Resources Top 5: These gold stocks were up before the ASX crapped the bed
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The ASX is borked. Here are the resources stocks that jumped before trading was paused due to “market data issues”.
For Dacian and NTM, this tie-up would combine the shallow, high-grade resources at NTM’s Redcliffe project with Dacian’s Mt Morgans Gold Operations.
The deal – one Dacian share per 2.7 NTM shares owned — is worth 0.141c per share for NTM holders.
That’s a 26.1 per cent premium to the 30-day volume weighted average price (VWAP) of both companies.
VWAP gives the average price of a stock over a defined period, based on both volume and price.
Dacian and NTM shareholders will hold ~68.4 per cent and ~31.6 per cent of the merged group, which will have an estimated market cap of $285 million.
The NTM board – plus major shareholders Empire Resources Group (13.7 per cent) and DGO Gold Limited (13.6 per cent) — unanimously recommend that NTM shareholders vote in favour of the deal.
Dacian – which has struggled with operational issues at Mt Morgans since production began about two years ago — was down about 1.43 per cent to 34c per share in morning trade.
‘Due diligence’ (reviewing of a project before purchase) drilling by Golden Rim hit 18m at 2g/t from surface and confirmed previous intercepts by miner Newmont over the project area.
The project can be advanced quickly, Golden Rim boss Craig Mackay says.
“With nearly 300 previous drill holes, there is an opportunity to calculate a maiden JORC Mineral Resource at Kada in the near-term and then to considerably expand on this mineral resource given the exceptional exploration upside in the project area.
“The company is working to finalise the transaction to acquire this exciting new project as soon as possible.”
A maiden 500,000oz resource at Arakaka is the first step towards a project with “multi-million-ounce bulk tonnage potential”, Alicanto managing director Peter George says.
“This resource is shallow, the mineralisation remains open in all directions and we already have numerous intersections outside the resource which will form part of the next estimate,” George said.
“We also have multiple walk-up targets with multi-million-ounce bulk tonnage potential that remain to be drilled.”
In August, Metalsearch (ASX:MSE) announced a deal to acquire Abercorn Kaolin, which owns the Abercorn high purity alumina (HPA) project in Queensland.
In September, Euro Manganese (ASX:EMN) hit 16-month highs (and then kept going) after noting that Elon Musk’s new battery design is expected to result in a material increase in demand for high-purity manganese.
The company is aiming to start construction of its Czech-based Chvaletice project in 2022.