Five Top Ways to Trade the Potential for Fourfold Growth in Nickel Demand

Global demand for nickel could grow fourfold over the next few decades, according to the BHP Group, as noted by Bloomberg. In fact, “The world’s biggest miner predicts nine in 10 cars sold by 2040 will be EVs, helping to boost worldwide usage of key battery materials including nickel. The market for nickel is already being transformed as car batteries take over from stainless steel as the major growth market.” That could all be beneficial news for Usha Resources Ltd. (TSXV:USHA.VN) (OTC-BB:USHAF), BHP Group (NYSE:BHP), Glencore (OTC:GLNCY), Vale (NYSE:VALE), and PolyMet Mining (NYSE:PLM) (TSX:POM.TO). Vale also sees a 44% increase in global nickel demand by 2030 thanks to an increase in high demand from electric vehicle batteries.

Look at Usha Resources Ltd. (TSXV:USHA.VN) (OTC-BB:USHAF), For Example

Usha Resources Ltd., a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, would like to remind shareholders of the upcoming share distribution record date of April 12, 2023, with respect to the plan of arrangement among the Company, Formation Metals Inc. and the shareholders of the Company.

Under the terms of the Arrangement and upon completion of the share exchange prescribed by Article 3 of the Arrangement, the USHA Shareholders of record at the close of business on the Record Date will receive one (1) common share of FMI with respect to every five (5) common shares of USHA held on the Record Date, with fractions rounded down to the nearest whole number. For example, upon completion of the Arrangement, for each 10,000 common shares of USHA owned on the Share Distribution Record Date, the USHA Shareholder will own 2,000 common shares of FMI. USHA common shares will be exchanged for new USHA common shares on a one-to-one basis. USHA Shareholders will continue to own the same number of USHA common shares as they did on the Record Date. The Formation Metals Shares will be issued to the USHA Shareholders on or around April 17, 2023. The Arrangement is expected to become effective on the Record Date.

USHA Shareholders must hold their USHA common shares on the Record Date in order to receive their pro rata portion of the Formation Metals Shares being distributed pursuant to the Arrangement.

By way of this news release, the Company is also providing notice to its warrant holders and option holders with respect to the Record Date. To receive Formation Metals Shares pursuant to the Arrangement, a person must be a holder of USHA Shares as of the Record Date. If an option holder or a warrant holder does not exercise his or her warrants or options on or before the Record Date, he or she will not receive Formation Metals Shares and there will be no changes with respect to the number, terms and conditions of the issued warrants and options of the Company.

FMI will then hold the Company’s interest in the Nicobat Nickel Project and will focus on the advancement of this project, while USHA will retain and focus on the advancement of exploration projects in the lithium space, including the Jackpot Lake Lithium Brine Project where the Company is presently undertaking is maiden drill program with a goal of defining a 43-101 resource, and its newly acquired White Willow Lithium-Tantalum Project, the first of the Company’s planned expansion into the hard-rock pegmatite space (see the Company’s news release dated March 28, 2023). For updates on the drill program at Jackpot Lake and its recent land expansion, please see the Company’s news release dated February 7, 2023, February 16, 2023, February 21, 2023 and February 28, 2023.

USHA Shares will trade on a “due bill” basis until the close of trading on the Payment Date, i.e. the Due Bill Trading Period. The details of the Due Bills Trading will be announced later by a separate news release.

Additional information regarding the terms of the Arrangement are set out in the Company’s management information circular dated November 15, 2022, and the news releases dated February 9, 2022, November 17, 2022, November 29, 2022, December 21, 2022, January 10, 2023, March 2, and March 15, 2023, all of which are available for viewing on the Company’s SEDAR profile at www.sedar.com.

The Nicobat Nickel Property

The Nicobat Nickel Property is a nickel-copper-PGE project located in Dobie Township, Northwest Ontario 21 kilometres south of New Gold’s Rainy River Mine which hosts the Zone 34 nickel discovery.

Historic exploration work between 1952 and 1972 included over 15,000 metres of drilling, 220 drill holes and numerous bulk samples that identified a non-compliant historic resource of 5.3 Mt grading 0.24% Ni that contained a high-grade zone of approximately 225,000 tons grading 0.87% Ni.

Recent exploration work includes over 4,000 metres of drilling that has confirmed high-grade nickel-copper shoots do exist and are considerably better than previously recorded in the historical drilling, with drillhole A-04-15 intersecting from surface to approximately 63.75 metres a weighted average of 1.05% nickel and 2.18% copper that included an approximately 9.8-metre interval of 1.92% Ni from 53.95 to 63.75 metres.

The targeted feeder conduit measures approximately 305 metres by an average of 60 metres in width to a depth of 245 metres that is potentially open at depth and down-plunge to the north and is composed of cumulate textured olivine gabbro. This magma conduit sits in a larger norite body at the base of the Dobie Gabbro. The historical assessment data records high-grade “ribs”, one of which includes the zone described above. Future work will, therefore, focus on making the historic resource compliant current and expanding on the work completed to assess for other high-grade “ribs” and the potential high-grade feeder zone as shown in the model below.

Other related developments from around the markets include:

BHP Group said it remains committed to growing its portfolio of copper and nickel projects but is not interested in the lithium market, which it believes is well supplied. “We still don’t see the demand-supply equation of lithium to be as fundamental as copper and nickel,” Sonia Scarselli of BHP Xlpor, as noted by Mining.com. “The company has invested $500,000 each in Nordic Nickel Ltd, Tutume Metals, Asian Battery Minerals, Impact Minerals Ltd, Red Ox Copper, Bronzite Corp, Kingsrose Mining Ltd, each of which are exploring nickel and copper deposits across the globe.”

Glencore announces the commencement of a programme to make market purchases of its ordinary shares of an aggregate value of USD1.5 billion, subject to market conditions, with intended completion by the time of the Group’s interim results announcement in August 2023. The Programme will be affected in accordance with the terms of the authority granted by shareholders at the 2022 AGM and, subject to shareholder approval at the 2023 AGM, will continue on the terms of the renewed authority. The Programme’s purpose is to reduce the capital of the Company.

Vale said it plans to separate its base metal operations into a distinct entity from its main iron ore business sometime in mid-2023, a move that will affect its nickel operations across Canada, as noted by the Financial Post. Executives cast the announcement as a way to ensure its base metal operations — which include nickel mines and plants in Sudbury, Ont.; Thompson, Man.; and Voisey’s Bay, NL — are fully valued and can access capital. Demand for nickel and copper, the base metals Vale primarily produces, are expected to surge as the energy transition picks up speed and more people switch to electric vehicles.

PolyMet Mining reported that during 2022 and the first quarter of 2023, the company said it entered into a joint venture agreement with Teck American Inc., a subsidiary of Teck Resources Limited, which closed February 14, 2023. Under the Joint Venture, named NewRange Copper Nickel LLC, the NorthMet and Mesaba deposits containing high-demand copper, nickel, cobalt and platinum group metals (PGM) are under single management with PolyMet and Teck each holding a 50% interest. The NorthMet and Mesaba projects are two of the largest undeveloped clean energy mineral resources in the U.S.; It also committed, with Teck, to an initial work program for NewRange Copper Nickel with an estimated budget of $170 million to, among other things, maintain permits, update feasibility study estimates, undertake detailed engineering to position NorthMet for a development decision following permit clearances, and to progress environmental, resource definition and mineral processing studies, and community and tribal consultation, for Mesaba.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Usha Resources Ltd. paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Usha Resources Ltd. Please click here for disclaimer.

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