Critical Minerals Explorer Strikes Nickel Deal in British Columbia

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Inomin Mines Inc. (MINE:TSX.V; IMC:FRA) provided an update regarding its previously announced earn-in and joint venture agreement with Sumitomo Metal Mining Canada Ltd. The agreement, dated April 25, 2025, granted Sumitomo the right to earn up to an 80% interest in Inomin's Beaver-Lynx project located in south-central British Columbia. The company referenced its earlier announcements from November 4, 2024, March 6, 2025, and May 8, 2025, for background on the transaction.

On May 13, the TSX Venture Exchange (TSXV) issued conditional approval of the transaction. Final approval was obtained at Inomin's July 3, 2025 annual general and special meeting. Further details on the transaction are available from Inomin's website at www.inominmines.com. 

Inomin also completed a non-brokered private placement.

On July 4, 2025, Inomin announced the closing the financing. The company issued 6,565,000 units at CA$0.035 per unit, for gross proceeds of CA$229,775. Each unit included one common share and one share purchase warrant, with each warrant exercisable at CA$0.05 for a period of 24 months from the date of issuance. All securities issued in connection with the financing were subject to a hold period expiring on November 4, 2025, in accordance with applicable securities laws and TSXV policies. The financing remained subject to final TSXV acceptance.

Proceeds were expected to be allocated as follows: 50% for general working capital, 25% for non-arm's-length management service fees, 10% for marketing activities, and 5% for property evaluations. The company paid CA$15,349.25 in cash commissions and issued 438,550 broker warrants as finder's fees. Each broker warrant is exercisable for one share at CA$0.05 for a period of 24 months.

Battery Metals and Lightweight Alloys: Market Shifts in Nickel and Magnesium

Dongchen Zhao, writing on June 25, reported that global nickel demand reached 3.35 million metric tons in 2024, a 5.4% year-over-year increase, according to data from the International Nickel Study Group. Stainless steel accounted for 64% of total demand, but battery usage was growing rapidly. Zhao wrote that "the share of power battery demand [was] expected to rise significantly to 42% to 58% by 2040." He also noted a shift in nickel's market behavior, stating that "nickel demand is shifting from cyclical to growth-oriented" due to the rising influence of the EV and renewable energy sectors.

Zhao further outlined several structural concerns. He explained that "Indonesia's mine-based nickel production...accounted for approximately 70% of global production in 2024," with downstream policy changes creating potential supply risks. The refining side showed similar vulnerabilities: "China controls 65% of global refined nickel production" by ownership, increasing the market's sensitivity to geopolitical disruptions. Zhao added that nickel exploration spending declined sharply in 2024, and "approximately 80% of specialized nickel producers had production costs higher than the nickel price," limiting near-term project development.

July 4, DataM Intelligence reported that the nickel market had grown to US$33.6 billion in 2022, with forecasts showing expansion to US$47.2 billion by 2031 at a compound annual growth rate of 5.5%. The firm stated that "electrification trends accelerating demand for nickel‐rich lithium‐ion batteries in EVs and growing requirements for corrosion‐resistant alloys in infrastructure" were shaping the market. DataM also highlighted that sustainability initiatives and innovations in recycling and low-carbon technologies were reshaping the supply chain landscape.

Analyst Endorsements Highlight Strategic Potential

Ron Struthers of the Struthers Resource Stock Report offered a positive assessment of Inomin Mines Inc. in a June 30 article, emphasizing the significance of the company's recent agreement with Sumitomo Metal Mining Canada Ltd. According to Struthers, "this, along with the good drill results, has attracted a major miner, Sumitomo Metal Mining into a JV on Inomin's Beaver-Lynx project," referring to the company's 100%-owned critical minerals asset in British Columbia. He noted that shareholders were expected to approve the joint venture in early July.

Struthers highlighted past drilling success, citing hole B21-02, which intersected 252.1 meters grading 20.6% magnesium, 0.16% nickel, and 0.33% chromium. Another early hole, B21-01, intersected 649 g/t silver and 0.29% copper over 3 meters. He also pointed to a historic hole from 2014 — BN14-23 — which reported 100.6 meters at 21.5% magnesium and 0.14% nickel, indicating that some mineral potential had previously gone unrecognized due to unreported grades.

The Sumitomo agreement granted the partner an initial option to earn a 60% interest by spending CA$3 million on exploration within two years. A second option allowed Sumitomo to earn an additional 20% by spending another CA$5 million within three years of exercising the first option. Inomin retained operational control during the initial phase, entitling it to a 10% fee on project expenditures incurred on behalf of Sumitomo. Additionally, Inomin would be reimbursed up to CA$100,000 for exploration costs incurred during the exclusivity period, and Sumitomo could acquire certain non-mineral rights, including hydrogen, for CA$500,000 under specified terms.

Struthers described the Beaver-Lynx property as "huge, 100% owned, adjacent to the Gibraltar copper mine, and has excellent infrastructure." He added that exploration was expected to begin in the summer, with a CA$1.7 million Phase 1 work program including approximately 3,850 meters of drilling. While the stock had recently traded around CA$0.03 to CA$0.04, he indicated that this range followed a broader downturn in junior exploration equities. "I think that is about to change." He recalled earlier price movement tied to the company's drilling results in 2022, when the share price rose to CA$0.70. 

What's Next for Inomin: Critical Minerals, Drilling, and Strategic Partnerships

Inomin's investor presentation outlines several upcoming catalysts that could shape the company's trajectory in the near term. The Beaver-Lynx critical minerals project continues to be a major focus. The company has identified multiple nickel-magnesium zones through drilling and magnetic surveys, with some intercepts reporting consistent grades of approximately 0.17% to 0.18% nickel and 20% to 23% magnesium over intervals of 100 to 200 meters. Metallurgical testing by SGS Canada Inc. has demonstrated promising recoveries of 58% for nickel and 99% for magnesium.

Inomin's agreement with Sumitomo Metal Mining Canada for Beaver-Lynx signals further and more substantial exploration. Such exploration has strong potential to identify significant resources, among the main reasons Sumitomo would have decided to get involved with the project. Drilling has also encountered copper, silver, and gold. . Inomin, which will be the operator of the project, aims to conduct follow-up drilling at the Beaver South Zone with the goal of defining a maiden resource.

Additionally, exploration at the 13,000-hectare Lynx property area has outlined a large-scale nickel anomaly, with rock samples yielding up to 0.27% nickel. Like the Beaver area, airborne and ground surveys have further identified multiple promising targets, some with geological indicators of potential natural hydrogen, a developing area of energy exploration. 

In Mexico, Inomin is evaluating strategic options for its La Gitana and Pena Blanca gold-silver projects. The La Gitana property, previously drilled by Chesapeake Gold, includes intercepts such as 133.5 meters grading 1.78 grams per tonne gold and 100.7 grams per tonne silver, with mineralization open to expansion. 

Ownership and Share Structure

According to Refinitiv, 7.22% of Inomin Mines is held by management and insiders. They are John Gomez at 5.19%, John Peters at 1.27%, and Ari M. Shack with .75%. The rest is retail.  

Inomin Mines has 49.02 million free float shares, a market cap of CA$1.25 million, and a 52 week range of CA$0.02 to CA$0.06.