Strategic Lithium-Boron Acquisition Expands Exploration Footprint in Nevada

Source: Streetwise Reports 10/22/2024

Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) has completed its acquisition of the Railroad Valley lithium-boron claims (RV project). Read why the company CEO says this aligns with Canter’s long-term growth strategy.

Canter Resources Corp. (CRC:CSE; CNRCF:OTC; 601:FRA) has completed its acquisition of the Railroad Valley lithium-boron claims (RV project). The RV project claim block shares a common border with land controlled by 3 Proton Lithium (3PL), a private critical mineral explorer in Railroad Valley. Canter intends to complete follow-up sampling at the project in the fourth quarter of 2024, 164 kilometers from their exploration base in Tonopah, Nevada.

In the company news release, Joness Lang, CEO of Canter Resources, commented on the acquisition, stating, “We are excited to have expanded our lithium-boron exploration footprint in Nevada with this strategic acquisition in a highly prospective, yet underexplored area. While our primary focus remains on advancing our flagship Columbus project, we see value in adding low-cost, high-potential projects that strengthen our portfolio and align with our long-term growth strategy.”

Lithium-Boron Market Trends and Opportunities

Visual Capitalist reported on September 29 that cobalt, a critical mineral used in battery production, had “gained significant attention in recent years due to its wide range of commercial, industrial, and military applications.” The growing demand for cobalt in the electric vehicle (EV) sector was highlighted, with “the EV sector accounting for 40% of the global cobalt market,” reinforcing its importance in the global transition to electrification. Additionally, 87% of China’s cobalt consumption was “dedicated to the lithium-ion battery industry.”

On October 1, Ahead of the Herd emphasized a favorable environment for risk assets, noting, “The combination of interest-rate cuts from the Federal Reserve, resilient economic growth, and the un-inversion of the yield curve” as contributing factors. The S&P/TSX Global Mining Index gained 14% since September 6, marking its biggest jump of the year, with central banks cutting interest rates and the U.S. signaling more battery metal funding. Ahead of the Herd also stated that “majors, mid-tiers, and juniors all looked ripe for a rebound” in this risk-tolerant environment.

On October 8, Forbes reported that “a 50% rise in the price of a downtrodden lithium producer has boosted investor hopes that a revival in the battery metal is possible” after two difficult years of oversupply and low prices. Lithium was “once the hottest metal in the commodity sector” and had begun showing “signs of recovery as investor interest picks up again.” Despite the downturn, the long-term outlook for lithium remained strong, with Forbes emphasizing its essential role “for the future of electric vehicles and battery technology.”

According to Barry Dawes of Martin Place Securities that same day, “the lithium market is showing strong signs of upturn,” with the possibility of “lithium shortages post-2027,” highlighting the sector’s future growth potential.

Canter’s Catalysts Driving Growth

As outlined in their investor presentation, Canter Resources’ Railroad Valley acquisition aligns with the company’s strategy of expanding its critical minerals portfolio at a low cost while leveraging geological similarities to proven lithium-producing regions. The Railroad Valley project holds promise due to its favorable geological features, such as volcanic calderas and closed-basin characteristics, which are known to enhance lithium and boron concentration.

According to the company’s investor presentation, this acquisition bolsters Canter’s portfolio as it continues to focus on the Columbus project. The upcoming follow-up sampling and the planned Q4 2024 exploration at the Railroad Valley site further demonstrate the company’s commitment to expanding its exploration activities. Canter’s continued exploration efforts are expected to provide the data necessary to identify lithium-boron deposits across its portfolio, enhancing long-term growth potential.

Analysts On Canter

*According to Technical Analyst Clive Maund, who issued an opinion on October 16, Canter Resources Corp. was viewed as an “Immediate Strong Buy.” Maund pointed out that the company’s stock was priced at “some 8% of its price at its late 2023 peak,” making it a highly favorable entry point. He emphasized that despite the severe bear market in lithium, Canter had made “considerable progress” on its projects, which positioned the company to benefit as lithium prices stabilized. Maund highlighted that Canter’s Columbus Basin Project, located in a region with favorable geology, “looks set to provide a ‘kicker’ for the stock,” especially following positive Phase II drilling results.

On October 15, Jeff Clark from The Gold Advisor also shared a positive assessment of Canter Resources. Clark noted that the company had reported “significant findings from its Phase II Geoprobe drilling program” at the Columbus Project, including the highest boron concentration to date and consistent lithium values. He highlighted Canter’s potential to make a major discovery at Columbus, particularly due to the structural similarities between this project and other successful lithium-boron operations in the region. Clark added that Canter’s “low-cost shallow drilling” had laid the foundation for a deeper and more extensive exploration phase. He affirmed that Canter’s market cap of CA$3.85M represented an “incredible bargain” considering the company’s potential.

In What is Chen Buying? What is Chen Selling?, published on October 16, analyst Chen Lin provided a positive outlook on Canter Resources’ drilling results. He highlighted that Phase II drilling at the Columbus Lithium-Boron Project returned “the highest dissolved boron concentration to date,” which further underscored the project’s potential. Lin emphasized the promising geochemical similarities between Canter’s Columbus Basin and other major lithium-boron-producing regions, stating that these results “bolster the company’s hypothesis” and position Canter as a key player in the critical minerals market. [OWNERSHIP_CHART-10988]

Ownership and Share Structure

According to the company, managers and insiders own about 9.6% of Canter Resources, and strategic investors (including the founding group and Michael Gentile & Advisors) own about 12%.

The investors with the largest stake are all insiders. They are CEO and Director Joness Lang with 3.38%, Director and Strategic Adviser Warwick Smith with 2.14%, Director and Technical Adviser Kenneth Cunningham with 1.95%, Chief Financial Officer Alnesh Mohan with 0.97%, and Director and Technical Adviser Eric Saderholm with 0.58%, and Gentile, who owns about 4% personally.

Four institutions or funds, including Euro Pacific Asset Management, collectively hold 3%. Retail investors own the remaining.

The Canadian explorer has 51.29 million outstanding shares, 46.41 million free float traded shares with a CA$4.11 million market cap.

Over the past 52 weeks, Canter has traded between CA$0.07 and CA$0.99 per share.

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Canter Resources Corp.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund article published on October 16, 2024

1. For the quoted article (published on October 16, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$2,500.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: CRC:CSE; CNRCF:OTC; 601:FRA, )

Source: https://www.streetwisereports.com/article/2024/10/22/strategic-lithium-boron-acquisition-expands-exploration-footprint-in-nevada.html