Snow Lake invests in North America’s largest REE project

Published 13/05/2025, 12:14
Snow Lake invests in North America’s largest REE project

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.