Critical Element Stock Price, News & Analysis

Critical Elements Lithium Corporation (traded in Canada under TSX-V: CRE and on the US OTCQX market as CRECF) is a mining and exploration company focused on lithium and related critical minerals. According to company disclosures, Critical Elements aspires to become a large, responsible supplier of lithium to the electric vehicle and energy storage system industries. The Corporation’s activities are centered on advancing its wholly owned, high-purity Rose Lithium-Tantalum project in Québec, together with an extensive portfolio of exploration properties.

Core projects and land position

The Corporation describes the Rose Lithium-Tantalum project in Québec as its first lithium project to be advanced within a large land package. In various news releases, Critical Elements states that its land portfolio covers over 1,016 to more than 1,050 square kilometres, including the Rose Lithium-Tantalum and Rose South property blocks and the 100%-owned Nemaska Belt properties in the Eeyou Istchee region of Québec. The Nemaska Belt portfolio spans over 100 kilometres of the Nisk structure and its associated volcano-sedimentary belt and consists of hundreds of exclusive exploration rights.

Critical Elements reports that the Rose Lithium-Tantalum project is a high-purity hard rock lithium project designed for the production of spodumene concentrate. A Feasibility Study on Rose, announced on August 29, 2023, returned an after-tax net present value at an 8% discount rate and an after-tax internal rate of return that the Corporation highlights in its news releases. The company emphasizes that Rose is one of the more advanced hard rock lithium projects in North America and that its long-term objective is to develop this project.

Geographic focus and infrastructure context

All of the Corporation’s principal projects described in the provided disclosures are located in Québec, Canada, particularly in the Eeyou Istchee James Bay region. Critical Elements notes that, in its view, Québec is strategically well-positioned for United States and European Union markets. The company also highlights that the province offers established infrastructure and a low-cost, low-carbon power grid, which it reports is largely based on hydroelectricity. This context is presented by the Corporation as an advantage for developing lithium and critical mineral projects.

Regulatory approvals and project status

Critical Elements reports that the Rose Lithium-Tantalum project has received several key regulatory authorizations. According to multiple news releases, the project obtained approval from the Federal Minister of Environment and Climate Change on the recommendation of a Joint Assessment Committee composed of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government. The Corporation also states that it has received a Certificate of Authorization under Québec’s Environment Quality Act from the Québec Minister of the Environment, the Fight against Climate Change, Wildlife and Parks, as well as a project mining lease from the Québec Minister of Natural Resources and Forests under the Québec Mining Act.

In addition to regulatory approvals, Critical Elements has disclosed conditional funding support related to project infrastructure and potential project debt financing in its news releases. Management commentary in those releases indicates that the Corporation is working toward assembling funding required to make a final investment decision on the Rose project, while continuing exploration across its broader land package.

Nemaska Belt properties and exploration activity

Beyond Rose, Critical Elements holds a 100%-owned group of properties referred to as the Nemaska Belt properties. The Corporation reports that these properties are prospective for both lithium-bearing spodumene and nickel-copper-platinum group element (PGE) mineralization. The Nemaska Belt portfolio is described as consisting of over a thousand exclusive exploration rights across multiple property blocks, covering hundreds of square kilometres.

Several news releases detail an extensive helicopter-borne electromagnetic VTEM plus time-domain survey completed over the Nemaska Belt properties. The objective of this survey, as stated by the Corporation, is to identify electromagnetic conductors that could correlate with nickel-copper-PGE mineralization and to define high-priority drill targets. Critical Elements also describes ongoing and planned surface exploration programs involving prospecting, mapping, sampling, and follow-up drilling to test high-grade nickel-copper-PGE and lithium-bearing spodumene targets and to expand the mineralized footprint of the Rose West lithium discovery, located within approximately 10 kilometres of the flagship Rose project.

Other property interests and strategic holdings

Critical Elements has also disclosed interests in additional properties and corporate holdings. The Corporation reports that it optioned the Nisk property, which hosts a nickel-copper-PGE deposit and the polymetallic Lion discovery, to Power Metallic Mines Inc. Following exercise of that option, Critical Elements states that it retains a non-dilutive 20% interest in the Nisk property until a definitive feasibility study regarding extraction and production activities is completed. The Corporation also discloses that it held just over 10 million shares of Power Metallic as of a specific financial reporting date.

In another transaction, Critical Elements announced an asset purchase agreement to repurchase a 49% interest in the Bourier property from Lomiko Metals Inc., thereby regaining 100% ownership in that property. This transaction involves a defined number of exclusive exploration rights and further consolidates the Corporation’s land position in Québec.

Corporate actions and financing

The company’s news releases describe several corporate actions, including shareholder meetings and equity financings. At an annual shareholders’ meeting, Critical Elements reported that shareholders approved the election of directors and the appointment of auditors. The Corporation also announced a bought deal private placement and its subsequent closing, involving the issuance of common shares and flow-through shares. According to the Corporation, the net proceeds from these offerings are intended to fund exploration programs at the Rose West block and Nemaska Belt properties in Québec, as well as for general working capital and corporate purposes. The company further notes that the gross proceeds from the sale of flow-through shares will be used to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).

Exploration results and technical work

Critical Elements has released detailed exploration results from its Nemaska Belt properties. These include rock and till sampling programs designed to maximize geochemical coverage and assist in defining drill targets. The Corporation reports multiple mineralized zones identified through rock sampling in areas coinciding with VTEM conductors. The mineralization is described as being dominated by pyrrhotite and pyrite, with chalcopyrite and pentlandite also present. The company has published numerous grab sample results for copper, nickel, cobalt, platinum, palladium, gold, silver, and lithium oxide. Each news release emphasizes that grab samples are selective by nature, are unlikely to represent average grades, and may not represent true underlying mineralization.

Quality assurance and quality control procedures are also described. The Corporation notes that standards and blanks were regularly inserted into the sample stream and that samples were processed and analyzed by an external laboratory using specified analytical methods. A Qualified Person, identified as a professional geologist, is stated to have reviewed and approved the technical content of these exploration news releases on behalf of the Corporation.

Community and regional initiatives

Critical Elements is mentioned among a group of mining and exploration companies participating in a funding initiative to support the reconstruction of cabins burnt during forest fires in the Eeyou Istchee James Bay territory of Québec. This initiative, coordinated with Cree organizations, is described in a joint news release that lists Critical Elements Lithium Corporation as one of the contributing companies. While this release is not solely about Critical Elements, it provides context on the Corporation’s participation in regional initiatives connected to the communities where its projects are located.

Stock information and trading venues

In the provided disclosures, Critical Elements Lithium Corporation identifies its primary Canadian listing as TSX-V: CRE and notes that its shares also trade on the US OTCQX market under the symbol CRECF and on the Frankfurt Stock Exchange under FSE: F12. The news releases also refer to the TSX Venture Exchange’s role in reviewing and approving certain corporate transactions, such as private placements, and include standard statements that the exchange does not accept responsibility for the adequacy or accuracy of the releases.

Risk disclosures and forward-looking information

Across its news releases, Critical Elements includes cautionary statements concerning forward-looking information. These statements explain that forward-looking information is based on assumptions believed to be reasonable at the time but that actual results and future events could differ materially. The Corporation identifies potential factors that may cause differences between anticipated and actual outcomes, such as exploration results, financing, and regulatory or operational risks, and refers readers to its management discussion and analysis and other disclosure documents available under its SEDAR+ profile.

Summary

Overall, Critical Elements Lithium Corporation presents itself as a Québec-focused mining and exploration company aiming to supply lithium and associated critical minerals to electric vehicle and energy storage markets. Its flagship Rose Lithium-Tantalum project, supported by a Feasibility Study and multiple regulatory approvals, sits within a large land portfolio that also includes the Nemaska Belt and Bourier properties and a retained interest in the Nisk nickel-copper-PGE project. Ongoing exploration programs, technical studies, and financing activities described in the company’s news releases are directed toward advancing these assets within Québec’s established mining and energy infrastructure framework.