OD6 kicks off US OTC listing - next step in US playbook

Our US critical minerals Investment OD6 Metals (ASX: OD6) just kicked off the process of listing its shares on the US OTC markets.

OD6 is seeking a quotation on the OTCQB Venture Market, while keeping its primary listing on the ASX (so nothing changes here).

The move follows what OD6 says is increasing interest from North American investors, and would let US investors trade OD6 during US market hours.

US based advisory firm Viriathus Capital has been appointed to run the application process.

(source)

OD6 is running the US critical minerals playbook

We have seen this playbook before from ASX companies with US critical minerals projects.

If your project's value hinges on US policy and US customers, get as close to the US as possible.

Here is how we see OD6 tracking against that playbook:

1. ✅ Own or acquire a US based critical minerals project (the Quinn fluorspar project in Nevada)
2. deliver early metwork and processing of bulk samples, ahead of drilling
3. 🔄 Deliver early metwork and processing of bulk samples, ahead of drilling (already has commenced sorting testwork with Tomra
4. 🔄 Prove samples can be processed - deliver down stream product (Has already shown negligible impurities)
5. 🔄 List on the US OTC market (today's OTC listing news)

Things we think could happen in the near term

1. ⬜ Spend time in USA or appoint US based operations person (something full time)
2. ⬜ Appoint experienced, big name advisors or board members
3. ⬜ Acquire, license or partner with downstream processing technology
4. ⬜ Secure US government funding
5. ⬜ Attract interest from private US investors
6. ⬜ Outline plan for small, cheap and fast mine

And importantly

1. ⬜ Deliver drilling success on project (doesn’t need to be huge), just commercial for a small mine (there is already a few historical holes on the project which we covered here)

The more of those boxes the small companies can tick (and quickly), the better (we think) they can position themselves to capture US capital and attention.

You can check out the full playbook here: Our “playbook for small ASX stocks advancing US critical minerals projects

An analogue for running the steps in this playbook we created is already well and truly visible in fluorspar… In the USA…

~A$110M capped Ares Strategic Mining, the only permitted fluorspar mine in the US and has secured a US government supply contract worth US$169M (and up to US$250M):

(source)

We think OD6 could position itself similarly, and today's move puts the company a step closer to the US investors (and agencies) that matter for that.

Especially as OD6 has explicitly mentioned prior that it may pursue fast-tracked permitting under a FAST-41 application for its project:

(source)

Fluorspar grade matters because fluorspar is sold in two classes:

• Metspar (60–96% fluorspar) used in steelmaking, and
• Acidspar (>97% fluorspar) used in semiconductors, batteries and defence.

(source)

So the recent channel sample being over 60% fluorspar is a good sign because it could underpin a potential Direct Shipping Ore (DSO) operation for OD6’s project.

Digging up material and selling it into the steelmaking market with minimal processing resulting in early cashflow from much more manageable upfront capital costs.

Check out our back of the napkin numbers on a potential DSO operating here.

OD6 also has data showing it could upgrade that material into 97.83% Acidspar with few impurities - where prices are similar to the steelmaking market…(source)

BUT the strategic value of OD6’s asset increases because that's the type of fluorspar the US pentagon is looking for.

What has OD6 shown at Quinn so far

We have used this image in the past to explain the theory that the surface cropping flourspar could be connected underneath:

(source)

Recent results have shown multiple soil anomalies across the project area, which have expanded the mineralised corridor to more than 8km.

In particular from these results is the Horseshoe to Spar area, which suggest could be linked over a 1.5km core target area.

(source)

On top of this, OD’s fluorspar is contained in epithermal mineralisation, which is more commonly associated with gold deposits.

As part of recent sampling, OD6 also revealed some high grade gold samples to go along with the fluorspar:

(source)

Which given Nevada is home to some of the biggest gold deposits, this news was pretty interesting:

(source)

So gold and fluorspar showing up together here has a bit of precedent historically.

What's next for OD6?

🔄 Target generation for US fluorspar project

We want to see OD6 sample in and around the old workings on its project, run some geophysics and generate high priority drill targets ahead of its maiden drilling program.

Milestones:

• ✅ Rock chips
• ✅ Channel sampling
• ✅ Historic drill results
• 🔄 Digitisation of scanned paper maps and cross-sections into a 3D geological model
• ✅ Soil/channel sampling
• 🔲 Geophysics
• 🔲 Drill targets generated

Strategic / Government Engagement for fluorspar in the US

• 🔲 Engage with US Department of War, Department of Energy, or DLA regarding domestic fluorspar supply
• 🔲 Explore strategic partnerships or offtake discussions
• 🔄 OTC listing -underway (source)