Ann: Thompson Brothers Lithium Project Update, page-28

You're missing something.

For the current Snow Lake Resources (SLR) unlisted entity NVA holes about 70% of shares, Progressive Planet around 20% and the remainder around 10% is held by seed and early-stage investors in SLR.

Those seed / early-stage investors have shares in SLR, they just can't trade them until the shares are listed. The seed / early-stage shares exist, they just can't be sold or bought on an exchange.

If unlisted SLR started producing and generating positive cashflow then it could do one of two things, for simple numbers lets say CAD $10M of after-tax earnings.

1. Retain all after-tax earnings for growth of Snow Lake Resources. The after-tax earnings is only being used for SLR.
   • CAD $10M would be used by SLR for their own growth.
2. Retain a portion of after-tax earnings ( say 50% ) for growth of Snow Lake Resources. The remainder 50% would be payed out as dividends to SLR shareholders.
   • NVA would get about 50% x 70% x $10M = CAD $3.5M
   • PLAN would get about 50% x 20% x $10M = CAD $1M
   • Seed and other early-stage investors would get about 10% x 50% x $10M = CAD $0.5M.

NVA could put their $3.5M share of dividends from above to their own purposes ( e.g. spend those dividends on Estelle ).

When the spinoff occurs, all those existing shares will be publicly tradeable ( the ~ 70% held by NVA, the ~ 20% held by PLAN, the ~ 10% held by seed and early-stage investors ). I'm expecting there will only be about 10% free-float when SLR lists as it will only be the smaller shareholders that might decided to sell their shares.


NVA are essentially waiting to complete the spinoff of SLR as a publicly-traded entity until after SLR has started generating cashflow or the Lithium Market recovers. Theory here is that sentiment for the publicly traded entity will be better once they are close to or generating cashflow.