Advantage Lithium Corp. (fka AVLIF)

[tikotiko]

Advantage Lithium just released an excellent updated resource estimate. The main highlight is that the resource more than doubled! I also liked the fact that the resource remains open at depths beyond 600 m and to the south, plus they did not find bedrock during drilling.  This can only mean that the resource is even larger than reported, which could be part of a future resource upgrade if necessary.

The big question now is what is next? Will Advantage build its own processing plant? (Highly unlikely). Will they pump brine to Orocobre’s plant? (somewhat more likely, but probably not). Will they sell tenements to Orocobre/Toyota and/or Ganfeng/LAC? (Much more likely). Personally, I would like them to sell the NW tenements to Orocobre/Toyota and the SE tenements to LAC/Ganfeng and negotiate good deals with both. I will welcome any sale if it is at the right price, and the CEO must be working hard on this. The recent sale of tenements by Galaxy to Posco of 2.5MT of LCE for $280M equates to more than $100 per ton. If Advantage gets a similar deal for almost 5MT, this would result in $500M, which may be about 7-8 times the company’s current market cap. I would take that offer and even a bit less in an instant.

The SP will sooner or later reflect the new resource estimate, but we need to be patient and keep flying under the radar until an offer is made and accepted. The stock is up 15% today, but it would be nice to eventually see it at $3 or $4. The only other item of importance is for the company to stay solvent and always keep some cash.

All The above is IMHO and good luck to all here!

PS Here is the announcement

https://www.advantagelithium.com/news-and-media/company-news/index.php?content_id=162