Oroplata Resources Inc (OTCMKTS:ORRP) is a penny stock that has started to garner attention as the stock bounces up the chart. In fact, the breakout has been quite remarkable over recent days. The stock has nearly tripled so far in May, and that leads to think the lithium theme may be switching back into “on” mode once again here in 2018.
The most recent catalyst is the company’s recent update for its Western Nevada Basin project. According to the release, “The Company is finalizing a drill contract and expects to begin drilling before the end of June 2018. The initial drilling will consist of three holes to test priority drill targets previously identified during surveys. The drilling program is scheduled to drill three holes using a sonic drill rig to a depth of 3,300 feet each, collecting brine samples at varying intervals. This is an important next step in a process that will enable our project to be better evaluated in the second half of 2018.”
Oroplata Resources Inc (OTCMKTS:ORRP) trumpets itself as an exploration stage company that engages in the acquisition, development, and exploration of mineral properties.
Through its wholly-owned subsidiary, Lithortech Resources Inc., the Company is focused on becoming a substantial profitable lithium producer by the rapid development of valuable production-grade lithium brine deposits in Nevada and throughout the southwest U.S.
According to company materials, “LithiumOre (http://lithiumore.net), a wholly-owned subsidiary of Oroplata Resources, Inc. (OTCQB: ORRP), is a lithium resource exploration and development company, whose primary focus is the establishment of a low cost production base to supply the rapidly growing lithium-ion battery industry for both mobile devises and laptops, as well as the burgeoning EV (electronic vehicle) industry. LithiumOre is focused on becoming a substantial, profitable lithium producer via the timely development of valuable production-grade lithium brine deposits in Nevada.”
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LithiumOre Chairman and CEO Doug Cole, commented, “We are excited with the potential of our lithium brine projects in Railroad Valley and our recently announced partnership with 3PL has paved the way for development of our project. With 3PL our priority is to move our project forward to the next phase. The worldwide demand for inexpensive and accessible lithium is on the verge of a dramatic spike with the continued implementation of new transportation and communication technologies and an ever-increasing demand for energy-storage solutions. Our Western Nevada Basin project is poised to become an increasingly important factor in the U.S. lithium industry.”
We’ve witnessed 220% during the past month in terms of shareholder gains in the company. This is emblematic of the stock. ORRP is a stock with a past that has featured a litany of sudden rips to the upside. Moreover, the stock has benefitted from a jump in recent trading volume to the tune of exceeding 750% over what the stock has registered over the longer term.
It pays to take note of this fact due to the tiny float size in the stock (of 15.8M shares). One is wise to respect the dynamic this may create — a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
Now commanding a market cap of $19.8M, ORRP has virtually no cash on the books, which compares with about $808K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $ORRP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ORRP, either long or short, and we have not been compensated for this article.