Can you give an introduction to Pan American Energy Corp?
Pan American Energy Corp is an acquisition and exploration company focused on expanding the lithium supply chain in North America. There is currently a tremendous amount of momentum behind supporting homeland-developed projects and securing the critical mineral strategy on the homeland in North America. On that basis, our strategy is to focus on two prominent assets, the Big Mack lithium project in Canada, and the Horizon Lithium project in the US. We are actively drilling in Nevada at the Horizon project and have 11 of the 22 holes drilled as part of the Phase One program. We recently announced the results of our Phase One program, encountering lithium in each hole, testing as high as high 2,040 ppm lithium, with shallow overburden, and broad zone mineralization intersects. We are also fully funded for a 5000-meter drill program at the Big Mack project which is scheduled to start Summer 2023.
In the Western world, how would you describe the current state of the lithium supply chain?
At a high level, it is a function of looking at supply chain independence and security, not only for the capacity to secure critical minerals for everyday uses but also for defense applications. We are seeing increasingly more support from government, including the Defense Act, Critical Minerals Act, the Inflation Reduction Act (IRA), and the Bipartisan Infrastructure Law grants, both in the United States and Canada. Today, China dominates the supply chain of critical minerals, particularly lithium, graphite, and other EV critical minerals. There is now a huge focus on how we can create independence and determine our destiny when it comes to managing these critical minerals.
How important will lithium be in the coming years and why do we need supply chain security?
The dominance of China’s critical mineral lithium supply chain over North America is a growing concern in the current landscape. China has established a strong position in the global lithium market, both in terms of production and processing capabilities. This dominance poses potential challenges and risks for North America, particularly in ensuring a stable and independent supply of lithium for various industries and applications, including defence.
The reliance on China for lithium supply raises concerns about potential disruptions in the global market, geopolitical considerations, and the need for diversified sources. It highlights the important of developing and expanding North America’s own lithium supply chain to reduce dependency and mitigate vulnerabilities.
Efforts are being made to address this issue and strengthen the lithium supply chain within North America. These include exploration programs, partnerships, and investment initiatives aimed at expanding lithium resources, refining technologies, and establishing robust infrastructure for extraction, processing, and distribution.
By focusing on enhancing the lithium supply chain in North America, the region can strive for greater self-sufficiency, promote domestic industries, ensure a secure and stable supply of lithium, and contribute to the transition towards a greener more sustainable future.
Do you believe the market and investors are realizing this absolute need we have for lithium?
From an investor standpoint, headlines can be misleading, given the recent pull back in lithium pricing from the all-time highs that were observed at the end of 2022. This caused alarm in the market, suggesting wavering lithium demand. However, when you look at the actual fundamentals of the lithium industry and compare current lithium pricing to that of two years to go, there is still an approximate 4x increase. Arguably, it should have never reached those all-time highs, but I believe we will continue to observe a consistent increase in lithium pricing moving forward as demand outpaces supply.
Mining projects take significantly more time to build than Gigafactories, and there are considerations like the IRA (Inflation Reduction Act), whereby companies will have to source and utilize materials that are developed domestically in the United States to avoid taxation. Many people are now embracing the reality that lithium is here to stay in terms of the growing requirements, and momentum behind everyday applications like electric vehicles. General Motors recently invested $650 million in Lithium America’s Thacker Pass project and Ford has also announced multiple deals with the likes of Albermarle, Compass Minerals, and Nemaska Lithium – to name a few. The general population is increasingly recognizing the paramount importance of critical mineral supply chain independence, particularly in light of the macro-economic considerations arising from global turmoil and major conflicts taking place. Pan American Energy Corp remains bullish on the North American lithium market as a whole.
As technological advancements persist, companies are assuming a higher level of responsibility for Environmental, Social, and Governance (ESG) capacity. They are now compelled and willing to actively shape and support objectives that align with their fundamental corporate structure and strategy. Everyday consumers are gaining an understanding of the necessity of these materials and their origin. They recognize the importance of sourcing raw material from regions governed by the rule of law, in a manner that supports continuous technological development, ultimately leading to increased yield and reduced resource consumption.
What differentiates Pan American Energy Corp?
As an exploration company, Pan American Energy Corp maintains a strong focus on resource definition in North America with the intent to supply the domestic market. We have exceptional properties located in tier one jurisdictions. The Company has a conservative market capitalization compared to regional peers who are only a few steps ahead in terms of resource progress such as American Lithium and American Battery Technology. Transparency is key to us, as we openly communicate our current progress and outline our ambitious goals. Our primary objective is to reach a stage where we have an inferred resource indicating sufficient recoverable material and scale to progress to subsequent development phases.
Throughout this process, we are dedicated not only to mitigating impacts but also to implementing strategies and technologies that have a lesser environmental footprint. We actively engage in discussions with partners and technology groups, including universities in both the US and Canada, to potentially provide feedstock material for testing their technologies. As we progress from resource definition and move towards production considerations, we will continue to explore leaner, more efficient, and environmentally friendly technologies advocated by academia and industry peers who are more advanced in terms of development.
Our message to investors is clear: we are committed to utilizing best practice exploration techniques and establishing pathways for collaboration with strategic partners, both on the commercial and academic fronts. We believe there to be a tremendous opportunity for value creation given the size, quality, and accessibility of our North American based projects.
What are Pan American Energy Corp’s main objectives moving forward?
Pan American is actively committed to the expansion of the lithium supply chain in North America. Our current portfolio positions us favorably for potential joint ventures, off-take agreements, takeover, or partnerships that would create value for our shareholders. We remain open to exploring opportunities that could drive the next phase of our company’s evolution. Currently, our primary focus lies in conducting exploration programs to establish a resource base. Once we have a defined resource, it will enhance our ability to engage with larger mining partners and off-take partners who are interested in adding a complementary asset to their portfolio or securing raw material feedstock.
