- Rover Metals is announcing financing for up to C$1.25 million
- The financing moves Rover into drill position on its Let’s Go Lithium (“LGL”) project in Nevada
- The LGL project is in the lithium jurisdiction in Southwest Nevada and is ESG-optimized
- Rover Metals is down 7.14% Tuesday, closing at $0.065
Rover Metals (TSXV:ROVR) is announcing a non-brokered private placement financing for up to C$1.25 million.
The financing moves Rover into drill position on its Let’s Go Lithium project in Nevada.
The Canadian junior mining company will issue $0.08 units composed of one common share and one common share purchase warrant. The warrants on the Units have an exercise price of $0.12 per warrant share, and a lifespan of two-and-a-half years.
If fully subscribed, the deal will include up to 15,625,000 common shares and 15,625,000 common share purchase warrants.
In addition, the lithium explorer has received approval from the Toronto Venture Exchange to close the first tranche of the unit financing for C$500,000, led by two experienced lithium investors from Europe and Australia.
Proceeds from the raise will be used to advance exploration at its Let’s Go Lithium project (“LGL”) in the Amargosa Valley of Southwest Nevada. Rover has outlined a 1,200 meter Reverse Circulation Drill Program to follow up on the high-grade areas of the project.
The LGL project, nestled into the lithium jurisdiction includes green energy infrastructure of hydro power lines, direct road access, water rights and is ESG (environmental, social and governance) optimized. The area is also home to the only producing lithium mine in North America, Silver Peak – as well as Tesla’s (NASDAQ:TSLA) gigafactory.
Rover Metals CEO Judson Culter highlights the ESG optimization saying, “Our footprint is much smaller.” The company can bolt onto Tesla’s existing EV infrastructure, and the project’s geology lends itself to lower water usage then more traditional lithium mining methods..
As well, Culter explains, “For Lithium mining, this type of soft-rock clay stone is has a more environmentally sustainable mine processing method then brine mining in the state of Nevada.” The business case for the LGL project, is that it has open pit potential. At this point, we’re seeing limited overburden over the claybed in terms of desert sand that can be easily removed. He points out that mining lithium in claystones is favourable compared to brine, which is water intensive, as well as, compared to hard rock that requires heavy duty underground mining.
The company will start drilling mid-July and Culter is focused on getting this project into production. Later stage comparable lithium companies in southwest Nevada have moved from the drilling stage to the feasibility stage in under three year’s time.
Finally, Culter concludes he expects the assay turnaround time to be about six weeks and that the book on this deal may close around July 10.
Rover Metals Corp. is Canadian junior mining company specializing in U.S. and Canadian critical minerals.
Rover Metals (TSXV:ROVR) is down 7.14% Tuesday, closing at $0.065.
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