OAR
Oar Resources Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Report
31 July 2024 2:06 AM
OAR Resources expands its exploration portfolio into Namibia and Brazil, focusing on uranium and rare earth elements, and raises $1 million to fund these ventures.
Capital raise
OAR successfully raised $1 million through a share placement.
The company may need to raise additional capital in the future to fund its exploration activities.
Summary
- OAR Resources is expanding its exploration efforts into Namibia and Brazil, targeting uranium and rare earth elements.
- The company signed a binding agreement to acquire two Exclusive Prospecting Licences (EPLs) in Namibia, a globally recognized uranium mining jurisdiction.
- OAR has pegged approximately 880km2 of prospective ground in Brazil for Rare Earth Elements (REE) and uranium.
- A $1 million capital raise will fund acquisition requirements and exploration activities in Namibia and Brazil.
- Exploration teams have been developed in both Namibia and Brazil to expedite activities.
- The company had $352,000 in cash as of June 30, 2024, to advance its portfolio of exploration assets.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to the company's strategic expansion, successful capital raise, and focus on in-demand commodities. However, limited cash reserves and exploration risks temper the overall outlook.
Positives
- Expansion into Namibia and Brazil diversifies OAR's global portfolio.
- Acquisition of EPLs in Namibia provides access to a globally recognized uranium mining jurisdiction.
- Capital raise of $1 million strengthens the company's financial position to advance exploration activities.
- Development of in-country exploration teams in Namibia and Brazil will expedite exploration.
- Shareholder support is demonstrated through participation in the capital raise.
Negatives
- The company had $352,000 in cash as of June 30, 2024, which may require further funding in the near future.
- Exploration and evaluation expenditure during the quarter was $274K.
Risks
- Granting of the EPLs in Namibia is subject to regulatory approvals and completion of due diligence.
- Exploration activities are subject to permitting and environmental studies.
- Exploration success is not guaranteed, and the company may not discover commercially viable deposits.
- Commodity price fluctuations could impact the economic viability of potential projects.
- The company's limited cash reserves may require additional capital raises, potentially diluting existing shareholders.
Future Outlook
OAR Resources plans to advance exploration activities in Namibia and Brazil, including environmental studies, fieldwork, and potential drilling programs. The company is also assessing additional areas within Brazil for potential acquisition.
Industry Context
The announcement reflects a growing interest in uranium and rare earth elements due to increasing demand for clean energy and critical minerals. OAR's expansion into Namibia, a significant uranium producer, positions the company to capitalize on this trend.
Comparison to Industry Standards
- OAR's EPLs in Namibia share boundaries with Deep Yellow Limited's Tumas Project and Bannerman Energy Ltd's Etango Project, indicating proximity to established uranium resources.
- The company's tenements are located along strike from the Husab, Rossing, Valencia and Norasa deposits.
Stakeholder Impact
- Shareholders: Potential for increased value through successful exploration and development of new projects.
- Employees: Opportunities for growth and development within the company.
- Customers: Potential for future supply of uranium and rare earth elements.
- Suppliers: Increased demand for exploration services and equipment.
- Creditors: Potential for increased business and repayment of debts.
Next Steps
- Complete due diligence on the Namibian EPLs.
- Obtain shareholder approval for the Namibian Uranium Acquisition.
- Conduct environmental studies and lodge an Environmental Impact Assessment (EIA) in Namibia.
- Commence fieldwork and plan for a potential maiden drilling program in Namibia.
- Continue early-stage geological mapping and reconnaissance work in Brazil.
- Obtain necessary exploration permits in Brazil.
- Focus exploration on Amorinopolis and So Jos projects in Brazil.
Key Dates
- April 3, 2024: OAR announced expansion into world-class uranium mining region.
- April 5, 2024: OAR announced raising $1M to advance uranium exploration.
- May 29, 2024: OAR announced expanding Brazilian uranium footprint.
- June 30, 2024: End of the reported quarter; Company had $352,000 in cash.
- July 31, 2024: General Meeting to obtain OAR shareholder approval for the Namibian Uranium Acquisition.
- Q3 2024: Expected granting of EPLs in Namibia.
- May 27, 2027: Expiry date for options issued under the Placement.
Keywords
uranium, rare earth elements, exploration, Namibia, Brazil, mining, OAR Resources, EPL, REE, capital raise
OAR
Oar Resources Limited
ASX
Sector: Materials
Filings with Classifications
Delay expected
28 November 2024 11:46 PM
Shareholder Update
- Trading of the company's securities will be on a deferred settlement basis from December 3, 2024 to December 11, 2024, delaying the full implementation of the name and ticker change.
Capital raise
28 November 2024 11:35 PM
Annual General Meeting Results
- Resolution 15 approved the issuance of future capital raising shares.
Capital raise
29 October 2024 10:00 PM
Annual General Meeting Notice
- The company is seeking shareholder approval to issue up to 500,000,000 shares (pre-consolidation) in a future capital raising.
- The issue price will be no less than 80% of the 5-day VWAP at the time of issue.
- The funds raised are intended for debt repayment, working capital, project development, acquisition costs, and potential new acquisitions.
Capital raise
28 October 2024 5:53 PM
Investor Presentation
- The company has limited cash on hand and may need to raise additional capital to fund its exploration activities.
Delay expected
8 August 2024 4:47 AM
Options Prospectus
- The company experienced delays in issuing the CN Options and Broker Options, which led to an extension of the expiry date to June 30, 2027.
Capital raise
31 July 2024 2:06 AM
Quarterly Report
- OAR successfully raised $1 million through a share placement.
- The company may need to raise additional capital in the future to fund its exploration activities.
Capital raise
31 July 2024 12:16 AM
Results of General Meeting
- Resolution 8 indicates approval to issue shares under Listing Rule 7.1, suggesting a potential future capital raise.
Capital raise
27 June 2024 11:21 PM
Notice of General Meeting
- Resolution 1 seeks Shareholder ratification pursuant to Listing Rule 7.4 for the issue of the Capital Raising Securities.
- The Company is proposing to issue up to 500,000,000 Shares at an issue price of no less than 80% of the 5-day VWAP at the time of issue per Share (Future Issue Shares) to professional and sophisticated investors who are unrelated parties of the Company (Future Capital Raising).
Capital raise
30 April 2024 2:44 AM
Quarterly Report
- The company successfully raised AUD $1 million through a share placement.
- The funds will be used to support environmental studies for uranium EPLs in Namibia and to grow the company's global portfolio.
- The company may need to raise additional capital in the future to fund its operations, given its low cash reserves.
Capital raise
2 April 2024 7:18 PM
Trading Halt Request
- Oar Resources is undertaking a capital raising managed by CPS Capital Group Pty Ltd.
- The details of the capital raising will be announced after the trading halt is lifted.
Capital raise
2 April 2024 6:55 PM
Exploration Update
- OAR will issue 100,000,000 fully paid ordinary shares (Tranche 1 and Tranche 2 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL) subject to confirmation in writing that EPL 9652 and EPL 9725 have both been granted.
- On the 12-month anniversary of EPL 9652 or EPL 9725 being granted, OAR will issue an aggregate of 100,000,000 fully paid OAR ordinary shares (Tranche 3 and Tranche 4 Deferred Consideration Shares) to the Vendors (50,000,000 OAR ordinary shares per EPL).
- Within four (4) years of EPL 9652 or EPL 9725 being granted, should OAR announce a JORC compliant uranium resource of 50M pounds at 100ppm or greater on each EPL, OAR will issue the Vendors 50,000,000 OAR ordinary shares for each EPL (Tranche 5 and Tranche 6 Deferred Consideration Shares).
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.