First Class Metals (FCM) the UK metals exploration company seeking economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam and Zigzag land holdings, announced the launch of a systematic exploration campaign at the Zigzag Lithium project in the Province of Ontario Canada.
The company said that whilst it awaits further assays, FCM has embarked on a prospecting and systematic sampling programme including sawn channel sampling of ‘exposed’ outcrop in the central zone. It is confident that further outcrops in this zone and along strike will be identified. The focus of the current, ongoing programme is to bring Zigzag to a drill ready status in a ‘fast track,’ but diligent manner.
Comment: Work continues apace for FCM currently, with the key phrase in the latest RNS being that the company intends to get Zigzag to a drill ready status, a position means it has the optionality of either developing the project itself, or selling it on.
Critical Metals (CRTM), a mining company established to acquire mining opportunities in the critical and strategic metals sector and currently developing an ex-producing copper cobalt mine in the Democratic Republic of Congo, announced it has signed a $3 million non-dilutive debt facility with an international financial institution. The company said the funds from the Facility will help it to accelerate its mining operations, increase production volumes whilst continuing negotiations with future buyers of copper ore. Russell Fryer, CEO, said the splitting of the first tranche and the second tranche provides capital optionality for the company, and such flexibility is a huge positive. As the largest shareholder I have made a personal commitment to all shareholders to keep dilution down to a minimum and I have backed this through the pledging of my shares to avoid dilutive equity placements. The loan provides the company with the necessary funds to accelerate growth.
Comment: It is probably the case that CRTM could not have delivered a better RNS (for the share price) than it has today. In addition, non-dilutive funding, backed by the CEO himself should be the kicker for the company to get itself to the stage of ramping up production and selling this on to buyers.
Arrow Exploration (AXL), the operator with a portfolio of assets across key Colombian hydrocarbon basins, is pleased to provide an update on the Carrizales Norte-3 well on the Tapir Block in the Llanos Basin of Colombia. The company said its fully funded, low risk drilling program continues to build momentum across its extensive portfolio, where it aims to spud five additional development wells between now and year-end. It is also encouraged by the initial interpretation of the Tapir 3D seismic.
Comment: Another picture perfect RNS, something which if nothing else should ensure that the stock remains on the right side of 20p from now. It is indeed a shame the company has not been able to sing its praises to the stock market to a greater valuation thus far.
Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, provided an update on proposed drilling programmes for the Tully Gold Project and the Big Bear Project, which are both part of the Group’s Ontario projects. The company said that to capitalise on its ability to drill Tully during the winter months and to optimise costs whilst accelerate the development of this quality project, it is planning to start drilling at Tully as soon as possible. The project, which is its most advanced project by far, with an initial gold resource of 107,000 ounces at potentially economic grade of over 6g/t Au, in a world class gold camp which has historically produced more than 70 million ounces of gold, is a truly exciting project to start work on.
Comment: Shareholders of FMET will be assuming that there is simply too much going on here at FMET for its shares to be under the IPO price. The historical production alone of Tully, reminds us of the disconnect between the FMET share price and the potential it is sitting on.
Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group, announced that Prevail Partners, LLC, an investment fund, has agreed to invest in the company through a subscription at a price of approximately £0.06 for the total sum of $830,000 (approximately £668,000). HEMO said it was very confident in Prevail InfoWorks’ ability to coordinate its Phase I clinical trial in relapsed/refractory AML. Their operational experience and expertise will enable a smooth execution of the study, while their specialization in real-time data integration and analytics will ensure fast, reliable data access to lower our clinical risk and potentially speed up our regulatory timeline. Prevail Partners’ strategic investment in the company demonstrates their confidence in our CAR-T program and in our ability to execute the upcoming clinical study.
Comment: The sizzle here as far as shareholders of HEMO is concerned is that Prevail have not needed to wait on the final thumbs up from the FDA to make their investment. Indeed, its move now suggests that the progress of HEMO’s CAR-T program is a foregone conclusion.
Orcadian (ORCA) said it has entered into a non-binding HoA with a North Sea operator, which details a potential farm-out of the Pilot development project. The company said it was delighted to have reached this agreement, which sets out a potential pathway to production for the Company’s Pilot field. The Pilot field has a substantial proven reserve base with material upside potential in the surrounding area. It was delighted this transaction could enable Orcadian to retain a significant interest in the project and to enjoy the long-term benefits of producing oil for the UK.
Comment: It would appear we have a decent 11th hour development for ORCA, something which should at least set the cat amongst the pigeons for those shorters who thought they had a one way bet. This looks like a win-win for the company after being taken to the wire in recent months.
Corcel (CRCL), the pan Angolan / Brazilian Oil and Gas company, with interests across oil and gas and battery metals, announces the completion of an unsecured convertible loan note facility with Extraction Srl, that would potentially extend a total of £10m to the Company, to be drawn down over a three year period. CRCL said that with this instrument in place, the company now has a cost-effective long-term facility it can access without having to consider more dilutive and expensive sources of capital on offer. With this facility now available to help accelerate its activities, it awaits initial results from the drilling of its first oil well in the Kwanza Basin, Angola.
Comment: Another retail investor favourite stock which has today shunned the secondary market / brokers to raise money, and gone for a chunky CLN. The quantum of the funding suggests that CRCL is now fast tracked to achieve its potential, something which should be reflected in its share price as well sooner, rather than later.
Wishbone Gold (WSBN), announced an update on the findings of the first phase of the drilling program comprising five reverse circulation holes which has taken place at Cottesloe in recent weeks. The drill results reinforce those announced by the company in May, namely that Cottesloe has significant mineralisation potential and is considered highly prospective for precious and base metals. WSBN said it is great news to have the first stage of the drilling program completed at Cottesloe which has highlighted again the significant mineralisation potential of this asset. The imminent diamond drilling work, part funded by the Western Australian Government, should also reveal the scale of Cottesloe and the merit of the exploration model.
Comment: Although for some strange reason the share price of WSBN continues to belie the operational progress the company is making, it continues to progress Cottesloe, and more importantly, is proving up its significance as an asset.
Upland Resources (UPL) announced the formation of a Technical Evaluation Committee responsible for advising the Upland Resources Board of directors on technical activities related to the company’s assets. This underscores the company’s commitment to effective management on workstreams such as Block SK334. UPL said the formation of this Technical Evaluation Committee underscores our commitment to excellence and effective management of its activities.
Comment: Clearly, coming up with a committee of the great and the good of the space to advise on its assets, suggests that UPL is sitting on a chunky portfolio with even chunkier prospects. We await the next leg up for the stock for the start of the autumn.
Filtronic (FTC) A £170k grant from the Defence and Security Accelerator fund to encourage further research into space age materials with the MOD, Royal Air Force , Royal Airforce, and global allies is more prestigious then lucrative. The recently reported finals to May, from this designer and manufacture of products for aerospace, defence and the critical communications markets showed, Revenue slightly lower at £16.1m although PBT fell heavier than anticipated to £0.5m from £1.5m,with EPS at 0.22p down from 0.68p. Since the year-end, it won a £3.2m order from an exciting new customer, The European Space Agency to develop a series of advanced mmWave products to enable broadband connectivity for LEO (Low Earth Orbit) satellites. Generally, the order book from its core Sovereign defence and communications clients is hard to predict.
Comment: Prestige may eventually lead to contracts, so the longer-term outlook seems positive. The shares are near its 52 week high where the Mkt Cap is £35m, and with net cash of around £1.6m, a placing to fund development should find institutional support.
ECR Minerals (ECR), the exploration and development company focused on gold in Australia, is pleased to announce that the company has conditionally raised £580,000 by way of a direct subscription at a price of 0.175p. ECR said it was delighted to announce that notwithstanding the challenging market conditions, the quality of ECR’s assets has resulted in this support from a core group of high net worth and institutional shareholders.
Comment: The implication here is that if ECR is good enough for Doc Holliday to be involved, it is good enough for the rest of us mere mortals. The point is backed up by the raising of £580,000, no mean feat in current stock market conditions.
Zenova Group (ZED) said it was thrilled to announce that first deliveries of 13,654 units of Zenova FX500 handheld aerosol extinguishers for the USA market to its recently announced new sub distributor Petra Industries, 7,500 units have been purchased from Omnis, its distribution partner in the USA. ZED said it was excited to enter the US markets and is looking forward to accelerated expansion into additional distribution channels to provide US customers with personal fire protection through its Zenova FX500 aersosol fire extinguisher. The Zenova FX500 is uniquely designed to address the increasing risk of household lithium battery fires.
Comment: The market has been somewhat churlish regarding ZED’s moves in the USA, something which should be transformational for not only the business, but also the share price.
Falcon Oil & Gas (FOG) announced that drilling operations on the Shenandoah South 1H well have been successfully completed with Falcon Oil & Gas Australia Limited’s joint venture partner, Tamboran (B2) Pty Limited. FOG said it was delighted to have successfully completed the SS1H horizontal well section and it now looks forward to the next phase of operations with the stimulation and extended production testing of the well.
Comment: FOG has certainly been a somewhat quiet market for an extended period, something which perhaps does not tie in with the company’s scale of assets, and their potential.
BSF Enterprise (BSFA), an investment company focused on unlocking the next generation of biotech solutions and the development of lab-grown tissues, announce that its 100% owned subsidiary, 3D Bio-Tissues, has been awarded a EUR612,000 grant from the European Institute of Innovation and Technology to upscale the production and sales of its proprietary serum-free media, City-Mix™. The company said to have received this grant on the back of a competitive process is a very positive endorsement of its flagship product and business strategy. This funding will fuel its growth without diluting its shareholders. As outlined in its strategic update, it has a clear strategy to achieve international growth and with these funds in hand we are well positioned to implement.
Comment: It has been somewhat frustrating to see the share price of BSFA remain relatively flat in recent months, given the progress that the company has been made. Perhaps the latest grant news will get the stock back on an upward trajectory again.
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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