- Rock Tech (TSXV:RCK) is partnering with Imagine Lithium (TSXV:ILI), an undervalued microcap stock, to strengthen the Northern Ontario battery supply chain
- The companies will explore the potential for M&A, joint exploration and commercial partnerships, among other mutually beneficial opportunities
- Imagine Lithium stock (TSXV:ILI) has fallen by 64.29 per cent over the past five years
- Rock Tech Lithium stock (TSXV:RCK) is down by 61.90 per cent year-over-year, but remains up by 20 per cent over the past five years
Rock Tech (TSXV:RCK) is partnering with Imagine Lithium (TSXV:ILI), an undervalued microcap stock, to strengthen the Northern Ontario battery supply chain.
The companies have signed a memorandum of understanding to consider opportunities for collaboration, including commercial partnership structures, M&A, joint exploration and existing project development.
A main focus of the collaboration will be to maximize synergies between their own properties, as well as those in proximity to Rock Tech’s proposed lithium converter along Lake Superior’s North Shore, to develop a reliable battery material supply chain in Northern Ontario.
Rock Tech’s 5,700-hectare Georgia Lake spodumene project and Imagine’s almost 19,000-hectare Jackpot project share contiguous boundaries.
The Georgia Lake property in Thunder Bay, Ontario, holds an estimated mineral reserve of 10.6 million tonnes grading 0.88 per cent Li2O indicated and 4.2 million tonnes grading 1 per cent Li2O inferred.
The Jackpot project near Nipigon, Ontario, boasts numerous years of value-accretive results marked by elevated Li2O grades, a historical resources of 2 million tonnes grading 1.09 per cent Li2O, and ongoing exploration of prospective targets. The market has not rewarded this operational success, with shares having fallen by 64.29 per cent over the past five years. Jackpot is also strategically located within 15 km of Rock Tech’s planned Georgia Lake concentrator in the Northern Spodumene Pegmatite area.
Imagine and Rock Tech will focus on identifying their mutual interests in the coming weeks.
“The growth potential is enormous if we collaborate with our neighbours in this area. We have already demonstrated that we can derive real economic value from mineral resources in our Northern Spodumene Pegmatite area. Developing accretive synergies in the Southern Spodumene Pegmatite area with our neighbour provides a genuine opportunity to transform the region into a leading lithium hub,” Robert MacDonald, Rock Tech’s General Manager, said in a statement.
“Given the proximity of our projects to each other, collaboration with Rock Tech would only strengthen the potential economics of a standalone development in the Nipigon area, strategically proximal to the downstream opportunities,” added J.C. St-Amour, Imagine Lithium’s President. “Imagine continues to have ongoing drilling success in the main Jackpot zone, as well as defining multiple new and exciting spodumene-bearing pegmatites across our extensive landholding. Following the upcoming winter drill program, we expect to release a 43-101 resource estimate for the property in Q2 of 2024. In addition, Imagine remains well funded, following a $9.1 million placement in April.”
Imagine Lithium is a junior mining exploration company focused on seeking and acquiring world-class mineral projects.
Imagine Lithium stock (TSXV:ILI) last traded at C$0.05 per share.
Rock Tech Lithium is a cleantech company focused on producing lithium hydroxide for electric vehicle batteries. It intends to build lithium converters in Canada and Germany with raw material sourced from discarded batteries, as well as its wholly owned Georgia Lake spodumene project in Ontario.
The company’s first converter in Guben, Germany, features an estimated post-tax NPV (8 per cent) of US$1.2 billion, an IRR of 22.3 per cent, and a capacity to supply lithium hydroxide for more than 500,000 electric vehicles per year. A supply deal with Mercedes Benz was finalized in October 2022.
Rock Tech Lithium stock (TSXV:RCK) last traded at C$1.20 per share. The stock is down by 61.90 per cent year-over-year, despite having made considerable progress on its quest to produce 24,000 tonnes of lithium per year by 2025. Shares remain up by 20 per cent over the past five years.
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