On November 3, 2022, we alerted investors to a lithium opportunity in Nevada with a Canadian-listed junior mining stock.
Lithium market still heating up as end-users scramble for new supply
Rover Metals Corp (TSXV:ROVR/OTC:ROVMF) is developing its Let’s Go Lithium lithium claystone project in Nevada. In that article, we highlighted the jurisdiction and explained why lithium claystone formations offer operational efficiencies not found with lithium brine geology.
At the time the article was published, ROVR was trading at CAD$0.075 cents – reflecting the heavy, current discounting of all mining stocks.
Since that time, Rover Metals’ stock has advanced to CAD$0.10 per share, ~33% higher. However, accredited investors have a second-chance opportunity with this stock.
On November 16, 2022, Rover Metals Corp announced a private placement of up to CAD$800,000. Units are priced at CAD$0.08 and comprise one common share and one common share purchase warrant.
Warrants are valid for 2 ½ years from the date of closing and can be exercised at a price of CAD$0.12. The Market Herald has learned that Rover Metals still has another CAD$200,000 to raise with this financing.
With units at CAD$0.08, accredited investors can still save 20% on the current share price and receive the bonus of a full warrant. For investors looking for “Black Friday bargains”, Rover Metals has a deal for you.
For mining investors interested in Rover Metals but looking for a little more guidance, Fundamental Research has just come out with new coverage of Rover Metals Corp.
There are two reasons why those considering an investment in Rover Metals will want to look more closely at this new report.
Fundamental Research provides further information on the Let’s Go Lithium Project. This goes well beyond reporting the lithium values of up to 1,218 ppm that have already been verified on the property.
Fundamental Research notes that a mere 7.5 miles southwest of the Let’s Go Lithium Project (in neighbouring California) is the Franklin Wells hectorite deposit: a claystone formation of 66 million tons, with grades of up to 3,110 ppm lithium.
Also worthy of note is some historical information contained in the report. Data from water wells drilled in the area indicate that the claystone geology has an average thickness of 310 ft.
The analysts point out that the timeline for lithium projects to move to production is generally much quicker than with most metals mining. Current lithium projects under development should go into production parallel to the global lithium supply deficit expected for the second half of this decade.
The second reason why the Fundamental Research report will be of interest to investors is because of the wealth of information on another recent acquisition of Rover Metals.
On September 14, 2022, Rover Metals announced a definitive option agreement for the acquisition of the Indian Mountain Lake (IML) critical minerals VMS project, 195 km east-northeast of Yellowknife, in Canada’s Northwest Territories.
Fundamental Research notes that the IML Project has (separately defined) historical resources of both copper and high-grade zinc (zinc-lead-silver).
Historically, separate deposits of 1.15% and 0.95% copper have been identified. The BB and Kennedy Lake zinc zones have a combined historic resource of 1.4 million tonnes, grading 10% zinc/lead and 4.9 million ounces of silver (at a grade of 130 g/t Ag).
The analysts like this Project for “significant resource potential for zinc and copper”, spread across four zinc and copper zones. They also note that IML offers relatively good access for exploration/development, despite its northern latitude.
The Company will be focused on advancing the Let’s Go Lithium Project for most of 2023. However, the analysts note that “management plans to convert the historic resource to an NI 43-101 compliant resource within the next 24 months.”
On the strength of these two Projects, Fundamental Research is rating Rover Metals a “buy”.
With a current market cap of only CAD$2.63 million, many mining investors will like Rover Metals Corp just for its Let’s Go Lithium Project alone. However, the historic copper and zinc-lead-silver resources of the Company’s IML Project make this a genuine two-for-one buying opportunity.
For accredited investors eligible to participate in the Company’s private placement, an even better bargain is presently available.
DISCLOSURE: This is a paid article by The Market Herald.
