Vancouver-based lithium exploration company MAX Power Mining Corp. (CSE: MAXX) (OTC: MAXXF) is entering the United States lithium sector after obtaining exploration permits for a 50-square-mile area in southern Arizona.
The company announced the development on Friday and will be starting its lithium exploration in Willcox Playa, a dry flat lakebed area in Cochise County south of Phoenix.
MAX believes that it will benefit from first mover advantage in Willcox Playa as the area had been previously occupied by the U.S. Air Force for decades prior to the company commencing activities there. MAX also says the U.S. Geological Survey has historically referenced Willcox as one of the most highly prospective areas for lithium in the country’s west.
According to MAX, the potential for lithium there is comparable to Clayton Valley Nevada where companies such as Century Lithium Corp. (TSX-V: LCE) (OTCQX: CYDVF) (Frankfurt: C1Z), ACME Lithium Inc. (CSE: ACME) (OTCQB: ACLHF) and Ameriwest Lithium Inc. (CSE: AWLI) (OTC: AWLIF) (FSE: 5HV0) currently have active operations.
The land is governed by the Bureau of Land Management and the State of Arizona. The company says it will benefit from established rail and road infrastructure in the area and services in the nearby town of Willcox.
Willcox Playa. Photo via AZ Backcountry Adventures
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“This strategic move into the United States is another way of differentiating MAX in the growing lithium space in combination with our initiative in northern Quebec where we are at the forefront of a highly targeted drive to discover entirely new high-grade lithium camps,” said MAX’s CEO Rav Mlait.
The demand for lithium is expected to increase by over 300 per cent by the end of the decade, according to MAX.
“With an American division and a Canadian division, our view is that we will be able to grow our shareholder base exponentially in 2023 while delivering brisk year-round news flow,” added Mlait.
The company is currently active with lithium exploration in Nunavik, northern Quebec as well.
MAX’s shares dropped by 3.23 per cent Monday to $0.60 on the Canadian Securities Exchange.
rowan@mugglehead.com
