Nova Minerals subsidiary Snow Lake Resources launches $23m IPO to fund Thompson Brothers lithium project
Nova subsidiary Snow Lake aims to become the first lithium producer in the world to achieve ‘B Corp’ status.
Nova Minerals (ASX: NVA) subsidiary Snow Lake Resources will launch an initial public offering (IPO) for the raising of $23 million to advance the Thompson Brothers lithium project in Canada.
Boutique US investment bank ThinkEquity, a division of Fordham Financial Management Inc, will be sole bookrunner for the exercise.
The timing, number of securities and price of the proposed offering have not yet been disclosed.
Snow Lake is an exploration-stage mining company engaged in lithium exploration in the province of Manitoba.
It plans to develop Thompson Brothers as the world’s first fully-renewable, energy-powered electric mine capable of delivering traceable, conflict-free, net zero carbon, battery-grade lithium to the electric vehicle market.
B Corp status
In doing so, the company aims to set the standard for responsible lithium battery manufacturing and become the first lithium producer in the world to achieve Certified B Corporation (or B Corp) status.
B Corps are businesses which meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose.
They are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.
Mining-friendly jurisdiction
The Thompson Brothers project comprises 38 contiguous mineral claims over 56 square kilometres of crown land near the town of Snow Lake in the mining-friendly Manitoba jurisdiction, where 97% of electrical energy supply is from hydro-electric renewable sources.
In June, the project was reported to have an indicated mineral resource estimate of 9.08 million tonnes at 1% lithium oxide (using a 0.3% cut-off); and an inferred estimate of 1.97Mt at 0.98% lithium oxide (also with a 0.3 % cut-off).
The resource is believed to come from a single, high-grade, lithium-bearing pegmatite dyke partially outcropping at surface which remains open along strike and to depth.
Preliminary economic assessment
In January, Snow Lake launched a preliminary economic assessment for Thompson Brothers which will include in-depth metallurgical analysis, resource definition, engineering assessment and ore sorting optimisation studies.
The assessment will expand into a preliminary feasibility study which will review the economic test work, process design, vendor-furnished equipment packages and other mine development requirements as well as cost estimates for the possible development of a commercial spodumene floatation plant.
Later this year, Snow Lake will begin drilling to further expand the existing Thompson Brothers resource and conduct a magnetic drone survey over the project area, partially financed by a grant from the Manitoba government.
Environmental studies and mine permitting will follow, and an operational start-up date has been earmarked for 2023.