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Blackstone Minerals commences trading on US-based OTCQB Market

Published: 12:40 03 Dec 2020 AEDT

Blackstone Minerals Ltd - Blackstone Minerals commences trading on US-based OTCQB Market
Blackstone is developing the district scale Ta Khoa Project in northern Vietnam.

Blackstone Minerals Ltd’s (ASX:BSX) (OTCQB:BLSTF) (FRA:B9S) application to join the US-based OTCQB Market in the USA has been accepted and the company’s shares are now being traded on the market under the code BLSTF.

Trading on OTCQB is expected to enhance the visibility and accessibility of the company to North American individual and institutional investors.

This important step follows the strong interest shown by North American investors after Blackstone’s recent scoping study returned robust results.

Annual production is estimated at around 12,700 tonnes of nickel over an 8.5-year project life generating a pre-tax NPV8% of around US$665 million and 45% IRR with a capital payback period of 2.5 years at a price US$8 per pound of nickel.

“North America important investor market”

Blackstone managing director Scott Williamson said: “We’re pleased to now be trading on the OTCQB; after many years of marketing in North America we believe now is a great time to increase our exposure to one of the largest pools of capital in the world.

“Given the recent focus on the rise of Tesla and the electric vehicle revolution we see North America becoming an important investor market for Blackstone’s future green nickel battery opportunities at the Ta Khoa Nickel-Copper-PGE Project.”

Key advantages

Three key advantages for North American investors are:

  • Trades and settlements are in US Dollars (US$);
  • Trading in the North American time zone; and
  • The OTCQB share is the same class of Ordinary Share to ASX traded stock (ASX:BSX), not a synthetic. The share registry is still maintained by Automic Group in conjunction with a US Transfer Agent.

Despite its shares now being tradeable on the OTCQB market, Blackstone’s primary listing will continue to be the Australian Securities Exchange (ASX).

Other advantages

The OTCQB market provides value and convenience to US investors, brokers and institutions seeking to trade BLSTF.

The listing is part of Blackstone’s strategy to raise awareness of the Ta Khoa Project in northern Vietnam, where the company has started metallurgical testing on the Ban Phuc DSS deposit intending to develop a flowsheet for a product suitable for the lithium-ion battery industry.

The company is enjoying exploration success as it seeks to identify and firm-up many other targets on the vicinity of the previously operated mine and processing infrastructure.

Blackstone is also investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-ion battery industry.

Next steps

Blackstone is exploring MSV and DSS targets throughout the project, initially within a 5-kilometre radius of the existing processing facility.

It is conducting further geophysics on the MSV and DSS targets and continuing an aggressive drilling campaign.

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