Pulsar Helium (TSXV:PLSR) announced receipt of an independent technical report of the Contingent and Prospective Resources for helium and CO2 from Sproule International Limited from one prospect at the Company’s flagship Topaz Project in Minnesota. The evaluation relates to the Company’s first half 2024 drilling of the Jetstream #1 appraisal well and geophysical surveys conducted across the prospect. Sproule announced a a 44% increase to its previous helium Contingent Best Estimate (2C) Gross Recoverable Resource, now 22.9 million standard cubic feet, Pmean of 79.0 MMcf, and P10 of 174.0 MMcf. 12,165% increase to the helium Prospective Best Estimate (2U) Gross Recoverable Resource, now 380.2 MMcf, Pmean of 1.3 billion cubic feet, and P10 of 2.8 Bcf.
Based on feedback from a recent corporate roadshow arranged for the Company by OAK Securities, the Company believes the AIM IPO will enhance its access to UK and European based investors, from whom it is proposing to raise approximately £5 million in connection with the AIM IPO. A principal of OAK Securities has agreed to cornerstone the IPO capital raising by advancing to the Company £1.125 million. PLSR said the resource evaluation is significant as it is based only on one prospect within the Topaz Project and data from only one well, Jetstream #1, which naturally flowed high-concentration helium of up to 14.5% to surface and without the presence of water. Such positive estimations received from a single and comparatively shallow well are hugely encouraging ahead of further exploration, which Pulsar has scheduled for Q4 2024.
Comment: Possibly one of the RNS’s of the year, and from a company which is not yet listed on the London market. Nevertheless, in one announcement PLSR gives the market the all important Sproule report, the promise of an AIM IPO, and funding news. All of this is just what the doctor ordered, in terms of the significance of the newsflow, and acknowledging that PLSR is already heavy on UK investors. Adding to this is OAK Securities being in the mix, a broker which has so far this year backed some of the best deals in the small cap space, as well as single handedly repopulating the London stock market.
First Equity published a new note on Neo Energy (NEO). It said that following the Beisa projects acquisition announcement earlier this month by Neo Energy Metals plc (NEO.L) for a consideration of ZAR381m (c. £16.5m), in this updated research note, it examined the impact of this upon the Group’s estimated valuation to determine a revised share price target. Beisa’s acquisition adds a substantial SAMREC resource to the Group with 90.2m lbs uranium and 4.2m ounces gold, in South Africa’s primary uranium producing region, where uranium has been mined continuously for over 70 years. Beisa’s combined in-situ resource value amounts to $17bn at current spot prices. It continues to rate the shares as a ‘Buy’ with a target price of 20p per share.
Comment: NEO delivered one of the most transformational acquisitions of the year to date earlier this month, and First Equity’s 20p share price target off the back of Beisa certainly gives investors something to shoot for, especially given that it is 20x up on where the shares are now.
Georgina Energy (GEX) announced the appointment of Aztech Well Construction to project manage the well re-entry at Hussar EP513 in the Officer Basin, Georgina Energy GEX.L, is pleased to announce the following update on the Hussar Well Re-entry Program. Aztech brings over 14 years of experience in well project management and engineering solutions managing drilling operations across onshore Australia. Notably, Aztech has drilled over 40 wells in the Perth Basin between 2011 and 2023, demonstrating their deep industry knowledge and capability.
Comment: While the bears have huffed and puff, GEX is simple getting on with the job, and with some of the best counter parties in the business.
Neometals (NMT), provided a strategy update with the following key measures to be implemented immediately: Restructuring and right-sizing of the organisation and its underlying cost base to reflect a new strategic refocus; Prioritising the progression of Primobius, the LiB Recycling joint venture with SMS group GmbH, through industrial validation to commercialisation; and Capital management initiatives through the targeted sale of non-core assets and strategic partnering to facilitate the ongoing development of the Company’s other technologies. NMT said it has taken these tough but necessary decisions to simplify its strategy, focus and organisation to prioritise the growth of the Primobius revenue base and forward order book. Primobius is a market leader, delivering a first-of-a-kind integrated recycling plant for Mercedes-Benz, a global marquee carmaker. The headwinds in the battery materials sector dictate that it must adapt to suit conditions by conserving capital, securing partners to fund its pre-commercial technologies and divesting non-core assets.
Comment: NMT bites the bullet in terms of the fundamental background of the company, something which is understandable given evidence from experts in the battery space who have suggested that EV battery recycling is yet to get off the ground as it is too new a market.
Empire Metals (EEE), the AIM-quoted resource exploration and development company, provided an update on the highly significant, titanium dioxide mineral deposit recently discovered at the Pitfield Project in Western Australia. EEE said the discovery of a naturally occurring, concentrated zone of high-quality anatase within the extensive weathered cap provides an enormous opportunity for the Company to accelerate its plans to become the next fully integrated “mine to high-quality TiO2 product” project. The anatase found at Pitfield has a very high TiO2 content and is free of deleterious impurities, making it a desirable feedstock for processing to TiO2 pigment. Anatase can be chlorinated to produce titanium tetrachloride (TiCl4) under similar conditions required to process rutile, an important precursor to making TiO2 pigment and titanium metal.
Comment: It feels like it has been a while since EEE updated on Pitfield, something which is a useful reminder to the market on the importance and the potential of this asset. Ideally, it is the trigger for the shares returning to the right side of 10p.
Eckoh (ECK) confirmed that, following a period of discussions and negotiations with multiple parties regarding a potential sale of the Company since May 2024, the Company received on 12th July 2024 a highly conditional, non-binding revised indicative offer from a private equity investor of 54p per Eckoh share. Discussions with other parties remain ongoing.
Comment: ECK reminds us, if we needed it at the issues facing many small caps on the London market in getting the attention, liquidity and valuation they deserve. So far little has been done by the powers that be to address this situation, probably because they are doing all right thank you, and are not bothered.
LungLife AI (LLAI), a developer of clinical diagnostic solutions for the early detection of lung cancer, announces its unaudited half-year report for the six months ended 30 June 2024. LLAI said the successful clinical validation of the LungLB® test and other achievements in this period reflect our commitment to advancing early detection of lung cancer and the team remains dedicated to making a significant impact in this critical area of healthcare.
Comment: A great cause and good progress from LLAI, and one hopes that the company can gradually get into the black over time.
Guardian Metal Resources (GMET), a strategic development and mineral exploration company focused in Nevada, USA, announced a drilling update at the Company’s 100% owned flagship Pilot Mountain Project located within the prolific Walker Lane Mineral Belt in Nevada, USA. GMET said it was delighted with the drilling progress at Pilot Mountain and very pleased with the findings to date which have greatly exceeded our expectations. In the Company’s view, it considered the potential offered by the Project is now much greater than when it was originally acquired.
Comment: One of the best small cap performers of this year, and one that looks like it has great momentum behind it. It is able to raise cash at will to prove up its expanding assets, and this state of affairs looks as though it can improve yet further.
Petro Matad (MATD), the AIM quoted Mongolian oil company, provided an operational update. MATD said with the Heron-1 down-hole completion now ready for production startup, the well site has been prepared for the installation of the surface production facilities. It was pleased to have concluded its negotiations with DQE and looks forward to continuing to work with them on the 2024 drilling programme. The team is now working at pace to spud Heron-2 in mid-September and to secure the required construction permits for Heron-1.
Comment: It would appear that traders “in the know” are backing MATD heavily, something which looks as though it is not difficult to do as we are in the run up to next month’s spud.
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