Resources Top 5: Billionaire coal baron launches small cap takeover, explorer hunts for the next Argyle diamond mine
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Here are the biggest small cap resources winners in early trade, Tuesday February 22.
Major shareholder Christopher Wallin has launched an all-cash takeover bid for gold-manganese explorer CWX which values the explorer at 21c per share — a 27.27% premium to the last trading price.
The share price soared +33% to 22c per share following the announcement.
Wallin was the #41 richest person is Australia in 2020 (according to Forbes) with an estimated net wealth of about ~$910 million.
He is probs worth a lot more now, as he makes his money through private company QCoal Group, which has developed several coal mines in Queensland’s Bowen Basin.
Coal prices are red hot, and these mines produce 10 million tonnes of coking and thermal coal which is exported through the Abbot Point Coal Terminal each year.
QCoal also has several other mines in either early production or development stage.
Wallin’s offer is unconditional and will remain open until 22 April 2022, unless extended or withdrawn. CWX will be removed from the ASX if the acquisition goes ahead.
(Up on no news)
RMI hasn’t released much of note since November last year, when a soil/rock chip sampling program defined a 2km long nickel-cobalt anomaly at the ‘Kabulanywele’ project in Tanzania.
High grades up to 1.27% nickel in a rock sample and up to 0.85% nickel in soil were returned, the company says.
RMI has been planning a follow-up drilling program to test the identified anomaly for a few months.
The cash strapped $5m market cap tiddler has just ~$330,000 in the bank following a recent placement.
GMR keeps finding more gold targets at the ‘Kada’ project in Guinea, where a mineral resource is due out very soon.
At the new Bereko prospect, GMR picked up rocks containing 171.5g/t gold in artisanal workings.
Infill augur (very shallow) drilling along the 15km long Kada Gold Corridor returned new results up 2.7g/t gold and confirmed five priority targets for deeper drilling.
It also revealed a potential parallel gold corridor extending over 6km.
GMR is planning a second round of exploration drilling to test the target areas in March/April 2022.
The explore acquired Kada in 2020. It was previously drilled by Newmont, which sunk 33,857m worth of diamond and RC holes, but was considered too small a target for the world’s biggest gold miner.
That’s all good for $25m capped GMR, and it has undertaken a 6500m resource definition RC drilling campaign with the intention of delivering a maiden resource this month.
Recent drilling results include a highlight 96m at 3.3/t gold from 79m, including 29m @ 8.5g/t gold.
GMR had $3.2m in the bank at the end of December.
(Up on no news)
The phosphate explorer formerly known as Celamin was in the investor doghouse due to a multi-year dispute with its partner in Tunisia over a tidy looking phosphate project.
But after scoring a big win in the local courts PHO is now in full control of the ‘Chaketma’ project, which is being pushed towards development.
A resource upgrade at the flagship Kef El Louz deposit (currently 37Mt @ 21% phosphate) is due out this quarter. Early work is also underway on a bankable feasibility study (BFS).
The timing is good, with fertiliser prices continuing to perform strongly. Rock phosphate prices have increased over 100% to US$177/t compared with one year ago, PHO says.
The $30m market cap stock is up 56% year-to-date. It had ~$2.1m at the end of the December 2021 quarter, with an additional $1m received in January.
The diamond explorer has applied for two exploration licences over a major alluvial diamond-bearing channel that drains south from the Argyle mine.
Argyle operated from 1985 until 2020 and produced over 850 million carats of diamonds until its closure in 2020.
It was ranked as the world’s largest producer of pink, champagne, and cognac diamonds.
“In complement to our West Kimberley strategy — which includes our efforts at the Aries Kimberlite Pipes and the Ellendale Diamond Fields — the addition of a large footprint in the Argyle Diamond District demonstrates Odessa’s commitment to sound project portfolio development,” CEO Alistair Stephens says.
“During 2021, increasing demand and reduced supply resulted in rough diamond prices increasing more than 20%.
“We look forward to engaging with all stakeholders to discuss our intentions, with the aim to advance this project to production of ethically sourced diamonds.”
ODE is one of only three listed diamond companies on the ASX. It relisted in January after raising $6 million IPO at 2c a share.