Centaur Resources Limited (ASX:CR3) Managing Director & CEO, Brian Clifford talks about the company's Argentinian lithium development project, Lobo Blanco, timelines and IPO.
Rachael Jones: Hello I’m Rachael Jones for the Finance News Network. Joining me today from Centaur Resources Limited (ASX:CR3) is Managing Director and CEO, Brian Clifford. Brian, welcome to FNN.
Brian Clifford: Thank you Rachael.
Rachael Jones: First up, could you start by giving us an introduction to the company?
Brian Clifford: Centaur Resources is a pure play lithium brine exploration company. We have tenements very well placed on the Pastos Grandes Salar and strategically around it. Speed to market, product flexibility and delivery will be three of the key attributes of this project. One of the key features of this project is that we’ll be producing both lithium carbonate and lithium hydroxide, as our key products. That will give us product flexibility, speed to market and also the ability to remain very low on the cost curve.
Rachael Jones: Can you remind us about the demand and the outlook for lithium prices?
Brian Clifford: So what we’ve seen is the demand for lithium products is growing year-on-year. We have not even begun to see the real demand for lithium as yet, because it has been restricted by the availability of supply. The demand in cars, the demand in dwelling, and also the demand in portable devices continues to increase year-on-year. Our project will be very low cost. And something else very unique to lithium in the forecast demand is that lithium cannot be recycled, during the current processes. So lithium will continue to be a product in strong demand.
Rachael Jones: Now to your project in more detail Brian. What can you tell me about the size and location?
Brian Clifford: Centaur Resources has secured 10,000 hectares on and strategically around the Pastos Grandes Salar. With that comes good road access to the Salars. And we also have tenements that are strategically to the north and west of the project, that will allow us to secure the required amount of water for processing.
Rachael Jones: What can you tell me about the project timeline?
Brian Clifford: With the IPO funds that’ll be raised, we hope to spend them immediately on JORC, we already have our drilling permits in place. We will spend 12 months confirming the JORC resource. And our path to market will be very aggressive, we hope to be producing both lithium carbonate and hydroxide, within the fourth year.
Rachael Jones: What can you tell me about the project economics?
Brian Clifford: Brine continues to be one of the most economical ways of producing lithium products. Our use of both wind and solar will allow us to remain very aggressively positioned, on the cost curve.
Rachael Jones: Now to your IPO. How much are you looking to raise and where will those funds go?
Brian Clifford: For this capital raise, we’ll be raising $15 million at a share price of 20 cents. That should give us a market cap of $50 million, which should place us very competitively in the existing market. Those funds will be used immediately into confirming the JORC of the project, and will take us all the way through to BFS (bankable facility study).
Rachael Jones: Where can investors find out more information?
Brian Clifford: To find out more information on Centaur Resources, you can go to our website and you can download a copy of the prospectus. Alternatively, you can contact Sequoia Financial Group (ASX:SEQ), who is our lead broker on the project.
Rachael Jones: Last question Brian. Why should investors consider the IPO?
Brian Clifford: Centaur Resources is a fantastic opportunity, offering tenements on the well-established Pastos Grandes Salar, which neighbours existing companies such as Millennial Lithium Corporation (TSX.V:ML) and LSC Lithium Corporation (CVE:LSC), who have already produced very strong results. Secondly, our team is one of the few teams that have actually delivered lithium products to the market already. We have the ex-General Manager of Orocobre Limited (ASX:ORE), who will be handling our operations. And we have the ex-CFO of Rincon Lithium Project, who’ll be handling our commercial and sales activities.
Furthermore, we’ll be supplying one of the biggest growth markets of recent times. We’ve not even begun to understand the full demand of lithium, as the technology and the use, and application of lithium hydroxide and carbonate continues to change, so will the requirement to feed this industry.
Rachael Jones: Thanks for the introduction Brian and best of luck for the IPO.
Brian Clifford: Thank you.