On Wednesday, PetroSun Inc. (OTC: PSUD) hit the newswires after the company provided an update with regards to its lithium mining, production, and development program. The company announced that it was actively looking for opportunities at the Smackover Trend, situated in Mississippi, Arkansas, North Louisiana, and East Texas.
It was further revealed that PetroSun was also looking for regional field operations headquarters in Monroe, Louisiana, which would function as the main leasing office with regards to the Smackover Trend. Additionally, the company revealed that it was also considering its assets and more opportunities in the Four Corners zone for commercial lithium concentrations. The Four Corners area is in New Mexico, Colorado, Arizona, and Utah.
From Gordon LeBlanc Jr, Executive Chairman, CEO, and President of PetroSun, Inc. “PetroSun’s ability to adapt our Separation and Process Technologies to a wide range of natural resource needs in the market has provided us with significant opportunities for the future. The extraction and processing of lithium contained in clay deposits and brine water will demonstrate our commercial capabilities to bring sustainable lithium production from North American sources. We are committed to improving shareholder value and providing critical commodities and services to the domestic market.
The news release noted that although PetroSun held a considerable reserve of lithium in both clays and brine water, it was the patented technologies it owned that gave the company an edge in the industry. The patented and proprietary Separation and Process Technologies that belong to PetroSun would produce 98% lithium concentrations at the time of extraction. Additionally, it would also produce 99.5% lithium carbonate at the time of final flushing. The patents for the technologies include one that has been issued, one pending continuation, two continuations, and another pending with prior art issued.
The company also cited the guidance about electric vehicles issued by the IRS and the Treasury Department on December 1. It stated that there would be tax credit eligibility to the tune of a maximum of $7500 per vehicle. However, to qualify for the same in 2024, the mineral content in the batteries would need to be 50% North American and 60% from the following year. PetroSun stated that the guidance would make for an attractive market opportunity for the company. The company is a fully integrated operation in the energy and mining sectors.