Oroplata Resources Inc (OTCBB:ORRP) Hits The OTC

Oroplata Resources Inc (OTCBB:ORRP) has hit the OTC with a bang. The company was long dormant until it announced early this month that it was acquiring a Lithium property and Craig Alford was joining the company as CEO. Penny stock investors know that lithium remains one of the hottest sectors on the OTC Markets and explains the strong interest in shares of ORRP. Investors are now asking how much higher can shares of ORRP run?On June 1, ORRP announced that it entered into a binding purchase agreement to acquire the Western Nevada Basin project in Southwest Nevada. The Western Nevada Basin Project covers the south central portion of an area that was first identified as Lithium rich by the United States Geological Survey. The Project includes 500 mining claims covering approximately 10,000 acres. The company also has an option to acquire another 600 mining claims, approximately 12,000 acres. Oroplata will acquire a 100% interest in the project and the vendors of the project will retain a royalty equal to 2% of the gross value of mineral products recovered from commercial production, which may be reduced to 1% with a single payment of $1,000,000 at any time prior to production.At the same time as acquiring the Western Nevada Basin Project, ORRP appointed Craig Alford to the position of CEO and a Director of the Company. He holds both a Bachelor of Science (Hons), a Master of Science in Geology and is a registered Professional Geoscientist (P.Geo) in Ontario and a Qualified Person as defined in National Instrument 43-101. He said:

"I am delighted to be joining Oroplata at this very exciting and important point in the Company's history. This is a company to watch. The demand for Lithium has only just begun to grow and Oroplata has put together some exceptional Lithium projects in the Southwest U.S., including the Western Nevada Basin Project."

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.Prices for Lithium carbonate are up 47% from the average price in 2015 in the first quarter of this year and numerous sources have reported the potential growth in demand for Lithium to be very robust. The Nevada-based Tesla Gigafactory, expected to open on July 29^th 2016, will produce advanced lithium batteries for Tesla. 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.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.In addition to Craig Alford becoming CEO, ORRP also added William (Bill) Hunter as Director of Finance and Gregory Kuzma to the Board of Directors and VP of Exploration. CEO Craig Alford said:

“Oroplata is already off to an exciting start with the acquisition of some potentially very valuable Lithium Brine projects in Nevada. Now we expect the appointment of two highly qualified professionals to our team will be a tremendous further boost to the Company. Greg and Bill are very experienced and knowledgeable, and both have great track records in the mining sector. We expect they will be a great addition and help support Oroplata’s continued growth strategy."

Currently trading with a market cap of $66 million, ORRP is certainly one name to keep an eye on. The company now has a seasoned mining team behind it centered around lithium, which is perhaps the hottest mining sector to be in right now. We expect the new team to focus on fund raising and bringing the Western Nevada Basin Project online. We will be updating Insider Financial as soon as we know more. For continuing coverage on ORRP, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in ORRP and have been compensated $7500 by Rich Team Consultants Ltd for a 2 day awareness campaign on 7/19 and 7/20 for ORRP.