The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide
Bonnie Claire Project is located within Sarcobatus Valley. (Credit: Michael Gaida from Pixabay)
Iconic Minerals Ltd. (“Iconic”) (TSXV: ICM) (OTCQB: BVTEF) (FSE: YQGB) and Nevada Lithium Resources Inc. (“Nevada Lithium”) (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) are pleased to announce that they have entered into a letter of intent dated January 6, 2023 (the “LOI”), whereby Nevada Lithium and Iconic would consolidate 100% interest in the Bonnie Claire Lithium project located in Nye County, Nevada (the “Project” or the “Bonnie Claire Project”), whereby Nevada Lithium would hold a 100% interest in the Project (the “Proposed Transaction”). The Proposed Transaction has the unanimous support of each company’s board of directors.
Nevada Lithium CEO, Stephen Rentschler, commented: “We are pleased to announce the signing of the LOI with Iconic for the Bonnie Claire Property. With 100% consolidated ownership, the company’s ability to negotiate with strategic investors and lithium end-users will be significantly enhanced. This is a key to unlocking shareholder value.”
Richard Kern, Iconic’s CEO, added, “The Proposed Transaction represents an opportunity for Iconic shareholders to be part of a reunification of the Bonnie Claire Project under consolidated ownership and to continue to participate in the benefits of the Project’s future development and upside.”
Mr. Rentschler continued, “Lithium remains a key commodity component of electric vehicles, and recent lithium prices reflect the outlook for persistent lithium supply deficits.
“Lithium Carbonate Equivalent (LCE) prices are now roughly five times higher than the assumed prices used in our robust Preliminary Economic Assessment, where at a base case pricing assumption of $13,500/ tonne LCE the Project returned an NPV of $1.5 Billion USD (ATAX 8%).1 Recent 2022 drill program results have also returned the highest lithium values ever recorded at Bonnie Claire, including 3,079 ppm Li over 446 ft. (136 m) within a wider interval of 1,246 ppm Li over 1,994 ft (608 m)2. With a projected annual production rate of over 30,000 tonnes of LCE, and a resource base that indicates the ability to upsize production further, Bonnie Claire has the potential to play a significant role in meeting global lithium needs.
Having seen Richard Kern’s original theory of a significant lithium resource at Bonnie Claire borne out, I firmly believe that Bonnie Claire is one of the most attractive global lithium assets remaining in junior developers’ hands. I look forward to continuing to work with Richard and welcome Iconic shareholders to Nevada Lithium”.
Source: Company Press Release