20/06/2023

Atlantic Lithium (ALL), the lithium exploration and development company, announced initial assay results from the resource and exploration drilling programme recently commenced at the Ewoyaa Lithium Project in Ghana, West Africa. The company said initial infill results at the Ewoyaa South-2 deposit are encouraging and show good continuity of mineralisation between drill sections. A total of 18,500m of infill, extensional and exploration RC drilling has been planned for the 2023 season.

Comment: It is business as usual at ALL in the wake of the rug pull for the shares in March. The key for the stock would appear to be to break back into the mid 30p’s something which would put that shakeout fully behind the company.

Sovereign Metals (SVML) announced the commencement of a graphite bulk sample program for qualification, downstream testwork and product development. The company is upgrading in-country facilities to enable continuous production of bulk samples for marketing. SVML said Kasiya will potentially be one of the lowest cost flake graphite projects in the world and is also estimated to have one of the lowest global warming potentials of any current and future graphite projects. Sovereign wants to be at the forefront of these critical mineral supply chains and today’s announcement is another important step towards achieving that.

Comment: The stock market in the UK is finally starting to get the importance of graphite in the EV revolution, with SVML likely to be a key international contributor in terms of production via Kasiya. This point is underlined as far as its in-country upgrading.

Cobra (COBR), a gold, rare earth and IOCG exploration company focused on the Wudinna Project in South Australia, announces additional Rare Earth Element results from Aircore drilling, which demonstrate further REE resource growth and a highly desirable style of mineralisation. The company said it is truly exciting to have identified palaeo-channel-hosted REEs in its first targeted programme, with these results re-affirming the company’s approach to advancing rare earth targets that have unique economic advantages. While not yet definitive, the Boland results are significant due to the style of mineralisation being amenable to low impact, low-cost extraction with significant growth potential due to the scalability of palaeo-channel systems on its tenements.

Comment: The sizzle for Cobra has been and will continue to be the REE angle as far as its portfolio, something which is yet to be factored into the company’s valuation, but should only be a matter of time during H2 2023.

IamFire (FIRE) provided an update on progress within its primary portfolio company, WeShop Holdings Limited. FIRE said total purchases through the platform now total over 180,000 with an annualised gross merchandise value of £33.4m as at the end of May 2023 (over a 3 month average) compared to the last reported figure of £27.9m for March 2023.  Total GMV to date is £22.1m through the platform. The company said WeShop’s growth continues to impress and over £20m has been spent through the platform.  It now enters the next phase of the company’s growth which will be enhanced through digital marketing and national advertising campaigns.

Comment: FIRE, through WeShop, has demonstrated that it is possible to buy into a scalable business, in the retail space, and do something novel which helps both the consumer and the investor alike. This process should ramp up in line with the forthcoming marketing / advertising campaigns.

Golden Metal Resources (GMET), a mineral exploration company, announced a further update from the detailed interpretation and inversion modelling of the high-resolution induced polarisation geophysics survey completed over its 100% owned flagship Pilot Mountain Project located within the prolific Walker Lake Mineral Belt in Nevada, USA. The company said while the criticality of the in-situ tungsten mineralisation at Pilot Mountain cannot be understated given the current geopolitical climate, it is the exploration upside that it continues to delineate which has it equally as excited. With this strong inventory of five exploration targets now in hand, combined with the 12.53Mt of resources already established at Pilot Mountain, it is eager to move this Project along to the next stage.

Comment: With news ongoing such as today’s we should see shares of GMET head to post IPO highs above 8.75p, something which would be a decent thumbs up regarding the company’s “hit the ground running” strategy since listing.

Tekcapital (TEK), the UK intellectual property investment group announces that Innovative Eyewear, Inc. (NASDAQ: LUCY; LUCYW), the developer and retailer of smart eyewear under the Lucyd®, Nautica®, and Eddie Bauer® brands announced that through an agreement with Authentic Brands Group (Authentic), it has licensed the irreverent sports culture brand, Reebok® for smart eyewear. LUCY said few names are as renowned as Reebok in the athletic marketplace. Its forthcoming Reebok smart eyewear collection, powered by Lucyd®, will continue Reebok’s legacy of bold and beautiful craftsmanship coupled with innovation and will align perfectly with today’s active lifestyles.

Comment: An interesting choice of “irreverent” brand to hook up with, but it was interesting that shares of TEK did rally off their lows yesterday, presumably in anticipation of the news this morning. Shame it was not Nike.

Conroy Gold and Natural Resources  (CGNR), the gold exploration and development company announce a fundraising of £400,000 to accelerate exploration on its exploration programmes for gold and other minerals in Ireland and Finland. The funds raised are to be put towards exploration programmes which are not covered by the Joint Venture Agreement with Demir Export and for general working capital purposes.  The company said certain of the investors in the Fundraising were introduced by Roast PR Limited who have elected to take their fees of £17,500 in relation to this transaction through the issue of new shares.

Comment: An interesting update for those who may have thought that Demir would cover all the costs of CGNR, and that Roast PR just does the PR. Hopefully, this is the last raise for a while.