Lomiko Metals: Strategic Expansion at Yellow Fox and Antimony Potential in Newfoundland

Lomiko Metals Inc. (TSX-V: LMR) has positioned itself as a key player in critical minerals exploration with its recent updates on the Yellow Fox antimony, silver, and gold property in Newfoundland and its broader corporate initiatives. The company’s Q2 2025 developments highlight strategic land expansions, advanced exploration programs, and financing strategies aimed at unlocking value in a resource sector primed for growth. Here’s an analysis of what investors should know.

Yellow Fox Property: A High-Potential Exploration Target

Lomiko’s Yellow Fox project, located 10 km southwest of Glenwood, Newfoundland, has undergone significant expansion in early 2025. The addition of 30 new claims increased the property’s total area to 1,446 hectares, covering 58 claims. This expansion targets underexplored southern zones, where historical grab samples revealed exceptional grades, including 59.43 g/t gold, 11.10% antimony, and 72.90 g/t silver in arsenopyrite-stibnite veins.

The Spring 2025 work program focuses on Phase 1 soil sampling, with approximately 700 samples collected along 10 lines spaced 250 meters apart. The results of this phase will determine the feasibility of Phase 2, which could involve denser sampling grids and electromagnetic (EM) surveys to map subsurface mineralization.

Geologically, the property aligns with the trend of the historic Beaver Brook antimony mine, 25 km to the southwest. Cross-cutting structural zones and sulfide-bearing veins suggest similarities to Beaver Brook’s mineralization style. However, Lomiko cautions that surface samples are selective and do not guarantee bulk continuity.

Corporate Developments: Financing and Liquidity

To fund its aggressive exploration agenda, Lomiko implemented two key strategies in Q2 2025:
1. Warrant Repricing and Incentive Program:
- The exercise price of 1.77 million warrants was reduced from $0.60 to $0.1465, based on a 10-day VWAP.
- Holders exercising warrants between April 3–25 received 0.5 Incentive Warrants per warrant exercised. Each Incentive Warrant allows purchase of shares at $0.20 over two years.
- Proceeds will support the engineering phase of the La Loutre graphite project, bulk sampling, and Yellow Fox exploration.

1. Market-Making Services:
2. Lomiko retained ITG Independent Group to enhance liquidity, with a monthly fee of $5,500. This move aims to stabilize trading and attract investors to the TSX-V listed stock.

Strategic Portfolio and Risks

Lomiko’s portfolio extends beyond Yellow Fox to include its flagship La Loutre graphite project in Quebec, which holds an Indicated Mineral Resource of 64.7 million tonnes averaging 4.59% graphitic carbon. Proceeds from warrant exercises will accelerate engineering studies to advance La Loutre toward production.

Risks include:
- Exploration Uncertainty: High-grade surface samples do not guarantee underground continuity.
- Market Volatility: Antimony prices are influenced by China’s export restrictions, which could create opportunities but also pose geopolitical risks.
- Operational Dependence: Fieldwork at Yellow Fox is managed by Metals Creek Resources under an option agreement, requiring collaboration and third-party execution.

Conclusion: A Strategic Bet on Critical Minerals

Lomiko’s Q2 2025 updates underscore its commitment to unlocking value in antimony, a critical mineral increasingly vital for semiconductors and defense applications. With China controlling over 80% of global antimony production and implementing export quotas since late 2024, projects like Yellow Fox are strategically positioned to capitalize on supply shortages.

The company’s 700-sample Phase 1 program could deliver data by mid-2025, potentially de-risking the project and attracting investor interest. Meanwhile, the warrant program and market-making services aim to improve liquidity, a crucial factor for small-cap miners.

Investors should monitor:
- Yellow Fox assay results (expected Q3 2025).
- La Loutre’s pre-feasibility progress, which could unlock a graphite asset with a 4.59% Cg grade—comparable to top-tier projects globally.
- Antimony price trends, with spot prices hovering around $6,000/tonne (as of May 2025), up 15% year-on-year.

While risks remain, Lomiko’s diversified portfolio and cost-effective exploration strategy make it a compelling play on critical minerals. Success at Yellow Fox could redefine the company’s valuation trajectory, especially in a market hungry for antimony and graphite supply.