Hope Looms For Liberty One Lithium Corp (OTCMKTS:LRTTF)

A bear run has hit Liberty One Lithium Corp (OTCMKTS:LRTTF) over the recent past.This run came shortly after the company experienced one of the longest bull runs in its operating history that saw its share price rise from below $.5 to highs of nearly $2, a near 300% surge in the share price.In contrast to that, however, prices have now fallen significantly from their previous glory, and the company is currently at $.67. The drop has been accompanied by a massive decline in the traded volumes. Before the bearish times, the share turnover stood at nearly 15 million – at the height is the company’s bull run. Currently, this number has also fallen to close to 500,000.The above is graphically shown in the chart below: LRTTF Daily ChartWith such a downturn having hit the company, we decided that this would be an opportune moment to analyze their comeback strategy – if any exists – and find out whether the future is as bright for them as it previously seemed.A Look at LRTTFBefore beginning our analysis, let us first have a look at the history of the company for the sake of first-time readers.Liberty One Lithium Corp is a Vancouver-based exploration company with interests in both the acquisition and development of lithium – high-grade brine deposits for that matter.It was founded back in 1996 – during this period, the company was engaged in the exploration and production of oil and gas within the USA and Canada. Liberty One has since grown into a force within this mineral exploration sector with their incline towards lithium being driven by a spike in the global demand for the material driven by the growing need to store energy – for cars, solar panels and other electrical appliances.Their management team believes strongly in strategic resource access having the tertiary role of protecting worldwide economic stability. This may explain why they have embarked on some of the massive projects they have engaged in as well as the skilled workforce within the company.With this in hand, the company expects that they will soon be in the money, and sustainably so.Recent DevelopmentsOur lasts analysis of the company – which readers can access here – saw us detail the company as one which was rattling the lithium industry.We were not wrong.The company had then just acquired additional property within the Pocitos West region and found about 160 km² of brine sediments that they could mine. This was, by then, the reason for their price hike.A few days later, the company then released even better news. They had begun exploration within this facility. By then, they were drilling the initial well and were looking forward to the second well which was to come up soon afterward. Material drawn from this exploration would be sent for further testing to ensure that they received ISO certification to verify that they were indeed conforming to the industry’s standards and delivering on the quality promised to the market.With the Pocitos West space covering a vast 15,000 hectares and the permit approval standing at 11 holes, the company was working day and night to ensure that they benefit from the payoffs associated with this investment. Their resources had been channeled towards this as exemplified by a $1 million prepayment they made ere commencing the programme.Despite this, they still had over $9 million to cover their costs.Then the worst thing happened, on 22^nd December, the company discontinued this project, sending shockwaves to the market and also causing its share price to spiral down.According to their CEO, Brad Nicholas:

“Our desire to build a global portfolio of lithium holdings is based on our assessment of supply chain trends that we believe requires positive and decisive action as the economics of the lithium market continues to evolve… In that regard, we have determined that our exploration efforts at the Pocitos West property in Argentina falls short of the viability we require to move ahead based on our current economic projections.”

Source:The company called out to more aggressive explorers to venture into this space within Argentina. However, as a sign of hope, he also pointed out that their over $10 million in working capital was enough to ensure that they ventured out into other projects with the Northern Paradox in Utah being the critical exploration space they eyed.The Northern ParadoxSituated in Utah, the Northern Paradox property consists of 233 placer claims and encompasses 4,480 acres. Importantly, over the past, within 50 square kilometers of the land, there have been 55 oil and gas wells.Despite giving limited information on the place, LRTTF promised the market that they would ensure they benefited from exploration within this space. Furthermore, their proximity to the Tesla Gigafactory would see them benefit economically as well as through association.Their CEO went further to ascertain the market that the $10 million in working capital would be put to amicable use within this region.FinancingOnto good news, in a deal with Mackie, the company is due to receive over $5 million in additional financing. This is courtesy of a deal which will see Mackie bring to market an offering of about 5 million shares at $1.2 per share on a best effort basis.Through this, it is anticipated that the company will further raise money to venture into the Northern Paradox and grow. Going forward, the company’s growth hangs on to their ability to prove to the market that they can indeed begin exploration in the Northern Paradox region.ConclusionLRTTF has to prove to the market that they are worth every cent. This, though being an uphill task, is a very important one. Their venture into the Northern Paradox sends a message of hope to the market. We hope that this message of hope is explored and does not paradoxically lead them to further calamity.We will be updating our subscribers as soon as we know more. For the latest updates on LRTTF, sign up below!Disclosure: We have no position in LRTTF and have not been compensated for this article.