Silver Valley expects Mexi-Can lithium-potash project back online soon

Canadian brownfield exploration company Silver Valley Metals expects its Mexi-Can lithium-potash project to come back online soon, CEO Brandon Rook said in a corporate update. 

According to the firm, talks with LitioMX, Mexico's national lithium company, are advancing and the parties are close to agreement, it said in a statement to announce the appointment of Miroslav Reba to the board of directors.

"We at Silver Valley are energized that Miro has joined the board at this strategic moment where the company is poised for strong growth, particularly at its Mexi-Can lithium-potash project, which is anticipated to come back online soon," Rook stated.

"Miro brings a wealth of knowledge and experience, particularly in the lithium space and especially delivering recently with numerous successful financings and attracting, contributing, and supporting positive and long-lasting partnerships in the mining business. We look forward to a successful 2024 in Mexico and Idaho," the CEO added. 

In May, Silver Valley said it was already in talks with LitioMx about forming an exploration and production partnership at the Mexi-Can project in Zacatecas and San Luis Potosí.

Silver Valley, formerly Organimax Nutrient, maintains the La Salada, Santa Clara, and Caliguey projects in the region's salt flats, covering 4,060ha.

The company also noted that there has been continued investment at Mexi-Can, which includes behind-the-scenes geological modeling, evaluating extraction methods for lithium and potassium, defining next steps, budgets, and ongoing discussions with potential strategic investors for the development and future production at the project.  

Last August, Mexican authorities notified Ganfeng Lithium of the decision of the general directorate of mines to cancel nine concessions granted to the Chinese company to produce lithium in the Sonora lithium project – the most advanced in the country – because "the minimum investment obligations had not been met."

"The company believes that there will be a positive outcome for the Mexico project, and once it is reactivated, it will be the catalyst for the company to raise funds," Silver Valley added.

As previously disclosed, the Canadian firm said discussions are active and advancing with LitioMX. "In-person meetings in Mexico City and Hermosillo, Mexico, have taken place, and follow-up meetings continue. Discussions have advanced, and from Silver Valley's viewpoint, the company and LitioMX are close to agreement.

Silver Valley thanked the shareholders for their patience and support through this period while they finalize an agreement with LitioMX. 

"We have a strong conviction that the project will be company-defining and that the shareholders will ultimately be rewarded as a result of management's continued efforts to protect the company's share structure," it said.