Klaus Eckhof has jumped on board two companies and their shares have soared
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There’s nothing quite like name-dropping mining entrpreneur Klaus Eckhof to move a resource small cap’s share price.
Hawkstone Mining (ASX:HWK) jumped by more than 50 per cent this morning after AVZ Minerals chairman and small cap talisman Klaus Eckhof joined the board.
Hawkstone announced a deal to acquire USA Lithium which owns two lithium projects — the Big Sandy Lithium Clay project in Arizona and the Lordsburg Lithium Brine project in New Mexico.
“Our team has been actively assessing lithium projects in the USA for a number of years and are excited to bring two projects of this quality to market,” Mr Eckhof said in the announcement.
“Both Big Sandy and Lordsburg have company making potential and, with the guidance of our board and technical team, we look forward to aggressively advancing both projects.”
The shares jumped as high as 5.4c today cooled to close at 3.9c — up 18 per cent for the day.
Minutes later Tyranna Resources (ASX:TYX) named Mr Eckhof as a strategic advisor, as part of a deal to get into American cobalt.
The share promptly surged 50 per cent to 3.1c, before settling back to 2.5c at the close — up 25 per cent.
Tyranna — which has until now been focused on gold — is buying US Cobalt, the owner of the Goodsprings Cobalt and Base Metals Project in Nevada, USA, for $2.4 million.
Tyranna says the off market scrip deal is part of a diversification strategy to capitalise on the surge in demand for battery minerals revolution.
It says the London Metals Exchange price of Cobalt has risen from $US23,000/ton ($30,000) in March 2016 to $US88,000/ton in March 2018.
Tyranna managing director Bruno Seneque says they have the financial power to take advantage of good opportunities when they need to and the deal will add value for shareholders.
The company had $1.4 million in cash as at the end of December and raised $2.4 million in February, ostensibly for the company’s Eureka Gold Project in Western Australia.
Mr Eckhof says he sees the deal as being mutually beneficial one for all stakeholders.
“We look forward to progressing the exploration and development of these Cobalt and Base Metals assets as soon as we can with the experienced exploration team that will be led by Greg Smith.”
Mr Eckhof became involved with Tyranna via a circuitous route.
A company spokesman told Stockhead that during Mr Seneque’s search for new projects he came across US Cobalt director Paul Lloyd, who knew Mr Smith, who was a former manager of Mr Eckhof’s Moto Goldmines in the Democratic Republic of Congo and who brought him in as a consultant with Tyranna.
Mr Smith is the exploration consultant for the Goodsprings Cobalt-Base Metals project.
Tyranna will issue 141.2 million shares at 1.7c each to US Cobalt.
Mr Echoff will receive 20 million options and Mr Smith 10 million options for their consulting roles.
Mr Lloyd will be issued 20 million options.