An Update On Oroplata Resources Inc (OTCMKTS:ORRP)

Oroplata Resources Inc (OTCMKTS:ORRP) is one of the most active and talked about names on the OTC Markets. This is because the company is one of the hottest plays in one of the hottest sectors right now - Lithium. Helping to drive this demand is none other than Elon Musk and his Tesla Gigafactory in Nevada, which just happens to be the same state as ORRP's Western Nevada Basin Project. CEO Craig Alford said:

“Lithium will be the underlying fuel that will drive the green economy that is already taking hold in Nevada. We are seeing massive development in and around the Tesla Gigafactory location. This directly translates to new jobs and a big economic kickstart to the green sector of the economy. It’s a tremor in something that will shake the world. Oroplata’s expansion, exploration and development are planned to progress hand-in-hand with the evolution of this green economy.”

However, even with all this excitement, shares of ORRP have been under pressure as of late. This is the second dip buying opportunity we've seen since shares started trading on OTC. The stock sold off in early July, only to see an epic run higher to over $2. The primary reason for the lower stock price is the shorts. Market makers are very aggressive in shorting junior miners like ORRP. This is very common and explains the volatile intraday swings. Now shares are hovering around the $1 support level and investors are asking what's next?Oroplata Resources Inc is focused on becoming a substantial profitable Lithium producer by the rapid development of valuable production-grade Lithium Brine deposits in Nevada and throughout the southwest U.S. ORRP has chosen to focus on Lithium brine and this is a smart move. Lithium Brine projects have a number of significant advantages over conventional hard rock Lithium mining projects; they are cheaper to explore compared to the alternatives; they are quicker in proving up a resource and reserves; they are faster and much less capital intensive to put into production. Lithium brine production also has a much smaller environmental footprint and produces ready-to-ship Lithium carbonate.On July 29, ORRP announced that it had entered into a binding agreement with Plateau Ventures of Utah, to exercise its second option to acquire an additional 700 mining placer claims at the Western Nevada Basin project in Nevada. The original WNB project agreement covered 500 contiguous mining placer claims covering approximately 10,000 acres (See news releases dated June 1 and June 17, 2016). With the additional claims, Oroplata, will now hold approximately 24,000 acres. The company expects that all 1200 claims will be transferred to Oroplata’s Nevada subsidiary on or before August 31^st, 2016. After the ownership of these rights are recorded at Nye County as well as at Bureau of Land Management, The Company will hold a 100% interest in the claims with no royalties at development.In a report from Goldman Sachs called “What if I told you” Goldman refers to lithium as the “new gasoline”. This is due to increasing demand for electric vehicles. The cause is that the lithium market could triple from the current demand of 160,000mt to 470,000mt by 2025. Just 1% EV penetration into the market increases demand by 70,000mt a year. Elon Musk has stated that Tesla will need to consume the entire lithium market to meet its demands of 500,000 Model 3’s by 2018. Chinese demand of lithium has been another factor behind the surge of the lithium market which is driven by the country’s desire for electric cars and buses.Currently trading with a market cap of $40 million, shares of ORRP are 50% off their highs hit last month. The lithium story remains the same as last month and is only going to get better. For investors looking to capitalize on Lithium, ORRP remains of the best plays in the sector. We will be updating our subscribers as soon as we know more. For the latest updates on ORRP, sign up below!Disclosure: We have no position in ORRP and have not been compensated for this article. We have previously been compensated by Rich Team Consultants Ltd for two two day awareness campaigns regarding ORRP. Those contracts have expired.