Upland Resources (UPL) provided a corporate update: The approach was dismissed by the board due to the value assigned. Subsequent to the ‘Offer Period’ beginning, the ‘Potential Offeror’ became unengaged and failed to sustain communications with Upland. Further investigation and evidence eventually led to the conclusion that the ‘Potential Offeror’ was not bona fide. This was confirmed by the Takeover Panel and subsequently announced. UPL said it can assure shareholders that this has not detracted the company from the task at hand, fundamentally the business is in the strongest position it has ever been in and operationally it is now ready to finalise the Joint Technical Study and progress towards the SK334 onshore drilling campaign with preparatory work commencing in 2024.
Comment: As stated in the Week In Small Caps yesterday, nothing should have been announced regarding a possible offer until it was proved to be bona fide. If the offer was bona fide the shares should have been suspended at the time. The company did not need to and should not have responded to “media speculation” unless it was true. I would venture to suggest that most of the “old guard”, people with 20-30 years plus of experience in the markets, would have known how to have handle this situation in a more satisfactory fashion, if only on the value assigned of the approach. No one was going to offer 14.5p for a company versus the prevailing 3p share price.
Cadence Minerals (KDNC) announced that its joint venture company Pedra and Branca Alliance and DEV Mineração S.A. have entered into a MOU with Sinoma Tianjin Cement Industry Design & Research Institute Co., Ltd. Through its wholly owned subsidiary, DEV, PBA owns and operates the Amapa Iron Ore Project in Brazil. KDNC said its investment to date has resulted in an increased shareholding, which now stands at 32.6%, and it is both pleased and proud that having first submitted a judicial restructuring plan to creditors in 2019, it is now making rapid progress and looks forward to the completion and recommissioning of this substantial project. The MOU is the result of its ongoing discussions between the parties to progress the development of the Amapá Project jointly.
Comment: KDNC continues to accelerate the development of the Amapá Project, The increased stake in the project alone should be a decent kicker for the share price, as well as the fact that the company has accelerated the project development timelines.
Asiamet Resources (ARS) announced a further update in relation to the Company’s wholly owned, feasibility stage, BKM copper project located in Central Kalimantan, Indonesia. ARS said it will shortly commence engaging with senior Indonesian banks most likely to join the BKM project debt finance consortium. In addition to the copper offtake term sheet, it has received further interest from additional groups expressing a desire to secure BKM’s future copper cathode units and are advancing due diligence processes with these parties.
Comment: It would appear that ARS is most wanted (in a good way) on multiple fronts. If nothing else investors are likely to be impressed by the copper offtake aspect here.
BATM Advanced Communications (BVC), a provider of real-time technologies for networking solutions and medical laboratory systems, announced that it has received a new cyber security order, with a value of $3m. The Group expects to complete delivery, which commences immediately, of most of the order within six months. BVC said it was pleased to be awarded another significant order for our cyber security solution, which brings the total amount of cyber orders received this year to over $32m.
Comment: One would venture to suggest that even though we are in a bear market, and even though BVC has brought in $32m of orders this year, the latest $3m order will make a difference to the share price.
Insig AI (INSG), the data science and machine learning company announced the launch of The Transparency and Disclosure Index. Using evidence based analysis of more than 200 million machine readable sentences from corporate disclosure documents, the TDI demonstrates what stakeholders and market participants require: how well a company is disclosing non-financial information and how transparent it is. Scoring highlights gaps that are actionable for each company to remedy. The company said the vast majority of corporates want to do the right thing. However, because there remains no definitive standard for what is required, corporates are overloading information and defeating the object of providing clarity to stakeholders.
Comment: One would probably require the IQ of Einstein to understand the workings of the TDI, but it does sound like a technology breakthrough for corporates.
Artemis Resources (ARV) provided an update on the lithium exploration program being conducted at the Osborne Joint Venture (JV) tenement (GRE:51%, ARV:49%), located within the Karratha region of Western Australia. ARV said given the level of activity in the region and the success of Azure Minerals Ltd project to the east of its tenements, it is pleased with the continued success of the Osborne JV in returning high levels of Li2O in the rock chip assays. It looks forward to a successful maiden drilling program being undertaken by our joint venture partner Greentech Metals.
Comment: There has been quite a pullback in shares of ARV since the beginning of last month. One would imagine now near the 1p level, and off the back of the latest news, could be enough to trigger a recovery.
Hydrogen Utopia International (HUI), a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, noted that Powerhouse Energy (PHE) in view of its project prioritisation decided to defer its investment in the proposed development of a waste plastic to hydrogen facility site at Longford, County Longford in the Republic of Ireland at this time. HUI said that it is confident that, if the option is exercised, it can fund the development of pipeline projects including the Longford Project without a joint venture partner and without a fundraise through an issue of shares which would dilute existing shareholders. PHE said developments in other areas of its business, have all had to be taken into account. This has taken it to the inescapable conclusion that the best interests of PHE dictate that now is not the right time to commit to the Longford Project and to making significant capital contributions.
Comment: With HUI set to be funded in its expansion plans from its medical cannabis investment, and PHE’s business model diverging to new areas, today’s announcement looks to be the best outcome for both parties.
Golden Metal (GMET), a mineral exploration company announced a number of key developments from its Golconda Summit gold Project located within the prolific Walker Lane Mineral Belt in Nevada, USA. GMET said there are many encouraging economic signs within the broader metals and mining markets, in particular the strong price of gold. As a result, across multiple assets in the portfolio it is working towards obtaining the necessary permits which would allow us to expedite a move to the next important exploration stages if the strength showing within the mineral resource markets persists.
Comment: GMET flags further expansion today, something which makes all the more sense given the way that gold has been on such a strong run of late.