ONTARIO – Pele Mountain Resources of Toronto has sold its Eco Ridge uranium project near Elliot Lake and will concentrate instead on lithium. Weak uranium and rare earth prices are responsible for the decision.
Pele sold the Eco Ridge claims, surface rights and leases for gross cash proceeds of $380,000 to an unnamed arm’s length buyer. The proceeds will be used to support Pele’s proposed monazite processing facility in Elliot Lake.
Separately, the company has signed a non-binding letter of intent with Energi Group Corp. to signal a new strategic direction for Pele. Energi has a direct extraction process (DXP) that recovers lithium from brine, and Pele will become the North American marketer for this technology. In exchange, Energi will take an 85% interest in Pele.
Energi operates a DXP demonstration plant in Salta, Argentina, and is successfully producing lithium carbonate. Pele will have exclusive rights to develop and market the DXP technology in North America and to license it a third party. Ideally, a DXP plant adjacent to the Tesla Gigafactory being built in Nevada would supply lithium for the carmaker’s electric vehicles.
Follow Pele’s new business ventures at www.PeleMountain.com