SLZ
Sultan Resources LTD
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
29 July 2024 7:07 PM
Sultan Resources provides an update on its activities for the quarter ended June 30, 2024, including exploration projects in Western Australia, Canada, and New South Wales, and reports a cash position of approximately $584,000.
Worse than expected
Rio Tinto Exploration (RTX) has withdrawn from the farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling failed to find significant gold values.
Delay expected
Reconnaissance activities at the Kember Lithium Project have been delayed due to requests from a First Nation group.
Capital raise
The Company can raise additional capital to continue to fund its operations.
This has previously proven to be successful.
Summary
- Sultan Resources Limited (SLZ) has released an update on its activities for the quarter ending June 30, 2024.
- The company's cash position as of June 30, 2024, was approximately $584,000.
- Exploration and evaluation expenditure for the quarter totaled approximately $247,000.
- Rio Tinto Exploration (RTX) has withdrawn from its farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling results did not indicate economically significant gold values.
- Sultan Resources is focusing on the Khal (previously Kulin Hill) Nickel-Copper-PGE Project (E70/5095) and continues to plan drilling, pending access to Reserve 18455.
- No active fieldwork was conducted at the Lake Grace Gold Project or the Thaduna Project during the quarter, but tenements have been extended.
- In Canada, Sultan is advancing its Ruddy and Kember Lithium Projects, with a priority exploration target identified at Ruddy and reconnaissance activities planned for Kember, pending resolution of discussions with First Nation groups.
- The company has applied for CAD$100k in funding from the Ontario Junior Exploration Programme (OJEP) for Kember activities.
- No fieldwork was undertaken at the Lachlan Fold Belt Project in NSW during the quarter, but data review and planning for further soil sampling at Tucklan (EL8734) are underway.
- The closing date for director nominations is 5:00pm (AWST) at the Company's Registered Office prior to 35 business days before 21 November 2024.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While there are some positive aspects, such as ongoing exploration and tenement extensions, the withdrawal of Rio Tinto and delays in the Kember project temper the overall outlook.
Positives
- Sultan Resources has a cash position of approximately $584,000.
- Tenements E70/5081, E70/5082, E70/5085, E70/5095 and E70/5179 have been extended for an additional five-year term.
- A priority exploration target has been identified at the Ruddy Lithium Project in Canada.
- The company has applied for CAD$100k in funding from the Ontario Junior Exploration Programme (OJEP) for Kember activities.
- The company is planning drilling at the Khal Nickel-Copper-PGE Project (E70/5095).
Negatives
- Rio Tinto Exploration (RTX) has withdrawn from the farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling failed to find significant gold values.
- Access to Reserve 18455 for drilling at the Khal Nickel-Copper-PGE Project has been ongoing since early 2022, with ground conditions remaining unsuitable.
- Reconnaissance activities at the Kember Lithium Project have been delayed due to requests from a First Nation group.
Risks
- The company's cash position is approximately $584,000, which may require further capital raising to fund ongoing exploration activities.
- Access to Reserve 18455 for drilling at the Khal Nickel-Copper-PGE Project remains uncertain due to ground conditions.
- Delays in reconnaissance activities at the Kember Lithium Project due to ongoing discussions with First Nation groups could impact the project timeline.
- The company has not yet received notice if it has been successful with its funding submission to the Ontario Junior Exploration Programme (OJEP).
Future Outlook
Sultan Resources plans to continue exploration activities at its key projects, including the Khal Nickel-Copper-PGE Project and the Ruddy and Kember Lithium Projects, while also reviewing data and planning further exploration at the Lachlan Fold Belt Project.
Management Comments
- The Company contends that further drilling into the ultramafic sequence will support that it is fertile and can host precipitated Ni-Co sulfides.
- The Company considers rare element mineralisation can occur associated with internal pegmatites within the parent granite.
Industry Context
The report reflects the ongoing exploration activities in the mining sector, with a focus on nickel, gold, and lithium projects in Western Australia, Canada, and New South Wales. The withdrawal of Rio Tinto from the Calesi project highlights the risks associated with exploration, while the focus on lithium projects in Canada aligns with the increasing demand for battery minerals.
Comparison to Industry Standards
- Frontier Lithium Inc. (Frontier) has announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective April 28th 2023, calculated from two of four known spodumene-bearing pegmatite occurrences within its PAK Project holdings.
- Green Technology Metals (ASX:GT1) describe the identification of the spodumene-bearing Ouroboros Pegmatites the Allison Lake Batholith, covering approximately 3.5km of east-west strike in the centre to south of the Company's Project.
Stakeholder Impact
- Shareholders: The withdrawal of Rio Tinto from the Calesi project may negatively impact shareholder sentiment, while progress in other projects could provide some reassurance.
- Employees: Ongoing exploration activities provide continued employment opportunities.
- Customers: Not applicable, as the company is focused on exploration.
- Suppliers: Continued exploration activities will generate revenue for suppliers of exploration services and equipment.
- Creditors: The company's cash position and ongoing exploration activities provide some assurance to creditors.
Next Steps
- Continue planning drilling at the Khal Nickel-Copper-PGE Project, pending access to Reserve 18455.
- Advance reconnaissance activities at the Kember Lithium Project, pending resolution of discussions with First Nation groups.
- Continue data review and planning for further soil sampling at the Lachlan Fold Belt Project.
- Await the outcome of the funding submission to the Ontario Junior Exploration Programme (OJEP).
Key Dates
- Early 2022: Negotiations to access Reserve 18455 for drilling at the Khal Nickel-Copper-PGE Project have been ongoing since early 2022.
- March 2024: RC drilling of the Calesi prospect near Kulin, WA, was undertaken in March 2024.
- 30th June 2024: End of the reporting quarter, with a cash position of approximately $584,000.
- 30 July 2024: ASX Announcement date.
- 21 November 2024: Date of AGM.
Keywords
exploration, lithium, nickel, gold, resources, drilling, project, Sultan
SLZ
Sultan Resources LTD
ASX
Sector: Materials
Filings with Classifications
Delay expected
15 July 2025 9:23 PM
Capital Raising Update
- The rights issue was extended to ensure that all shareholders had ample opportunity to participate.
Capital raise
7 July 2025 7:16 PM
Exploration Update
- Proceeds from the current capital raising are in part intended to support early-stage exploration across the identified targets and progress towards drilling and potential discovery.
Worse than expected
16 June 2025 6:47 PM
Capital Raise Update
- The extension of the closing date for the entitlement offer suggests that the company did not receive the expected level of subscriptions by the original deadline.
Capital raise
16 June 2025 6:47 PM
Capital Raise Update
- The document details a pro-rata non-renounceable entitlement offer to raise approximately $1,157,349 before costs, with a shortfall offer also available.
Delay expected
16 June 2025 6:47 PM
Capital Raise Update
- The closing date for the entitlement offer has been extended from Friday, 20 June 2025, to Friday, 4 July 2025.
Capital raise
10 June 2025 7:52 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable pro-rata 1 for 1 entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer allows eligible shareholders to subscribe for new shares at an issue price of $0.005 per share.
Capital raise
1 June 2025 6:52 PM
Capital Raise Announcement
- Sultan Resources Ltd. has announced its intention to undertake an equity raising of up to approximately $1,157,349 before costs.
- This capital raise will be conducted via a non-renounceable pro-rata entitlement offer of fully paid ordinary shares.
Capital raise
1 June 2025 6:46 PM
Rights Issue Offer Document
- Sultan Resources Ltd is conducting a non-renounceable pro-rata rights issue to raise approximately $1,157,349 before costs.
- The Offer allows eligible shareholders to subscribe for one new share for every one share they currently hold at an issue price of $0.005 per share.
- The funds raised are primarily earmarked for working capital, including exploration expenditure, administration, and staff remuneration, with a small portion covering offer expenses.
- The Offer opens on June 11, 2025, and is scheduled to close on June 20, 2025, with new shares expected to be issued on June 27, 2025.
Capital raise
1 June 2025 6:40 PM
Capital Raise Announcement
- Sultan Resources Ltd is undertaking a non-renounceable entitlement offer to raise up to approximately $1,157,349 before costs.
- The offer is for 1 New Share for every 1 Share held by Eligible Shareholders at an issue price of $0.005 per Share.
- The funds are intended to finance proposed exploration expenditure, project assessment, and working capital.
Capital raise
28 April 2025 2:50 AM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Delay expected
28 April 2025 2:50 AM
Quarterly Activities Report
- Drilling at the Khal Nickel-Cobalt Project is delayed due to depressed nickel sentiment.
- Reconnaissance activities at Kember were delayed after First Nation groups requested additional time to inform its members of planned activities.
Delay expected
12 March 2025 2:11 AM
Half-Year Financial Report
- Access to the Kember Project in Canada has been delayed due to prolonged negotiations with First Nation groups.
Worse than expected
12 March 2025 2:11 AM
Half-Year Financial Report
- The company reported a net loss of $283,664 for the half-year, which is worse than the previous period's loss of $406,844.
Capital raise
30 January 2025 9:20 PM
Quarterly Report
- The company completed a placement to raise $338,834 during the quarter.
- The company has indicated that it can raise additional capital to continue to fund its operations.
Delay expected
30 January 2025 9:20 PM
Quarterly Report
- The Khal Nickel-Cobalt project has been delayed due to depressed nickel sentiment.
- Field reconnaissance at the Kember Project was delayed due to negotiations with First Nation groups.
Capital raise
13 December 2024 12:55 AM
Options Issuance Notice
- The company has issued options which, if exercised, could lead to a capital raise.
Capital raise
23 October 2024 6:32 PM
Trading Halt Announcement
- The company is undertaking a capital raising.
Capital raise
20 October 2024 10:44 PM
Annual General Meeting Notice
- The company is seeking shareholder approval for a 10% placement facility to raise capital.
- The exact amount of capital to be raised will depend on market conditions and the number of equity securities issued.
Delay expected
15 October 2024 5:57 PM
Project Update
- Reconnoissance activities at the Kember Project have been delayed due to consultations with First Nation groups.
- The submission for OJEP funding at Kember may not be progressed if access isn't gained by mid-November 2024, potentially delaying exploration.
Delay expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project have been delayed due to requests from a First Nation group.
Worse than expected
29 July 2024 7:07 PM
Quarterly Activities Report
- Rio Tinto Exploration (RTX) has withdrawn from the farm-in agreement for the Calesi Ni Prospect (E70/5082) after drilling failed to find significant gold values.
Capital raise
29 July 2024 7:07 PM
Quarterly Activities Report
- The Company can raise additional capital to continue to fund its operations.
- This has previously proven to be successful.
Worse than expected
22 July 2024 6:36 PM
Exploration Update
- The drilling results did not yield economically significant gold or nickel values, leading to Rio Tinto's withdrawal, indicating worse than expected outcomes.
Delay expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Reconnaissance activities at the Kember Lithium Project in Canada have been delayed due to First Nation consultation requirements.
Worse than expected
29 April 2024 7:02 PM
Quarterly Activities Report
- Drilling at the Calesi prospect did not find support for magmatic nickel sulfides, which is worse than expected.
Better than expected
13 March 2024 2:30 AM
Half-Year Financial Report
- The operating loss decreased to $406,844 from $1,261,284 in the prior corresponding period.
- Basic and diluted loss per share improved to (0.27) cents from (1.51) cents.
Delay expected
13 March 2024 2:30 AM
Half-Year Financial Report
- Ground conditions have been unsuitable for drilling at Reserve 18455 since receiving permission to drill.
Capital raise
13 March 2024 2:30 AM
Half-Year Financial Report
- On 6 February 2024, the Company announced that it is undertaking a pro-rata non-renounceable attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue) for every three (3) New Shares subscribed for and issued.
- The Offer closed on 5 March 2024.
- under the Offer were issued on 12 March 2024.
- The Company will liaise with the Underwriter to determine the allocation of the remaining Shortfall Securities in accordance with the term of the Underwriting Agreement (and sub-underwriting agreements) and complete the allotment of the Shortfall Securities.
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