• Breaker’s board recommends an all scrip off market takeover offer from Ramelius
  • Auroch discovers a large-scale shallow lithium rich pegmatite at Kangaroo Hills
  • Magnetite Mines announces the optimum development pathway for the Razorback iron ore project

Here are the biggest small cap resources winners in early trade, Monday March 20.



The board of $94.78m market cap gold stock, Breaker Resources, has recommended an all-scrip off-market takeover offer from top 10 gold producer, Ramelius Resources (ASX:RMS).

Under the offer terms, Breaker shareholders will receive an implied offer price of $0.403 per share, equating to 1 Ramelius share for every 2.82 Breaker shares held and representing a total undiluted equity value for Breaker of $130.7 million.

Breaker was all about lithium but sold its stake in its WA prospect, Manna, to joint venture partner Global Lithium Resources for a cool $88 million in October 2022.

That left Breaker to zero in on its promising Lake Roe Gold Project near Kalgoorlie, just down the road from Northern Star Resources’ four million ounce-plus Carosue Dam project and Ramelius Resources’ 1Moz-plus Rebecca Gold Project.



Auroch has stumbled upon, and confirmed, an LCT-pegmatite discovery at the Kangaroo Hills Lithium Project in Western Australia after hitting spodumene bearing pegmatites in four drill holes.

One of the holes intersected a 35m thick pegmatite and has since been marked for priority analysis.

The assay returned a speccy intersection of 29m at 1.36% Li2O from 38m with the shallow vertical depth highlighting the potential for a large-scale shallow lithium rich pegmatite.

“This is particularly significant for the Goldfields area of Western Australia,” AOU technical director Robin Cox says.

“The wide and rich intercept in KHRC011 remains open and the company looks forward to getting back on the ground to commence follow up drilling.”



Shares in $41.7m market cap stock MGT have soared this morning on the results of optimisation studies carried out for its Razorback iron ore project in the emerging Braemar iron ore province of South Australia.

Supported by a 340% in Razorback ore reserves to 1.6 billion tonnes, MGT CEO Tim Dobson says the project has been optimised on all fronts, headlined by a substantial Stage 1 production scenario capable of producing 5Mt per year, before staged expansion to 10Mt a year.

The company is hoping to capitalise on the fast-growing momentum towards green steel and the increasing focus on supply from tier-1 jurisdictions with renewable energy grids.

“We are well positioned to now enter a final study phase and deliver a DFS based on a superior project design,” Dobson says.

“We are now prioritising the assessment of Iron Peak for Ore Reserves, enabling the completion of financial modelling for the new Project configuration, and taking advantage of Iron Peak’s superior mass recovery and metallurgy.”



(Up on no news)

Prospech is up after releasing further details about its capital raising in a prospectus on the ASX.

The company has raised $2.5 million, through an equity raising, to accelerate exploration European critical minerals exploration at its Kolba copper cobalt project in Slovakia as well as its Bambra lithium-rare earths projects in Finland.

Prospech is looking to dual list on Frankfurt Stock Exchange, the second largest stock exchange in Europe, as part of its strategy to align with the European critical minerals focus and access European capital markets.



(Up on no news)

This $5.98m market cap explorer flagged high-grade rare earth elements (REE) in samples from historical trenches at the Eurelia project in SA of up to 1.02% (10,250ppm) total rare earth oxides (TREO) and 819ppm niobium (Nb) last week.

The TREO grade is increasingly trending south towards the Walloway Carbonatite, which the company believes to be the source of the mineralisation.

“The REE and niobium trench sample assays have confirmed that the Eurelia Project is enriched in REE and presents an exciting drill target with potential for economic REE mineralisation over a significant strike extent,” MD Sean Delaney says.