Greetings Contrarian,

This is The Next Big Rush, your daily drop of mining/energy investing news. Where we come together and brace for another Tuesday of nonsense.

Here are the high points:

🤪 Lithium Opec in South America

🤪 Canada Closing Doors on Mining?

🤪 Aussie Junior with positive $1B+ DFS in Austria

🤌🏼 Lithium OPEC in South America

Argentina, Bolivia, Chile, and Brazil are exploring the possibility of creating a lithium cartel to increase South America's processing capacity, turn more of their mined lithium into batteries, and tap into the electric vehicle manufacturing sector.

According to representatives of the Argentine delegation at the annual PDAC Convention in Toronto, Canada, the group would follow models similar to the Organization of the Petroleum Exporting Countries (OPEC), coordinating production flows, pricing, and best practices.

Since July of last year, Argentina, Chile, and Bolivia have been in talks, with the three countries making up the so-called lithium triangle, which holds around 65% of the world's known lithium resources and produced 29.5% of the world's output in 2020.

With Brazil's lithium sector just beginning to awaken to global demand, it has auto-making experience and is already a global example of low-carbon mobility, powering cars with ethanol, biofuels, and natural gas. (We’re from Brazil, we brag)

Although lithium reserves have been found in Mexico, which usually partners with the USA and Canada, the recent nationalization of the resource has pretty much ruined it for projects in that jurisdiction.

While this initiative has received some investment and support, some industry experts are ringing alarm bells that any exclusionary initiative, such as an OPEC for lithium, could be a strategic mistake that ends up driving away investment and punishing the countries involved due to its geological abundance.

🤦🏻‍♂️ Canada Closing Doors On Mining?

Junior mining companies focused on green energy metals such as lithium and nickel are concerned that Canada's efforts to restrict certain foreign investments may limit their ability to raise funds for mining and related facilities. The Canadian government proposed amending its Investment Canada Act (ICA) last fall to allow government ministers to block or unwind critical minerals investments if they believe such deals pose a threat to national security. (Oh great. Just what we needed.)

The proposed changes would give the government more control over Toronto Stock Exchange-listed companies and are expected to be finalized this spring. The mining industry is a significant contributor to Canada's economy, and nearly half of the world's mining companies are listed in Toronto, making it a premier destination for junior mining firms to raise funds.

Obviously, these companies are freaking out worry that the new rules could deter investors and entrepreneurs from Canada, as they look to other jurisdictions for funding. While the Canadian government considers critical minerals "key to the future prosperity of our country," critics warn that restricting capital flow could hurt Canada's economy and create a gap that needs to be filled.

We are speechless at the shoot-your-foot-ness of these measures.

🤟🏼 Aussies With Positive DFS In Austria

European Lithium Limited (ASX: EU) (FRA:PF8) (OTC: EULIF) just came out with results of its Definitive Feasibility Study for its wholly owned Wolfsberg Lithium Project, located in Austria. (You read that right, we too thought the only thing Austria produced was economists and great pianists).

Highlights:

Estimated CAPEX is US$ 866 million which supports a post-tax NPV of US$ 1.5 billion @ WACC1 6%;

Internal Rate of Return (IRR) % 33.30

Life of Mine Plan (LOMP) period years 14.6

Sales price in 2025 US$/t LHM 48,600

Market Cap: $99.99M

There are many footnotes to this news you should check it out if you’re on the lithium bandwagon - we’re not going to pretend we know if this is awesome or not.

Happy Speculating,

The Editor

P.S. Every. Thing. Is. Red. Except....... 😉

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.