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TORONTO - Rock Tech Lithium Inc. (TSXV:RCK), currently trading at $23.35 and showing strong financial health according to InvestingPro metrics, clarified Monday that the mineral resource estimate for Arcore AG’s Lopare Lithium Project in Bosnia-Herzegovina should be considered a "historical estimate" under Canadian securities regulations. The company, which maintains a healthy current ratio of 2.64 and operates with moderate leverage, appears undervalued based on InvestingPro’s Fair Value analysis.
The company issued the clarification following a review by staff of the Ontario Securities Commission regarding its February 20 disclosure. The historical estimate comes from a report completed by CSA Global Pty Ltd. for Arcore with an effective date of November 30, 2022.
Rock Tech noted that while the report was completed using the Australasian JORC Code standards, it was not prepared in accordance with Canadian National Instrument 43-101 standards and is not publicly available on SEDAR+.
A qualified person has not conducted sufficient work to classify the historical estimate as current mineral resources, and Rock Tech stated it is not treating the estimate as such. The company indicated that additional technical work, including a field exploration program and diamond drilling, would be required to verify or upgrade the historical estimate.
Rock Tech also provided an update on its proposed business combination with Arcore, which aims to create an integrated European lithium company. The transaction, announced in February, would combine Rock Tech’s Guben Converter in Germany with Arcore’s Lopare project. With annual revenue of $454.94M and a beta of 2.34 indicating higher market volatility, InvestingPro analysis reveals 7 additional key investment insights available to subscribers.
Several closing conditions remain outstanding, including technical and legal due diligence, board and shareholder approvals, regulatory approvals, and a €50 million financing strategy. The closing is targeted for the third quarter of 2025.
The information in this article is based on a press release statement from Rock Tech Lithium.
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