SolGold (SOLG) provided an update regarding the Company’s activities and ongoing initiatives following the merger with Cornerstone Capital Resources Inc. consolidating 100% of the Cascabel Project. The company said its top priority is to continue advancing the ongoing strategic review. Cascabel is undeniably recognized as a significant strategic asset with a high-quality resource. It firmly believes Cascabel will one day become a multigenerational mine and a substantial contributor to the Ecuadorian economy. Consequently, external groups evaluating the project are being very diligent in their review as they progress through various stages in their internal processes. In parallel, it continues to advance and de-risk Cascabel to position it as a turn-key asset.
Comment: Follow the Horizonte debacle it has been a tough autumn for flagship project small caps. The challenge now for companies such as SolGold is to compete with their contemporaries and convince the market they will be quickest and cheapest to production.
Bradda Head Lithium (BHL), the North America-focused lithium development group, announced its unaudited financial results for the six and three-months ended 31 August 2023, and the Management’s Discussion and Analysis for the same period. BHL said it was well placed financially to continue its planned work programme well into 2024. It also commenced its Phase 3 drilling programme at our San Domingo pegmatite asset during August 2023. This is a follow on from its Phase 1 and Phase 2 drill programmes, its aim being to extend the known lithium mineralization in this district. Assay results have been slow to arrive due to the summer rush at the laboratory, and the Company hopes to have news on San Domingo within the next few weeks as preliminary results have started to arrive.
Comment: Another day, another RNS from BHL, which is clearly trying to regroup after recent share price weakness, something which in the run up to San Domingo news should start to firm up.
Tirupati Graphite (TGR), the specialist Flake Graphite company, announced the appointment of Murat Dogan Erden as a Non-Executive Director on the Board of Tirupati Graphite, with effect from the close of the AGM on 26 October 2023. TGR said it was delighted to welcome Murat to the Board as a Non-executive Director. Murat brings deep knowledge and expertise across corporate finance, project finance and financial and business strategy. His interest in the energy transition economy and battery materials gel well with Tirupati.
Comment: China’s graphite embargo has been a shot in the arm for TGR and its contemporaries, something which means that the arrival of a new NED to help take the company forward is timely.
Belluscura (BELL) and TMT Acquisition plc announced on 3 October 2023 that they had reached agreement on the key terms of a possible share for share offer for TMT Acquisition by Belluscura. Both companies have completed confirmatory due diligence and expect to be in a position to announce a firm offer shortly, and by not later than 5.00 p.m. on 31 October 2023. The terms of the Possible Offer have been revised and will now comprise the issuance of 3 new ordinary shares of Belluscura in exchange for every 4 ordinary shares of TMT Acquisition.
Comment: Belluscura has seen its shares in a holding pattern near 2023 support. The market will be waiting on how its latest B2C moves develop, as well as the possible TMT deal.
Sound Energy (SOU), the transition energy company, confirmed the extension of both the ONEE Gas Sales Agreement and the Attijariwafa bank funding offer until 31st December 2023. Further to announcement of 28th June regarding the conditioned financing offer by Attijariwafa bank, the Company confirmed that it is in discussions with ONEE under the auspices of the Ministry of Energy to conclude the amendments to the GSA to the lender’s satisfaction, in order to complete the necessary conditions precedent to the Conditional Offer. SOU said various elements within the GSA are being amended to meet the debt funders criteria and to meet international standards. As such, Sound Energy, ONHYM, ONEE and Attijariwafa bank are engaged under the auspices of the Ministry of Energy to conclude a revised GSA by year end.
Comment: Shares of SOU have suffered since the summer, clearly needing to see a revised GSA by year end.
Creo Medical Group (CREO), the medical device company, announces that, following a recent submission to the Company’s notified body, Creo have been advised on a regulatory pathway facilitating the launch of their Speedboat® UltraSlim device approximately 18 months ahead of schedule. This news will now enable the Company to initiate the launch of UltraSlim in Europe in early 2024, with an early adopter launch programme which would otherwise have been planned for mid-2025. The company said this excellent news is testament both to the challenges the team have overcome to scale the technology down to a size which is as small as it ever needs to be, with the regulatory and clinical confidence needed to support this pathway.
Comment: Given how impatient investors are in a bear market, today’s timeline acceleration from CREO is likely to be very well received.
Arkle (ARK) announced it has been granted a new lithium exploration block north of its Mine River Block in Wicklow/Wexford in Ireland. The new block consists of four prospecting licences for lithium, rare earth elements and other minerals, including gold and platinum. The licences cost a total of €3,000 and Arkle is required to spend a minimum of €10,000 in exploration costs on each licence over the next 24 months. ARK said it was delighted it has been awarded four licences in Wicklow to prospect for lithium, rare earths and gold, among other minerals. It has long been known that the Leinster granites contain lithium in pegmatites, but little serious exploration has been undertaken. It identified this ground after earlier prospecting by Arkle on its existing licences indicated their prospectivity. It is prime ground which has never been explored for lithium. It will be on the ground in the near future.
Comment: ARK shares have been primed for recovery in recent weeks, and the news out today should be enough to take the shares through the recent 0.5p resistance barrier.
Orcadian (ORCA) announced that the North Sea Transition Authority (NSTA) has confirmed to the Company that, on the basis of the work that Orcadian and the Proposed Operator intend to undertake on Seaward Production Licence P2244, NSTA is prepared to agree an extension to the Second Term of Licence P2244. ORCA said it was delighted that the NSTA provided such a prompt response to its licence extension request, and it is working diligently on the necessary documentation so that it can progress this deal as quickly as possible.
Comment: ORCA is currently on a roll, as the Government U turn on Net Zero plays into the hands of those trying to develop the North Sea and get some petrodollars into the UK economy, rather than obsessing over climate. What a surprise that NSTA are quick off the mark these days.
Power Metal Resources (POW), the AIM listed metals exploration and development company, provided a Business Update for shareholders following completion of the Company’s financial year on 30 September 2023. POW said amongst its business objectives was to expand the ownership of Power Metal shares into new investor groups, a process that started with the May 2023 £2.7m financing corner-stoned by Term Oil Inc, a Company controlled by internationally recognised resources specialist Rick Rule; Identify new territories for future business opportunities and incoming project level investment, including notably Saudi Arabia and Oman.
Comment: CEO Sean Wade has hit the ground running since arriving at POW, realising that expanding the invest base of the company is just as important as anything happening on or under the ground.
First Tin (1SN), a tin development company, provided an update on its DFS at its Taronga Tin Project in Australia. The DFS is now well advanced, with completion due in Q1 2024. 1SN said pleased with the DFS outcomes at our flagship Taronga tin deposit, which have validated its assumptions held prior to the study. The simple mineralogy and subsequent mineral processing characteristics, combined with the low strip ratio and open pit mineability of the deposit, make it one of the most straightforward hard rock tin deposits in the world.
Comment: Under loved 1SN continues to make progress out of the investor limelight, but it would appear that its dark horse credentials at Taronga will soon be difficult to ignore.