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STOCK MARKET NEWS – RNS HOTLIST

RNS Hotlist May 31: Aferian, Alkemy, Critical Metals, Golden Metal, GoldStone, KEFI, Kodal, MGC, Thor Explorations, Wishbone

31/05/2023

RNS Hotlist May 31:  Aferian, Alkemy, Critical Metals, Golden Metal, GoldStone, KEFI, Kodal, MGC, Thor Explorations, Wishbone

Golden Metal Resources (GMET), a mineral exploration company, announced exploration results from its Golconda Summit gold project located within the prolific Walker Lane Mineral Belt in Nevada, USA. The company said Carlin-type gold systems represent globally important mineral deposits that are found almost exclusively within northern Nevada. Because of this, when it set out to build Golden Metal it was paramount to have an exciting Carlin-type gold opportunity within the portfolio, therefore allowing UK investors to get exposure to these very important gold systems.

Comment: GMET said it would hit the ground running after its IPO, and it continues to demonstrate this with frequent, significant newsflow, such we are being treated to today. The Carlin-type gold systems could be transformational in their own right for GMET.

Critical Metals (CRTM), a mining investment company established to acquire mining opportunities in the critical and strategic metals sector, updated on recent progress at its Molulu copper/cobalt asset in the DRC. In addition, Critical Metals it announced it has raised £600,000 at 25 pence per share, the proceeds of which will be used to assess acquisition opportunities in line with the Company’s stated goal to expand its asset base. The company said it was pleased to be able to report on continued progress at Molulu. With the road rehabilitation now complete, and with the construction of the bridge underway, it looks forward to selling copper ore from Molulu in June. The discovery of two further anomalies is encouraging, with IP surveys expected to take place.

Comment: CRTM has got a decent sized fund raise away, and at a premium, underlining the esteem the market and investors continue to have in the company. It helps that we are looking forward to copper sales from Molulu next month. The run up to this should be positive for the stock.

Alkemy Capital Investments (ALK) announced that it has completed a £1.35 million fundraise at a placing price of £1.40 each including a £10,000 participation by Alkemy director Helen Pein. Whilst legally restricted from participating directly in the Placing at this time, Paul Atherley and Sam Quinn have also agreed to contribute though the advance of unsecured, interest free loans of £430,000 in aggregate. The company said net proceeds of the Fundraise will provide sufficient working capital for the Company over the next twelve months. The Company continues to advance discussions and negotiations with counterparties for lithium feedstock. The major shareholders of the company have also committed to provide any additional working capital that may be required by the company to enable it to reach this significant milestone.

Comment: We have a significant fundraise from Alkemy, with directors leading from the front, and the assurance this cash is enough for the next 12 months. Even better major shareholders are happy to back the company if required. It is all about stacking up those offtake agreements now.

 

Kodal Minerals (KOD), the mineral exploration and development company focused on lithium and gold assets in West Africa, provides an update on the Bougouni Lithium Project Funding Package with Hainan Mining Co. Limited and its wholly owned UK-incorporated subsidiary Xinmao Investment Co. Limited and the agreement of all parties to allow a further extension of the long stop date to 30 June 2023. The company said while it is disappointing that it has not yet finalised this process and require a further extension of the long stop date, the parties remain committed to the transaction and are working together on the preliminary engineering and development processes required to ensure we move quickly into development upon completion and receipt of funds. The assay results received for the drilling campaign continue to demonstrate significant extensions at the Boumou prospect with wide high grade pegmatite zones further extended. It is very confident that further drilling will continue to expand this prospect and it is now the priority target for infill and extension drilling.  Upon completion of the next phase of drilling at the Boumou prospect the JORC Mineral Resource estimate will be updated to be included in the long-term planning and the timing of the possible further development of a flotation plant at Bougouni in addition to the initial proposed DMS (dense media separation) plant.

Comment: Shares of KOD have probably retraced as far as they need to in term of the long stop date, given the obvious operational progress the company is making, and with the prospect of an updated JORC MRE after next phase of drilling a Boumou.

Thor Explorations Ltd (THX), a West African-focussed minerals exploration and mining company, announced that through its fully-owned subsidiary Newstar Minerals Ltd, it has made an acquisition of significant tenure in south-west Nigeria that covers both known lithium bearing pegmatite deposits and a large unexplored prospective pegmatite-rich belt. The company said while gold remains fundamental to its growth strategy, it considers the virtually untapped lithium potential of Nigeria to be an opportunity that is too good to miss, particularly given its established in-country presence, experience and first-mover advantage. It intends to develop both businesses without any shareholder dilution. Given its financing partners and Chinese development relationships, it also believes it is well positioned to fast-track any commercially feasible opportunities to production.

Comment: It would appear that THX is putting its foot on the accelerator as far as the fundamentals are concerned, and hopefully this will be appreciated by the market. The move to go for the untapped lithium potential in Nigeria is a canny one, with the real bonus being there will be no shareholder dilution.

MGC Pharmaceuticals (MXC), a European based pharmaceutical company, announces that CannEpil®, MGC Pharma’s IMP has now been successfully imported and received by its first patients in the United Kingdom. The company said the fulfilment of the first UK patient to receive CannEpil® undergoing the RESCAS process demonstrates the commitment of MGC Pharma to improve patient access to effective epilepsy treatment.

Comment: We have a decent enough milestone being reached by MGC in terms of today’s newsflow, it will be interesting to see whether this will have a positive effective on the recent share price weakness.

Wishbone Gold (WSBN), said it would like to inform the market that the company’s application for a co-founded drill program has been accepted by the Government of Western Australia. The Co-funded Exploration Drilling Program is a flagship program of the Exploration Incentive Scheme (EIS). It is a competitive program, open for applications twice a year, which offers up to a 50 per cent contribution for innovative exploration drilling projects. Wishbone has been granted a contribution of A$220,000 for its highly prospective Cottesloe project.

Comment: We have a decent pat on the back for WSBN in terms of the co-funded drilling program, something which not only backs the significance of the Cottesloe project, but also fattens up the Wishbone Gold wallet as well.

Aferian (AFRN), the B2B video streaming solutions company, announced that it has secured additional cash funding by way of a shareholder loan facility of up to £3.25 million from its largest shareholder, Kestrel Partners LLP. The securing of this shareholder loan provides additional headroom in respect of the covenants in the Group’s existing bank facility. The company said it can now continue to focus on delivering value to both shareholders and its customers in the fast-growing video streaming market, which is rapidly becoming the most popular way to consume video.

Comment: Given the state of the stock market in terms of liquidity currently, it is always good to see RNS’s which have significant shareholders dipping their hands in their pockets as we are witnessing at Aferian. Hopefully the cash will move the dial as far as the company’s fundamental milestons.

KEFI Gold and Copper (KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, updated on its Capital Raise. From the Retail Offer, the company has received orders that would raise gross proceeds of approximately £243,741 at the Placing Price of 0.7 pence.

Comment: It is interesting that KEFI has only raised a little under a £250,000 with this discounted placing. One might have thought 500k plus would have been achievable, even it current stock market conditions, enough to move the dial as far as KEFI’s projects are concerned.

GoldStone Resources Limited (GRL) provided an operational update in relation to mining and production activities at the Homase Gold Mine in south-western Ghana. The company said whilst these first few months have been disappointing in terms of gold poured, with the recent investment into the company it has allowed for improvements to be made to enhance the long-term production profile of the mine, resulting in much additional work being undertaken at Homase.  All this will put the company on a sound footing going forward.  The company will update the market with a production forecast in the near future, as it is currently reviewing the forecast of costs of production which includes fuel, reagents and consumables, all of which remain high in this current economic climate.

Comment: Shares of GRL briefly rallied towards 5p earlier this month, and could do so again, once the production forecast alluded to today is released to the market. This still looks like a recovery opportunity.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.

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