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The Most Exciting Commodities Play Of 2021?

Commodities / Lithium Feb 22, 2021 - 12:47 PM GMT

By: Submissions


In 2019, 97-year-old John B. Goodenough received the Nobel Prize for his groundbreaking work on developing lithium-ion batteries

His discovery more than 40 years ago led to a massive breakthrough, giving us the rechargeable batteries hidden inside devices we use every day...

From smartphones and computers to power tools and medical equipment. 

But today, it’s led to a boom that’s signaling the biggest shift in the auto industry in over 100 years.

It’s expected to change the landscape of our cities… What vehicles we buy… And how we travel throughout the day.

That’s why Tesla has built a 1.9 million square foot factory to ramp up production of the lithium-ion batteries for their electric vehicles…

With plans to produce batteries for over 500,000 vehicles per year.

Given the amount of lithium required to support this huge projected market, lithium mining companies are experiencing a major boost.

And one small company, United Lithium (CSE:ULTH; OTCMKTS:ULTHF), could be in a prime position to benefit after agreeing to buy an exciting new property.

While North America has largely been explored already over the last 50 to 100 years…

Europe’s seeing new opportunities that could prove to be extremely lucrative in the days ahead.

And United Lithium is preparing to dive in at their new Bergby Project in Sweden, once their purchase closes. They’ll jump right on it, because the deal terms call for United to spend at least $1M on the property in the first 18 months after closing.

Located near the world-famous Woxna Graphite mine and the new Northvolt lithium battery gigafactory, it’s in the perfect location…

This is why over the last year, shares have already shot up an incredible 371%.

But as they prepare to close on Bergby and begin their new drill program, there could be far more exciting news in store in the coming months.

Here are 3 reasons to pay attention to United Lithium (CSE:ULTH; OTCMKTS:ULTHF):

1 - High-grade Lithium Near Surface

The new Bergby property covers an enormous 1,903 hectares of land.

And it hasn’t taken long for them to get an idea of what they may find in their upcoming drill program.

That’s because much of this untapped lithium deposit outcrops on the surface.

This means the production costs shouldn’t be driven up by deep holes just to test what they’re sitting on.

They’ve got more promising data on the property from historical testing in recent years as well.

In 2017, 33 holes were drilled in the Bergby property, and 27 of them struck lithium.

But even with 27 of 33 holes delivering positive results, this number could have been even higher if these initial holes went deeper under the surface.

While they’ve got an idea as to where this lithium-rich ore lies already, the project could grow much larger.

The deposit is open along strike to both the north and the south, so there’s no telling how much further the deposit could run in either direction.

And United Lithium (CSE:ULTH; OTCMKTS:ULTHF) has contracted to buy additional land to the west as well, in case the zone of mineralization spreads even further than expected.

Plus, this historical data is showing they may be sitting on extremely high-grade lithium deposits.

While miners in Canada may be happy with 1.5% to 2% lithium in the deposits, several of the holes have tested at 3% to 3.5% lithium on United’s new soon to be purchased property.

To put that into context, the theoretical maximum for lithium concentration in ore is up to around 7.5%...

But it would be nearly impossible for grades to run that high unless you were manually sorting the rocks and picking out lithium crystals by hand.

This may become incredible news for United, as not only are they sitting on several holes that have already proven up lithium ore… 

But it’s shaping up in some places to be very high-grade lithium which could be extremely valuable.

The discovery has already been made on the Bergby property. Now United needs to define how big this discovery could be, prove up its commercial grade and determine economics.

2 - The Numbers Are Working In Their Favor

As United Lithium (CSE:ULTH; OTCMKTS:ULTHF) plows ahead with their plans to mine their new property, they are avoiding a major pitfall many mining companies fall into.

Other junior miners have fallen into the trap of chasing big discoveries… 

Only to come up empty-handed in terms of profits because they’re not accounting for holes in the bucket.

While it’s important to find a lucrative opportunity on the front-end, it’s just as important to keep expenses low while pursuing these huge discoveries.

That includes lowering costs for drilling, processing, and transportation.

And in United’s case, they’re planning on keeping costs down for all three.

With the deposit already showing lithium outcrops at the surface, they won’t waste precious cash wondering where to drill down in many cases.

Plus, they’ll be able to use more traditional methods to process the mineral, which helps lower their costs in that area as well.

In other parts of the world like in Argentina, they need expensive technology to help extract the lithium on a large scale.

But with United’s Bergby play, they can move ahead using traditional mining methods…

Using simple flotation processes to help them keep more of their money in hand.

And the location of their property in Sweden is making it quick and easy to transport whatever lithium they might develop there.

With the largest highway in Sweden running through their property, the infrastructure leading to and from Bergby is incredible.

And while they’re just an easy drive away from the massive Northvolt lithium battery gigafactory, making it easy to transport by truck…

They’re also close to a major deep seaport, helping deliver it to other gigafactories in nearby markets when the time comes.

This cannot be overstated as Europe’s EV markets have driven demand for lithium for EV batteries high sky high.

That’s helping United lock down the capital they need much easier than it would in other parts of the world.

They recently raised $4 million and have plans to raise an additional $8 million in the near future.

With the additional capital they expect to lockdown, they’ll have their drill program funded and ready to get started.

3 - Rapid Sale to the Massive European Market Without Tariffs

The location of the Bergby property could help United (CSE:ULTH; OTCMKTS:ULTHF) take advantage of Europe’s booming EV battery market.

As they’re settled within 5 km of a deep seaport, this gives them easy access to ship lithium to nearby gigafactories in Poland, Germany, and other countries investing heavily in batteries.

And their location in central Sweden also puts them closer to Stockholm than any other lithium mine in the country.

With the biggest highway in the country leading through the property, it couldn’t be easier to deliver the mineral to their nation’s capital to take advantage of the demand there, once the company is producing commercial quantities.

This is all coming at a time when the EU just approved billions more in subsidies to help develop the booming EV battery industry, helping them cut their reliance on China and Asian markets.

With this move, the EU have approved 2.9 billion euros to be granted to 12 countries throughout Europe, including Sweden…

And it’s set to “cover the whole production chain, from mineral extractionto design, battery manufacturing and recycling.”

That means United could have easier access to additional capital for this and other projects in the area as they move ahead.

As the lithium battery markets are expected by some analysts to hit $1 trillion in the next 5 years, investment in lithium mining is flowing heavily, particularly in Europe.

That places United (CSE:ULTH; OTCMKTS:ULTHF) in an excellent spot as they move forward with a promising, potentially high-grade lithium exploration project in a prime location to deliver throughout the region.

By. Olivia Keegan


Forward-Looking Statements

This article contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.  Forward looking statements in this article include that demand for lithium will increase in future as currently expected; United Lithium’s business and plans, including with respect to undertaking further acquisitions, completing the acquisition of Bergby, acquiring additional mineral claims nearby Bergby, complying with the terms of the Bergby acquisition and carrying out exploration activities in respect of its mineral projects; that most of the lithium is reachable close to surface; that they can reduce costs compared to many similar projects; and that they can raise $4M quickly. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling programs, aspects or all of the property’s development may not be successful, their methods of mining of the lithium may not be cost effective; the risks that the acquisition does not complete as contemplated, or at all; that United Lithium does not complete any further acquisitions; that they do not acquire the additional mineral claims in the region of the Project prior to March 21, 2021; that United Lithium does not spend $1,000,000 on exploration work on the Project within 18 months from the Closing Date; the Company may not be able to carry out its business plans as expected; changing costs for mining and processing; permits may not be granted for the mining projects; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on historical or even current data that may change with more detailed information or testing; potential mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper lithium; more production of lithium could reduce its price, or the price may drop for other reasons; alternatives could be found for lithium in battery technology; the availability of  labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties. The forward-looking information contained herein is given as of the date hereof and the writer assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.


PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities., Medtronics Ltd, and their owners, managers, employees, and assigns (collectively “the Company”) has been paid by United Lithium ninety thousand US dollars for this article and certain banner ads. In addition United Lithium has granted the Company stock options to acquire shares exercisable for 2 years at at price of $0.86 per share.This compensation is a major conflict with our ability to be unbiased. This communication is for entertainment purposes only. Never invest purely based on our communication.

SHARE OWNERSHIP. The owner of may be buying and selling shares of this issuer for its own profit. In addition, Safehaven has been granted 1M stock options exercisable at a fixed price. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock trade will or is likely to achieve profits. Comparisons made to other featured companies or past performance is not indicative of future results.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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