Snow Lake Energy outlines critical minerals investment strategy

WINNIPEG - Snow Lake Resources Ltd., operating as Snow Lake Energy (NASDAQ:LITM), a small-cap mining company with a market capitalization of $33 million, announced Tuesday its strategic investments in uranium, antimony, and rare earth elements projects primarily located in North America. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 2.69, though it has been rapidly burning through cash reserves.

The company has invested AUD$1.4 million in GTi Energy Limited to support its Lo Herma uranium project in Wyoming’s Powder River Basin. According to a recent scoping study, the project has a resource estimate of 8.7 million pounds of U3O8 with a projected seven-year mine life and annual production target of 800,000 pounds.

Snow Lake has also acquired a stake exceeding 5% in Resolution Minerals Ltd., which owns the Horse Heaven antimony/tungsten/gold project in Idaho. This project borders Perpetua Resources Corp’s Stibnite Gold Project, which holds the only identified antimony reserve in the United States.

Additionally, the company has invested C$1.1 million in Commerce Resources Corp. to advance the Ashram Rare Earth and Fluorspar Project in Quebec, described as the largest undeveloped rare earths project in North America.

"We have a well-defined investment strategy to target opportunities in critical minerals projects, located primarily in the U.S., as well as in close allies and trading partners, in order to take advantage of unprecedented U.S. policies designed to build out the domestic U.S. supply chain for critical metals," said Frank Wheatley, CEO of Snow Lake Energy. Despite the stock’s significant decline of over 75% in the past six months, InvestingPro analysis suggests the company is currently undervalued, with 8 additional ProTips available for subscribers.

The company cited recent investments in MP Materials Corp. by the U.S. Department of Defense, Apple, and public investors as evidence of strong government, industry, and public support for domestic critical mineral production.

The announcement was made in a company press release.

In other recent news, Snow Lake Energy announced the commencement of drilling at its Pine Ridge uranium project in Wyoming, a joint venture with Global Uranium and Enrichment Limited. The company plans to drill approximately 38,000 meters at the site. Snow Lake Energy also reported positive initial results from its Phase 2 drill program at the Engo Valley Uranium Project in Namibia, with eight drill holes returning mineralized intersections greater than 100 ppm eU3O8. Additionally, Snow Lake Energy is investing AUD$1.4 million in GTi Energy to support the development of the Lo Herma uranium project, also located in Wyoming’s Powder River Basin.

In a strategic move, Snow Lake Energy has formed a nuclear reactor development company with Exodys Energy, focusing on small modular reactor technology. This initiative aligns with recent policy changes in the nuclear industry. Furthermore, Snow Lake Energy has made a strategic investment in Commerce Resources Corp to advance the Ashram Rare Earths Project in Quebec, contributing C$1.1 million to a C$2.2 million convertible note financing. The Ashram Project is noted as the largest undeveloped Rare Earths Project in North America. These developments reflect Snow Lake Energy’s ongoing efforts to diversify and strengthen its presence in the energy and resources sectors.

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