Next Investors logo grey

American Pacific Borate & Lithium signs Chinese deal

Published 29-MAY-2018 12:28 P.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

American Pacific Borate and Lithium Limited (ASX:ABR) has established an initial path to market for its boric acid sales from its 100%-owned Fort Cady Borate Project in Southern California.

Through its wholly owned subsidiary, Fort Cady California Corporation, ABR has entered into a non-binding strategic cooperation agreement with Chinese state-owned enterprise Sinochem Group subsidiary Sinochem Hebei Corporation.

Sinochem Group is a key state-owned enterprise and leading chemical services provider that plays a key role within China for borate supply and distribution. It is one of China’s four state oil companies, China’s leading chemical services provider, China’s largest agricultural input provider, and a vertically integrated modern agricultural operator.

The parties have agreed to develop ABR’s product offering into China and work to maximise sales to Chinese customers. There are also plans for a binding off take agreement to be entered into for up to 40k tonnes of boric acid per annum from ABR’s phase one production of 82k tonnes per annum.

The deal will be conditional on ABR achieving all relevant approvals and securing financing to commence production at its Fort Cady Borate Project, as well as ABR having completed certain preparation work, including providing Sinochem with samples, specifications and feasibility reports.

American Pacific Borate and Lithium, CEO, Michael Schlumpberger commented: “This is a very significant milestone for the Company. The non-binding Agreement with Sinochem Hebei Corporation establishes our first path to market and demonstrates the strategic nature of borates within China. We believe the signing of this agreement demonstrates demand for borates, as well as the strength and attractiveness of the Fort Cady Borate Project.

“This is significant as it gives the market visibility of credible financing support for the project. There are very few global sources of borates and demand is believed to be increasing at 6% per annum. We have a very substantial borate resource that can ultimately be meaningful in terms of global production for a sustained period of time.”

However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.

The Fort Cady Boron and Lithium Project is a highly rare and large colemanite deposit with substantial lithium potential and is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.

The Project has a JORC mineral estimate of 120.4 Mt at 6.50% B2O3 (11.6% H3BO3, boric acid equivalent) and 340 ppm Li (5% B2O3 cutoff) including 58.59 Mt at 6.59% B2O3 (11.71% H3BO3) and 367 ppm Li in Indicated category and 61.85 Mt at 6.73% B2O3 (11.42% H3BO3) and 315 ppm Li in Inferred category. The JORC Resource has 13.9 Mt of contained boric acid.

In total, in excess of US$50m has historically been spent at Fort Cady, including resource drilling, metallurgical test works, well injection tests, permitting activities and substantial pilot-scale test works.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.