Exploration and development companies Iconic Minerals and Nevada Lithium have signed a letter of intent (LoI) to consolidate their interest in the Bonnie Claire lithium project, in Nevada.

In terms of the LoI, ­CSE-listed Nevada Lithium will hold a 100% interest in the project.

“With 100% consolidated ownership, the company’s ability to negotiate with strategic investors and lithium end-users will be significantly enhanced. This is key to unlocking shareholder value,” Nevada Lithium CEO Stephen Rentschler said.

Iconic CEO Richard Kern added that the proposed transaction represented an opportunity for Iconic shareholders to be part of a reunification of the Bonnie Claire project under consolidated ownership and to continue to participate in the benefits of the project's future development and upside.

Lithium is a key commodity component of electric vehicles, and recent lithium prices reflect the outlook for persistent lithium supply deficits.

Rentschler noted lithium-carbonate equivalent (LCE) prices were about five times higher than the assumed prices used in the Bonnie Claire preliminary economic assessment, where at a base case pricing assumption of $13 500/t LCE the project returned a net present value of $1.5-billion.

Recent 2022 drill programme results also returned the highest lithium values ever recorded at Bonnie Claire, including 3 079 ppm lithium over 136 m² within a wider interval of 1 246 ppm lithium over 608 m².

With a projected yearly production rate of over 30 000 t of LCE, and a resource base that indicates the ability to upsize production further, Bonnie Claire has the potential to play a significant role in meeting global lithium needs.

“Having seen Richard Kern's original theory of a significant lithium resource at Bonnie Claire borne out, I firmly believe that Bonnie Claire is one of the most attractive global lithium assets remaining in junior developers' hands. I look forward to continuing to work with Richard and welcome Iconic shareholders to Nevada Lithium,” said Rentschler.

The Bonnie Claire project is one the biggest lithium resources in North America with a current NationaI Instrument 43-101 inferred mineral resource 3 407-million tonnes grading 1 013 ppm lithium for 18 372-million kilograms of contained LCE, at a cutoff grade of 700 ppm lithium.