This post was written by Zak Mir, a Technical Analyst, Events Host, Presenter, CEO Interviewer and established Market Commentator.
Oracle Power (ORCP), announced that it has signed a binding Heads of Agreement with ASX-listed Riversgold Limited, which will farm-in to licence P25/2651, known as the Northern Zone Gold Project, located 25 km east of Kalgoorlie in Western Australia. ORCP said it was extremely pleased to have signed this deal with Riversgold, which is well funded and has a strong presence in Western Australia, with complementary gold projects nearby at Kurnalpi. The gold system encountered at the Northern Zone Project has potential scale, with a multi-million-ounce gold exploration target, identified by Oracle, and substantiated by widths of gold mineralisation over 100m in drilling. With the gold price moving from approximately A$2,500 per ounce, to over A$3,000 per ounce, the Northern Zone Project, as an exploration play, is ever more compelling. Riversgold plans to be on the ground quickly and is, overall, very well placed to generate value for Oracle’s shareholders.
Comment: ORCP has delivered the perfect solution for its Northern Zone Gold Project, something which will deliver the potential of what it has there, as well as allowing the company to focus on its latest large drive into the green hydrogen space.
Reabold Resources (RBD), the oil & gas investing company, said that it has entered into a conditional subscription and option agreement with LNEnergy Limited and a conditional shareholder option agreement with certain existing shareholders of LNEnergy, Pursuant to the terms of the Agreements, Reabold will initially acquire an interest of 3.1% of LNEnergy for cash consideration of £250,000, and receive options to acquire, at its sole discretion, further shares in LNEnergy which would result in Reabold holding a 25.0% shareholding in LNEnergy for aggregate cash and equity consideration of £3.8 million.
Comment: As well as the ongoing share buyback, underlining the value in the company, RBD continues to get on with business as an investing company, something underlined by today’s LNEnergy announcement. This could lead RBD having a chunky 25% holding.
Rainbow Rare Earths (RBW) announced that it has raised gross proceeds of £7.52 million at a 28.1% premium to the closing share price of 8.1p on 5 May 2023. The company said it is delighted to have received support from various strategic shareholders in Rainbow, including TechMet. Following a rigorous independent technical and ESG due diligence process, TechMet have confirmed that they share our view that Phalaborwa is one of the most exciting rare earth development projects globally.
Comment: There is not only the solid raise for RBW at nearly 30% above the prevailing share price, we also have the reassurance that the U.S. Government is investing in companies such as RBW to offset dependence on China.
Osirium (OSI) announced continued positive trading through Q1 2023, with ARR for March 2023 of £2.04 million, an increase of 31% over the past 12 months (March 2022 ARR: £1.56 million) and 10% for the quarter (December 2022 ARR: £1.86 million). The Group’s cash balance and debtor position as at 31 March 2023 was £690k. Based on prior years, the Company expects to receive an R&D tax credit of not less than £600k before the end of H1.
Comment: OSI is another company that the bears where attacking, but seem to have got bored with, perhaps in the run up to today’s 31% rise in ARR.
Cobra (COBR), a gold, rare earth and IOCG exploration company, announced further gold results from a recent 20-hole, 2,466m Reverse Circulation drilling programme aimed at expanding the company’s existing gold and rare earth resources. Additionally, the company is pleased to announce that is has completed a dual purpose, 95-hole regional Aircore drilling programme. Thr company said these results demonstrate the growth potential of Cobra’s existing 211,000 Oz gold resource at Wudinna and will contribute to a 2023 gold Mineral Resource Estimate update. In particular, the growing strike of gold mineralisation at the Clarke prospect has the potential to favourably contribute to the growing resource.
Comment: While the stock market has decided so far to play it cool as far as what Cobra is doing, the company itself is continuing to prove up its resources, illustrating significant growth potential.
Bradda Head Lithium (BHL), the North America-focused lithium development company, announced soil sampling results confirming a 9km mineralised trend along with further significant drill hole intercepts of high grade lithium bearing minerals on multiple targets. These results were from the company’s third and final set of assay results from its maiden diamond core drilling programme at Bradda’s 23km2 San Domingo pegmatite district in Arizona. This is a continuation of the first extensive drilling campaign undertaken at San Domingo since the 1950’s and is the maiden programme under BHL. The company said these final results are highly encouraging and set the scene for what it believes has the potential to define a world class lithium pegmatite district in Arizona, near vital infrastructure and battery end-users within the US and the wider developing North American battery hub. The US is investing US$135bn in its EV and critical minerals supply chain.
Comment: It is a shame that so far the very strong BHL message has not got into the hearts and minds of investors, despite the company’s operational progress and solid coterie of advisors and service providers.
Capital Metals (CMET), a mineral sands company, announced it has signed a MoU with LB Group, to fund the Project into production. CMET said it was delighted to have signed an MoU with LB Group. If concluded, this agreement will not only fund the Project into production but will also see Capital Metals benefitting from its share of free cash flow from the very first shipment. This Project will be a first of a kind for Sri Lanka with modern mining practices, knowledge transfer, and significant export income generation.
Comment: This is perhaps the strongest announcement that CMET in its current position fundamentally could deliver. It will be interesting to see whether the market will appreciate the merits of what has been announced today.
Hemogenyx Pharmaceuticals (HEMO), the biopharmaceutical group, announced the submission of an IND application seeking authorization from the FDA to begin a Phase I clinical trial of its lead product candidate HEMO-CAR-T for treating acute myeloid leukemia. HEMO said it was pleased to have reached this milestone with HEMO-CAR-T. It is committed to advancing therapies for blood diseases, and its work to address AML, which currently has poor survival rates, is an essential part of that commitment.
Comment: Any announcement that mentions the FDA is significant and important in the small cap space, and we are reminded that Sandler’s extended activities in the lab are starting to bear fruit.
Tirupati Graphite (TGR), the specialist graphite and graphene company, announced its Unaudited Trading Results for the financial year ended 31 March 2023. Gross profit for FY23 increased 170% Year on Year to £1,372,048 (FY22: £508,112). Total production increased by 59% YoY to 4,770 tons (FY22: 2,996 tons). The company said it has now completed the first phase of its development into a global leader in this niche speciality material space. In the process, it has successfully managed episodes of extreme difficulty, but has remained firmly focused on its objectives and targets. From the new financial year, it has begun the journey on the next phase, consolidating on what it has achieved and moving forward towards its next targets.
Comment: Today’s news from TGR should start to represent the hockey stick trajectory of production and revenues that the market has been waiting on. Normally, the share price would have already anticipated the fundamental kickers we have been informed of today.
Tap Global Group (AQSE: TAP), the regulated crypto app, announced the appointment, with effect from 12 June 2023, of Kriyakant “Kriya” Patel as Chief Executive Officer of Tap Global Limited. TAP said it was delighted to welcome Kriya to Tap. The Company is experiencing an extraordinary period of growth, despite sectoral headwinds, and able to attract someone who has delivered strategic growth throughout his career is a significant coup. Kriya is a hugely respected individual in the FinTech sector, both in Gibraltar and the UK, and his agreement to join TGL is a notable vote of confidence in the business. It has no doubt that Kriya’s extensive experience will prove invaluable as it grows.
Comment: Given how hot the space is at the moment, it can be said that a new CEO for TAP is entering the fray at just the right time to give the company and its share price the momentum it deserves.
San Leon (SLE), the independent oil and gas company, noted the announcement made on 8 May 2023 by Decklar Resources Inc. in Canada. “Decklar and its co-venturer Millenium Oil & Gas Company Limited, announced that trucking of crude oil from the Oza Oil Field to the Edo Refinery and Petrochemicals Company Limited has continued and total deliveries have now exceeded a total of 30,000 barrels of crude oil in 2023 and thus completed deliveries to satisfy the 30,000 bbls crude sale agreement. Trucking of crude oil has also continued to the Duport Midstream Company Limited refinery in Edo State, with over 7,500 bbls delivered to date.” SLE said it continues to explore a potential sale of its non-core investments in DPL although the completion remains subject to the purchaser finalising its own funding arrangements, further details of which were most recently announced by San Leon on 24 March 2023.
Comment: Shares of SLE have been improving in recent weeks, with presumably the market being assured that the denouement as far as the company’s potential non-core investments in DPL is growing closer.
Artemis Resources (ARV) provided an exploration update for the Greater Carlow project area, and the delivery of a JORC Exploration Target for the Carlow Castle deposit. An Exploration Target reported in accordance with the JORC Code, 2012 around the 704,000 oz Au Eq. 2022 Mineral Resource has been compiled for the Carlow Castle gold-copper-cobalt project. The Exploration Target is reported as: 2.5 Mt to 5.0 Mt at 2.5 g/t Au Eq. to 3.1 g/t Au Eq. for 200,000 oz Au Eq. to 500,000 oz Au Eq.
Comment: The past couple of months have seen shares of Artemis stabilise, and one would imagine that today’s news will assure many investors of the potential of the company.
First Class Metals (FCM), the UK metals exploration company, provided an operations update on activities across the portfolio. FCM it was pleased to announce that exploration has now started for the 2023 Field Season, it has a vigorous programme planned to follow up on last year’s stellar performance, specifically At North Hemlo and Esa with the intention to define drill targets. FCM will also undertake exploration at Sunbeam to define drill targets as well as prospecting the wider licence. Similar work is also intended at Zigzag. Other properties will be explored, further evaluated as time and priorities allow. The priority remains to drill at least one location this season.
Comment: The run up to the 2023 Field Season has seen shares of FCM start to stir and one would imagine that there will be a decent acceleration in this respect as the summer gets underway.
Echo Energy (ECHO), the Latin American focused energy company, announced the execution of a binding Term Sheet for a transaction, designed to provide much needed funding. The company said this is a transformational moment for the company as it looks to put its recent challenges behind it and create a new, stronger and more financially robust platform from which to take the company forward. Not only does it immediately improve its balance sheet, it also brings optionality with the Colombian opportunity, as well as giving us continuing revenues, with additional upside should the Buyers of the asset interest be able to deliver the investment and production growth that its financial limitations have prevented it from doing.
Comment: Perhaps the last barrier to ECHO shares getting off the ground in a meaningful way has melted away with today’s Term Sheet news. Indeed, if this were not the case it would be very surprising indeed.
Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.
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