Today, when the market opens in Canada, Prima Diamond Corp. (TSX.V: PMD)will trade under its new corporate name Voltaic Minerals Corp. (new symbol: TSX.V: VLT). The 5:1 share consolidation has also been approved by the exchange and the new share structure will become effective at the opening. The current 32.6 million shares issued and outstanding will be reduced to a total of 6.5 million shares, whereas its share price will be readjusted from yesterday's close of $0.055 to approximately $0.275. In February, the company announced the acquisition of the Green Energy Project in Utah with historic lithium grades of up to 1,700 mg/L (read Rockstone's report here).
Also in February, the company announced a $0.05 post-consolidation private placement of up to 15 million units, which include a full warrant exercisable at $0.075 in the first year and $0.10 in the second year. The proceeds of the ongoing financing ($750,000) may get invested into the development of the company's Green Energy Lithium Project in Utah.
The Green Energy Lithium Property - which covers 1,684 hectares with close proximity to rail head, power and paved roads - is located in the Paradox Basin, where more than 50 oil and gas wells have been drilled in a 80 km wide radius from the property.
Oil and gas wells in the area have shown to be capable of flowing in excess of 50,000 barrels of brine per day. Historic wells on the Green Energy Property were reported to be "flowing artesian wells", i.e. no pumping may be required as the supersatured brines (up to 1,700 mg/L lithium with over 40% dissolved solids) flow to the surface under the natural pressure of the aquifer. During historic oil and gas exploration, several blow-outs occurred when intersecting brines under pressure within the Paradox Formation.
Readers should not rely on the Green Energy Project's historic resource of 15 million barrels (>2 billion liters) of brine containing 5,750 t lithium (30,535 t Li2CO3 / lithium carbonate), 157,000 t calcium, 576,450 t magnesium chloride and 96,000 t sodium.
Instead, Voltaic's mission to create sharholder value is to re-sample the brines, by re-entering existing shut-in wells on the property, and to upgrade the historic resource estimate to NI43-101-compliant standards. This will include metallurgical work, baseline and scoping work and engineering studies.
Management and insiders will control over 40% of the issued and outstanding shares on a post-consolidation and post-financing basis. On March 28, the company announced the results of its annual general and special meeting in Vancouver, where 48% (15.8 million shares) of the outstanding shares were represented at the meeting and where shareholders approved to consolidate the share capital of the company on the basis of 5 pre-consolidated shares for every 1 post-consolidated share. Each of the director nominees proposed by management for election was elected by 100% of the votes that was cast. Darryl Jones, Sean Charland, Dusan Berka and Foster Wilson were elected to the board of directors.
Dave Hodge (President)
Mr. David Hodge, President and Director of Zimtu Capital Corp. has an extensive background in business that includes over 20 years of experience in the management and financing of publicly-traded companies. He has been a director of mineral exploration companies since 1996, and serves on the boards of Commerce Resources Corp. and Equitas Resources Corp.
Foster Wilson (Director)
Mr. Wilson has over 30 years of experience in exploration and development ranging from reserve drilling and estimation, feasibility studies, mine permitting and development. He has worked in various capacities for Placer Dome Inc., Echo Bay Mines Ltd., American Bonanza Gold Corp. and various other junior exploration companies. Also currently serving as President of Mesa Exploration Corp.
Darryl Jones (Vice President of Corporate Development)
Mr. Jones has over 15 years of capital market experience and an established financial network. He was an Investment Advisor with PI Financial Corp. Canada and Raymond James Ltd. Canada. Jones was responsible for raising significant risk capital for growth companies in all sectors, with a particular focus on natural resources. He brings a network of contacts within the financial community from across North America and Europe.
Sean Charland (Director)
Mr. Sean Charland is a seasoned communications professional with experience in raising capital and marketing resource exploration companies. His network of contacts within the financial community extends across North America and Europe. Mr. Charland also serves as a Director of Arctic Star Exploration Corp. and Zimtu Capital Corp.
Dušan Berka (P.Eng., Director)
Mr. Berka has over 40 years of international business experience spanning Europe and the Americas with extensive experience in the finance, marketing and administration of public companies, having served as a Director and Officer of various public companies traded on the TSX, TSX Venture and NASDAQ exchanges. A graduate engineer with a M.Sc. (Dipl. Ing.) degree from Slovak Technical University, Bratislava, Slovakia (1968), Mr. Berka has been a member of the Association of Professional Engineers and Geoscientists of British Columbia since 1977. Mr. Berka currently also serves as a Director of 92 Resources Corp., Belmont Resources Inc. and Megastar Development Corp.
The voltaic pile then enabled a rapid series of discoveries including the electrical decomposition (electrolysis) of water into oxygen and hydrogen by William Nicholson and Anthony Carlisle (1800) and the discovery or isolation of the chemical elements sodium (1807), potassium (1807), calcium (1808), boron (1808), barium (1808), strontium (1808), and magnesium (1808) by Humphry Davy. The entire 19th century electrical industry was powered by batteries related to Volta's (e.g. the Daniell cell and Grove cell) until the advent of the dynamo (the electrical generator) in the 1870s.
Alessandro Giuseppe Antonio Anastasio Volta (18 February 1745 - 5 March 1827) was an Italian physicist, chemist, and a pioneer of electricity and power, who is credited as the inventor of the electrical battery and the discoverer of methane. He invented the Voltaic pile in 1799 and the results of which he reported in 1800 in a two-part letter to the President of the Royal Society. With this invention, Volta proved that electricity could be generated chemically and debased the prevalent theory that electricity was generated solely by living beings. Volta's invention sparked a great amount of scientific excitement and led others to conduct similar experiments which eventually led to the development of the field of electrochemistry. Alessandro Volta also drew admiration from Napoleon Bonaparte for his invention, and was invited to the Institute of France to demonstrate his invention to the members of the Institute. Volta enjoyed a certain amount of closeness with the Emperor throughout his life and he was conferred numerous honours by him. Volta held the chair of experimental physics at the University of Pavia for nearly 40 years and was widely idolised by his students. Despite his professional success, Volta tended to be a person inclined towards domestic life and this was more apparent in his later years. The SI unit of electric potential is named in his honour as thevolt. The volt (symbol V) is the derived unit for electric potential, electric potential difference (voltage), and electromotive force.
A voltaic pile, the first battery
Batteries convert chemical energy directly to electrical energy. A battery consists of some number of voltaic cells. Each cell consists of two half-cells connected in series by a conductive electrolyte containing anions and cations. One half-cell includes electrolyte and the negative electrode, the electrode to which anions (negatively charged ions) migrate; the other half-cell includes electrolyte and the positive electrode to which cations (positively charged ions) migrate. Redox reactions power the battery. Cations are reduced (electrons are added) at the cathode during charging, while anions are oxidized (electrons are removed) at the anode during charging. During discharge, the process is reversed. The electrodes do not touch each other, but are electrically connected by the electrolyte. Some cells use different electrolytes for each half-cell. A separator allows ions to flow between half-cells, but prevents mixing of the electrolytes.
Source: Wikipedia "voltaic/battery electricity"
Research #2: "Early Warning Report on Prima Diamond" (March 18, 2016)
Research #1: "Prima Diamond Acquires the Green Energy Project in Utah with Historic Lithium Grades of 1700 mg per liter" (February 18, 2016)
Voltaic Minerals Corp.
(formerly Prima Diamond Corp.)
Suite 1450 - 789 West Pender Street
Vancouver, BC, V6C 1H2 Canada
Phone: +1 604 681 1568
Shares Issued & Outstanding: 32,573,500
Canadian Symbol (TSX.V): VLT (formerley PMD)
Current Price: $0.055 CAD (April 13, 2016)
Market Capitalization: $1.8 million CAD
German Symbol / WKN (Frankfurt): 2P61 / tbc
Current Price: €0.042 EUR (April 13, 2016)
Market Capitalization: €1.4 million EUR
Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.
Disclosure: I am/we are long TSX.V: VLT.