUM SUCCESSFULLY CLOSES FINANCING RAISING $6.8 MILLION. August 4, 2023.
- ↑ OTC Markets Group. VLTLF Stock Financials. Retrieved on 7/2/2023.
