My Take on Snow Lake – April 26, 2019

Mining news and a new openness from the town

As I have noted in the past in this column, there has been interest in the Thompson Brothers Lithium property for nearly eight decades (since 1942). In the ensuing years, numerous companies and several successful drill campaigns have turned the property situated on the northeastern shore of Wekusko Lake into a hive of activity and a positive prospect for the otherwise struggling economy of Northern Manitoba.

In an April 15 news release, directors of Nova Minerals Limited gave an operational update on their project portfolio, wherein they announced that Snow Lake Resources (SNOW) has moved to the next step of transferring title of the Thompson Brothers Lithium Project in order for them to obtain 100 per cent ownership. “Snow Lake Resources Ltd has forwarded all consideration cash and share pursuant to agreements signed between the parties,” said Nova, further noting that they intended to have title transferred over to Snow Lake Resources, and have it certified by an independent qualified person within the NI 43-101 and initial public offering prospectus to be filed by SNOW.

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Nova added that they welcome a recent announcement and developments in the region by Sinomine Rare Metals of Beijing and their acquisition of the Tanco Mine as part of the purchase of Cabot Corps specialty fluid division announced in February 2019. The Tanco Mine is located northeast of Winnipeg, on the shore of Bernic Lake. The pegmatite there has been mined since 1968 and has produced spodumene, cesium, and tantalum at various times in its mine life. “This is a significant development for the region,” said Nova. “Given the proximity, and as the Thompson Brothers Lithium Project is the most advanced in the region, this development highlights the significance of the region and allows the potential for Snow Lake and other parties to collaborate further in establishing a center for a source of spodumene.”

The current JORC resource (a mandatory system for the classification of mineral exploration results) at the Thompson Brothers Property stands at 6.3 million tonnes at 1.38 per cent Li2O, as defined by Nova Minerals.

In relation to the ongoing saga between Waterton Resources and Hudbay Minerals, the latter company announced on April 17 that the company’s largest shareholder, Letko, Brosseau & Associates Inc. (an independent investment manager that exercises investment control or direction over approximately 35,112,398 shares or 13.4 per cent of Hudbay’s issued and outstanding shares) has confirmed that it intends to vote for Hudbay’s 11 director nominees in a proxy war between rebel shareholder Waterton Global Resource Management and the company.

The spat between the two companies has seen Waterton call for change on the board and at the helm; Hudbay countering by exposing what they term as a “track record of value destruction” on the part of Waterton. Then, Waterton responding with legal proceedings against Hudbay, alleging that the company distributed information to shareholders containing misrepresentations about Waterton that could constrain their ability to solicit shareholder proxies. Hudbay’s annual and special meeting of shareholders is to be held on May 7.

In community news, the Town of Snow Lake has taken steps towards better communication between them and the citizens of the community. They have contracted me to document and distribute meeting minutes on a twice-monthly basis. I will also word and distribute news releases in respect to issues that arise from the minutes. As well, I will design, write and edit a two-page monthly newsletter on behalf of the town, as well as set up and operate an Instagram account, which will feature photos of the town and area.

The minutes and news releases will be posted on various bulletin boards around Snow Lake, as well as being featured on the town’s webpage, Facebook page and Twitter feed. They will also be posted to the community’s independent Facebook Bulletin Board. The newsletter will be placed in all community mailboxes, on local bulletin boards, as well as posted to the social media mentioned above.

The contract is for a two-month period, beginning in May 2019. At the end of the two-month period, the community’s town council will re-evaluate the idea and decide if it will continue.

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