Lunchtime small cap wrap: who’s smiling and who’s scowling
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Here are the ASX small cap winners and losers at 1pm AEST Thursday.
The ASX Small Ordinaries was down 1 point to 2815.4 at 12.45pm AEST
Spanish online classifieds publisher Mitula Group (ASX:MUA) soared as high as 78c today after Japanese real estate data business LIFULL confirmed a take over bid.
Mitula’s board “unanimously recommended” that shareholders vote in favour of the deal.
Shareholders wil get 0.0753 LIFULL shares for each Mitula share — equating to 85c per share.
That represented “a premium of 88.9 percent to the closing share price on May 8”, Mitula said today.
Shareholders are also entitled to receive 80c cash consideration per Mitula Group share for their first 20,000 shares.
The shares were up 66 per cent at 74.5c by 1pm AEST.
Strong oil prices are underpinning the performace of ASX-listed oil juniors after after President Donald Trump announced plans to withdraw the US from the Iran nuclear deal.
Fremont Petroleum (ASX:FPL) was a key benificiary — it’s shares jumped 37 per cent to 1.1c after strong prices mean it’s now cash flow positive.
“As we grow production, cash flow will continue to strengthen,” president and CEO Timothy Hart said. “We are now cash flow positive and we want to enhance this position by extracting maximum production from our fields.”
Fremont said it produced 3336 barrels in April in total from two fields in Colorado and Kentucky — up 40 per cent on March after work-overs of producing wells bought some wells back on stream.
The shars were trading at 1c by 1pm AEST.
Gold explorer Mount Ridley Mines (ASX:MRD) jumped 25 per cent to 0.5c after confirming a new gold anomaly at its Mt Ridley Project in West Australia’s Albany Fraser Range area.
“The anomaly has been strengthened with multiple new peak readings,” Mount Ridley said.
Mount Ridley is planning follow-up aircore drilling covering the gold anomalous area and will update the market again “once further exploration commences”.
Newly renamed cobalt explorer Eon NRG (it used to be Incremental Oil and Gas) made gains today after updating the market on it Borie oilfield in the US State of Wyoming.
Eon (ASX:E2E) shares were up 22 per cent to 1.1c by 12.15pm AEST.
Eon is moving a rig to the North Borie Muddy site next week to start an oil recovery program at a formation caled Muddy J.
“The North Borie Muddy Unit has only produced 1.5 million barrels of oil out of the estimated 8 million barrels of original oil in place (OOIP) within the Second and Third Muddy J formations,” the group said.
In March Eon bought 18 mineral claims highly prospective for cobalt in Nevada.
Vanadium explorer Pursuit Minerals (ASX:PUR) jumped 21 per cent to 12.7c after identifying “high grade vanadium mineralisation” at its Koitelainen V prospect in Finland.
“With an average grade of 2.3 per cent V2O5 (vanadium oxide) the magnetite concentrates produced from nine holes at the Koitelainen V prospect place the mineralisation at the upper echelon of vanadium mineralisation globally,” Pursuit said.
Anythgin greater than 1.5 per cent was considered high grade, Pursuit said.
“Only the Maracas Mine in Brazil (3 per cent) and the Rhovan mine in South Africa (2.3 per cent) produce magnetite concentrates with vanadium levels consistently above 2.2 per cent.
Here are today’s ASX small cap winners at lunch:
Drug developer Biotron (ASX:BIT) lost ground after announcing a shareholder offer to raise $1.47 million at 1.5c per share.
One attaching option was offered for every new share at 5c (expiring December 2019)..
Biotrin fell as low as 2.3c but recovered to 2.5c (down 19 per cent) by 1pm AEST.
The money will go towards expanding the company’s Hepatitis B virus program “including testing of promising compounds in new models of infection”.
The cash would also support testing of additional Biotron compounds against an expanded range of viral diseases including respiratory viruses, Dengue virus, and others.
Here are today’s ASX small cap decliners at lunch on Thursday: