With that in mind, what kinds of companies are you involved with?
I’m selective in the companies and the people I advise. I’ve been involved in mentoring natural resource companies, especially Lithium juniors. One of my most significant investments has been Nevada Lithium junior Dajin Resources Corp. I assisted, through advice and mentoring, in its reorganization. I also helped them find attractive Nevada-based Lithium targets and raised $1.1 million of fresh capital in October 2014 to breathe new life into the company.
Skin in the game is absolutely essential. That’s why I invest my own capital in companies I get behind and have been successful in attracting my associates and other high net worth individuals to do the same. Since Dajin’s funding, restructuring and reorganization 18 months ago, it has been trading with significant volume while other juniors find their stocks completely illiquid. And, as of last week, Dajin touched a new high of $0.18 per share.
Beyond Dajin, I’ve gotten to know the management team of Pure Energy Minerals. I think that company is well positioned as a pure, Nevada focused Lithium play. Pure Energy has been a success for me and for many of its shareholders. Western Lithium is another junior that I’ve traded successfully, but I was not involved in any way with them and don’t know the management. But still, I am impressed with how the company operates. With my team of experts, I think we’ve learned a great deal about Lithium, especially Lithium assets in southern Nevada.
I always monitor my larger investments closely, in fact I babysit them. If asked, I’m there to provide assistance in any way I can. Although I don’t proclaim to be an expert in Lithium, associating with the people who actually are industry experts, has made a huge difference. When I, along with my associates, invested in Pure Energy, we were accumulating shares in the 15 – 20 cent range. Once the company announced a substantial Inferred resource and off-take deal with Tesla Motors Inc (NASDAQ:TSLA), it propelled the stock to over a $1.00. Pure Energy was even announced the top performing mining company based on market capitalization growth, share price appreciation and trading volume.
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Why Lithium?
Again, I don’t consider myself an expert in the field, however I spend a lot of my time reading and researching; Lithium and green energy storage are here to stay. As many experts agree, we’ve reached the beginning of the end of the oil age. Lithium carbonate and hydroxide prices are rising, as demand grows exponentially. We are starting to see a Lithium staking rush, but investors should be cautious. Some companies don’t have the expertise, properties of value or the means to raise funds. But when I see serious entrants like Lithium X Energy, with a prominent management team coming into the space, it validates my view. So yes, I continue to believe in Lithium.
What other Lithium companies do you like right night now?
I like Nevada Energy Metals (TSX-V: BFF) (OTC Pink: SSMLF) (Frankfurt: A2AFBV) another company I have made a large investment in along with my associates. The company recently acquired and joint-ventured excellent Lithium targets, in close proximity to Albermarle’s Silver Peak mine, the only brine based Lithium producer in North America.
Nevada Energy Metals is now focusing on Lithium exploration targets in Nevada, home of the soon to be completed Tesla Motors giga-factory, Silver Peak and previously mentioned Pure Energy.
Nevada Energy Metals see themselves as a project generator — an incubator of lithium assets. Companies like Lithium X are doing the same. Although Lithium X recently moved into Argentina, which I think is a good play, for now it looks like Nevada Energy Metals is sticking with Nevada. Management feels there’s still ample room to pick up promising targets. After assisting the company in raising over $900,000 and introducing them to key individuals and groups, I can say that in my opinion, Nevada Energy Metals is just getting started. They may be new to Lithium, but they have the right people who understand how to locate and explore targets, not to mention, raise money.
As a reminder, my risk tolerance might be far different from readers of this interview. I invest considerable amounts of my own money into a number of very risky, small cap, natural resource companies, primarily lithium juniors. The companies mentioned may never develop a project or even advance beyond the exploration stage. Readers are urged to consult with their own investment advisors before buying & selling highly speculative small cap stocks.