Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF)’s 57.52% owned Snow Lake Resources has priced its initial public offering (IPO).
The IPO raised US$24 million before costs from the issue of 3.2 million common shares at an issue price of US$7.50 per share.
Snow Lake has also granted underwriters, ThinkEquity, a 45-day option to purchase up to an additional 480,000 common shares to cover over-allotments at the initial public offering price, less the underwriting discount.
Snow Lake began trading on the Nasdaq Capital Market today under the ticker LITM and had an immediate impact, with shares of the stock more than doubling in early trading and up as high as 145% at one point.
Following the completion of the issue of the 3,200,000 common shares, Snow Lake will have ~ 16,210,176 common shares on issue giving it a market capitalisation of US$121.6 million.
Benefits of listing
The value of Nova’s investment in Snow Lake is ~US$70 million (A$95.9 million).
And its holding puts it close to key North American auto markets.
"I am very pleased to announce to our shareholders that Snow Lake Resources will be led by its North American management team to improve operating efficiencies and unlock value for Nova shareholders. 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.
“I want to thank Snow Lake CEO Phillip Gross for his strong leadership, as well as the entire team for their tireless work in pushing Snow Lake to listing. Phillip's focus on measured growth combined with prudent cash management will be critical to Snow Lake's success."
Nova’s Board of Directors believes Snow Lake’s listing may deliver certain benefits including:
- The increased attractiveness of Snow Lake to a broad US investor pool who previously could not invest in non-US securities, leading to Snow Lake being more fully valued over time
- Improved access to lower-cost debt and equity capital in the US markets, thus enabling future growth to be financed at a lower cost
- Reduce complexity and improve operating efficiencies
- A simplified corporate structure for potential future merger, sale or acquisition transactions, which may increase Snow Lake’s attractiveness to potential merger partners, sellers or acquirers.
About Snow Lake
Snow Lake’s listing comes at a time when investors are looking at lithium stocks as an entry point to the world’s net-zero commitments.
Lithium, along with other battery metals, will play a key role in helping countries and companies achieve their clean energy goals.
The company is based out of Manitoba, Canada and lithium produced from its prospective mines will be used to power the growing EV consumer market.
Snow Lake is committed to operating 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.
Highlights include:
Snow Lake aims to become the world’s first lithium mine to achieve certified "B Corporation" status, which means it is committed to integrating sustainability in all corporate strategy and decision-making processes, as well as effective risk-management strategies and systems based on sound science.