There’s no better example of how unhinged the junior mining market can get than the last few releases in August from Toronto-based Desert Lion Energy in relation to its assets in Namibia.
Desert Lion proudly describes itself as a “lithium development company focused on building Namibia’s first large scale lithium mine. The company is currently in phase one of its production plan, producing and exporting lithium concentrate from stockpiled material.”
On Aug. 27, the junior reported it was pleased to announce the receipt of its phase-two mining licence by Namibia’s Ministry of Mines and Energy. The mining licence has been granted for an initial 10-year period, effective immediately, and covers 68.7 sq. km, including the area where the company’s current Rubicon and Helikon mines are located.
“We are excited to announce this key step in advancing Desert Lion’s Namibian lithium project,” said Desert Lion president and CEO Tim Johnston. “Receipt of this mining licence demonstrates the strong working relationship between our Namibian team, the Ministry of Mines and Energy, Namibia and various stakeholders. We look forward to building a sustainable project [that] the community where we operate, employees and investors, and Desert Lion will be proud of.”
Flash forward, er, four days to Aug. 31, and Desert Lion was telling the market it had “ceased all operations in Namibia in light of the continued decline in lithium carbonate pricing. The board is currently re-assessing the previously announced three-stage execution plan and is evaluating all available options to find a sustainable path to the continued development of its Namibian lithium project.”
Continue reading at The Northern Miner.