Pure Energy Minerals (TSX-V:PE) has seen its market cap almost cut in half from the middle of February. Investors are attempting to value the company after some recent results from its pumping test in Nevada and a lithium market that remains hot.
The junior resource company has a very unique approach in that it is an integrated lithium mining and processing developer with a focus on green ‘cradle to cradle’ life cycle solutions for lithium supply in North America.
This is in huge contrast to the model of most junior resource companies, who are just looking to shore up a resource, develop it as far as possible and then sell it for as much as possible.
Pure Energy has former Swift Power management
Pure Energy is of interest due to the fact its management team is comprised of two former key members from Swift Power Corp. Swift is a company outlined in our latest EBook on 50 of the top success stories in Canada’s small-cap market.
* Alexi Zawadzki, was the Founder, President and CEO of Swift Power Corp. (SPC:TSXV) when it was acquired in 2010.
The transaction value represented an approximate 62% premium to Swift’s 20-day volume weighted average price on the TSX-V for the 20 trading day period ending June 21, 2010.
Click the below image and link to learn about Alexi’s history with Swift Power; and also read about 49 other executives that led juniors to multi-million and, in some cases, multi-billion dollar buyouts.
At the time of our EBook release, on February 10, 2015, Pure Energy Minerals’ market cap stood at approximately $6.2 million. It has since fallen to approximately $3.3 million.
Pure Energy Minerals – 3 Month Chart
2 Key Pure Energy Minerals’ Management past members of Swift Power
While Alexi founded Swift Power, his current role with Pure Energy Minerals is VP of Business Development.
Another important piece to the Pure Energy Minerals puzzle is Dr. Andy Robinson, Ph.D. Geoscience: the company’s Chief Operating Officer.
He has served as senior technical and executive management roles for publicly listed companies, including Swift Power Corp and Veresen Inc. Additionally, he has over a decade experience working for international groundwater-focused projects.
Dr. Andy Robinson is an experienced Geoscientist with a PhD in Geochemistry from the University of Bristol.
As mentioned above, Pure Energy is focused on the advancement of its prospective Clayton Valley Lithium Brine Project, located in Esmeralda County, Nevada.
On April 9th, the company provided an update on the recent completion of a pumping test on CV-1 in Clayton Valley. The company reported that,
“A high-capacity electric submersible pump was installed in CV-1 and was used to conduct a preliminary step-test that produced flow rates from 40 to 180 gallons per minute (gpm) or 2.5-11 litres/second. During this test, the maximum output of the pump was reached (180 gpm) and higher flow rates of lithium-bearing brine could have been produced.”
The company proceeded with a long-term, constant-discharge test performed in CV-1 at a rate of 150 gpm (9.5 litres/second) for a period of 8 hours.
“During this test, the brine level in CV1 reached a steady-state drawdown of 174′ (53 m), demonstrating that higher production pumping rates of lithium-bearing brine are possible from this well.”
The company concluded that,
“Data collected from these two successful pumping tests are being interpreted by hydrogeologists from BGC Engineering Inc. in Vancouver, and will be used to provide key input information for an Inferred Resource estimate (NI 43-101 compliant) that is being written for the lithium brines present beneath Pure’s Clayton Valley prospects.”
Pure Energy CEO, Robert Mintak commented, “We are very pleased with the results from the pumping tests as they demonstrate constant flow with minimal draw down, an important milestone in confirming the productive potential of the Clayton Valley project.”
Click here to read the entire press release from April 9th, 2015.
Pure Energy’s share price dipped 20.83% on April 13th, two trading days after the above press release.
In the company’s most recent presentation it stated having cash of C$2.07 million as of December 31, 2014.
Pure Energy Minerals is unique in that it is not only a lithium brine exploration company, but is a processing developer with a focus on sustainable lifecycle solutions for lithium supply in North America. It is clear that much is riding on Clayton Valley project and the results of this recent pumping test.
This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.
This is not an invitation to purchase any securities mentioned in this report. Pinnacle Digest does not endorse or recommend any of the referenced securities. At the time of publication and distribution of this report (8:00AM PST on April 14, 2015) neither PinnacleDigest.com, its employees or consultants owned shares in any of the mentioned companies in this report. This article is intended for informational and entertainment purposes only. The author of this article bears no liability for losses and/or damages arising from the use of this article. This report may contain technical or other inaccuracies, omissions, or typographical errors, for which PinnacleDigest.com and its parent company assumes no responsibility. We do not guarantee that any of the companies mentioned in this report or on PinnacleDigest.com will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.
All statements in this report, other than statements of historical fact, should be considered forward-looking statements. These statements relate to future events or future performance. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
PinnacleDigest.com and its employees are not a registered broker-dealer or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Nothing in this article should be construed as a solicitation to buy or sell any securities. This article is intended for informational and entertainment purposes only. The author of this article bears no liability for losses and/or damages arising from the use of this article.
