Jim's Mining Letter - July 1, 2024

Rainbow Rare Earths (RBW.L RBWRF RR1.F) announced that it has entered into a binding agreement with Ecora Resources (ECOR.L ECOR.TSX ECRAF HGR.F) whereby Ecora will purchase a 0.85% gross revenue royalty on future rare earths production from the company's Phalaborwa project in South Africa, plus any other saleable products, for a cash consideration of $8.5 million. Rainbow has also agreed to issue 10,442,427 new ordinary shares in the company at a price of 11.3652p (based on a 20 day volume weighted average price) to Ecora to raise an additional $1.5 million via an equity subscription. The total of $10 million, on terms that are less dilutive than conventional equity funding, will be used to deliver completion of the definitive feasibility study on the Phalaborwa project in H1 2025 and cover all other company financing requirements up to June 2025…more

Bradda Head Lithium (BHL.L BHLI.V BHLIF 8CD1.F) announced a new mineral resource estimate at the company's 100% owned Basin project in Arizona. The new MRE consists of 99,000 tonnes of of lithium carbonate equivalent at an average grade of 929 parts per million lithium in measured classification, 560,000 tonnes of LCE at 860 parts per million Li in the indicated classification and 2,175,000 tonnes of LCE at 808 parts per million Li in the Inferred classification following the completion of drilling, reception and analysis of geochemical results, and new modeling of the Basin project. As per the gross overriding royalty agreement with the Lithium Royalty Corporation (LIRC.TSX LITRF X1Q.F), the new contained LCE tonnage surpassed the contracted threshold of 2.5 million tonnes and has enabled Bradda Head to trigger the payment of $3 million from LRC to the company. Bradda Head therefore expects to be well funded for the future, including its drilling plans at San Domingo Arizona, the near surface Spodumene bearing pegmatite opportunity…more

Lion One Metals (LIO.V LLO.ASX LOMLF LY1.F) reported record preliminary gold production at Tuvatu for the month of June, a significant expansion of the surface gold-in-soil anomaly to the south of Tuvatu and an increase in the planned mill expansion to 600-700 tonnes per day. Gold production at Tuvatu has steadily increased since the completion of mill commissioning in December 2023/January 2024 and a step change in production occurred in June following the commencement of mechanized production. The total gold recovered for the month of June up to and including June 24 is approximately 1,370 ounces of gold, with projected gold recovered of approximately 1,700 ounces for the month. Soil sampling to the south of Tuvatu has revealed a 650 metre extension of anomalous gold at surface. High-grade gold in soil results were recovered along a north-south corridor directly south of and along strike from the known deposit at Tuvatu. The gold anomaly is coincident with wider arsenic, lead, and zinc anomalies, which are known pathfinders for gold, thereby widening the potential footprint of the gold mineralization. The Tuvatu deposit has a north-south strike length of approximately 950 metres and the southern soil extension represents a potential 70% increase in the overall strike length. These soil results are a significant discovery at Tuvatu and represent a prime target for near-mine exploration and resource expansion, highlighting the potential for more discovery both near-mine at Tuvatu and regionally throughout the Navilawa Caldera…more

CleanTech Lithium (CTL.L CTLHF T2N.F) announced it has secured commitments from a number of investors to raise gross proceeds of approximately A$4 million (approximately £2.1 million) through the issue of loan notes.  In addition, the company announced that it has terminated the £1 million convertible loan notes announced in April. The new loan notes are for an aggregate amount of A$3,995,000, have been denominated in both Australian Dollars and Pounds Sterling and carry an entitlement to warrants.  Each A$0.9126 of AUD loan notes subscribed and/or each £0.48 of GBP loan notes subscribed will carry an entitlement to one warrant. Each warrant grants the holder the right to subscribe for one new ordinary share at a price of either A$0.456 or £0.24, a 71.4% premium to the company's closing share price on 28 June 2024. The funds raised through the issue of the loan notes will provide Clean Tech with immediate liquidity and will enable the company to maintain its current activities and work programmes while it prepares for the planned dual-listing on the Australian Securities Exchange…more

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