Azure Minerals\u2019 share price is flying again after the huge bid from SQM is placed on table
\nThat word nearology again, as Errawarra clings on to AZS\u2019s coattails for another ride
\nMeanwhile, what\u2019s doing over at Lachlan Star? A new CEO, that\u2019s what<\/p>\n
Here are the biggest resources winners in early trade, Thursday October 26.<\/p>\n
\u00a0<\/p>\n
WA lithium-hunting success story Azure Minerals has emerged from a trading halt today to stonk it up hard yet again, taking the ball on the fly and making a +43% burst up the ASX middle.<\/p>\n
Jeez, greedy much? Was +14,50% YTD gainage not enough? The answer is it\u2019s, as Robert Smith once warbled, never enough.<\/p>\n
So what\u2019s doing? It\u2019s very much ado about something. AZS is making headlines today because it\u2019s official now that major shareholder in Azure Minerals, Chilean firm SQM \u2013 one of the world\u2019s largest lithium producers \u2013 has put in a massive offer for the Aussie explorer.<\/p>\n
An offer that represents buying the company for $1.57bn and a potential 1430% gain in just 12 months for lips-licking AZS shareholders if they give it the enthusiastic, neck-straining nod of approval.<\/p>\n
We\u2019ll let one of our long-time resources experts, Josh Chiat, fill in some of the deets for you. He and Reuben Adams have been covering this to varying degrees all week\u2026<\/p>\n
This, from Josh\u2019s latest Ground Breakers column:<\/p>\n
Tony Rovira\u2019s lithium and nickel explorer has finally emerged from its slumber to reveal one of the industry\u2019s worst kept secrets, with the Chilean miner offering $3.52 cash per share to take the 60% owner of the Andover lithium discovery in WA\u2019s north off the market.<\/em><\/p>\n The project, 40% owned by legendary prospector Mark Creasy, has demonstrated its potential to become a tier-1 lithium discovery, with an exploration target of 100-240Mt at 1-1.5% Li2O, something that would place the deposit near in league with early JORC resources at mega-deposits like the nearby Pilgangoora and Wodgina mines.<\/em><\/p>\n And SQM has given itself some protection against an interloper like Gina Rinehart, whose Hancock Prospecting killed a $6.6 billion bid from US competitor Albemarle for WA\u2019s next major lithium producer\u00a0Liontown Resources (ASX:LTR)\u00a0<\/a>by acquiring a blocking stake on market.<\/em><\/p>\n Should the scheme fail, SQM will make a $3.50 per share off-market takeover offer, ensuring a raider would need to outbid SQM to get a slice of the pie.<\/em><\/p>\n Continue reading Josh\u2019s nuance and fact bombs on the AZS\/SQM dealings here<\/a>.<\/p>\n #Andover<\/a> #lithium<\/a> JV owner Azure Minerals emerges as the proud owner of a $1.63 billion bid from major shareholder SQM<\/p>\n Takeover would net investors a 1430% gain on their investment YTD@stockheadau<\/a> https:\/\/t.co\/iCtAStDYT0<\/a>$AZS<\/a> $AZS.ax<\/a> #ASXNews<\/a> #Pilbara<\/a> #WA<\/a> <\/p>\n \u2014 Azure Minerals (@AzureMinerals) October 26, 2023<\/a><\/p>\n\n AZS share price<\/strong><\/p>\n\n \ufeff<\/span>\ufeff<\/span>\ufeff<\/span><\/span>\u00a0<\/p>\n Got some ology of the near<\/em> variety happening on the AZS news? Yep. Pop on over for a cup of coffee and a chat, ERW.<\/p>\n Neighbours, everybody needs good neighbours. And battery metals hunter Errawarra has a pretty bloody good one thanks very much in Azure Minerals.<\/p>\n ERW\u2019s Andover West nickel project is next door to Azure\u2019s monster Andover lithium find and the success of AZS certainly provides it with confidence that the area remains prospective for lithium bearing pegmatites.<\/p>\n You might want to keep an eye on others in the Azure \u2018hood, by the way, such as Greentech Metals (ASX:GRE)<\/strong><\/a> and Raiden Resources (ASX:RDN)<\/strong><\/a>. That said, neither of those stocks are surging at the time of writing.<\/p>\n \u00a0<\/p>\n $GRE<\/a> is keeping a very close eye on neighbour $AZS<\/a>, w\/ speculation that a takeover of Pilbara-focused #lithium<\/a> junior is in the works. West #Pilbara<\/a> lithium is all the rage & $GRE.ax<\/a> \u2019s tenements are 25km WSW from $AZS<\/a> #Andover<\/a>.Same trend, same trajectory? https:\/\/t.co\/aeOSneG5Ei<\/a> pic.twitter.com\/ZDdwhhD1h1<\/a><\/p>\n \u2014 GreenTech Metals (@GreenTechMetals) October 24, 2023<\/a><\/p>\n\n \u00a0<\/p>\n But while we\u2019re here, what else is new for Errawarra besides riding-off-coattails nearology?<\/p>\n Earlier this week, we told you the following:<\/p>\n The company\u2019s share price moved up and to the right regarding some boardroom movement. Namely, non-exec director Jonathan Battershill\u2019s resignation and Bruce Garlick\u2019s appointment into a similar role.<\/p>\n Garlick is a finance executive with more than 30 years\u2019 experience under his belt in the fields of mining, exploration and engineering. Handy.<\/p>\n Also\u2026<\/p>\n On October 19 Errawarra provided a \u201cboots on ground\u201d update on its lithium hunt in the Pilbara, at its highly prospective Andover West project (the one adjoininf big gun projects belonging to Azure Minerals (ASX:AZS)<\/strong><\/a>\u00a0\u00a0and\u00a0Raiden Resources (ASX:RDN)<\/strong><\/a>.)<\/p>\n Essentially:<\/p>\n \u2022 Multiple pegmatites have been identified from ongoing reconnaissance rock chip sampling at Andover West.<\/span><\/p>\n \u2022\u00a0<\/span>Follow-up sampling will be focused on four pegmatite zones where anomalous lithium results were previously returned.<\/span><\/p>\n \u2022 And the project area \u201ccontinues to display potential for lithium bearing pegmatites as more are identified\u201d.<\/span><\/p>\n Boots are on the ground at Andover West. The technical team are continuing to sample the highly prospective ground which adjoins Azure Minerals and Raiden Resources. #lithium<\/a> #pilbara<\/a> #exploration<\/a> $ERW<\/a> pic.twitter.com\/SHDbOzUoCo<\/a><\/p>\n \u2014 Errawarra Resources Ltd (@errawarra) October 19, 2023<\/a><\/p>\n\n ERW share price<\/strong><\/p>\n\n \ufeff<\/span>\ufeff<\/span>\ufeff<\/span><\/span>\u00a0<\/p>\n Several local graphite-related stocks have been stonking it this week. There\u2019s a chief, underlying and indeed overarching reason for that. It\u2019s Chinese curtailing of graphite exports from December 1, innit \u2013 a boon for producers and explorers outside of China. See our coverage referencing that this week here<\/a>, here<\/a> and here<\/a>.<\/p>\n Greenwing is on both the graphite and<\/em> lithium hunt with projects across Madagascar and Argentina.<\/p>\n It\u2019s double digits up today after announcing its management team has concluded a site visit to its 100% owned Graphmada Mining Complex in Madagascar, holding a series of meetings regarding the progression of the Millie\u2019s Reward hard rock lithium project.<\/p>\n Some highlights regarding that, per the company announcement:<\/p>\n \u2022 The Graphmada Mining Complex and infrastructure remains in good condition.<\/p>\n \u2022 The existing Mineral Resource of 61.9Mt at 4.5% Fixed Carbon (FC) is capable of sustaining substantially higher production volumes.<\/p>\n \u2022 Greenwing has commenced auger drilling at the Andapa prospect, which is the company\u2019s secondary graphite asset in Madagascar.<\/p>\n \u2022 Greenwing has commenced a process to attract strategic investment for its graphite assets.<\/p>\n #GW1<\/a>\u2019s previously producing Graphmada Mining Complex features below. #graphite<\/a> #Madagascar<\/a> #mining<\/a> #ASX<\/a> https:\/\/t.co\/D54PaEu3sN<\/a><\/p>\n \u2014 Greenwing Resources (@Greenwing_GW1) October 23, 2023<\/a><\/p>\n\n GW1 share price<\/strong><\/p>\n\n \ufeff<\/span>\ufeff<\/span>\ufeff<\/span><\/span>\u00a0<\/p>\n Copper and magnesite explorer Lachlan Star is\u2026 starring on the ASX today with a +47% daily gain at the time of writing.<\/p>\n This comes after DevEx Resources (ASX:DEV)<\/strong><\/a> informed the market operator that it\u2019s now completed the sale of its portfolio of copper-gold exploration assets in the Lachlan Fold Belt to LSA.<\/p>\n Per Christian\u2019s beaut Lunch Wrap<\/a>\u2026<\/p>\n In a great deal for DEV as well, the company gets 75,672,720 ordinary shares in LSA for a deemed value of $7.5 million (representing a holding of 36.46%) plus a 2% net smelter royalty.<\/em><\/p>\n DevEx\u2019s Managing Director Brendan Bradley, and Executive Director Stacey Apostolou, will also join the board of LSA.<\/em><\/p>\n \u201cThe sale of our NSW copper-gold assets to Lachlan Star allows us to focus on the exciting emerging discoveries we have at the Nabarlek Uranium Project in the NT and Kennedy Ionic Clay-hosted REE Project in Queensland.<\/p>\n \u201cThe transaction will see the copper-gold portfolio become the key focus for Lachlan Star, with DevEx retaining exposure to the significant upside of these assets through our 36% shareholding,\u201d Bradley said this morning.<\/p>\n Also\u2026<\/p>\n This week LSA made a pretty significant appointment, bringing on board a highly experienced mining exec and geologist \u2013 Andrew Tyrell \u2013 as the company\u2019s new CEO.<\/p>\n Tyrell was most recently the general manager (\u2018Discovery\u2019) for gold producer and explorer Gold Road Resources (ASX:GOR)<\/strong><\/a>, where he led the transition of Gold Road to a national explorer and the restructuring of the company\u2019s Discovery group into a self-generating business development and project generation model.<\/p>\n He has buckets more experience besides, including 10 years at Anglo Gold Ashanti in various roles, plus he\u2019s an exploration geologist with 20-plus years in the minerals industry with a primary focus on gold.<\/p>\n Probably knows what he\u2019s talking about then, so a good get, by LSA. Shareholders certainly seem to think so.<\/p>\n LSA share price<\/strong><\/p>\n\n \ufeff<\/span>\ufeff<\/span>\ufeff<\/span><\/span>\u00a0<\/p>\n New WA goldie Focus Minerals is faring well today on the back of a mineral resources update regarding its Bonnie Vale prospect in the Goldfields region.<\/p>\n Bonnie Vale is an underground development and part of the Coolgardie Gold Project, which covers 121km2 of highly prospective tenements on the outskirts of the Coolgardie township.<\/p>\n Bonnie Vale is a high-grade and high-value mineralisation resource for Focus, which the company notes has excellent recovery characteristics.<\/p>\n The resource update highlights are as follows:<\/p>\n \u2022 Underground Indicated Mineral Resource ounces have increased by 40% with 4.6% improvement in grade<\/p>\n \u2022 Total underground Indicated and Inferred Mineral Resource ounces increased by 16%<\/p>\n \u2022 Overall Indicated and Inferred Mineral Resource ounces, including potentially open pitable and historic tails increased by 40%<\/p>\n Focus Minerals\u2019 executive chairman, Wanghong Yang, reckons:<\/p>\n \u201cThe updated Mineral Resources enable the next phase of economic assessment and advanced mine design.<\/p>\n \u201cThese developments will lead to updated Ore Reserves estimates and provide the basis for submissions for mine approvals.\u201d<\/p>\n FML share price<\/strong><\/p>\n\n \ufeff<\/span>\ufeff<\/span>\ufeff<\/span><\/span>\u00a0<\/p>\n At Stockhead we tell it like it is. While Azure Minerals is a Stockhead advertiser at the time of writing, it did not sponsor this article.\u00a0<\/span><\/p>\n \u00a0<\/p>\n <\/span><\/p>\n The post Resources Top 5: Local lithium hero Azure Minerals flies on SQM bid; Errawarra catches a ride<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Errawarra Resources (ASX:ERW)<\/strong><\/a><\/h2>\n
Greenwing Resources (ASX:GW1)<\/strong><\/a><\/h2>\n
Lachlan Star (ASX:LSA)<\/strong><\/a><\/h2>\n
Focus Minerals (ASX:FML)<\/strong><\/a><\/h2>\n