EnerSpar Corporation (TSXV: ENER – $0.05 & Fra: 5E0 – €0.03) is an exploration company focused on industrial minerals oriented to today’s and future energy requirements. The Company recently acquired the Johan Beetz property, which is a former producer of potassic and sodic feldspar with considerable geological inventory of these feldspar minerals. Potassic feldspars are especially significant as a hardening agent in the booming solar panels and solar shingles markets.
Although feldspars are the most abundant materials on the surface of the earth, the two types of feldspar found on the Johan Beetz property (Na-spar and K-spar) are the rarest and also the most expensive ones. In fact, there are NO operating feldspar mines throughout North America that produce the high quality material found at Johan Beetz.
K-spar and Na-spar are used in ceramics, glass, tempered glass, but most importantly also in PV glass and solar tiles. Tesla’s SolarCity is manufacturing its solar tiles in Buffalo, New York, which is just a short sail from EnerSpar’s Johan Beetz project.
The Johan Beetz property is situated in a mining friendly jurisdiction. Quebec, after all, is known as one of the most mining friendly regions in North America. In fact, a company with projects in Quebec typically gets premium ratings as a result of the predictability of the regulatory environment.
In addition, the property is easily accessible by Hwy 138, which connects the town of Johan Beetz to the town of Havre St. Pierre and Sept Isles. This highway and the adjacent power transmission lines are under 2 km away. Furthermore, the property has its own large docking facility, which provides easy access to the eastern seaboard and Great Lakes of North America, where the main distribution points (Newark, New Jersey and Savannah, Georgia) are located for imported feldspar and the new Solar City/Tesla gigafactory in Buffalo, NY.
EnerSpar recently commenced exploration work on the Johan Beetz property, which should result in an NI 43-101 resource estimate in 2018 (an initial 43-101 Technical Report was completed earlier in 2017 and is available on the Company’s website). According to the management of the Company, this event should lead to a decision to sell the project or take it into production.
We initiate coverage of EnerSpar Corp. with a buy recommendation and a price target of $0.13, which is 189% above today’s stock price.
|Download the second quarter 2017 EnerSpar Corp. Company Report.|
|Smallcaps.us Advice: Buy||Price Target: $0.13||Latest Company Report (pdf)|
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