OAR
Oar Resources Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Report
30 April 2024 2:44 AM
Oar Resources (OAR) expands into uranium with Namibian acquisitions and sees promising graphite test results, supported by a recent capital raise.
Capital raise
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.
Summary
- Oar Resources finalized a binding agreement to acquire 100% interest in two Exclusive Prospecting Licences (EPL) in the Erongo region of Namibia.
- The tenements, EPL 9652 and EPL 9725, are located near Swakopmund and Walvis Bay, close to infrastructure.
- EPL 9652 covers over 189km2 and borders Deep Yellow Limited's Tumas Project, which has a Total Indicated Mineral Resource of 108.5 million pounds at 265ppm.
- EPL 9725 covers over 38km2 and borders Bannerman Energy's Etango Project, which has a Mineral Resource of 207 million pounds of contained uranium.
- OAR has submitted pegging applications for two packages for uranium and rare earth elements (REE) in Brazil, covering a total of 230km2.
- Graphite samples from the Oar Graphite Project in South Australia produced a concentrate with 95.6% fixed carbon content.
- The company raised AUD $1 million through a share placement to advance global uranium exploration.
- Exploration and evaluation expenditure during the quarter was $171K.
- Development expenditure during the quarter was $34K.
- Amounts paid to related parties of the entity and their associates during the quarter were $74K, related to periodical director fees.
Sentiment
Score: 7
Explanation: The report highlights strategic expansions and positive test results, but the low cash position and need for potential future capital raises temper the overall sentiment.
Positives
- Strategic expansion into a world-class uranium mining region in Namibia.
- Positive graphite test results showing potential for a high-quality product.
- Successful capital raise of AUD $1 million to advance exploration activities.
- The Namibian tenements are located near established infrastructure.
- The Oar Graphite Project has a substantial mineral resource estimate.
Negatives
- The company had net cash used in operating activities of $376K for the quarter.
- Cash and cash equivalents at the end of the period were low at $13K.
- The company's estimated quarters of funding available is less than 2 quarters.
Risks
- Obtaining the Environmental Clearance Certificate (ECC) and completing the Environmental Impact Assessment (EIA) in Namibia are necessary before fieldwork can begin.
- The company's low cash reserves may require further capital raising in the near future.
- The success of exploration activities in Namibia and Brazil is not guaranteed.
- Fluctuations in uranium and graphite prices could impact the economic viability of the projects.
Future Outlook
Oar Resources plans to conduct an environmental study for the uranium EPLs in Namibia and lodge an Environmental Impact Assessment to enable fieldwork and a maiden drilling program. The company will also continue exploration activities in Brazil and refine graphite processing methods.
Management Comments
- The Placement reinforces the confidence held by shareholders and investors in the Company's strategic expansion of its growing global portfolio.
Industry Context
The acquisition of uranium tenements in Namibia aligns with the increasing global demand for uranium as a clean energy source. The company's focus on graphite also positions it to benefit from the growing electric vehicle battery market.
Comparison to Industry Standards
- Deep Yellow Limited's Tumas Project, bordering EPL 9652, has a Total Indicated Mineral Resource of 108.5 million pounds at 265ppm, providing a benchmark for potential resource size.
- Bannerman Energy's Etango Project, bordering EPL 9725, has a Mineral Resource of 207 million pounds of contained uranium, indicating the potential scale of uranium deposits in the region.
- The 95.6% fixed carbon content achieved in graphite testing is a premium product, comparable to high-quality graphite concentrates used in battery anode production.
Stakeholder Impact
- Shareholders benefit from the company's strategic expansion and potential for increased asset value.
- Employees may see new opportunities as the company grows its operations.
- Customers in the battery and energy sectors could benefit from the company's potential to supply uranium and graphite.
- Suppliers may see increased demand for their services as the company expands its exploration activities.
- Creditors should be aware of the company's low cash position and potential need for future financing.
Next Steps
- Conduct environmental study for uranium EPLs in Namibia.
- Lodge an Environmental Impact Assessment (EIA) with the Namibian Ministry of Mines and Energy.
- Begin fieldwork at the EPLs in Namibia.
- Generate a maiden drilling program.
- Continue geological mapping and reconnaissance at Sao Jose and Tunas in Brazil.
- Further refine graphite processing methods and produce additional concentrate for evaluation.
Key Dates
- 31 March 2024: End of the reporting quarter.
- 3 April 2024: Referenced ASX Announcement regarding Namibian tenement acquisition.
- 26 February 2024: Referenced ASX Announcement regarding Brazilian project applications.
- 30 April 2024: Date of the quarterly report.
- 30 June 2026: Expiry date of options issued to GBA Capital.
Keywords
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.