Advantage Lithium (TSX-V: AAL) CEO David Sidoo on Nevada Drilling and Financing Roadshow Success
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President and CEO of Advantage Lithium (TSX-V: AAL)(OTC: AVLIF), Mr. David Sidoo. David, thank you for joining me this afternoon.
David Sidoo: Gerardo, thank you very much for having me on again. It's been a long road trip I've been on on behalf of Advantage Lithium (TSX-V: AAL)(OTC: AVLIF) shareholders, but it was quite positive and I'm happy be back in Vancouver.
Gerardo Del Real: I understand it was a very productive road trip and I wanted to have you back on so you could share the details there, because you also had some positive news while you were on the road trip. You continue to hit lithium there in Nevada at the Clayton Northeast project. I just wanted to have you on to get you to summarize the progress there in Nevada and to share with us how the roadshow's coming along, how it went.
David Sidoo: Sure. We started in Toronto, back east. Richard Seville, the CEO of Orocobre (TSX: ORL)(OTC: OROCF) joined me on that road show, which was fantastic. It was very supportive on him to come across the pond, so to speak. He flew in from Brisbane to Vancouver and Vancouver to Toronto. We spent a couple days in Toronto and Montreal, presenting the company to institutions. It was very, very well-received. We're just pending some orders from back east right now and then we went on to New York, and then I went to Sydney and Melbourne where basically their Orocobre shareholder base is, and we got some nice orders there from some of his big institutional holders of Orocobre, so that was very good validation for us in terms of us being part of the deal. They obviously wanted to invest in us, which was good. Then we went over to Singapore and London, had some very, very, good meetings with some big institutional guys that are basically doing back of the envelope valuation on us as opposed to Lithium Americas, to see how we value against that company. We should be able to wrap up this financing in the next several days. We're looking for anywhere between $12,000,000 to $15,000,000, and I think that's all the money we're going to need, Gerardo, for the next three years for our development in Argentina.
As far as while we were on the road, Ross McElroy joined me on a few meetings there in London and in Hong Kong. We had some good results in Nevada. Our second hole was very, very good, better than the first hole. We're going to press release the third hole here upcoming in the next few days. It also looks very, very good. We're definitely in the aquifer. We're expanding this resource now, so we're very excited about developing that asset and that resource on a six hole program over the next few months. It's going to be exciting down there. I think we're making some noise in Nevada that's positive.
Gerardo Del Real: Excellent. Just to summarize, I know that with the financing, once that's closed you're going ... Let's assume that, just to be conservative, that you raise $12,000,000. What would that look like? What would the treasury look like, David?
David Sidoo: We'd have $18,000,000 in the bank. We're probably going to spend another $2,000,000 in Nevada. Then the rest of the capital, between $7,000,000 to $10,000,000 of that's going to be spent on building that resource at Cauchari that we inherited on the deal with Orocobre. We picked up six assets from Orocobre. Five exploration assets, which we own 100% of, that are all very, very good assets. They're right in the middle of salars, Gerardo, so they're not on the outskirts, not on the edges, they're right in the middle of salars, right in the triangle of production in Argentina, but they're very good assets. We own 100% of those five, and we own up to 75% of an asset called Cauchari, which is right in the middle of the production that Lithium Americas, SQM, and Orocobre are having results with right now. We've got an inferred resource there of just under 500,000 tonnes and an exploration resource of up to 6,000,000 tonnes. We've got five holes ready to drill on that asset starting in February/March of next year.
The news flow we're going to have next year is we're going to continue to drill three more holds in Nevada, built that resource in Nevada. We're only the second company there in Nevada to drill besides Pure Energy. No other company's drilled anything like these holes there in Nevada, so we're excited about the results we're having there. Then we're going to continue doing geophysics on the five assets that we picked up that are exploration that we own 100%. Then we're going to develop the resource at Cauchari and drill five holes from February/March through the entire 2017. Our news flow is going to be strong. I think we'll have good results in Nevada. We'll have positive results in Argentina. That'll help our market cap on our stock.
Gerardo Del Real: Fantastic. You're well cashed-up. We're looking at the potential for multiple resource reports next year, both in Nevada and in Argentina. Anything else that you'd like to add, David?
David Sidoo: The only thing I'd like to add is when you look at any peers that we might measure against, it really only is Lithium Americas right now. They've got a $250,000,000 market cap. Our market cap, post-financing, will be around $100,000,000. We've got the same resource potential that they have. They're trading at 2.5X the market cap we are. There's lots of upside in our company, lots of upside in our stock. I think we're seeing a little bit of weakness right now at year-end and stuff, but that's normal. I think during the January/February we're going to rebound with all the news that we have. I really want to reiterate that the partnership that we have with Orocobre is a true partnership. They own 31% of our company. They have two board members that are senior board members of Orocobre coming on our board. All the money's going in the ground, nothing in anybody's pockets. Orocobre didn't take any money off the table. We really have the best assets that any junior has in this marketplace right now in Argentina. I think that bodes well for us long-term.
Gerardo Del Real: I think you're positioned very well, David, for a very, very fun 2017. I'm looking forward to it. Hopefully we can have you back on soon.
David Sidoo: Thanks, Gerardo. I really appreciate it.