PURE ENERGY MINERA COM NPV (OTCMKTS:HMGLF) has maybe setting up for a move to surpassing its previous highs of $0.77 from its current levels at $0.53. The stock is up over 238% since its rise began last June and was recently announced that it was the top performing mining company on the TSX Venture 50.
Pure Energy Minerals is an emerging leader in the development of innovative, resource efficient mineral exploration and project development. The company is focused on developing its 8000+ acre lithium brine project, located in Nevada.
HMGLF has recently announced a new CEO, Patrick Highsmith. Patrick has been with the company since November and will be key in executing the commercialization of its 8,000 acre property. Patrick is a seasoned veteran with over 25 years’ experience in exploration, operations, business development, and executive roles for various companies, including: Rio Tinto, BHP Billiton, Newmont, and Lithium One. This is an impressive list and could be a game changer for HMGLF.
In addition to this recent management change, it also announced a new Chairman, Robert Mintak. The new chairman previously served as the CEO for the last 3 years and has led the company to where it is today and set the corporate strategy for the future. He led the acquisition of the lithium project and focused the company on clean energy and lithium which has already had a significant impact on the market value of HMGLF.
HMGLF has drilled over 4 wells in its Clayton Valley Lithium project and expected to continue this to head towards commercialization. It recently announced its successful 5th well drill at a depth of 1,620 feet. Pure Energy geologists and/or hydrogeologists monitored all drilling and collected samples of drill cuttings for analysis. The final stages of well completion involve air-lifting and the injection of solvents to break down drilling muds. This process is underway and the drillers are preparing the well for down-hole geophysical logging and fluid sampling.
Looking at HMGLF’s financials, there is not much to be impressed with. Its most recent quarter net income losses have grown $753k year-over-year for the most recent quarter ending December 2015. The company has absolutely no revenues. Investors and shareholders are betting that the 8,000 acre lithium project will pay off huge and can justify such a large market cap. HMGLF does have about $0.5M in cash and very little debt which bodes well for the company.
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HMGLF is currently trading at a $26.1 million market valuation. The company has grown quite a bit of the last nine months with its acquisition of the lithium project on an 8,000 acre parcel of land. This will make or break the company as the company has no revenues and will likely not until the project has been completely commercialized. This is a high risk, high reward situation but an exciting story to monitor.
We will be updating on HMGLF when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with HMGLF.
Disclosure: we hold no position in HMGLF either long or short and we have not been compensated for this article.
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