Brunswick Exploration (TSXV: BRW) is an exploration company focused on arguably the most important critical minerals in the world, lithium. The company is among the few aggressively conducting grassroots exploration for lithium in Canada using state-of-the-art exploration technology to rapidly identify high-potential targets. Brunswick Exploration also gathers a solid share structure and a solid balance sheet thanks to a recent $5M financing.

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Lithium is more than just a critical material

The importance of lithium to decarbonization will remain strong in the short and medium-term future. Several governments have announced massive efforts to transition from fossil fuel vehicles to electric vehicles (“EV”) by enacting laws which will seek to stop the sale of new fossil fuel vehicles, with some deadlines as early as 2030. With strong support, the industry will grow at an extremely rapid pace and lithium will be in high demand. There is simply not enough lithium to meet the forecasted demand. Annual lithium demand is projected to reach roughly 1.5M metric tons of lithium carbonate equivalent by 2025 and over 3M tons by 2030, meaning the lithium demand should outpace the supply through 2025 (GlobalX research). Furthermore, it is possible more lithium could be needed on a monthly basis in 2040 than all of the lithium mined in 2021. EVs will represent a significant part of the lithium demand, with a prediction of 84% of all the lithium demand in 2030.

Brunswick Exploration

Brunswick Exploration (TSXV: BRW) is an early-stage exploration company looking for metals needed for decarbonization and the transition to renewable energy. The company has several projects located in Ontario, Quebec, New Brunswick, and Nova Scotia. Brunswick is one of the few companies to do grassroot exploration to find new lithium discoveries, providing a high-reward high risk endeavor. Brunswick Exploration is also a new-type-of-era mining company focused on ESG concerns. Each step affected by the company aims to protect and raise environmental awareness to ensure the company minimizes its impact on properties.

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Amongst the highlights in the portfolio is the Hearst project. Located in Ontario, the project comprises 1,418 cells and 226 claim blocks covering 29,805 hectares of land. Situated 15 km south of Hearst, local infrastructure is plentiful with forestry roads and power neighboring the project. A drill program is scheduled to start in H1 2023, initially focused on the decoy pegmatite. Further work will focus on several newly identified evolved pegmatites from the limited 2022 prospecting campaign.

Also exciting are the company’s assets in Quebec including a project optioned immediately adjacent to Patriot Battery Metals’ Corvette discovery. Brunswick Exploration signed an option agreement to acquire a maximum of 85% interest in potential Lithium Cesium Tantalum mineralization of the Mythril and Elrond properties located in the James Bay region of Quebec. Furthermore, Brunswick acquired a 90% interest in the PLEX project, which covers a portion of the La Grande shear zone, the same shear zone which is host to the Corvette project. The latest acquired area covers 19,175 hectares for a total of 375 claims. The company expects to launch a regional prospecting campaign in late Q2 2023 to explore the PLEX and Mythril projects. Furthermore, its James Bay portfolio of properties includes over 250 untested S-type pegmatites with a minimum of 600 meters of strike length which will also be tested later this summer.

Share Structure/Financials

Brunswick Exploration benefits from a solid share structure. The available float is limited to only 37% of the structure. This can prove interesting as the stock may fluctuate more easily when combined with substantial volume. The balance is held among insiders (35%), various family offices (18%), and the Osisko Group (10%). The excellent share structure counterbalances the number of outstanding shares, which some could find a little bit high. BRW issued 160.5M shares for 257M fully diluted .

“Brunswick Exploration will be well positioned to launch one of Canada’s largest lithium grassroot exploration program in 2023 targeting a multitude of untested pegmatites in several provinces.”

Mr. Killian Charles, President and CEO of BRW

Regarding the stock price, the performance gave its shareholders a robust return on investment; Brunswick Exploration’s increased in value to top a 200% gain. Comparatively the TSXV down to 35% YoY. Needless to mention that the stock is one of the very few to outperform the market. The stock price’s 52-week range varies from $0.12 to $0.50.

Bottom Line

Brunswick Exploration (TSXV: BRW) is hopefully part of the solution to help meet rising demand for lithium as the world seeks to achieve its decarbonization objectives. BRW continues to aggressively stake multiple opportunities in Canada and combined with its flagship projects, Brunswick Exploration could hold substantial assets as it advances through the exploration phases potentially delivering a significant return on investment to shareholders. Lithium price is expected to increase over the coming decades, and the company will benefit from this. All the signals are green to invest in Brunswick Exploration.

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