Product Week: Exxon Mobil, Heliostar Metals, Galan Lithium, Vale, Alpha Exploration, Chevron, PDC Energy, SQM, Ford

Product Week: Exxon Mobil, Heliostar Metals, Galan Lithium, Vale, Alpha Exploration, Chevron, PDC Energy, SQM, Ford

Exxon Mobil has apparently bought land in Arkansas for more than $100 million to mine lithium. Heliostar Metals reports preliminary drilling results at the Ana Paula project in Mexico. Galan Lithium raises AUD 31.5 million in new capital from investors. Vale is investing in iron ore in northern Brazil, thereby strengthening its position in the green metal. Alpha Exploration is making progress at the Kerkasha Project and has reported two positive drill results this week. Chevron ingests PDC energy, adding 10% to its proven oil reserves. SQM and Ford announce lithium deal. raw materials week in perspective.

Exxon Mobil is investing in lithium

The Oil Giant Exxon Mobil (WKN: 852549, ISIN: US30231G1022) seems to invest in lithium. As reported by the Wall Street Journal, a Texas-based company recently acquired the rights to drill for a property in the US state of Arkansas. Purpose: lithium mine. Exxon has purchased 120,000 gross acres in the Smackover Formation in southern Arkansas from exploration company Galvanic Energy, the newspaper further reports, for more than $100 million.

Heliostar Metals marks the first drill holes

Heliostar Minerals (WKN: A2QEX9, ISIN: CA42328Y1025, Tick: HSTR) has reported preliminary drilling results from the Ana Paula project in Mexico. These are the Company’s first two holes on the project. Important facts according to the press release:

Pit AP-23-292

  • 101.1 meters @ 8.3 grams per tonne (g/t) gold including;
  • 53.2 meters @ 11.0 g/t gold

Pit AP-23-291

  • 118.5 meters @ 5.4g/t gold including;
  • 44.5 meters @ 11.0 g/t gold including;
  • 4.0 meters @ 48.5 g/t gold

CEO Charles Funk was “pleased” with the results. “Drilling results like this are rare in the world. Ana Paula’s high grade and frequent gold mineralization intervals demonstrate the potential of the underground mine.”

Both holes exceeded expectations based on the current resource structure. Funk noted drill hole AP-23-291 as “particularly encouraging” which returned “a 30% increase in cut grade of >5 g/t compared to the current resource model”.

Galan Lithium wants to raise AUD 31.5 million for lithium projects

Galan Lithium (WKN: A2N4CD, ISIN: AU0000021461) has firm commitments from investors by placing A $31.5 million. The funds are primarily brought in by institutional investors and experienced investors.

The company plans to use the money to develop its Hombre Muerto West (HMW), Candelas and Greenbushes South projects. As part of the offering, Galan will issue 30 million new shares of common stock at A$1.05 per share. This represents a 12.5% ​​discount to the last closing price on May 17 and a 9.8% discount to the ten-day weighted average price. The shares are expected to be released on May 29.

Galan’s CEO, Juan Pablo (JP) Vargas de la Vega, sees an “exciting time” in the company’s history.

Vale invests 2.7 billion

Vale (WKN: 897136, ISIN: BRVALEAACNOR0) is investing $2.7 billion in expanding iron ore production, according to a Bloomberg report in the Brazilian Amazon. The capacity at the world’s largest open pit mine, the S11D mine, is to be expanded by 30 million tons. By 2025, Vale wants to produce 260 million tons of iron ore in northern Brazil.

The ore extracted from the mine is very rich, thus reducing the use of oil for the production of steel. In addition, electric drilling and conveyor belts are used to reduce CO2 emissions and thus produce steel that is as clean as possible – which sells better and better on the world market.

Alpha Exploration doubles the mining results

Alpha Exploration (TSXV: ALEX, WKN: A3DLBX, ISIN: VGG3198S1074, Tick: ALXPF) twice this week reported drilling results from Aburna, part of the Kerkasha project in Eritrea. Results were released on Monday from 19 drill holes and four drill holes totaling 2408 meters in the Mountain and Central Zone targets. Some Important according to the press release:

  • Central Zone, ABR034: 3.67 g/t gold over 8 metres
  • Central Zone, ABR031: 2.27 g/t gold over 18 m
  • Central Zone, ABR060: 0.60 g/t gold over 45 m
  • Hill 52 Zone, ABR039: 6.31 g/t gold over 5m
  • Hill 52 Zone, ABR059: 1.04 g/t gold over 21 m

This was followed on Wednesday by information about ten holes to dig a total of 1,188 meters in the target area of ​​the North East. Some Notification based attractions:

  • ABR044: 4.24 g/t gold over 13 m
  • ABR043: 3.99 g/t gold over 11 m
  • ABR041: 1.24 g/t gold over 12 m

The North East Zone is 1.3 km north-east of the Central Zone. Alpha CEO Michael Hopley commented that you should now test the middle zone to see if it is a border zone.

Chevron acquires PDC energy

Chevron (WKN: 852552, ISIN: US1667641005) takes PDC energy. According to the oil company, the definitive agreement to acquire all outstanding shares has been terminated. This values ​​PDC Energy at $72 per share or $6.3 billion. Under the terms, PDC shareholders will receive 0.4638 Chevron shares for each PDC share. Including debt, the total value of the transaction is 7.6 billion US dollars.

According to Chevron, it is thus acquiring “attractive and additional assets” that will strengthen its position in important production areas in the United States. Mike Wirth, Chevron’s Chairman and CEO, said the acquisition “will have a positive impact on all financial metrics” and support Chevron’s goal of higher earnings and lower carbon emissions.

Assuming an oil price of $70 a barrel, Chevron expects about $1 billion in annual free cash flow as a result of the transaction. Chevron’s proven reserves increase by 10% for purchases at a cost of less than $7 for the same barrel of oil.

SQM and Ford sign lithium deal

SQM (WKN: 895007, ISIN: US8336351056) and Ford (WKN: 502391, ISIN: US3453708600) have agreed on a long-term strategic partnership for lithium. As SQM announced through a press release, the agreement provides for the supply of lithium to Ford – and gives the car group access to tax credits from the Inflation Reduction Act. SQM lithium manager Carlos Diaz stressed that SQM produces lithium with one of the highest environmental standards in the industry. Ford emphasized that the agreement supports progress in the expansion of electric mobility and, through SQM’s proven scaling capabilities, secures the lithium needed to reduce production risk.