SLZ
Sultan Resources LTD
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Activities Report
29 April 2024 7:02 PM
Sultan Resources provides an update on its activities for the quarter ended March 31, 2024, focusing on projects in Western Australia, Canada, and New South Wales, and announces the completion of a capital raise.
Worse than expected
Drilling at the Calesi prospect did not find support for magmatic nickel sulfides, which is worse than expected.
Delay expected
Reconnaissance activities at the Kember Lithium Project in Canada have been delayed due to First Nation consultation requirements.
Summary
- Sultan Resources' report covers the company's activities for the quarter ending March 31, 2024.
- The Lake Grace Project in Western Australia includes the Calesi Ni Prospect and Kulin Hill Ni-Co Project.
- Rio Tinto Exploration (RTX) has exercised its option to earn 80% of tenement E70/5082 by spending $2 million on exploration within 5 years.
- Two Reverse Circulation (RC) holes totaling 560m were drilled at the Calesi prospect, with samples submitted for analysis.
- Access negotiations for drilling at the Khal (Kulin Hill) Nickel-Copper-PGE Project are ongoing, with alternative drilling options being considered.
- In Canada, the company is focusing on the Ruddy and Kember Lithium Projects.
- Reconnaissance activities at Kember have been delayed due to First Nation consultation requirements.
- No fieldwork was conducted at the Thaduna Project or the Lachlan Fold Belt Project during the quarter.
- The company completed a non-renounceable Entitlement Offer, raising $691,553 before costs.
- Sultan's cash position as of March 31, 2024, was approximately $0.96 million.
- Exploration and evaluation expenditure for the quarter was approximately $106,000.
- Payments to related parties totaled $84,375, covering director fees, company secretarial services, and financial management services.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While the company has made progress in exploration and secured funding, the lack of magmatic nickel sulfides at Calesi and delays at Kember temper the positive aspects.
Positives
- Rio Tinto Exploration (RTX) farm-in agreement provides funding for exploration at the Calesi Ni Prospect.
- Drilling at Calesi prospect completed with samples sent for analysis.
- The company successfully raised $691,553 through an Entitlement Offer.
- Sultan Resources has a healthy cash position of approximately $0.96 million as of March 31, 2024.
- The company is actively exploring lithium projects in Canada, with a priority exploration target identified at the Ruddy Project.
Negatives
- Drilling at the Calesi prospect did not find support for magmatic nickel sulfides.
- Reconnaissance activities at the Kember Lithium Project have been delayed.
- Access to the full extent of the target area at the Khal (Kulin Hill) Nickel-Copper-PGE Project is still under negotiation.
- The company spent $106,000 on exploration and evaluation during the quarter, contributing to a net cash outflow from operating activities.
Risks
- Exploration results may not yield economically viable mineral deposits.
- Delays in obtaining necessary permits and approvals could impact project timelines.
- Fluctuations in commodity prices could affect the economic viability of projects.
- Access to land for exploration and drilling may be restricted.
- The company's ability to raise additional capital in the future is not guaranteed.
Future Outlook
The company plans to continue advancing exploration activities at its projects in Western Australia and Canada, with a focus on drilling at Kulin Hill and further groundwork at the Canadian Lithium assets. The company expects first pass reconnaissance exploration of Kember in the current field season, ideally to combine with additional groundwork at the priority target at Ruddy.
Industry Context
The report reflects ongoing exploration activities in the mining sector, with a focus on nickel, gold, and lithium projects. The company's activities in Canada are aligned with the increasing interest in lithium exploration and development, driven by the growing demand for battery minerals. Farm-in agreements, like the one with Rio Tinto, are common in the industry to share exploration risk and funding.
Comparison to Industry Standards
- Frontier Lithium Inc. (Frontier)'s PAK Project holdings have resources totalling 58.5Mt @ 1.51% Li2O.
- Green Technology Metals (ASX: GT1) has identified spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project.
- The Allison Lake Batholith is considered a fertile intrusive responsible for the development of proximal fractionated pegmatites with potential to host lithium, caesium and tantalum (LCT) mineralisation.
Stakeholder Impact
- Shareholders: The capital raise dilutes existing shareholdings, but successful exploration could increase shareholder value.
- Employees: Continued exploration activities provide job security.
- Customers: Not directly applicable as the company is in the exploration phase.
- Suppliers: Exploration activities generate revenue for drilling contractors, laboratories, and other service providers.
- Creditors: The company's cash position improves its ability to meet financial obligations.
Next Steps
- Receive and analyze assay results from drilling at the Calesi prospect.
- Continue negotiations for access to the full extent of the target area at the Khal (Kulin Hill) Nickel-Copper-PGE Project.
- Advance negotiations with First Nation groups to commence reconnaissance exploration at the Kember Lithium Project.
- Plan further extensional soil sampling of the main anomalism is planned for Tucklan (EL8734).
Key Dates
- 21/6/2023: ASX announcement: Rio Tinto and Sultan enter into Option and JV Agreement
- Mid-August 2023: NRG Geophysics contracted to fly a detailed helicopter-borne time-domain electromagnetic (HTDEM) survey.
- 16/08/2023: ASX announcement: Helicopter EM Survey Commences at Rio-Sultan Ground
- 24/10/2023: ASX announcement: EM Survey Confirms Significant Geophysical Anomaly
- 8/02/2023: Frontier Lithium Inc. (Frontier) intersected 398.25m of pegmatite averaging 1.88% Li2O, including a 23.4m zone of 3.12% Li2O (see TSX.V Announcement).
- 28th April 2023: Frontier have also recently announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective.
- 6/03/2024: ASX announcement: 'Calesi Nickel Prospect Drilling to Commence'
- 9 February 2024: Eligible shareholders registered on this date were offered to subscribe for one (1) share (New Share) for three (3) existing shares of the Company at an issue price of $0.014 per New Share.
- 14/3/2024: ASX announcement: Calesi Prospect Drilling Completed
- March 2024: The Company completed its non-renounceable Entitlement Offer (Offer) and Shortfall Offer Placement.
- 12 March 2024: The New Shares and New Options applied for by Eligible Shareholders under the Offer were issued.
- 14 March 2024: The Shortfall Securities were issued.
- 31st March 2024: End of reporting quarter.
- 30 April 2024: Date of ASX Announcement
Keywords
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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