Eye on Lithium: Canada sells lithium company to China, US lawmakers send stern letter
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All your ASX lithium news for Thursday, February 24.
Canada doesn’t seem too bothered about strengthening its supply chain, and much to the disapproval of its neighbours has allowed the takeover of Neo Lithium Corp by China’s Zijin Mining Group Ltd.
The company is listed on the Toronto Stock Exchange, but its mining site and employees are based in Argentina.
Last month it was sold for $918.7 million with Canadian Innovation Minister Francois-Philippe Champagne telling a Parliamentary committee the acquisition posed no national security risk.
Michael Walz (R-Florida), Elise Stefanik (R-NY) and Lance Gooden (R-TX) have made their unhappiness felt with a stern letter addressed to addressed to U.S. Secretary of State.
They also covered all their bases, also addressing the letter to the Secretaries for the Department of Interior, Department of Energy, Department of Defence, and Department of Commerce.
They describe the sale of the company as “highly concerning” and accuse the Canadian Government of underestimating the “the threat imposed by the Chinese Communist Party.”
It’s an odd move, since Canada and the U.S. recently created a Joint Action Plan to strengthen critical mineral supply chains.
Wowzers, only 6 stocks on our list finished today in the green, with 13 flatlining and a massive 69 stocks in the red.
The company plans to increase its resource expansion program at the Paradox project in Utah via the targeted drilling of the Cane Creek 32-1 well.
The aim is to target the large Mississippian brine aquifer which has a lithium-rich zone around 100-250m thick – compared to the 10m thick Clastic Zone 31 zone.
The company says this drilling program will follow on from the re-entry and drilling of the Long Canyon No.2 well.
And it expected the results to be included in the ongoing DFS, while it continues to progress project development.