American Battery Metals Corp (CNSX: ABC) stock has had to contend with wild swings ever since the company confirmed listing on the OTC markets. Wild price swings have become the order of the day with the share price seesawing between the CA$0.34 and CA$0.40 trading range.
American Battery Metals Price Analysis
The announcement that the company has entered into a letter of intent for the acquisition of development stage Viken project in Sweden has also continued to influence price action. After succumbing to bearish pressure and consequently plunging to the CA$0.34 handle, the stock has once again bounced back.
The bounce back has come on huge turnover of traded shares waiting to see if the upward momentum has what it takes to catapult the stock above the CA$0.40 resistance level. The stock has so far struggled to take out the resistance level.
Below the CA$0.40 mark, American Battery Metals remains susceptible to continue trading sideways in a tight trading range of between CA$0.34 and CA$0.40. Conversely, a rally-followed by a close above the CA$0.40 mark could give bulls a reason to continue pushing the stock higher in continuation of the bull trend.
What Does American Battery Metals Do?
American Battery Metals is an exploration and mining company. The company acquires, explores and evaluates natural resource properties across the United States. The company has a deal in place to acquire a 50% interest in the Fish Lake property in Nevada as well as a 100% interest in the Temple Mountain Vanadium property in Emery County Utah.
American Battery Metals market sentiments appear to have edged higher on the confirmation the company is poised to acquire the Viken project in Sweden. The company has already signed A deal that paves the way for it to acquire a 90% interest in E.U Energy crop with its Viken project in Sweden.
Located in Jamtland County Sweden, the Viken project plays host to significant National Instrument polymetallic Mineral Resource with in-situ vanadium Mineral Resource of 163 million pounds. The project has ample access to infrastructure such as power, water, labor, and transportation.
The project has already undergone a significant amount of work depicted by a 2010 Preliminary Economic Assessment that showed the presence of vanadium, molybdenum, and nickel in an open pit mine.
“This transaction represents a significant milestone for ABM as the Viken is one of the largest, development-stage, vanadium projects globally with the potential for substantial by-product metal production. Sweden is a very attractive jurisdiction from a mining and investment perspective as the country, and its Government have a long-standing history of mining,” explained Michael Mulberry, President & CEO.
The acquisition of the Viken project follows the commencement of a geophysical survey on the Company’s Temple Mountain property in Utah. The company has also commenced its spring 2019 exploration program after completing productive and constructive meetings with various government agencies.
American Battery Metals has also appointed Mathew J Rhoades as a Qualified Person within the meaning of National Instrument 43-101 Standards.
Rhoades joins the company as an accomplished professional geologist. He boasts of vast experience on the exploration and development of projects at numerous mines across North America.
OTC Markets Listing
Another major milestone that American Battery Metals has achieved in the recent past entails the listing of its stock in the OTC markets. The listing broadens the stock’s exposure to a broader pool of institutional investors across the U.S.
“Trading of the Company’s common shares on the OTCQB market makes it accessible to an even broader range of investors, aligning with the Company’s goal of increasing the liquidity and convenience of trading its common shares within the U.S,” explained Mr. Mulberry.
American Battery Metals could as well be on its way to bottoming out from a tight trading range as investors react to a wave of positive developments that affirm long-term prospects. The company acquiring the Viken project exposes it to an important project with vast mining prospects.
The stock bouncing off one-year lows further strengthens investor confidence in response to recent developments. A rally past the CA$0.40 level is likely to affirm American Battery Metals break out credentials.
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Disclosure: We have no position in CNSX: ABC and have not been compensated for this article.