Megawatt to accelerate developing prime Australian Rare Earth Projects
Megawatt to accelerate developing prime Australian Rare Earth Projects
Vancouver, British Columbia--(May 12, 2021) - Megawatt Lithium and Battery Metals Corp. (CSE:MEGA)
(FSE: WR20) (OTC PINK: WALRF) (the "Company" or "Megawatt") is pleased to announce it is moving
forward with a rare earth element (REE) sampling program at the recently acquired Ar ctic Fox and
Isbjorn properties in Northern Territory, Australia (see April 14, 2021 press release). The decision to
accelerate development plans for the REE properties is based on market intelligence indicating potential
impending global REE supply shortages over the next decade, arising from green stimulus and rapid take
up of electric vehicles (EV) propelling demand. Notably, key REEs in demand are neodymium and
praseodymium which are prevalent across the region where Megawatt’s properties are located in the
Northern Territory.
Potential global REE supply shortages
Concerns are growing over potential global REE supply shortages, due to elevated demand resulting
from green stimulus and rapid EV take up. Further, with China currently dominating the REE market,
there is a growing necessity for supply diversity to mitigate against concentration risk. This macro
backdrop presents a solid opportunity for emerging explorers with properties in Australia prospective
for REEs to capitalise on.
Placing the global opportunity in context, a recent comprehensive study by independent research and
advisory firm Adamas Intelligence highlights the potential for the magnet REE oxide market – principally
neodymium, praseodymium and didymium oxide – to reach circa $USD 15bn by 2030 (versus circa $USD
3bn currently).
The study highlights a significant demand impetus being the US re-joining the Paris Agreement on
climate change and then unveiling accelerating plans for electrifying vehicle production. Bundling this
with known EV plans for Europe and China, the overall magnet REE oxide market in volume terms is
projected to grow at a circa 10% CAGR 2021-30.
Concurrently, with REE supply shortages increasingly likely over the next decade, Adamas Intelligence
projects persistent upward annual price pressure ranging from circa 5-10% over the same period. The
Company views the likelihood of a significant forward REE supply deficit increasing, and underscores
the strategic imperative for Megawatt to rapidly capitalise on this opportunity to develop the Arctic Fox
and Isbjorn properties.
Fast tracking development plans for REE properties
Megawatt’s Arctic Fox and Isbjorn properties are located in the Northern Territory in regions
prospective for REEs, especially neodymium and praseodymium, complemented by supportive mining
infrastructure. Notably, Arctic Fox is contiguous and along strike from the world-class Nolans Bore REE
project, which is set for commissioning in mid-2022 and has a JORC Compliant Mineral Resource.
Meanwhile, Isbjorn is contiguous to the advanced Charley Creek REE project.
Megawatt is reviewing plans for helicopter and ground supported mapping and sampling campaigns
across both properties that can commence once all necessary approvals are secured.
David Thornley-Hall, Chief Executive Officer commented: “We sense an opportunity to capitalize on
global macro demand with our two Australian REE properties. Megawatt clearly has two highly
prospective REE assets located in Australia and consequently we have decided to move quickly and
commence advancing the Arctic Fox and Isbjorn properties with the aim of identifying priority
targets for test-drilling.”
Qualified Person
Mr. Geoffrey Reed (MAusMM (CP)) (MAIG), Consultant for the Company, is a qualified person as defined
by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and has reviewed the
scientific and technical information in this press release.
About MegaWatt Lithium and Battery Metals Corp.
MegaWatt is a British Columbia based company involved in the acquisition and exploration of mineral
properties in Canada. The Company holds a 100% undivided interest, subject to a 1.5% NSR on all base,
rare earth elements and precious metals, in the Cobalt Hill Property, consisting of eight mineral claims
covering an area of approximately 1,727.43 hectares located in the Trail Creek Mining Division in the
Province of British Columbia, Canada.
Additionally, the Company has acquired a 60% interest in a company that indirectly holds a 100%
interest (subject to a 2% NSR) in two prospective silver-zinc projects in Australia, being the Tyr Silver
Project and the Century South Silver-Zinc Project (see press release dated August 13, 2020), an indirect
100% interest (subject to a 1% NSR) in and to certain mining tenements in Northern Territory and New
South Wales, Australia prospective for nickel-cobalt-scandium and rare earths and a 100% interest
(subject to a 2% NSR) in and to the Route 381 Lithium Property, comprised of 40 mineral claims located
in James Bay Territory, north of Matagami in the Province of Quebec, covering 2,126 hectares (see press
release dated February 3, 2021).
Investors can learn more about the Company and team at https://megawattmetals.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
David Thornley-Hall Chief Executive Officer
The CSE does not accept responsibility for the adequacy or accuracy of this release.
This press release includes "forward-looking information" that is subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Company. Forward-looking statements
may include but are not limited to, statements relating to the trading of the Company's common shares on
the Exchange and the Company's use of proceeds and are subject to all of the risks and uncertainties
normally incident to such events. Investors are cautioned that any such statements are not guarantees of
future events and that actual events or developments may differ materially from those projected in the
forward- looking statements. Such forward-looking statements represent management's best judgment
based on information currently available. No securities regulatory authority has either approved or
disapproved of the contents of this news release.