Even if someone had the ability to call the closing price of the FTSE 100 every day for a year, they would not get a job writing for the financial press. Instead, we have had doom and gloom regarding the UK stock market accompanying the new record high for blue chips from people who have not got a clue, or any interest in how the market works.
Helix Exploration (HEX), the helium exploration and development company focused on large-scale, low-risk helium deposits within the ‘Montana Helium Fairway’, announced it has executed a binding contract with Treasure State Drilling, LLC for the provision of their Cardwell KB-150 D1D Drilling Rig and equipment for the Company’s Q3 2024 appraisal drilling campaign at the Ingomar Dome project. HEX said it was delighted to announce its new partnership with Treasure State Drilling, LLC, securing their Cardwell KB-150 D1D Drilling Rig for its upcoming project at Ingomar.
Comment: It can be seen that HEX is wasting no time, so soon after its listing, to get at the helium in the Montana Fairway. With Mr Helium, Bo Sears at the helm, it looks as though investors will not have long to wait for a result, especially in the aftermath of today’s drilling rig contract.
88 Energy (88E) announced that it proposes to raise up to A$9.8 million (approximately £5.23m) at a price per Placing Share of A$0.003 (equivalent to £0.0016p). 88 Energy said it has made the decision to complete the Placing to secure funding arrangements to fund the transition to post well analysis and to secure further Contingent Resources at Project Phoenix. The Company intend to commence a formal farm-out process for Project Phoenix following completion of the Hickory-1 post flow test analysis, with the aim of attracting a strategic partner for the next stage of development and commercialisation.
Comment: At first glance with reference to 88E it is tempting to paraphrase Robert The Bruce and suggest that if at first you don’t succeed, raise, raise and raise again. Indeed, the best thing is to just leave it there. 88E shares were 0.4p at the beginning of this month, and they are raising at 0.16p.
Bens Creek Group (BEN), the owner of a metallurgical coal mine in North America, announces that further filings have been lodged with the U.S. Bankruptcy Court for the Southern District of West Virginia, following the commencement of the Chapter 11 process. Should the Court approve the Chapter 11 Companies entering into the Avani DIP Facility this will constitute a related party transaction pursuant to Rule 13 of the AIM Rules for Companies and a further announcement will be made in this regard at the appropriate time. BEN also announced that MBU Capital have requisitioned a GM.
Comment: A company that had a difficult birth, a brief period of glory and then a painful end game. One feel’s sorry for holders, and learns for the future all the red flags that were unfurled with the regard to this company. Suffice to say that any casual observer of the proceedings from well before the IPO would conclude that the situation was not likely to end well.
East Star Resources (EST), the Kazakhstan focused copper exploration and resource development company, announce a maiden JORC Inferred Mineral Resource for the Verkhuba Copper Deposit in the Rudny Altai belt, Kazakhstan of 20.3Mt @ 1.16% copper, 1.54% zinc and 0.27% lead using a whole deposit cutoff grade of 0.86% copper equivalent. EST said this is a significant milestone. In a little over a year and one exploration season, it has transformed a historical copper deposit into a large JORC Inferred Mineral Resource in an infrastructure-rich region. The Company is now underpinned not only by its highly prospective exploration licences but by a significant critical metal asset in the ground.
Comment: A well timed maiden JORC resource update, set against the backdrop of EST being in the in the process of receiving offers from strategic partners for a potential joint venture, farm-out, or sale of Verkhuba. One would expect further re-rates for EST, not only off the back of this, but the prospect of the company repeating the feat at its other projects.
Marula Mining (AQSE: MARU), an African focused mining and development company, announced that eight new Mining License Applications made by NyoriGreen Mining have been granted. The granting of the Prospecting License that was also applied for, remains outstanding and is still expected to be issued in Q2 2024. MARU said it was delighted to announce that NyoriGreen has been awarded eight mining licenses, marking another significant milestone for us in its focus on high-grade graphite projects in Tanzania. The assay results have already indicated the area’s potential for high-grade graphite mineralisation. Therefore, by expanding its license area it is poised to consolidate exploration activities in the target region.
Comment: It is noteworthy that none of the recent considerable progress made by MARU, both operationally and in terms of its footprint like today, has been factored into the share price. One would assume that this state of affairs is just temporary.
ECR Minerals (ECR), the gold exploration and development company, announced that at the Company’s annual general meeting (AGM) at 11:00 am today the chairman’s statement will include: Investors will be aware that last month we raised £585,000 – notably at a 71% premium to our last raise 6 months ago when Mike and I first joined ECR. That brings the total capital raised during our time with the company to £1.16 million. Along with the existing directors’ salary sacrifice arrangements, as well as Mike and I accepting shares in lieu of salary, we are well funded and have the necessary working capital to undertake our upcoming work programs in both Queensland and Victoria.
Comment: ECR includes Mike Whitlow, someone who is making the perhaps rather difficult transition from “poacher” to “gamekeeper” in the small cap space. This is not an easy transition, but so far it would appear that it is working.
Avacta Group (AVCT), a life sciences company developing innovative, targeted oncology drugs and powerful diagnostics, said it will announce its audited preliminary results for year ended 31st December 2023 on 30th April 2024.
Comment: Apart from the free promotion of the platform that AVCT will be broadcasting on, something which it should be doing itself, we note that investors in the “cure for cancer” group have a week to run the gauntlet before the prelims are revealed. They will be hoping that the shares currently at a one year low, will not feel the need to test the two year low of 38.5p before Smith, Gardiner and Coughlin step up to the mic next week.
Baron Oil (BOIL) provide a further update regarding the changes to the Company’s board of Directors and executive positions. The company said the appointment of Rob Collins as CFO is great news, as he brings a wealth of expertise in financing of natural resources projects. The refreshed Board and executive team are committed to building shareholder value, strong governance and transparency. The Board’s priority remains to progress and realise the value in the Chuditch project in Timor-Leste, where it continues to prepare to drill the key appraisal well in parallel with discussions with potential funding partners.
Comment: One of the most followed and traded small caps, with Chuditch apparently still catnip to retail investors. It will be interesting to see whether the revamped personnel here will finally move the dial.
Orosur Mining (OMI) the minerals developer and explorer with operations in Colombia, Argentina, Nigeria and Brazil announced its unaudited results for the quarter ended February 29, 2024. The company said given the progress on negotiations in Colombia and the encouraging results in Argentina, the Company will focus most of its investment in these areas. The Company will also advance its project in Nigeria, which has returned strong results, albeit at a slower pace whilst lithium prices continue to recover. As the Company seeks to prioritise the use of its capital, it will, however, no longer pursue activity on its Brazilian project and accordingly, Orosur will terminate its JV agreement with Meridian Mining UK Societas on the Ariquemes tin project.
Comment: OMI shares have rallied to the 5.5p zone three times in the recent past. Today’s news regarding its Brazilian project may mean that we have to wait a little longer for this level to break.
Power Metal Resources (POW), the London-listed exploration company, announced the successful completion of the drillhole DDH1-14C at its Molopo Farms Complex Project. POW said a huge thanks to the entire in-country operations team that was able to complete drillhole DDH1-14C to an impressive depth of 832.6m. Target Area 1-14 has been of interest to Power Metal for some time due to the superconductor that was identified by multiple geophysical surveys. The previous drillholes completed into this area were unsuccessful in intersecting the targeted conductor, and now, with the completion of this drillhole, it has achieved this objective.
Comment: While POW has what can fairly be described as a global portfolio, Molopo is a key focus, and progress here is important cog in the wheel. After the recent consolidation, the shares appear well supported in the 15p zone.
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