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Mining Co. Options Two District Scale Projects

Source: Siddharth Rajeev

 

December 14, 2022 (Investorideas.com Newswire) With these new agreements, the Canadian resource explorer shifts its focus away from gold and toward lithium, a critical metal, and zinc, lead and copper, noted a Fundamental Research report.


Rover Metals Corp. (ROVR:TSX.V; ROVMF:OTCQB; 4X0:FSE) entered option agreements on two district-scale projects, Let's Go in Nevada and Indian Mountain Lake in Canada, reported Fundamental Research analyst Sid Rajeev in a Dec. 1 research note.

Following this news, Fundamental adjusted its model on Rover Metals, incorporating the value of the two projects and accounting for share dilution. This led to a lower fair value estimate on the Canadian resource explorer of CA$0.56, down from CA$1.14. Given that Rover Metals is now trading at about CA$0.09 per share, the difference between the two current figures implies a significant potential return for investors.

In his report, Rajeev summarized the terms of both agreements, briefly described the projects, and noted how Rover Metals plans to advance each one.

High-Grade Lithium

As for Let's Go, the Vancouver, British Columbia-headquartered mining company may acquire 100% of the project for US$2 million (US$2M) of cash and shares paid in stages plus US$0.2M in work commitments.

Let's Go is a never-before-drilled, 6,000-acre lithium project in Southern Nevada, where Rover Metals plans to conduct a CA$200,000, reverse circulation drill program to test high-grade areas, Rajeev relayed. High grades, ranging from 710-1,218 parts per million, were shown to be present via a surface sampling program.

"Historic water well drilling on the property by the U.S. Geological Survey indicates that mineralization is near surface, implying [the] potential for relatively low opex," Rajeev noted.

In Nevada, Let's Go sits among several advanced-stage lithium projects, some of which have demonstrated strong economics, wrote Rajeev. They include Cypress Development's Clayton Valley, American Lithium's TLC, Spearmint Resources' McGee, Noram Lithium's Zeus, and Iconic Minerals' Bonnie Claire.

"Due to the proximity of all these projects, we believe that the area is ripe for consolidation," Rajeev wrote. "We believe miners/battery manufacturers are actively monitoring juniors for mergers and acquisitions, as they are constantly seeking long-term stable sources of lithium for electric vehicle batteries."

Zinc-Copper-Lead Resource

Regarding Indian Mountain Lake, Rover Metals may acquire a 90% stake in it for US$2M in cash, US$2M in work commitments, and 3.5M shares.

The 30,000-acre property in Canada's Northwest Territories hosts an attractive, historic volcanogenic massive sulfide (VMS)-style resource, including 280,000,000 pounds (280 Mlb) of zinc-lead, 17 Mlb of copper and 5,000,000 ounces of silver at relatively high grades, reported Rajeev.

In the near term, Rover Metals plans to carry out a CA$2M exploration campaign to identify drill targets and within two years, convert the historic resource into an NI 43-101 compliant one.

"We believe the project has resource expansion potential, especially considering that historic resources account for just 3% of the total land package and as VMS deposits tend to occur in clusters," Rajeev wrote.

Accordingly, upcoming catalysts for Rover Metals include exploration results from Let's Go and Indian Mountain Lake, noted Rajeev, along with "positive sentiment for juniors focused on electric vehicle metals."

Disclosures:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Rover Metals Corp. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Rover Metals Corp., a company mentioned in this article.

Fundamental Research Corp., Rover Metals Corp., December 1, 2022

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by ROVR to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring.

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