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On Monday, lithium explorer Red Dirt Metals (ASX:RDT) announced an acquisition of prospective lithium assets from Electrostate, the 100% holder of the Yinnetharra Lithium Project in the Gascoyne region, Western Australia.

Red Dirt is currently developing its Mt Ida lithium project but has outlined its intention to grow its lithium portfolio through acquisitions.

To acquire the Electrostate assets, RDT issued $15 million worth of new shares at 56.7 cents per RDT share. $10 million more shares will be issued at a price equal to the 10-day VWAP on the date when the milestone is achieved.

Red Dirt defined the milestone as the “delineation of a JORC 2012 compliant resource in excess of 15 million tonnes @ 0.9% Li2O or greater on the Project within four (4) years following settlement of the acquisition.”

The acquisition terms leave room for Red Dirt to pay, “at its sole election”, $10 million in cash to Electrostate shareholders instead of issuing deferred consideration shares.

Managing Director, Matthew Boyes, commented on the acquisition:

“The Yinnetharra Lithium Project represents an excellent early stage LCT bearing project with obvious scope and scale to deliver a very large-scale operation. This acquisition builds the Company’s lithium portfolio and offers excellent growth potential and a future pipeline of projects which are complementary to our flagship Mt Ida Project. Mt Ida remains on track as our priority near-term project and is focused on accelerating a path towards production.

When our team assessed the prospectivity of the Yinnetharra Project, we were attracted by the multiple pegmatite occurrences near surface and outcropping over an extensive area. This represents a compelling value-add proposition for the Company. Upon completion of this acquisition, the Company will fast track mobilisation and commencement of an initial drilling programme, aiming for commencement prior to the end of the calendar year.”

Europe is the centre stage of an unfolding crisis in energy.

The sheer magnitude of this impending catastrophe is astounding.

And it really feels to me like it could be a pivotal moment in history. One of those rare moments that sets the winners and losers of the decades to come.

One thing’s for sure…

It’s going to be a cold winter in Europe.

Let me explain more…

Jail time for energy ‘thieves’

As Goldman Sachs wrote on Friday:

‘Samantha Dart, a senior energy strategist at Goldman Sachs, expects the real effects of the shutdown to still be ahead, especially for ordinary citizens.

‘“This is a very painful process and it’s impacting the European population in many different ways,” she says. “Ordinary people haven’t even felt the full brunt of this situation.”’

But they’re about to…

Germany has mandated cuts to energy use of 10% and wants every other EU country to do the same.

How will they do this?

Well, there’s an extraordinary clip here of a German finance minister explaining how select small businesses (i.e. bakeries, cleaning companies, etc.) could simply shut shop for a while until energy prices come back down!

Believe it or not — though I’m pretty sure you will believe it — this guy studied poetry and has no prior business or economic experience.

If these are the kinds of ‘leaders’ Europe has at the helm right now…

Even Switzerland, long considered a nation of smart, logical thinkers, is looking a tad radical.

They’re proposing making it a crime to heat your home to over 19 degrees!

I’m talking actual prison time here.

Imagine the scenes in 2023…

‘What are you in for?’

‘Armed robbery. You?’

‘Cold feet…’

https://www.moneymorning.com.au/20220912/energy-crisis-about-to-lift-a-notchbut-opportunities-here-too.html

The price of bitcoin is back over US$21,500 after a recent rally.

After trading at US$18,815 on the 6th of September, bitcoin has gained 15% since.

That said, the largest cryptocurrency is still down 10% over the past month and down 50% over the past 12 months.

The CoinDesk Market Index (CMI) — a broad-based index measuring the market cap weighted performance of global cryptocurrencies — is up 9% this month.

 

Where is the gold price heading?

Veteran investment strategist Peter Schiff, CEO at Euro Pacific Precious Metals, recently offered his thoughts on gold’s price movement.

ICYMI: Listen as our trading guru Murray Dawes sums up the week that was and gives his thoughts on uranium stocks.

Altech Chemicals (ASX:ATC) said on Monday its pilot plant implementation is “well underway”.

Altech is aiming to commercialise its Silumina anodes product — alumina-coated silicon and graphite used in lithium-ion batteries.

ATC said it is “in the race to get its patented technology to market”.

Pilot plant construction is slated for October 2022, with the plant “progressing to the expected timeframe.”

ATC shares are down 50% year to date.

Energy journalist and author of Power Hungry Robert Bryce has warned in a recent lecture that the collapse of Europe’s fertiliser sector threatens to wreak havoc across the world for months on end.

 

Benchmark Minerals reported that EV automaker Tesla is planning to build a lithium hydroxide refinery in Texas to feed its gigafactory.

It’s the first move by an automaker into lithium chemical production.

CEO of Benchmark Minerals, Simon Moores, said the trend for Tesla and its peers is clear: increasing competition and rising input cots mean EV automakers and OEMs must ‘become miners’ and own lithium mines themselves if they are to guarantee lithium supply.

Tesla has filed to build a lithium hydroxide refining facility in Texas (Gulf Coast).

This is a revisiting of its 2020 plan to build a spodumene conversion facility to make lithium hydroxide at #GigaTexas

Originally planned to launch Q4 2022.

— Simon Moores (@sdmoores) September 11, 2022

According to private firm data, US consumer price inflation showed signs of slowing in August.

The Wall Street Journal reported that data tracked by private firms suggested gasoline prices fell sharply in August, along with airfares and used car prices.

Nonetheless, food prices continues to rise.

Alberto Cavallo, a Harvard Business School professor, told the Journal:

“We are experiencing a slowdown driven by the decline in fuel prices, but there is still significant upward pressure in such important categories as food, household items and healthcare products.”