Nova Minerals subsidiary Snow Lake Resources lists on Nasdaq
Nova’s 57.52%-owned Snow Lake Resources aims to become the world’s first lithium mine to achieve ‘B Corporation’ status.
Nova Minerals (ASX: NVA) subsidiary Snow Lake Resources is now listed on the Nasdaq exchange following its US$24 million (A$33 million) initial public offering (IPO).
The 57.52%-owned subsidiary began trading under the ticker code ‘LITM’ after issuing 3.2 million shares at U$7.50 each (A$10.36/share), giving it a market capitalisation of US$121.6 million (A$168 million) upon listing. Nova’s investment in Snow Lake is worth US$70 million (A$96.7 million).
Snow Lake is focused on developing the Thompson Brothers lithium project in Canada into a fully renewable and sustainable lithium mine that can deliver a “completely traceable, carbon-neutral and zero-harm” product to the electric vehicle and battery market in North America.
The company aims to become the world’s first lithium mine to achieve certified ‘B Corporation’ status, which describes a business that meets the highest environmental, social and governance (ESG) standards.
Thompson Brothers lithium deposit
Located in Snow Lake in the Canadian province of Manitoba, the Thompson Brothers lithium deposit represents only one of several lithium-enriched pegmatite dykes forming a cluster associated with the Crowduck Bay Fault.
The 8.92-square kilometre property includes multiple spodumene pegmatite dykes, typically appearing in clusters, and drill results have shown promise of significant lithium resources.
Based on current resources, Snow Lake is proposing a fully functioning lithium mine to produce 160,000 tonnes per annum of 6% lithium ore concentrate over eight-to-10 years.
The company plans to use its IPO proceeds to undertake resource development activities including additional exploratory drilling, the preparation of a preliminary economic assessment (PEA), other technical studies and reports, as well as possible strategic acquisitions.
Nova’s investment
Nova believes Snow Lake’s North American listing will allow it to streamline its business operations, given the core assets and management team are located in the region.
The listing may also bring certain benefits including an increased attractiveness of Snow Lake to a broad US investor pool which previously could not invest in non-US securities; improved access to lower-cost debt and equity capital in the US markets; reduced complexity and improved operating efficiencies; and a simplified corporate structure for potential future merger, sale or acquisition transactions.
“This listing reflects the location of its core asset being in North America, situated next to key infrastructure allowing access to the US auto alley as well as European markets through the Port of Churchill,” Nova Minerals chief executive officer Christopher Gerteisen said.
He also acknowledged Snow Lake chief executive officer Phillip Gross for his strong leadership, saying his focus on measured growth combined with prudent cash management will be “critical” to Snow Lake’s success.
Nova’s shares of Snow Lake Resources are subject to six months’ escrow.