Lithium Corporation (OTCMKTS:LTUM) Set To Fly Higher

Lithium Corporation (OTCMKTS:LTUM) is still going up. In our last coverage of the stock, we gave an analysis of the stock and its rise. In our piece today, we show you how the firm has maintained its commitment to research and development and the positive results from the recent tests it has conducted.Take a look at the stock’s price movement for the last year: LTUM Daily ChartCompany OverviewLithium Corp. was founded on January 30, 2007, and is headquartered in Elko, Nevada. It is an exploration stage mining company, which is involved in the acquisition, identification, and exploration of metals and minerals with a focus on lithium mineralization on properties located in Nevada. For more information on LTUM, you can go through our post here.[embed]https://www.youtube.com/watch?v=eikfArKjQ50&t=[/embed]Recent DevelopmentsIn January 2018, the company announced that it had just collected the initial results from “Mini bulk sample,” its BC Sugar flake graphite from SGS laboratories.Mineralogy was able to determine that the graphite a the location was comparatively coarse with its flakes ranging in size from sixty-nine to over a thousand micrometers and an average flake size of 480 μm (roughly 37 mesh). Just a few of the flakes were enclosed within silicates but there was still no observes association of the graphite with any oxides or sulfides. Furthermore, the outcomes of the test work were positive and a right amount of flake graphite recoveries possible with minimal effort, as there was no need to grind or crush any of the samples. Initial floatation tests were able to produce recoveries of up to eighty percent of graphite within the sample concentrate grading 70.4%C.Graphite remains a critical element in the development of lithium batteries. Hence the limited production suggests that there will be inadequate supply compared to demand especially when considering plans already being put in place for constructing lithium-ion batteries by producers in the North.The company has informed the government of its plans to carry out further trenching on the property by the middle of the year and is currently seeking approval for its operations. Also, the company has held talks with SGS to find out what would be the best way to move forward in its mineral processing testing.In December, the firm closed its previously announced private placement of units which it released sometime in November, for aggregate gross proceeds of $4.8 million.Under the private placements, a total of 34 million units were issued at $0.12 per share, for gross proceeds of $4.08 and a total of 5 million units were issued at $0.15 per share, for gross proceeds of $750,000. Each unit is comprised of one common share and one common share purchase warrant exercisable at $0.20 per share for 36 months. The shares and warrants comprising the units are subject to a four-month hold period expiring by April 2018.Concerning the units issued at $0.12 per unit, a total of $0.13 million in cash finder's fees were paid to arm's length parties. With respect to the units issued at $0.15 per unit, a total of $11,250 in cash finder's fees were paid to arm's length parties.Proceeds received by the company will be used for general corporate purposes and for advancing the Company's wholly owned Jackpot lithium project, located in the Georgia Lake area of the Thunder Bay Mining Division, Ontario.The Company also announced that it would not be proceeding with the Iron-T acquisition announced July 2017 as it has determined to focus its efforts in the lithium space.The firm granted 0.8 million stock options to directors and officers of the company, exercisable at a price of $0.30 per share for 24 months from the date of grant. The options have been granted by the company's stock option plan.Financial PerformanceThe firm was able to boost its cash reserves by a whopping 47%, but it did not necessarily translate to increased liquidity, as its short-term liabilities skyrocketed from a mere $7000 to $0.4 million within the year. It is thus likely that the firm will need to undergo a new capital raise in the period to meet up with its short-term obligations.The income statement revealed that expenditure on research and SGA also went up in the last year which may have contributed to the increased liabilities, an analysis which is supported by the statement of cash flows.ConclusionLithium Corp has managed to stay afloat despite not recording any revenues in the last few years. This shows the ability of its management to dig deep, and it is likely to become a cash cow in a matter of time.We will be updating our subscribers as soon as we know more. For the latest updates on LTUM, sign up below!Disclosure: We have no position in LTUM and have not been compensated for this article.Image courtesy of g via Flickr