Trader’s Cafe with Zak Mir: Corcel, Deltic, Mast, Oracle Power, Powerhouse, San Leon, Sativa, Xtract, Wishbone Gold

It has been 12 months of transformation for Wishbone Gold (WSBN), and this process has, if anything, accelerated as the company continues to build on the strong position represented by its gold assets. The latest is that the Queensland Government has accepted its proposal to take on additional land under the current Wishbone II EPM. Wishbone II was recently presented by Dr. Simon Beams at the Australasian Institute of Mining and Metallurgy Conference drawing comparisons to the geological setting and geochemical associations at the nearby Ravenswood Gold Deposit with its endowment of 5-million-ounces of gold production in Queensland, Australia. The Wishbone Project now consists of 54 sub-blocks amounting to 174 km2 of highly prospective ground in the Charters Towers-Ravenswood district, one of north Queensland's most important gold provinces.

Xtract Resources (XTR) and Bushranger, continues to be a focus of promise in terms of exploration in the small cap space. The latest here is the company reporting continuing progress of the Phase Two diamond drilling programme with the completion of the third and fourth holes at the Bushranger copper-gold porphyry exploration project in New South Wales, Australia, as well as positive news on the renewal of the Racecourse exploration licence. Xtract added that the New South Wales authorities have indicated their intention to grant renewal of the Racecourse exploration licence to June 2024. This will allow it to undertake all the work necessary to define the conceptual open pit and to identify further deposit extensions, as well as investigating other prospects within the licence area.

Nigeria focused independent oil and gas production, development and exploration company San Leon Energy (SLE) updated on its journey with regard to its investment in the Oza Field. The company said it has entered into a conditional subscription agreement with Decklar Petroleum which entitles it to purchase $7,500,000 of 10% unsecured subordinated loan notes of Decklar Petroleum and 15% of the enlarged share capital of Decklar Petroleum. Decklar Petroleum and San Leon have also entered into an option agreement which entitles San Leon to purchase an additional $7,500,000 of loan notes and further Decklar Petroleum shares representing an additional 15% of the enlarged share capital of Decklar Petroleum.

The swing to profitability is always a key milestone for any small cap / growth company situation, and this is what Sativa Wellness Group (SWEL) has just revealed in the form of its first quarterly profit in Q2 2021. The company said it has exceeded all targets set to meet its ambition of diversifying within the Wellness sector through the rollout of additional COVID testing clinics, with 57 clinics currently in operation. Sativa added that it is actively looking at different tests to expand the clinic portfolio and opportunities to grow the testing business.

Highly followed natural resource exploration and development company Corcel (CRCL) said that it has signed a binding but conditional share purchase agreement with Australian-registered Resource Mining Corporation to acquire 100% of the issued share capital in Niugini Nickel, which owns 100% of the Wo Wo Gap nickel-cobalt project in Papua New Guinea. The Project is located 200km from the Papua New Guinea capital of Port Moresby. Corcel sees significant synergies between the two projects and sees this acquisition as a significant step in its evolution into a leading Papua New Guinea battery metal and nickel /cobalt exploration company with material scale.

AIM quoted natural resources investing company Deltic Energy (DELT) looks to have pulled off a decent coup as it announced that it has entered into a binding, conditional farm-out agreement in relation to five of its gas licences in the Southern North Sea with Cairn Energy (CNE). Under the terms of the Farm out Agreement, Cairn will acquire a 60% interest in each of Licences P2428 (Cupertino Area) and P2567 (Cadence) and a 70% interest in each of Licences P2560, P2561 and P2562 which are located between the Breagh and Tolmount Gas Fields.

It may have been perhaps a rather longer wait than some were expecting for stock market newcomer Mast Energy (MAST) to ramp up the newsflow. Nevertheless, the UK-based multi-asset operator Reserve Power market, has exchanged and completed a final Sale and Purchase Agreement to acquire Pyebridge Power, a Special Purpose Vehicle comprising an installed and commissioned synchronous gas-powered standby generation facility with 9 MW export capacity based in Somerset Derbyshire. The acquisition will cost £2,500,000 in cash payable over the next 20 months.

Skin in the game and perhaps stretching the analogy “eating one’s own cooking” looks to be the name of the game at international natural resources project developer Oracle Power (ORCP). Here the company announced that each of the directors has entered into a Share Purchase Plan whereby each Director has irrevocably instructed the company to direct 10% of net monthly salary/fees to make market purchases of shares in Oracle each month for the account of the director. The Director Purchase Plan will be in place for 12 months. The implications can be drawn here are both the commitment of the directors to Oracle, as well as the value the present share price represents.

One of the most valuable commodities in the digital world is data, and owning your own data is pivotal to this concept. This explains the latest announcement from waste plastic to energy group Powerhouse Energy (PHE) as it has bought 48% of the share capital of engineering consultancy Engsolve for £99,990 in cash from Engsolve shareholders. This now means that Powerhouse owns the data garnered from the development of its DMG technology, especially that associated with engineering design and safety risk assessment.