Snow Lake Resources Stock Surges On Public Offering, Sparking Retail Chatter
Retail sentiment on Stocktwits was largely bullish following the news.
FollowShares of Snow Lake Resources ($LITM) soared 347.8% on Wednesday after the uranium exploration company announced plans for a public offering, drawing a mixed retail reaction.
Snow Lake, which does business as Snow Lake Energy, hasn’t disclosed the size or the terms of the offering. The offering will entail Snow Lake selling common shares or pre-funded warrants, the company said, adding that all of the common shares are to be sold by the company itself.
Snow Lake stock fell 41% in the after-hours trading session on Wednesday.
The offering is subject to market conditions, said the company.
The company also gave no assurance on when the offering may be completed, except to say it intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.
ThinkEquity is acting as the sole placement agent for the offering.
Retail sentiment on Stocktwits was largely bullish following the news.
One ‘bullish’ user was confident about the company’s future, noting the safe and clean nuclear energy that “will be a very attractive” power source.
Another user was positive on both the prospects for nuclear energy and lithium batteries.
Canada-based Snow Lake’s portfolio includes two uranium and two hard rock lithium projects.
Its Black Lake Uranium Project is in exploration stage and is located in the Athabasca Basin, Saskatchewan; its Engo Valley Uranium Project is also an exploration stage project located in the Skeleton Coast of Namibia.
Its Shatford Lake Project is an exploration stage project located adjacent to the Tanco mine, and the Snow Lake Lithium Project is an exploration stage project located in the Snow Lake region of Northern Manitoba.
The company’s current focus is advancing the exploration of its two uranium projects to supply the raw materials needed for the clean energy transition and emissions free power.
It warned its exploration activities on its two lithium projects “will remain limited until such time as the lithium market recovers” from its current depressed levels.
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