Given the way that to start the week PGM specialist Eurasia Mining (EUA) was starting to draw “I told you so” comments from the bears, the 30% intraday rebound for the stock perhaps suggested that some in the market were once again scrambling to cover their short positions.
By Zak Mir
The rally was driven by the latest news from the company revealing strong operational progress at West Kytlim, and that the license for Nyud and Moroshkovoe open pit deposits is in an advanced state. The company reminding the market that its May fundraise was at 26.5p appears to be that level the one that traders were focusing on.
“Seller out” is one of the sweeter stock market phrases, and it certainly came up with the goods as far as oil and gas exploration and production company with a focus on Nigeria and West Africa, Lekoil (LEK). Here daily volume was many multiple of normal off the back of the announcement that Metallon Corporation had gone from 15.1% to zero. This resulted in a share price rise of as much as 50% plus, as the overhang on the stock was cleared, and others came to the party.
Not far off the level of trading interest as compared to Lekoil was Canadian Overseas Petroleum (COPL). Here the stock bounced off the all important 200 day moving average at 0.32p, the dividing line between bullish and bearish. The nature of the rebound suggested that we are near the end of clearing out the weak hands in the shares after they came back from suspension in the wake of the Atomic deal. It helped that the company announced its Wyoming assets continue to perform significantly ahead of expectations and that it is forecasting a strong year end outlook.
Also on the front foot in the wake of recent news was waste plastic to sustainable energy group Powerhouse Energy (PHE). Here the stock recovered nearly 13.9% in the wake of the previous day’s announcement regarding the signing of an exclusivity agreement with Hydrogen Utopia International for the application of Powerhouse’s DMG® technology in Poland, Greece and Hungary.
Independent oil and gas company focused on Nigeria, San Leon Energy (SLE). noted a fresh announcement made by Decklar Resources in Canada. San Leon said it has entered into a conditional subscription agreement with Decklar which entitles San Leon to purchase $7,500,000 of 10% unsecured subordinated loan notes of Decklar, and 15% of the enlarged share capital of Decklar Petroleum. San Leon also has the option to purchase an additional $7,500,000 of loan notes and 15% of the enlarged share capital of Decklar Petroleum.
Having traded as low as under 13p just last week, there was a further strong recovery for shares of Immedia (IMM). Here the driver, apart from logical hopes of a new target after the demise of the Sprift Technologies deal, were a couple of TR1s. The first with HSBC going from 0% to 5%, and the second from star stockbroker Graeme Dickson who moved from 3.12% to 4.06% on the share register.
Copper ores specialist Galileo Resources (GLR) said that that it has entered into a second variation agreement with Sandfire Resources in relation to its conditional licence sale agreement (the “Licence Sale Agreement”) with Sandfire. The two companies have agreed to amend the Licence Sale Agreement to extend the long stop date to 15 September 2021 to facilitate the completion of the processes to obtain Ministerial Consent. As far as the operational side Galileo said that its immediate focus will be exploration activities in Botswana where the Company has 15 licences in the Kalahari Copper Belt in highly prospective areas. The results of the Heliborne-EM geophysical surveying are sufficiently robust that it expects to announce the commissioning of initial reconnaissance drilling program within the month.
Digital assets investor KR1 (KR1) continues to consolidate its position as the King of Aquis, with its latest investment. It unveiled its participation in the Moonriver crowdloan and Kusama parachain auction. KR1 contributed a total of 5,000 KSM to the Moonriver crowdloan campaign, which successfully secured the second parachain slot in the previous round of Kusama parachain auctions. Apart from the Breakfast at Tiffany’s connection, Moonriver is a community-led Ethereum-compatible smart contracts platform on Kusama, acting as a permanently incentivised canary network of the Moonbeam project.
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