- Nova Minerals' (NVA) majority owned Canadian company, Snow Lake Resources, progresses its $23 million IPO
- Toward this end, Snow Lake has filed its Amendment No 2 to Form F-1 with the Securities and Exchange Commission
- Snow Lake is focussed on developing the Thompson Brothers Lithium Project to become a fully energy renewable lithium hydroxide producer
- Work is underway to complete a preliminary economic assessment scheduled for the third calendar quarter of 2021
- Additionally, the company is planning to start a drilling program during the third or fourth quarter of 2021, to further expand the existing resource
- NVA shares dropped 4.5 per cent to trade at 10.5 cents at 12:41pm AEST
Nova Minerals (NVA) majority owned Canadian company, Snow Lake Resources has filed its Amendment No 2 to Form F-1, to progress its $23 million IPO.
Snow Lake is an exploration stage mining company, 74 per cent owned by Nova Minerals, engaged in lithium exploration in the province of Manitoba, Canada.
With regards to the IPO, Nova Minerals has agreed to lock up its holdings of Snow Lake's common shares for a period of 180 days from the date the registration statement comes into effect.
The company first announced its IPO on March 30, and has now filed its Amendment No 2 to Form F-1 with the Securities and Exchange Commission.
In 2019, through a share sale agreement, Nova spun out the Thompson Brothers Lithium Project, located in Manitoba, through Snow Lake Resources.
Since then, Snow Lake has been focused on conducting exploration for lithium at the project, with the aim of developing a lithium mine to become the first fully energy renewable lithium hydroxide producer in North America.
The company is on a quest to become the first lithium producer in the world to achieve certified B Corporation status, which means it needs to achieve the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
The preliminary process to become a pending B corporation has begun, and the company expects to formally apply for the official status one year after completing its IPO and ramping up operations.
In this vein, Snow Lake has entered a MOU with Meglab Electronique for an all-electric lithium mine. Additionally, it has signed an MOU with CentrePort Canada for a potential location to build a hydroxide plant.
As well as other non-binding MOUs, Snow Lake is looking to secure sites within Manitoba for hydroxide processing of spodumene to be powered by renewable energy sources.
The project is located close to railway lines which Snow Lake said will connect its lithium mining operations to the North American auto industry with a minimal carbon footprint and a short total mine to manufacturer distance.
In its prospectus, the company outlined the multiple risks associated with its business, including the impact of COVID-19 as well as operational risks and factors outside of the company's control.
Snow Lake pointed out that all of its business activities in the exploration stage and there is no assurance that its efforts will result in the commercial development of lithium hydroxide.
Work is currently focussed on two lithium enriched pegmatite dyke clusters and the company said future work till entail the completion of a preliminary economic assessment scheduled for the third calendar quarter of 2021.
During the third or fourth quarter, Snow Lake is plans to start a drilling program to further expand the existing resource and a mag drone survey that will be partially financed by a grant from the Manitoba Government.
Looking forward, Snow Lake intends to initiate a pre-feasibility study in 2022, with additional drilling exploration programs on the property to survey historic results from drilling more than 50 years ago.
From there, the company said it's confident it will be in a position to launch mining operations in 2023.
Nova Minerals shares dropped 4.5 per cent to trade at 10.5 cents at 12:41pm AEST.