viewION Energy Ltd.

Ion Energy on track to be Mongolia's first lithium brine miner, analyst says

The company has one of the largest exploration licenses in Mongolia and its Baavhai Uul project comprises over 80,000 hectares in the southeast

Lithium-ion batteries
Because Ion is still in the early exploration phase, the firm declined to specify a price target and rating but estimated a C$34 million valuation

Ion Energy Ltd (CVE:ION), a lithium exploration company with its sights set on Mongolia, is estimated to hold a valuation of C$34 million according to research firm Couloir Capital, which announced it was initiating coverage of Ion last week. 

The Canadian company has one of the largest exploration licenses in Mongolia, Couloir said in a report from May, making Ion an emerging company in the country. Its project, Baavhai Uul, is a property comprising more than 80,000 hectares in the southeast, near China.

That bodes well for Ion, given the demand for lithium-ion batteries in the region.

WATCH: Ion Energy hits major milestone as company begins trading on the TSX-V under the ticker ION

“This is a significant potential advantage to the company – one of the largest and fastest growing demand drivers for lithium is the usage of lithium compounds as electrolytes in lithium-ion batteries, which in turn are being utilized in electric vehicle (EV) batteries,” the firm wrote. “The vast majority of the world’s downstream lithium processing capacity is located in China, and Baavhai Uul is conveniently located in close proximity to the China-Mongolia border, in an infrastructure rich zone.”

Ion is undergoing a reverse takeover transaction with shell company Spirit Banner Capital Corp, the report said, and is expecting to raise $2 million, which the firm believes will then be used largely for exploration activities. 

“As it stands today, Ion is on track to become Mongolia’s first lithium brine miner, and may stand to benefit from broader electrification megatrends that we expect to intensify whilst the company builds out its brine asset,” Couloir wrote.

Because Ion is still in the early exploration phase, the firm declined to specify a price target and rating but estimated a C$34 million valuation based on the following inflection points:

  • Completion of the RTO transaction and subsequent equity financing
  • Announcements regarding the beginning and/ or completion of phase 1A of the planned exploration program
  • Announcements regarding the beginning of phase 1B of the planned exploration program, and the confirmation of the significant presence oflithium at Baavhai Uul
  • Favourable developments in the lithium and EV battery markets

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

Quick facts: ION Energy Ltd.


Price: 0.43 CAD

Market Cap: $25.89 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...


ION Energy begins drilling at its lithium project in Mongolia as its...

ION Energy Limited CEO Ali Haji tells Proactive the group will begin a maiden exploration program at its 100%-owned Urgakh Naran lithium salar project in Dorngovi Province, Mongolia, as it celebrates the one-year anniversary of its trading start on the TSX Venture Exchange. Haji says drilling...

1 week, 6 days ago

2 min read