Vancouver, March 22, 2021 – Leading Edge Materials
Corp. (“Leading Edge” or the
“Company”) (TSXV: LEM)
(Nasdaq First North: LEMSE) (OTCQB:
LEMIF) provides a letter from the Chief Executive
Officer.
CEO’S LETTER TO THE
SHAREHOLDERS
Dear Shareholders and Stakeholders,
When I was offered the opportunity to become the
Chief Executive Officer of Leading Edge Materials in May last year
the world had just been upended by the COVID pandemic and clean
energy raw material stocks were suffering from a multi-year decline
in sentiment. Today, less than 12 months later, vaccination
programs are being rolled out across the globe and companies
focused on raw materials that drive the transition to climate
neutrality are attracting significant interest again.
After an initial short-lived fall in demand and
supply chain distortions momentum shifted dramatically during the
second half of 2020. Governments around the world increased efforts
to stimulate their economies due to the pandemic with the EU
continuing supporting its Green Deal which is looking to mobilize
€1trn of investments over the next decade. In the US, the new
presidency under Joe Biden signed a number of climate related
executive orders and more recently passed a $1.9trn stimulus
package skewed towards green investments. This combined with
increasing demand for electric vehicles and limited supply of key
battery materials, including cobalt and lithium, which have then
experienced strong moves upward since the beginning of this year.
Similarly, prices for key magnet rare earth elements such as
neodymium, praseodymium, dysprosium and terbium have risen sharply
year on year due to strong demand and limited supply.
The pandemic also proved to be an alarm bell for
over-reliance on single third countries for critical supplies. In
September the European Commission launched an action plan on
critical raw materials and formed the European Raw Materials
Alliance to establish more resilient and sustainable value chains
for critical raw materials that underpin the transition to climate
neutrality. A number of media reports in 2021 have again underlined
the risk of China limiting or cutting off supply for rare earth
elements. At the same time, China proposed new regulations further
cementing its control over the domestic rare earth industry.
On the corporate side, the Company in August
raised $3.5m in a private placement with continued support from
long-term shareholders. Later in the year, two preliminary economic
assessment studies were initiated on our Swedish projects.
For Woxna, the study is about demonstrating the
potential added economic benefit of producing an active anode
material for the lithium-ion industry based on last few years
development of the required downstream processes. Woxna benefits
from access to low cost green hydropower which offers a competitive
advantage as sustainability is becoming increasingly important. To
demonstrate this advantage we have also commissioned a life cycle
assessment on the envisioned production from Woxna which aligns
with the sustainable battery regulation announced by the European
Commission in late 2020 that will enforce carbon footprint
declarations on any batteries placed on the European market. There
has been a constant flow of battery factory capacity announcements,
most recently by Volkswagen announcing plans for six 40GWh battery
plants by 2030 in Europe alone. With a built mine looking to add
the downstream value add processing, and an ideal location
logistically in Sweden, Woxna is in the right time and place to
benefit from the expected exponential growth in graphite anode
demand over the next decade.
For Norra Karr, the study is about maximizing
the resource efficiency whilst minimizing the environmental
footprint of the project in order to regain a social license in
addition to potential improvements in the economics of the project.
Norra Karr is one of few heavy rare earth element projects of its
kind globally, and the only project in Europe that could supply
significant amounts of critical permanent magnet rare earths such
as dysprosium and terbium. As Europe is urgently looking to support
the development of its own rare earth magnet value chain to reduce
reliance on China, Norra Kärr could be a key piece to solve that
puzzle.
The results from these two studies, which are
expected in the near future, will provide the basis for the next
steps in development for each project. So we are looking at a very
active remainder of 2021. Importantly, the studies will provide the
details of what the investment case looks like for the projects
which can then be communicated to the broader investment
community.
Lastly, we entered an agreement to sell 100% of
the Bergby Lithium project at attractive terms allowing us to
direct all resources on our main two projects whilst continuing to
wait for a final decision on the granting of an exclusive
exploration license in Romania.
In summary, the new Board and Management in
place since last spring is operating under the highest conviction
that the steps described above and the plan going forward is the
best way to create shareholder value. As such, the Company
benefits from a high insider ownership and continued strong support
from its shareholder base. I believe the Company is uniquely
positioned to offer a highly convex exposure to the clearly
emerging trends and stated political and social goals in the
EU.
We are looking forward to the outcomes of the
two PEA studies, expected shortly. Clearly, the best immediate path
to create shareholder value is the responsible development of our
two principal assets in Sweden, and we are incredibly excited to
execute on this.
Yours Sincerely,
/s/ “Filip Kozlowski”
Filip Kozlowski CEO
For further information, please contact the Company
at: info@leadingedgematerials.com
www.leadingedgematerials.com
Follow us Twitter:
https://twitter.com/LeadingEdgeMtls Linkedin:
https://www.linkedin.com/company/leading-edge-materials-corp/
About Leading Edge
Materials
Leading Edge Materials is a Canadian public
company focused on developing a portfolio of critical raw material
projects located in the European Union. Critical raw materials are
determined as such by the European Union based on their economic
importance and supply risk. They are directly linked to high growth
technologies such as batteries for electromobility and energy
storage and permanent magnets for electric motors and wind power
that underpin the clean energy transition towards climate
neutrality. The portfolio of projects includes the 100% owned Woxna
Graphite mine (Sweden), Norra Kärr HREE project (Sweden) and the
51% owned Bihor Sud Nickel Cobalt exploration alliance
(Romania).
Additional Information
The information was submitted for publication
through the agency of the contact person set out above, on March
22, 2020 at 2.45 pm Vancouver time.
Leading Edge Materials is listed on the TSXV
under the symbol “LEM”, OTCQB under the symbol “LEMIF” and Nasdaq
First North Stockholm under the symbol "LEMSE". Mangold
Fondkommission AB is the Company’s Certified Adviser on Nasdaq
First North and may be contacted via email CA@mangold.se or by
phone +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain statements which
constitute “forward-looking information” under applicable Canadian
securities laws, including statements regarding plans, intentions,
beliefs and current expectations of the Company, its directors, or
its officers with respect to the future business activities of the
Company. The words “may”, “would”, “could”, “will”, “intend”,
“plan”, “anticipate”, “believe”, “estimate”, “expect” and similar
expressions, as they relate to the Company, or its management, are
intended to identify such forward-looking information. Investors
are cautioned that any such forward-looking information is not a
guarantee of future business activities and involves risks and
uncertainties, and that the Company’s future business activities
may differ materially from those in the forward-looking information
as a result of various factors, including, but not limited to,
fluctuations in market prices, successes of the operations of the
Company, continued availability of capital and financing and
general economic, market or business conditions. There can be no
assurances that such information will prove accurate and,
therefore, readers are advised to rely on their own evaluation of
such uncertainties. The Company does not assume any obligation to
update any forward-looking information except as required under the
applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this news release.
- 20210322 LEM CEO letter to the shareholders
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