Stillwater Critical Minerals (PGE:TSX.V; PGEZF:OTCQB; 5D32:FSE) reported through press releases on July 20 and September 12 that resource expansion drilling is now underway on the Stillwater West project. According to the company, the project, located in Montana, hosts nickel, copper, cobalt, palladium, platinum, rhodium, and gold.
Michael Rowley, the CEO and President of the company, commented, "We are very pleased to have programs underway on all three of our 100%-owned district-scale assets, with particular focus on the expansion of resources defined at our flagship Stillwater West project, which currently hosts over 1.6 billion pounds of nickel, copper, and cobalt along with nearly 4 million ounces of platinum, palladium, and gold. We expect to roll assays out over the course of quarter four (Q4) 2023 and well into quarter 1 (Q1) 2024."
According to Stillwater, the company has several highlights to report, including the recent expansion of the NI 43-101 resource, completion of its sixth drill hole in the current program, and multiple points of sulfide mineralization visible in core to date.
Couloir Capital covers the company and said in June, "We are encouraged by the strategic investment in Stillwater Critical Minerals by mining major Glencore.
Additionally, the company has stated it is encouraged by the work Heritage Mining is doing on Stillwater's Drayton-Black Lake gold project in Ontario, which is the subject of an earn-in agreement.
The company reports that certain prior drill holes have returned as much as 2.89% of recovered nickel equivalent (NiEq) over 13.2 meters, and this is the area and the structures being targeted this year. According to Stillwater, the company is using geological models based on Dr. Danie Grobler's model of South Africa's Platreef district, a decision based on similarities between the two regions.
According to Dr. Grobler, the Vice President of Exploration, "We have successfully intercepted multiple targeted mineralized zones that were predicted in our updated exploration model and are very pleased with what we see in the core at Stillwater West. The current drill campaign is the first to incorporate detailed structural and stratigraphic models from very similar mineralization in South Africa's Bushveld Igneous Complex in the Stillwater Igneous Complex."
Critical Minerals in Demand
Rick Mills of Ahead of the Herd has provided some coverage of critical minerals, which are essential to decarbonization efforts around the world.
According to Mills, "For the U.S., the world's leading economy, securing reliable supplies for these minerals is especially important to not only sustain its dominance but also shed its supply reliance on key rivals like China."
Mills reports that the conflict in Ukraine incentivized the construction of the Partnership for Global Infrastructure and Investment (PGII). According to Mills, demand, supported by legislation, for designated critical minerals, such as graphite and copper, is expected to go up.
Couloir Capital covers the company and said in June, "We are encouraged by the strategic investment in Stillwater Critical Minerals by mining major Glencore. The CA$4.94 million investment for a 9.99% ownership stake values Stillwater at CA$49.4 million or CA$0.25/share; this is a 47% premium to the closing price a day before the announcement."
The company reports that it is expecting the possibility of some deals on its secondary brownfield properties and that it is optimistic due to the upward trend in demand for North American critical minerals.
Ownership and Share Structure
Streetwise Ownership Overview*
Reuters provided a breakdown of the company's ownership and share structure, where insiders own 8.51% of the company. According to Reuters, Executive Chairman Gregory Shawn Johnson owns 3.28% with 5.83 million shares of the company, President, CEO, and director Michael Victor Rowley owns 2.81% with 5.01 million shares, Independent Director Gregor John Hamilton owns 1.82% with 3.25 million shares, Independent Director Gordon L. Toll owns 0.56% with 1.00 million shares, and Vice President of Exploration Daniel F. Grobler owns 0.04% with 0.06 million shares.
According to Reuters, institutions own 12.31% of the company. U.S. Global Investors, Inc. owns 1.12% with 2.00 million shares, and Plutos Vermögensverwaltung AG owns 0.09% with 0.16 million shares.
Glencore Canada Corp owns 9.99% of the company with 19.76 million shares, as a strategic investor.
Stillwater Critical Minerals reports that it has over CA$6 million in cash and cash equivalents.
According to Stillwater Critical Minerals, there are 36 million warrants out.
Reuters reports that the company has 198 million shares outstanding. According to Reuters, the company has a market cap of CA$37.5 million and trades in the 52-week period between CA$0.19 and CA$0.28.
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- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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