Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
WINNIPEG - Snow Lake Resources Ltd., operating as Snow Lake Energy (NASDAQ:LITM), a company currently valued at $28.3 million and showing strong liquidity with more cash than debt on its balance sheet according to InvestingPro, announced Tuesday it will invest AUD$1.4 million in GTi Energy Ltd. to support development of the Lo Herma uranium project in Wyoming’s Powder River Basin.
The investment is part of GTi Energy’s AUD$4.5 million equity financing aimed at expanding and upgrading the project’s mineral resource base through additional drilling and fieldwork. Snow Lake’s investment comes at a time when the company maintains a healthy current ratio of 2.69, though InvestingPro data shows the company has been rapidly burning through its cash reserves.
GTi Energy’s Lo Herma project recently completed a positive scoping study, which outlined an in-situ recovery operation with a JORC-compliant resource estimate of 8.7 million pounds of U3O8. The preliminary assessment projected a 7-year mine life with annual production of 800,000 pounds of uranium oxide, an NPV of AUD$100 million and a pre-tax IRR of 56%.
"Our investment in GTi Energy’s equity financing is the most recent example of our strategy to invest in companies with critical minerals projects," said Frank Wheatley, CEO of Snow Lake Energy.
The financing is expected to close in two tranches, with the initial tranche anticipated on July 9, 2025, and the second following shareholder approval. Snow Lake will gain the right to appoint one member to GTi Energy’s Board of Directors upon completion.
The Lo Herma project is contiguous to the southern border of the Pine Ridge Uranium Project, a 50/50 joint venture between Snow Lake and Global Uranium and Enrichment Limited.
The investment aligns with Snow Lake’s business strategy of investing in public companies with critical minerals projects that show commercial development potential, according to the company’s press release statement. Despite challenging market conditions that have led to a 71% decline in share price over the past six months, InvestingPro analysis suggests the stock may be undervalued at current levels, with 8 additional exclusive insights available to subscribers.
In other recent news, Snow Lake Energy has reported positive initial results from its Phase 2 drill program at the Engo Valley Uranium Project in Namibia. The company completed 31 drill holes, with notable findings including mineralized intersections of 997 ppm eU3O8 over a 7-meter interval. Snow Lake Energy also announced a strategic partnership with Exodys Energy to form a new nuclear reactor development company, focusing on small modular reactor technology. This move is part of Snow Lake’s broader strategy to diversify into the nuclear energy sector. Additionally, Snow Lake has made a significant investment in Commerce Resources Corp to support the Ashram Rare Earths Project in Quebec, contributing C$1.1 million to a C$2.2 million financing effort. The Ashram Project is recognized as North America’s largest undeveloped Rare Earths Project. In another development, Snow Lake Energy declared a 1-for-13 reverse stock split to meet Nasdaq’s minimum bid price requirement. The company is also expanding its investments to include blockchain infrastructure and clean energy technologies, aligning with global electrification trends.
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