MAN signs DLE partnership with Bill Gates backed Electroflow
Our US lithium brine Investment Mandrake Resources (ASX: MAN) just signed a non-exclusive strategic alliance with a Direct Lithium Extraction (DLE) tech partner in the US.
MAN’s deal is with Electroflow - a company backed by Bill Gates’ $2BN “Breakthrough Energy” (BE) Group.
The Electroflow guys are one of the few DLE technologies backed by Bill Gates’ Breakthrough Energy Group.
The other one being Lilac Solutions which was incubated and funded by Breakthrough.
(Source)
Lilac’s tech is now being used in some of the biggest brine projects in the world.
So the Electroflow guys have some serious capital backing them and now they get to work with MAN on DLE applications for its project.
DLE Partnerships impact on share prices:
There is a precedent for DLE partnerships being catalysts for share prices on the ASX.
Back in June 2022 Anson Resources announced an MOU with Sunresin for DLE applications on its project.
Off the back of that news Anson’s share price went from ~14c to just under 50c per share.
At the end of that run, Anson’s market cap peaked at ~$490M.
Right now Anson has a market cap of ~$180M - compared to MAN’s ~$28M.
Just because Anson Resources share price went up on the back of a DLE partnership is no guarantee that MAN’s share price will respond the same.
What’s next for MAN?
Sampling results from wireline logging program 🔄
MAN recently finished running a wireline logging program (sampling) in six wells, targeting three different reservoir formations.
The main things we will be looking for from this program will be similar to the results we are used to seeing from oil & gas sampling programs.
Things like gross/net pay intervals and technical reservoir data.
Ideally, we will get some idea of the type of grades in the reservoirs and all of the above.
Permitting of re-entry/drill program for Q1 2024 🔄
Before MAN can run its re-entry/drill program it will need to get its permitting sorted.
We are hoping this happens as soon as possible so that the work on ground can start early in Q1 next year.
