SLZ
Sultan Resources LTD
ASX
Company Project Update
Sentiment:
Project Update
15 October 2024 5:57 PM
Sultan Resources Ltd (ASX: SLZ) is reviewing its asset base, focusing on gold and nickel-cobalt prospects in Australia and lithium exploration in Canada, while also seeking acquisitions in North America.
Delay expected
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.
Summary
- Sultan Resources is reviewing its existing assets, including gold and nickel-cobalt projects in Western Australia and lithium projects in Canada.
- The company's Lake Grace Gold Project in WA has a prospective horizon of at least 30km, with a 3.5km undrilled section identified for further investigation.
- The Khal (Kulin Hill) Nickel-Cobalt prospect is a priority target for deep-drill testing, with historical drilling suggesting potential for Ni-Co sulfide mineralization.
- At the Kember Project in Canada, Sultan is seeking CAD$100,000 in funding from the Ontario Junior Exploration Programme (OJEP) to conduct exploration activities.
- The company is also exploring acquisition opportunities for high-grade gold and battery metal prospects in North America.
- A 40% reduction in the WA Wheatbelt tenure has occurred, but the prospective strike remains intact.
Sentiment
Score: 5
Explanation: The announcement presents a mixed outlook. While positive exploration potential is highlighted, there are also challenges and uncertainties related to project timelines and funding.
Positives
- Significant prospective horizon of at least 30km identified at Lake Grace Gold Project.
- 3.5km undrilled section identified at Lake Grace presents a significant exploration opportunity.
- Khal (Kulin Hill) Nickel-Cobalt prospect shows potential for Ni-Co sulfide mineralization.
- Application for CAD$100,000 in OJEP funding for Kember Project.
- Active pursuit of value-accretive acquisitions in North America.
Negatives
- 40% reduction in WA Wheatbelt tenure.
- Potential delay in Kember Project due to First Nation consultations and the need to complete field work by February 28, 2025.
Risks
- Potential delays in the Kember Project due to First Nation consultations and the need to complete field work by February 28, 2025.
- Uncertainty regarding the success of acquisition opportunities in North America.
- No guarantee that any new project will provide upside to all shareholders.
Future Outlook
Sultan Resources plans to update the market on the residual gold prospectivity at Lake Grace, conduct deep-drill testing at the Khal Nickel-Cobalt prospect, and pursue exploration activities at the Kember Project in Canada, pending successful funding and access agreements. The company also intends to continue its search for accretive acquisitions in North America.
Management Comments
- The Company is undertaking a review of its existing asset base.
- The Khal (previously Kulin Hill) Nickel-Cobalt prospect remains a priority exploration target for deep-drill testing.
- The Company continues to hunt for value accretive and complementary assets with a focus on North American gold and critical metal properties.
Industry Context
Sultan Resources' activities are in line with broader industry trends focusing on exploration and development of gold, nickel, cobalt, and lithium resources. The company's focus on North American acquisitions reflects the current interest in brownfield projects in that region.
Next Steps
- Complete a review of the existing asset base.
- Update the market with a more complete release on the residual gold prospectivity.
- Conduct deep-drill testing at the Khal (Kulin Hill) Nickel-Cobalt prospect.
- Pursue exploration activities at the Kember Project in Canada (pending funding and access).
- Continue to review acquisition or joint venture opportunities in North America.
Key Dates
- 16/05/2019: First Gold Assay Results released
- 21/01/2020: Drill Program Approved to test anomalies at Lake Grace
- 17/02/2020: RC Drill Program testing gravity targets completed
- 15/04/2020: Drill Results Update at Lake Grace Project
- 1995: North geochemical programme completed
- 2005: Sabre geochemical programme completed
- 1986: Kulin Exploration Licence 70/180 Final Report
- 1967, 1973: Historical drilling conducted at Khal (Kulin Hill) Nickel-Cobalt prospect
- 1973: A7659 Final Report Corrigin Project
- October 16, 2024: Company Project Update ASX Announcement
- November 2024: Nominal end of available field season for Kember Project
- February 28, 2025: Deadline for on-ground expenditure for OJEP funding at Kember Project
Keywords
Gold, Nickel, Cobalt, Lithium, Exploration, Australia, Canada, Acquisition, Sultan Resources, Lake Grace, Kember
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.
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.
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.
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.
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.
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
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.
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.
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.
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