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WINNIPEG - Snow Lake Resources Ltd., also known as Snow Lake Energy (NASDAQ: LITM), has announced a strategic investment in Commerce Resources Corp (TSXV: CCE) to support the advancement of the Ashram Rare Earths Project in Quebec. This investment is part of a C$2.2 million convertible note financing, with Snow Lake contributing C$1.1 million. According to InvestingPro data, Snow Lake maintains a healthy balance sheet with more cash than debt and a strong current ratio of 2.69, though the company’s market capitalization stands at $27.36 million following a significant 69% decline year-to-date.
The Ashram Project, wholly owned by Commerce, is recognized as the largest undeveloped Rare Earths Project in North America. With a resource estimate of 204.3 million tonnes averaging approximately 1.94% Total Rare Earth Oxides (TREO), the project’s mineralogy allows for high-grade concentrate production at high recovery rates. This positions the Ashram Project as a significant player in the race to establish secure, domestic sources of critical minerals.
The investment comes at a time when the global technology supply chains are under pressure due to China’s tightening of export controls on key rare earth elements (REEs), which are critical for various high-tech and clean energy applications. China currently accounts for about 90% of all processed rare earth output. InvestingPro analysis suggests Snow Lake is currently trading below its Fair Value, with additional insights available to subscribers including 10 more ProTips about the company’s financial health and market position.
Snow Lake’s CEO, Frank Wheatley, emphasized the strategic importance of the investment, stating that it supports North America’s rare earth future and aligns with U.S. and Canadian objectives to secure supply chains for clean energy and defense technologies.
The merger between Commerce and Mont Royal Resources Limited aims to create a well-funded Canadian-focused critical metals company, with the Merged Group to be dual-listed on the TSX Venture Exchange and the Australian Securities Exchange. This is expected to provide greater access to liquidity and funding for the Ashram Project.
The Convertible Note Financing, which concluded on April 12, 2025, is integral to the merger. The principal amount of the notes will bear interest at a rate of 20% per annum, with full interest payable in Mont Royal shares upon completion of the merger.
This press release statement, which includes forward-looking statements subject to risks and uncertainties, provides the basis for this news article. Snow Lake Resources Ltd. has not provided an update on the information since the date of the press release. Investors seeking deeper analysis can access comprehensive financial metrics and expert insights through InvestingPro, including detailed cash flow analysis and growth metrics that are crucial for evaluating companies in the critical minerals sector.
In other recent news, Snow Lake Resources Ltd., also known as Snow Lake Energy, has announced a 1-for-13 reverse stock split to meet Nasdaq’s minimum bid price requirement. This corporate action will consolidate 13 existing shares into one new share, reducing the number of outstanding shares from approximately 101.7 million to about 7.8 million. In addition, the company has launched a Strategic Growth Plan to diversify investments into the Solana blockchain infrastructure and clean energy technologies, aiming to align with global electrification trends and strengthen its balance sheet. Snow Lake has also begun Phase 2 drilling at the Engo Valley Uranium Project in Namibia, with plans to establish a maiden uranium resource estimate by the second half of 2025. Furthermore, Snow Lake has committed to investing approximately A$5.8 million in Global Uranium and Enrichment Limited, acquiring a 19.99% interest to support the Pine Ridge Uranium Project in Wyoming. The company is poised to benefit from a recent Executive Order prioritizing uranium as a critical mineral, which could expedite the permitting process for the Pine Ridge project. These developments reflect Snow Lake’s strategic efforts to expand its footprint in the uranium exploration and development sector while diversifying into emerging technologies.
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