What’s Hot, Not & Doing
Brought to you by TSN Contributor & Wealth Advisor Nick Kelso
What’s Hot – SRK, RCR, MTC, LYN & BB1
What’s Not – GLN & AI1
What’s Hot
SRK – Strike Resources Limited today closed up 59% to finish at 7c on $620k stock traded. The reason they were up today was because they announced 27.7% owned Lithium Energy Limited (LEL.asx) has executed a share purchase agreement where CNGR who will purchase its 90% interest in the Solaroz Lithium Brine Project in Argentina for US$63m (~A$97m) cash.
CNGR Advanced Materials was established in China in September 2014 and is one of the world’s largest producers of precursors cathode active materials used by many leading companies in the battery materials supply chain.
The sale price is equivalent to 86.5c per LEL share, which values Strike’s holding at around $26.8m, before today’s share price increase SRK’s market cap was $12.5m.
The sale is subject to a number of conditions precedent including receipt of Lithium Energy shareholder approval and receipt of regulatory approvals (in China and Argentina, as required) to be satisfied within 6 months of the agreement.
Subject to completion of the sale of Solaroz and completion of the proposed spin-out and IPO of Axon Graphite, LEL will consider new investments in the battery minerals sector and/or a distribution of capital to shareholders.
RCR – Rincon Resources Limited today closed up 27% to finish at 9.8c on $8.6m stock traded. The reason they were up today was because they announced drilling had commenced at its West Arunta Project located in WA.
An RC drill program of up to 2,000m has commenced at Pokali to test four target areas including Pokali East, Dune, Pokali North & Jewel.
Drilling at Pokali East is aimed at extending the existing IOCG copper-gold mineralisation further eastward by up to 600m, it has previous intersected 14m @ 1% Cu from 168m.
RCR anticipates the RC drilling program will take about two weeks to complete, with assay results anticipated in June.
Since announcing the restart of drilling back in early April, Rincon’s share price increased by more than 307% when reaching today’s intraday high of 11c.
MTC – MetalsTech Limited today closed up 24% to finish at 25.5c on $350k stock traded. The reason they were up today was because they announced a transaction process update for its Sturec Gold Mine located in Slovakia.
MTC will host multiple parties on site pursuant to the competitive strategic process being undertaken in conjunction with its advisors, Minmetals Securities.
One of China’s largest gold miners has recently attended a site visit as part of its due diligence exercise having significantly grown its share position in the company over time.
The Sturec Project boasts a JORC (2012) measured, indicated and inferred resource of ~2.7 million ounces, MTC was recently granted an extension to its underground mining permit.
LYN – Lycaon Resources Limited today closed up 17% to finish at 38.5c on $1.3m stock traded. The reason they were up today was because they announced a placement to raise $2.5m @ 28c through the boys and girls at Inyati Capital, who were kind enough to offer me a few.
The funds raised will be used towards exploration at the West Arunta Stansmore Niobium-REE Project with drilling targeted for the mid-year.
LYN also announced they were the successful recipient of a government co-funded drilling program of the maximum of $180k to drill the Stansmore Project.
The 100% owned West Arunta Stansmore Niobium-REE Project granted tenure extends over 173km² and is approximately 90km north of WA1 Resources’ Luni and P2 discoveries.
BB1 – BlinkLab Limited today closed up 11% to finish at 31c on $130k stock traded. There was no news out today but roughly a month ago they listed after raising $7m @ 20c through the boys and girls at Westar Capital.
BlinkLab has fully developed a smartphone-based test for early diagnosis of autism, ADHD, and other neurodevelopmental conditions.
The phone enables remote and rapid testing to aid research on neurodevelopmental and neurodegenerative conditions such as schizophrenia, autism, ADHD and various forms of dementia.
The funds raised from the IPO will be used to progress smartphone-based autism diagnostic test into FDA registrational study, initiate further clinical studies in other programs including ADHD as well as continue to advance in-house AI/ML algorithms.
The Autism Spectrum Disorder (ASD) treatment market size was valued at US$29.8b in 2021 and is projected to grow to US$45.9b in 2032.
What’s Not
GLN – Galan Lithium Limited today closed down 17% to finish at 27.5c on $3.3m stock traded. The reason they were down today was because yesterday after market they released its quarterly which revealed an estimated 0.4 quarters left of funding available.
It’s never a good sign when a company releases its quarterly on the last day after market…..just ask Trav – lol.
Back in January, Galan Lithium completed a placement to raise $19.5m @ 46c, followed by an at-the-market funding facility with Acuity Capital for a further $15m.
The construction phase and associated activities for the ‘low’ cost, high grade Hombre Muerto West (HMW) project continues to progress towards timely Phase 1 production, forecast in H1 2025.
Overall completion of the HMW project now sits at 33% with the ponds system already at 45% completion.
With only 33% of the project complete, you wonder how much more money Galan will need to fund the full construction of the project.
AI1 – Adisyn Limited today closed down 13% to finish at 2c on $470k stock traded. The reason they were down today was because they announced a binding agreement was signed with Zettagrid Limited to dispose of its VMware cloud platform for a total consideration of up to $1.4m in cash.
Zettagrid is an Australian owned Technology Aggregator to the IT channel delivering Edge Cloud Hosting, Backup, Disaster Recovery, Software Licensing and Telecommunications in the Asia Pacific region.
AI1 has identified it’s VMware cloud platform assets as non-core to its strategy of becoming the sovereign provider of choice for SMEs in the Australian defence industry supply chain.
The consideration received will be used towards further implementing the Company’s growth strategy and towards its existing operations.
Rats Rant – IMPORTANT INFORMATION
The idea of this report is to be informative and hopefully point out some stocks that you wouldn’t ordinarily have seen during the day, maybe even have a laugh too.This report IS NOT personal advice. Sanlam Private Wealth Pty Ltd DOES NOT PROVIDE personal advice, Sanlam Private Wealth provides General Financial Product Advice.All advice included in The Rat’s Rant is General Advice. Please refer to the General Advice Warning. The views expressed in this report are my views and may not necessarily reflect the same views as Sanlam Private Wealth.It is very important to refer to the ASX website for information on any companies / stock that are contained in this report and as always please consult your financial adviser before acting.
Important Notice
Rat Consulting Pty Ltd (ABN 81 148 181 588 ) Authorised Representative (No 001281456) of Sanlam Private Wealth Ltd (ABN 18 136 960 775) holder of Australian Financial Services Licence (AFSL 337 927).