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 Thu Feb 23, 2023
KW Excerpt: Kaiser Watch February 23, 2023: Brunswick Exploration Inc (BRW-V)
    Publisher: Kaiser Research Online
    Author: Copyright 2023 John A. Kaiser

 
Brunswick Exploration Inc (BRW-V: $0.770)
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Kaiser Watch February 23, 2022: No need to fear lower lithium prices
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(0:14:45): Why is Brunswick Exploration trending higher even though they are in the midst if a financing?

Brunswick Exploration is in the process of closing two financings, $7.5 million in the form of a bought deal by Red Cloud that includes the over-allotment option, and another $2 million in the form of a non-brokered private placement being done with a handful of Canadian institutions and investors who do not have access to the Red Cloud allocation system. Some of these units will have the LIFE exemption, meaning they will not have a four month hold, but only a small fraction. The $9.5 million financing will boost Brunswick's treasury to about $16 million, more than enough to fund its 2023 summer field exploration plans and droll programs. Brunswick is bucking the downtrend created for the lithium producers by declining lithium carbonate prices because it is all about Lithium Mania 2.0, finding new lithium pegmatite deposits that will come on stream towards the end of this decade. Through its multi-pronged approach adopted in 2022 the junior has assembled a large portfolio of grassroots prospects selected on the basis of archival research and geology. Its Plex project in the James Bay region optioned from Osisko is part of the same geological trend that Virginia Mines assembled for gold exploration; the Corvette property owned by Patriot Battery Metals was part of this trend, except that the pegmatites outcropped more visibly. Trading in PMET is now dominated by the Australian audience which sets the tone for the Canadian trading through its earlier ASX session. The North American audience has now adopted Brunswick as its lithium pegmatite champion and the best bet for new success in the James Bay Great Canadian Area Play. It is to PMET what Aber was to Dia Met during the initial years of the Canadian diamond boom.

In terms of valuation one might complain that Brunswick is over-priced, given that it does not yet have a confirmed discovery that justifies S-Curve market action. However, Brunswick has positioned itself as a future developer of multiple deposits in different parts of Canada, thanks to its staking and optioning scramble during 2022 when James Bay juniors like Azimut and Midland were asleep at the switch. Now those prospect generators are waking up and looking at the James Bay lake bottom sediment data set and trying to convince the market that they accidentally are sitting on great lithium pegmatite potential. Some of these claim blocks may indeed host a major LCT pegmatite, but these juniors will have to spend the summer on field work to develop drill targets for the fall. Brunswick in contrast went after LCT-style pegmatite prospects with laser precision and a process of elimination strategy. Jean-Marc Lulin and Gino Roger may turn out to be lucky, but Bob Wares and Killian Charles have manufactured their luck. That is why the market is pushing Brunswick higher, a junior which plans to change its name to Osisko Lithium.


Implied Project Value Chart for Brunswick Exploration

*JK owns shares in Brunswick Exploration Inc

 
 

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