JOHANNESBURG (miningweekly.com) – Australia’s Caeneus Minerals reported on Monday that it had completed its due diligence investigation into two lithium projects in the US and that it would proceed with the acquisition.
The company stated that it would call a shareholder meeting to seek approval for the acquisition of Nevada Metals, which owns the Lida Valley lithium brine project and the Muddy Mountain project, in west Nevada.
Caeneus said numerous companies had sought to acquire ground prospective for lithium in Nevada and that it considered the Lida Valley and Muddy Mountain projects to be among the most prospective properties in the region.
The junior also reported that it had inspected several other properties in the region during its recent site visit and that it would acquire new properties “in the near future”.
Tesla Motors is building a $5-billion Gigafactory in Nevada, which is expected to create significant new demand for lithium. Junior project developers are rushing to get in on the hype created by the factory, which will source its raw material requirements from North America.
The Lida Valley and Muddy Mountain projects are situated near the Tesla factory.