Musk Metals to acquire ‘Elon’ lithium project in Québec

Canadian junior Musk Metals has announced it will buy the Elon lithium project in Québec, in a quirky transaction whereby the company and the project have no association with Tesla’s billionaire owner Elon Musk.

Musk Metals, known as Gold Plus Mining until early March, has transitioned towards the battery metals thematic, based on increasing demand ‘fuelled by the recent shift to electric vehicles’, according to chief executive Nader Vatanchi.

The acquisition of the Elon project is in line with the company’s ‘nearology’ strategy, having acquired claims contiguous to Benchmark Metals’ Lawyers project in British Columbia last December.

In a media statement, Musk Metals described the Elon project as ‘strategically located’ about 600 metres Northeast of the former Mine Quebec Lithium, which operated between 1955 and 1965.

The Vancouver-based firm noted its plan to buy the asset by acquiring all the shares of Tonto Investments for 3 million common shares.

Musk Metals will undertake a two-phase exploration work programme which includes data compilation, geological mapping, trenching and sampling in phase one. Diamond drilling and metallurgical testing will be conducted in phase two, it said.

Lithium prices have continued on an upward trajectory so far this year, with Benchmark Mineral Intelligence estimating that lithium carbonate prices in China have almost doubled in 2021.