Junior resources players work to cut costs and top up the kitty
Brisbane-based gold and copper explorer ActivEX is downsizing as its cash reserves start to dry up.
At the end of December, the company (ASX:AIV) had just $18,000 in cash and access to undrawn loan funds of $875,000. ActivEX estimates a cash-burn of $264,000 this quarter, including $47,000 for exploration.
ActivEX recently completed a project review that resulted in a “substantial reduction” in the size of its land-holding. The company still holds 30 exploration permits covering 2528 sq km.
The reduction was done to allow ActivEX to focus on priority targets like its Gilberton and Ravenswood gold projects in Queensland.
ActivEX is considering undertaken following up drilling at the Gilberton project to test extensions to the near-surface gold, silver, copper and cobalt mineralisation uncovered in previous drilling.
The company was unavailable for comment.
Bringing in institutional investors
Meanwhile, Austpac Resources had just $118,000 worth of cash at the end of the December quarter, but has since managed to secure a $1 million cash injection.
Shares were down 12.5 per cent at 0.7c at 11.30AM AEDT on Tuesday.
Austpac (ASX:APG) will use the new funds to complete the testing of its zinc iron recovery process, which combines iron and zinc oxide-rich furnace dusts with spent pickle liquor from the steel industry to produce pig iron, zinc oxide and strong hydrochloric acid.
The two tranches of $500,000 came from New York-based institutional investor Bergen Global Opportunity Fund II.
“That will give us sufficient working capital and we’ll be able to finish the test work program with steelmakers looking over our shoulder,” boss Michael Turbott told Stockhead.
“We’re going to convert the existing plant into a continuous production plant for processing dust and that obviously will require more funding, but that will be sorted out once the test work is finished.”
Austpac is working closely with steelmakers and already has three groups in Australia and some overseas groups interested in the technology.
“Everyone is observing this test work before making significant commitments,” Mr Turbott said.