Altair International is a fairly new company trying to find its direction. They have been unprofitable during their period of development. One recent agreement might put them on the path to success.
We have all looked at companies like IBM, Exxon, Tesla and said, “if only I could have been there when they first began.” Well, here is a potential possibility. The startup road is always tough. Seldom do they have enough capital. The industry itself may be new and demand uncertain. The money you invest could be lost, or it may take years to be profitable. Many new companies start every year, and many go down in flames in the first five years. Given the sense of urgency to clean the environment and cast-off fossil fuels, one new startup might be interesting. Such a company is Altair International Corp. (OTCMKTS: $ATAO), founded at the end of 2012 and defined as “looking for business opportunities.” They are a mining company that recently decided to focus on Lithium.
The company started with 40 claims and this year gained 187 more. Their main lease is Walker Ridge in Northern Nevada. These leases and claims have annual costs and a 3% smelting fee on what they get from the mines.
Mining can be risky. You may pay money to lease or buy a space, spend thousands to register a claim, and purchase equipment and personnel to dig a hole. After all of that, you might find that there is not enough material to pay off the costs. After spending all that money, you will need more to fund the next claim. New environmental regulations may add costs to projects or pose other unexpected risks. There are also costs after the ore leaves the ground; you need to process it as well. All these costs and more must be considered in business planning.
Who’s Piloting the Ship?
Besides the two key people listed below, there are other advisors. These are the two men primarily running the company.
The President and CEO Leonard Lovallo holds a BA in psychology from a university in NY. However, he has had experience in both privately held and public companies.
The VP of Exploration is Doug Oliver, Ph.D. has had a career in exploring minerals for over 40 years. His primary focus was precious metals in Africa, Central America, Alaska, and the contiguous 48 states. He has worked for large companies, including Occidental and Tenneco.
What is the Demand for Lithium?
Everyone must understand the importance of lithium and the expected demand for it. Lithium is a key component in batteries for electric cars and trucks, and the battery market may be worth $90 billion by 2025. The company believes the future demand for this soft white metal may be “unserviceable” based on known mining production. The company’s research informs that a 1% increase in electric cars will require half of the current lithium production to satisfy, translating to 70,000 metric tons.
One News Item that Changes Altair’s Future
On December first of 2020, Altair International entered a binding agreement with Canadian company St-Georges Eco Mining Corp. (OTC: $SXOOF). The agreement has two parts; one is mining technology, the second is a development project.
St-Georges will work with Altair to develop a process to recycle lithium batteries used by electric vehicles. The pattern for this will be filed jointly. This could be the key to Altair’s success. Now Altair is not limited to exploration and mining. Battery recycling, if developed, will give them a much-needed revenue stream.
The St-Georges company has agreed to provide lithium processing technology and technology that helps solve environmental issues. In exchange for the technology that optimizes lithium production, St-Georges will get a 5% royalty on Altair’s 1,260-acre Stonewall Lithium facility.
There are some additional conditions. There are three share issuances agreed to by Altair related to the development of the battery recycling development program. The first at signing, the second at the joint patent filing stage, the third will occur after. These will be 2 million shares each and two cash payments totaling $300,000.
The company’s website informs us that its current market capitalization is $182,982,062, with 2,000,000,000 authorized shares and 511,732,553 outstanding shares (as of March 18, 2021). The shares are trading at $.18 per share as of market close, March 17, 2021.
Given what Altair is getting, this is a sweet deal. St-Georges exchanges technology for part of a mine they are not paying to run and a piece of a battery recycling program they will not maintain.
Where Does This Leave Us?
We know that St-Georges, a larger company, is offering a small company development assistance in exchange for mining royalties and shares. There are no psychics in the mining world. There must be a belief by both the management team at Altair and their counterparts at St-Georges, that there must be significant Lithium reserves in them thar hills. If there weren’t, St-Georges might have structured the deal for cash upfront instead of the 5% mining royalty. There is a certain amount of cash coming from Altair on the recycling portion of the agreement, with the rest being shares. Despite their confidence, Altair International is a high-risk investment, but for those that can afford the risk, maybe they’ll be a pot of return at the end of the rainbow.