Latest Updates On Salt Lake Potash And Oriole Resources 

Latest Updates On Salt Lake Potash And Oriole Resources 

Salt Lake Potash Limited

Salt Lake Potash Limited (LSE: SO4), earlier known as Wildhorse Energy Limited, owns nine largest salt lakes in Western Australia’s Northern Goldfields Region. The company engages in the production of premium quality of organic SOP (Sulphate of Potash) from the salt lakes in the west of Australia.

Recent Developments

Aug 5, 2019

Salt Lake Potash Limited announced an update of its Lake Way Project. In the update, the company stated that it had selected Taurus Funds Management for providing project financing. As per the agreement, Taurus Funds Management would provide USD 150 million for construction of the project.

July 31, 2019

Salt Lake Potash Limited reported its results for the three-month period ending June 30, 2019. In the report, the company provided a detailed explanation about its ongoing project work in the western part of Australia. The project Lake Way is situated at Wiluna. Salt Lake Potash Limited updated that tests conducted have already given conclusive data that the mine has a life of more than two decades. Technicians of the company made projections through the scoping study that the Lake Way Project would pump out approximately two hundred thousand tonnes of Sulphate of Potash. The Sulphate of Potash obtained here are of premium grade  and of very high-quality, having over 52 per cent of Potassium Oxide. As per Salt Lake Potash Limited estimates the project here would require very low operating overheads compared to its global peers. Management of Salt Lake Potash Limited estimated that the capital cost for the project would come to around USD 166 million (AUD 237 million). Further, to finance the cost of the project, Salt Lake Potash Limited issued AUD 20.25 million worth of stocks. Shortly Salt Lake Potash Limited plans to issue more shares worth AUD 7.4 million. The proceeds from the issue would be used by Salt Lake Potash Limited to fund the acquisition of assets for the project.

Salt Lake Potash Limited concluded a private placement worth AUD 20.25 million consisting of 37.5 million shares. This was done in June 2019 to strategic investors, and the placement process was conducted by a group of cornerstone investors consisting of LionOre Mining International; Mantra Resources; and others. Overall subscription amounted to AUD 14.25 million for of 26.4 million shares.

Salt Lake Potash Limited Share Price Performance

Daily Chart as on August 6, 2019, before the market close (Source: Thomson Reuters) 

On August 6, 2019, at the time of writing (before the market close, at 11:58 AM GMT) Salt Lake Potash Limited shares were trading at GBX 43.800, down by 0.45 per cent as compared to the previous day’s closing price. Stock’s 52 weeks High and Low is GBX 47.75 /GBX 22.00. The outstanding market capitalisation was around GBP 91.07 million.

Australian Lake View Project of Salt Lake Potash Limited Gets USD 150 million Funding

Salt Lake Potash Limited announced that it has bagged USD 150 million worth of funding. It is related to project financing of its Lake Way project located in the state of Western Australia. The project financing was managed by Taurus Funds Management. As per terms of the agreement, the project financing would account for approximately nine tenth of the cost of the project. Management expects that adding equity funds of AUD 27.7 million along with a credit facility would allow it to conduct a feasibility study. This would allow Salt Lake Potash Limited to procure the strategic tenements from Blackham Resources. Salt Lake Potash Limited expects that the procurement of funds would enable it to move ahead with its construction works in relation to progress with its Lake Way project. This would happen before the drawdown from the primary USD 150 million project financing facility.

The bullish sentiment was echoed by Chief Executive Officer (CEO) of Salt Lake Potash Limited. Mr Tony Swiericzuk, who feels that the progress in the project would provide a clear runway for the company to proceed with the construction of the Lake Way project. However, it needs to be pointed out that the company Salt Lake Potash Limited still operates in the developmental phase, it does not earn any topline for the time being. Salt Lake Potash Limited relies on its cash balances and fund raised from the stock market for all the operations.

Oriole Resources Plc

Oriole Resources Plc (LSE: ORR) is a company engaged in the exploration of mineral resources. The company’s business activities include exploration and development of gold and base metal deposits. Its projects comprise of Dalafin, Bibemi, and Wapouze. The latter two are gold exploration projects, which houses Neoproterozoic Pan-African greenstone belts in north-eastern Cameroon. Oriole Resources Plc has operations in the United Kingdom, Turkey, Switzerland, Senegal and Liberia.

Recent Developments

Aug 5, 2019

Oriole Resources Plc provided an exploration update on its 85 per cent owned Dalafin gold project located in the Kédougou-Kéniéba inlier of eastern Senegal. Here Oriole Resources Plc has the option to spend up to USD 8 million to earn a 70 per cent interest in the project. Overall the company has completed 4,167 metres of drilling, which consisted of shallow aircore. The drilling was conducted at the Madina Bafé prospect. Overall planned drilling at the Madina Bafé prospect is at five thousand metres. Oriole Resources Plc has till now got rave reviews from the drilling. Recent results consisted best grade of two hundred and thirty-five parts per billion gold. The above result is also of the best grade of gold. Oriole Resources Plc have also found out a host of anomalies which are brand new. The location of the host of new anomalies is at the prospect’s southern direction. Also, some anomalies are located at the northward direction of the prospect. However ongoing wet season has put a break to the project. As per management estimates work on drilling on the anomalies would again start in the fourth quarter (probably in the month of October 2019 itself) of FY 2019.

June 6, 2019

Oriole Resources Plc provided an exploration update for the Wapouzé gold project in Cameroon, where it is securing up to a 90 per cent interest. Presently the ownership of the project belongs to BEIG3 and Oriole Resources Plc is working with two of the subsidiaries of the company. The two subsidiaries are Reservoir Minerals Cameroon Sarl; and Reservoir Minerals (BVI) Cameroon. Phase two, infill soil sampling at the Bataol zone has returned up to 210 parts per billion gold, providing support for gold-in-soil anomalies identified during the Phase 1 programme, and defining more clearly the zones of higher-grade mineralisation within those anomalies. This includes anomaly towards the south-western end of the Bataol Zone, which extends over a strike length of 1 kilometre.

March 13, 2019 – Financial Highlights (FY 2018, £’000)

 (Source: Annual Report, Company Website)

Oriole Resources Plc’s operating loss decreased from £7.5 million in 2017 to £2.55 million in 2018. Total loss for FY 2018 stood at £4.66 million as compared with the financial year 2017 of £5.40 million. The company announced the successful application for research and developments credits. It was related to year 2016 on the exploration activities, due to which it received £0.04 million cashback in February 2019. Total assets in FY 2018 was reduced by £4.2 million to £11.6 million as compared with the financial year 2017 of £15.8 million. Total equity attributable to owners of the company reduced by £3.5 million to £11.3 million against the £14.9 million in FY 2017.

Oriole Resources Plc Share Price Performance

Daily Chart as on August 6, 2019, before the market close (Source: Thomson Reuters)

On August 6, 2019, at the time of writing (before the market close, at 7:42 AM GMT), Oriole Resources Plc shares were trading at GBX 0.315, down by ten per cent against the previous day closing price. Stock’s 52 weeks High and Low is GBX 0.63/GBX 0.26. The outstanding market capitalisation was around 2.49 mn GBP.

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