Lithium Ionic (TSXV:LTH) - Sub-$200M Build, $2B NPV at Today's Lithium Prices

Blake Hylands (0:00)

Hi, I'm Blake Hylands, CEO of Lithium Ionic. We're listed on the Venture Exchange and the TSX, Brazilian Lithium Hard Rock Project. Excited to be here.

SPEAKER_2 (0:09)

Good to have you here.

Blake Hylands (0:11)

Yeah.

SPEAKER_2 (0:11)

It's busy out there.

Blake Hylands (0:12)

In person in the flesh. In person in the flesh.

SPEAKER_2 (0:14)

We're wandering around the streets and bumping into people we haven't seen for a while, but I think the key is a lot of money here.

Blake Hylands (0:20)

Oh yeah. How's it been for you? Yeah, exactly that. I mean, I can't believe the buzz around here. I've been to a lot of these, and it's just, I can't believe how much money is flowing out there. I think I said to you, we got off the plane and we're right into meetings with big numbers. I wasn't really expecting right off the hop. And so yeah, we hit the ground running and it's been exciting.

SPEAKER_2 (0:38)

I think there's money sloshing around, people looking for deals. And I think the metal space just broadly is attracting a new type of investor as well. I think we're seeing, well done President Trump, I say.

Blake Hylands (0:49)

Oh yeah, for sure.

SPEAKER_2 (0:50)

For one thing, for one thing only, and now that. We kind of caught up recently, and obviously Salinas was part of the conversation. Is that deal closed yet?

Blake Hylands (1:00)

It's closed. Yeah. Yeah, we have the cash in the bank.

SPEAKER_2 (1:02)

Yes, sir.

Blake Hylands (1:03)

Okay.

SPEAKER_2 (1:03)

So where does that put you with cash?

Blake Hylands (1:05)

So, you know, after closing costs, we have almost 30M Canadian in the bank right now. So we're in a really strong cash position. And then it was a 2% Royalty attached to that as well. And now there's 75M US to come later at FIDs. So it was a nice transaction for us, actually.

SPEAKER_2 (1:22)

And I was going to close the way as well. So obviously the question I'm going to ask you is, you've got a project which needs to be built. How's it getting built?

Blake Hylands (1:31)

Yes. We're at that point. No, and it's an exciting moment for the company, right? We're actually getting the place where we think by the end of the year, the permits are in hand. Okay. That gets closer and closer all the time. Where did all this come from? Well, we're just wrapping up the federal process right now.

And that puts us back on the committee for the vote on the state process. So we think in the next two months, that's when that kicks off.

And then that's it. That gives us the go-ahead to build this project. And when I think about our first drill hole in 2022 to being permitted by the end of this year, I mean, we're in a very rare situation where you can move a project that quickly. And there are a lot of investors and lenders who want to be a part of a project like that. And because of the quality, the speed, but also the margins are still excellent. Spodumene prices are great. We're way above where we need them. And so the project looks awesome.

SPEAKER_2 (2:26)

You're kind of in the throes of the engineering. Where are you? Like halfway through?

Blake Hylands (2:31)

Almost complete. Yeah. We've got a couple more months of finalizing the next level of engineering, but that wouldn't hold us back from the beginning.

SPEAKER_2 (2:40)

What's it telling you?

Blake Hylands (2:41)

That we did a really good job on the fees. Right.

No, and we brought on Mike Westendorf leading the way. He did a great job. And we brought in the Artec team that built the Sigma project as well. And so we had a lot of real-time costs and data and project just built next door. That was a big success. And so when we did the fees, we were pretty confident in our numbers. And so pieces move one way, pieces move another. But we're really happy with the way we're doing.

SPEAKER_2 (3:07)

That's a heck of a comp to be sitting next door. It also means it's easy to judge you.

Blake Hylands (3:11)

Well, that's true. That's true. Yeah, we have to live up to a really successful build and successful operation. But I think anybody would be jealous of having that kind of information and that kind of comp package to pull from both from Sigma and their build. And then 30 years of CBL operations just the north of us as well. I mean, there's a huge information pool to pull from and we're very lucky to have that. So it helps sending a lot.