RNS Hotlist with Zak Mir: PALM, 88E, IMMO, ANR, BLOE, GGP, KEFI, STK, GLR, VAST, THX & ECHO via Vox Markets

Panther Metals (PALM) the company focused on mineral exploration in Canada, reported the results from the latest round of diamond drilling has confirmed the discovery of an additional volcanogenic massive sulphide mineral system (VMS) at the Obonga Project.

Author @ZaksTradersCafe

The Survey Prospect is confirmed as a new VMS. In addition, at the Wishbone VMS System, drilling has given further wide massive sulphide intersections and high-grade zinc intersections of up to 11.65% Zn. The company said confirmation that the Obonga Greenstone Belt contains high-grade zinc grades at potentially commercial intervals is a defining moment for Panther Metals.

Comment: A defining moment indeed, for a company where the market has been somewhat churlish in paying its dues in terms of the valuation. Presumably, a re-rate on the back of the VMS now beckons for the start of 2023.

88 Energy (88E) announced that it proposes to raise up to A$12.0 million (£6.8 million), with the ability to accept over-subscriptions to increase the total amount raised to up to A$15.0 million (£8.1 million) at a price per Placing Share of A$0.0095 (equivalent to £0.0055). The Placing Price is equivalent to a discount of 20.8 % to the closing price on the Australian Securities Exchange on 1 February 2023. The company said that the net proceeds of the Placing, together with the Company’s existing cash reserves, will provide sufficient capital to fund the planned Hickory-1 well at Project Phoenix, payment for the new Project Leonis acreage, finance potential portfolio expansion / new ventures.

Comment: A punchy raise from 88 Energy, as it attempts to banish the ghosts of last year’s disappointment.

Immotion (IMMO), the UK-based immersive entertainment group, announced it has entered into a conditional sale and purchase agreement, for the sale of its Location Based Entertainment business and C.2K Entertainment Inc., to LBE BidCo, Inc. for an enterprise value of $25,211,739 on a cash free/debt free basis. The company also announced a share buyback.

Comment: Presumably the rather large deal for a £9m market cap company with its shares near their lows, and the share buyback, will mark an inflection point for Immotion. This is especially since it has been rather unappreciated to date.

Altona (ANR) a mining exploration company focused on the development of Rare Earth Elements mining projects in Africa, said it has entered into a convertible loan agreement with clients of Optiva Securities Ltd for up to £275,000 available to draw down immediately. The company said funds from this loan will be used for urgent project requirements, specifically to complete the Mineral Resource Estimate which will allow the company to take its holding in Monte Muambe Mining Lda, the subsidiary which owns 100% of the Monte Muambe Rare Earths Project exploration licence, to 51%.

Comment: It is pleasing to see that clients of Optiva (salt of the earth), have stepped up to the plate for Altona. Clearly, getting the MRE over the line is key here to making transformational change at the company.

Block Energy (BLOE) the production and development company focused on Georgia, announced it has closed a senior secured loan facility $1.06 million (c. £0.86 million at 1 February 2023), with various existing shareholders and members of Block’s management team.

The funds raised provide the company with additional headroom to accelerate its Project I development programme. This includes additional wells and side-tracks, following completion of well WR-B01Za, which is currently being drilled.

Comment: It is interesting, and perhaps an indictment of current stock market conditions, that Block decided to go “in house” regarding this latest modest funding, rather than asking the stock market. But the fact that it has gone down this route, may mean that progress at Project I, could lead the shares higher in coming months.

Greatland Gold (GGP) released final drill results for its 2022 exploration programme at the Juri Joint Venture. The company said all assay results have been received for the 2022 exploration Juri Joint Venture drilling programme on the Paterson Range East and Black Hills tenements including holes drilled at the A9, Tama and Black Hills North (A27) targets. The company said it was strongly encouraged by the results of our second drilling campaign at the Juri Joint Venture. The importance of bismuth as a pathfinder in the Paterson region is particularly significant with geochemistry at Black Hills similar to what we have seen at Havieron.

Comment: Although it may be too much to expect the GGP share price to rise off the back of the latest news, it could be a decent step towards a valuation re-rate, as confidence returns off the back of announcements like this.

KEFI (AIM: KEFI), the gold exploration and development company, provided its latest quarterly operational update. The company said KEFI continues to progress its three advanced projects: the Tulu Kapi Gold Project in Ethiopia which is now finalising the project’s $320 million financing, the Jibal Qutman Gold project in Saudi Arabia targeting start-up at the same time as Tulu Kapi and the Hawiah Copper-Gold project, also in Saudi Arabia, already larger than the other two projects combined and planning construction after the two gold projects have started production.

Comment: Shares of KEFI are presumably hanging around the 0.8p – 0.9p zone in anticipation of the Ethiopian financing. However, given that the company is also highly exposed to Saudi Arabia, it is perhaps the case that the market is adopting too strict a wait and see stance here.

Streaks Gaming (STK), a GPT-driven conversational gaming platform targeting customers in the emerging US sports betting market, announced an advertising partnership with FanDuel, the #1 sportsbook in the United States. Streaks will feature FanDuel offers throughout its product and expects this advertising partnership to increase revenue per user, as Streaks accrues a referral bonus for every new first time depositor referred. The company said it was thrilled to be partnering with FanDuel. Their reputation and reach in the sports betting industry will allow it to further enrich the Streaks ecosystem, giving users greater choice and access to a wider selection of rewards for first time deposits on multiple platforms. This will have a positive impact on our revenue per customer as the customer base matures.

Comment: It is evident that Streaks has hit the ground running in terms of the partnership with the #1 sportsbook group in the United States. As important is the way that this will boost revenue per customer. Also worth noting is that the GPT-driven conversational gaming platform perhaps should be regarded as having a wow factor on a par with the transformational ChatGPT in terms of its generation of technology, something which the market has not yet fully picked up on.

Galileo Resources (GLR) reported on work progress on a number of new prospects, including discovery of high-grade gold and associated copper mineralisation, at the Shinganda Copper-Gold (Cu-Au) Project, Zambia where the company has the right to earn an initial 51% interest. Follow-up exploration over additional ground to that focused on to date has revealed highly anomalous surface gold and associated copper results on three of eight selected targets several kilometres distant from the Shinganda outcrop zone where lengthy drill intervals of copper-gold mineralisation were recently reported.

Comment: One would consider that the latest news from Galileo should be enough to counteract recent rather unfair weakness in the share price, as well as underlining the merit of its activities in Zambia to the market.

Vast Resources (VAST), the AIM-listed mining company, announced a further update to the RNS of 23 January 2023 regarding the settlement of historic claims. The company advises that as at 1 February, 2023 the High Court of Zimbabwe granted a default Order against the Minister of Mines & Mining Development relating to the release of the historic parcel of 129,400 carats of rough diamonds held in safe custody at the Reserve Bank of Zimbabwe. The signed High Court Order is expected in the coming days.

Comment: If we are reminded of one thing in terms of the latest news from Vast, it is that in the world of small caps, never say never. The main issue going forward is how much of the stock’s stellar gains will be held onto, and how the Zimbabwe news will affect the market’s perception of the rest of Vast’s portfolio.

Thor Explorations (THX) announced that is has amended and restated the terms of the balance of its senior debt facility held with Africa Finance Corporation. The company said it was pleased to have restated our senior debt facility which frees up Segilola’s cash flow for the company to continue to implement its growth strategy and deliver value to its shareholders. The amended facility provides a stable enabling environment for it and is aligned with the next stage of its growth strategy.

Comment: It should be the case that with this rejigging of its debt facility, the company and the market’s attitude towards it are improved to start 2023.

Echo Energy (ECHO), the Latin American focused energy company, provided a commercial update regarding the company’s gas sales from the producing Santa Cruz Sur assets, onshore Argentina, and a financial update. The company said it was pleased to see its financial and commercial positions continuing to improve and provide firmer foundations for its growth strategy, as it looks to increase production and revenues across its asset base. These enhanced gas sales contracts will contribute to that process while the decrease in its joint venture creditors contributes to a stronger financial footing for Echo.

Comment: It is to be hoped that after a poor two months of stock price performance, we have a solid enough update from the company, which may bring back confidence to investors.

Author @ZaksTradersCafe

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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