Lunchtime small cap wrap: resource juniors win best in show
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Here are the key ASX small cap gainers and losers at 1pm AEDT.
The ASX Small Ords was down 2 points at 2726.
In the green
ABM Resources (ASX:ABU) surged this morning after $2 billion gold miner St Barbara (ASX:SBM) joined its share register in the company’s latest placement.
As part of a $6 million private raise at 10c a share, St Barbara contributed $4.4 million for a 10 per cent stake.
The stock was trading up 33 per cent at 10.5c by 1pm AEDT.
Managing director Matt Briggs told investors ABM was focused on making Australia’s next major gold discovery in the Tanami province — a remote area straddling the NT and WA border.
“Having two successful exploration and mining companies such as St Barbara and IGO support ABM is clear confirmation of the quality of ABM’s exploration team, strategy, and portfolio of high quality gold and base metal projects,” Mr Briggs said.
“The Tanami is becoming the exploration destination of choice for major Australian gold producers.”
In another junior mining deal with major players Raiden Resources (ASX:RDN) has shared details of a $40 million earn-in and joint venture with Rio Tinto.
Shares were trading up 24 per cent at 3.6c by 1pm AEDT.
The deal is Rio’s entry into Serbia — where Raiden has three licences for prospective porphyry copper and gold.
Raiden told investors the deal validated the prospects of the licences and their potential to host world class mineral deposits. Raiden is now focusing on four similar retained projects.
Junior explorer Lanka Graphite (ASX:LGR) put on 23 per cent to 5.3c despite no news.
Earlier this month, the company shared details of its collaboration with a Taiwanese university to develop human physiological sensors using its vein graphite.
Golden Cross Resources (ASX:GCR) was up 20 per cent to 1.8c with no news in the market.
The company’s main focus is its 100 per cent owned copper project aptly named Copper Hill. But it has a number of other projects from Central NSW to South Australia and North Queensland.
In its last quarterly GCR told the company its major shareholder HQ Mining would provide funding to support its work programs for the first part of this year.
Updates from Aus Tin Mining (ASX:ANW) have spurred its share price by 25 per cent to trade at 2.5c by 1.20pm AEDT.
The company told shareholders it had selected its civil and mining contractor for the second stage operations at its Granville Tin Project and had submitted its mining lease application for a Stage 1 project in Taronga.
It was progressing a plan to evaluate the treatment of cobalt, nickel and manganese to a pre-concentrate to lower capital and operating costs for a processing plant.
In the red
Drilling results from FE Ltd (ASX:FEL) have been largely disappointing to shareholders. The stock was trading down 37 per cent to 4.1c at 1.20pm AEDT.
FE said the results from its copper assays were positive, but further work was needed to understand cobalt mineralisation at the project’s second Kasomobo 7 site.
“While we are encouraged by the extensive workings by artisanal miners, which have exposed cobalt mineralisation, additional channel sampling and trenching work will now proceed to give us that broader understanding,” chairman Tony Sage said.
The ASX’s only jetpack company Martin Aircraft Co (ASX:MJP) last month announced its intention to leave the bourse. Today its shares dipped further by 26 per cent to 1.4c.
Martin said shares had been thinly traded (fewer than one million shares changing hands per day over the past seven months) and its development phase required all available cash rather than expenditure on ASX fees.
In the days following the de-listing announcement the shares fell from 3.9c to 1.8c.
Carbon Energy (ASX:CNX) fell 19 per cent to trade at 12.5c.
It follows a dip from its US sister company Consol Energy in the US market overnight.
Last last year the company detailed its next phase of growth to deliver new gas in 2018 to the commercial demonstration project by its joint venture partner Beijing JinHong Investment Co.
Ensurance (ASX:ENA) dipped 19 per cent to trade at 5c and Alchemia (ASX:ACL) by 14 per cent to 1.2c. Neither had news in the market.