Tesla and Giga Metals reported talks sends stock soaring
Canadian nickel junior Giga Metals (CVE:GIGA) jumped today after Reuters reported that the company and Tesla are in talks.
Citing three anonymous sources who are familiar with the meetings, Reuters reported that Giga Metals and Tesla are discussing the development of a large mine that would give the electric carmaker access to low carbon nickel for its batteries.
Giga Metals was up 184% to $1.65 a share today as of 4 p.m. ET. Giga Metals and Tesla declined to comment on the talks.
“Giga Metals has been mentioned in recent media articles as they pertain to ongoing efforts to advance the Turnagain deposit to commercialization,” said Martin Vydra, President, in a news release. “What I can say is that there is no material announcement forthcoming and we will keep regulators and investors informed of any material changes that require disclosure in accordance with securities regulations.”
In July during an earnings call the electric vehicle visionary, Elon Musk, said he is asking mining companies to produce more nickel using environmentally-friendly methods.
Tesla is moving to an alternate battery chemistry: energy-dense nickel-cobalt-aluminum for its Semi production.
“The nickel-based cells have higher energy density, so longer range; those are needed for something like a Semi, where every unit of mass that you add in you have to subtract in cargo,” said Musk during the earnings call.
Giga Metal's Turnagain Project, located in north central British Columbia, is described by the company as being "...among the largest undeveloped sulphide nickel deposit in terms of total contained nickel."
In the project's preliminary economic assessment, the company notes its access to hydropower.
"BC Hydro for the Northwest Transmission Line (NTL) to Bob Quinn and the upholding of the Federal approvals for the Red Chris project just east of Tatogga Lake have increased the certainty of power supply for the Turnagain project," writes the PEA's authors.
Musk said miners will be offered a giant contract from Tesla if they mine nickel efficiently and in an "environmental way."