ZNC is one of the smaller Australian hard rock lithium companies with a very bright future but I wanted to talk about one of the investments held by the company.
Last year ZNC, after a JV with Jim Mellon's Bradda Head Lithium, divested most of the JV's promising lithium assets in the US - hard rock, brines, and sedimentary clay - to Bradda Head Holdings Ltd, a UK outfit with a highly experienced crew.
When Bradda Head Holdings Ltd IPO'ed on the AIM market of the London Stock Exchange, ZNC received 43.9m shares @ £0.073 in (AIM: BHL) value A$5,575m. So ZNC received cash and around 15% of the IPO'd Bradda Head shares and the deal looks to be a winner as both the company and tenements look to be first class. The hard rock tenement in Arizona is named San Domingo and BHL has just moved a rig there with a team of experienced drillers. Research already performed at San Domingo tells Bradda Head that they may have similar geology to Lionstown's Kathleen Valley zoned pegmatites, where the thickness and grade increase at depth. The company's board is flush with cash from previous mining successes and is very excited to be starting to dig into all the US tenements. They have already had US$8 million invested from the Lithium Royalty Corp (LRC).
If you go to Bradda Head's website and/or watch some interviews you will see that these guys do not mess around and they want to be mining ASAP. Interestingly, they are using sonic drilling to minimize environmental damage through reduced water use.
I have had the BHL UK stock on my watchlist for around 3 weeks and it has jumped from 6.60 pence on July 1st to 8.295 today. So it is on the move but still very cheap as the MC had decreased in line with the lithium sentiment (it had reached an ATH of 17 pence in March). I am looking at buying in as it looks like a worthwhile punt, but there are so many bargains around still.
AIMO and please do your own reearch. There is a lot of detail in the ZNC story. The MST Access report above is a must read.
