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Zenith Minerals (ASX:ZNC) buoyed up on listing of lithium investment on AIM  

Summary

  • Zenith Minerals has notified the ASX about admission of Bradda Head Holdings Ltd to trading on the AIM of the London Stock Exchange.
  • Zenith holds 15% of the issued capital of Bradda Head, and the investment is valued at around AU$4.7 million.
  • ZNC continues to focus on its core projects while offering support to the companies where it has a shareholding.

Perth-based explorer Zenith Minerals Limited (ASX:ZNC) holds interests in a diverse range of prolific assets and is committed to establishing a gold and base metals business.

The Company’s primary focus is on advancing its 100%-owned core Australian gold and copper projects. Additionally, ZNC has interests in partner-managed projects as well as listed and unlisted shares in various companies primarily on account of project-based transactions.

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ZNC’s investment in listed and unlisted companies includes substantial shareholdings in Rumble Resources Limited (ASX:RTR), Nickel-X Limited (ASX:NKL), American Rare Earths (ASX:ARR), and Bradda Head Holdings Limited. All these companies, except Bradda Head (a North America-focused lithium development company), are listed on the ASX.

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Bradda Head admitted to AIM

Lately, Bradda Head has been admitted to trading on the AIM of the London Stock Exchange.

ZNC holds 15% of the issued capital of Bradda Head, which recently raised GBP6.2 million through a placement of new ordinary shares at 5.5 pence. The funds raised are set to be channelised towards the phased exploration work programs across Bradda Head’s lithium projects located in the US.

The market capitalisation of Bradda Head is GBP16.9 million based on the closing price of 5.75 pence (AU$0.107) at the close of the first day of trading on AIM. This values ZNC’s investment in Bradda Head (43,947,507 ordinary shares*) at AU$4.7 million.

Source: ZNC Announcement 20/07/2021

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Bradda’s way forward

Bradda Head, with assets located in the US states of Nevada and Arizona, pursues the strategy to develop its US-based lithium projects for supply throughout the domestic North American green energy market.  

On the basis of the Fraser Institute 2020 Annual survey, Nevada and Arizona are ranked 1st and 2nd, respectively, when it comes to investment attractiveness.

Bradda Head looks forward to advancing its exploration program over the upcoming 18 months. It has allocated around US$5.4 million to the portfolio. A major part of the expenditure is proposed to be allocated to its three projects.

INTERESTING READ: A Sneak Peek at Zenith Minerals’ (ASX: ZNC) New Gold Project in NSW 

Below is a snapshot of the three projects, their location, exploration work to be undertaken, and fund allocations:

Source: Copyright © 2021 Kalkine Media, Data Source, ZNC update, 20 July

Through its exploration endeavours, Bradda Head intends to develop upon current drilling, sampling, and metallurgical test work across the portfolio.

In a nutshell, Bradda Head’s listing on AIM augurs well for ZNC, which continues to focus on its core Australian projects in addition to closely watching the activities at partner-managed projects and companies where it has a shareholding.

VIDEO INTERVIEW: Expert Talks With Kalkine || Mr Peter Bird, Executive Chairman of Zenith Minerals 

ZNC stock closed at AU$0.250 on 20 July 2021.

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