Maybe more of a mid-term trade but nevertheless risk reward is astonishing on this one, cant believe its not being talked about at all. Here's some of my notes. Disclosure - holding some at 1.3c as could go into suspension any minute as soon as GM is announced for the whole consolidation / raise / re-listing process. Looking to buy more after re list.
Summary
ENB has taken over Domingo Lithium which has some solid projects in Argentina nearby DHR, LRS, LKE. Surrounding historicals include Li2o grades 5%-8%. Also has some nice looking lithium projects in NSW and WA too. During raise, a 1 for 2 consolidation will be happening, so any buying under 1.5c is a better deal than the instos ($3m raised @ 3c which is equivalent to 1.5c pre consolo). Solid current top 20 with lots of familiar names such as the CPS crew, Glen Whiddon, Tim Putt of G88 etc. High risk / reward play. Huge potential upside.
Fundamentals:
Name - Eneabba Gas Limited (soon to be named MinTec Global Limited)
Sector - Lithium
Market Capital – 6.5m (approx. 16m post acquisition, 1 for 2 consolidation and re-list)
Shares on issue – 524m (540m post acquisition, consolidation and re-list)
Cash – $3.5m after raise
San Luis Projects – Argentina
Nearology:
o Dark Horse Resources Limited (ASX: DHR)
o Latin Resources Limited (ASX: LRS)
o Lake Resources N.L. (ASX: LKE).
Domingo will have two exploration licences applications held in its Argentinean subsidiary, Orlico S.A., covering a combined area of 18,414 hectares. The two exploration licence applications are
o Domingo, consisting of 9,971 hectares
o Vulcano, consisting of 8,443 hectares.
- The tenure applications in Sans Luis are strategically located over suitable LCT Pegmatite bearing geology, some of which has been previously mined.
- LCT Pegmatite mines in San Luis province have legacy reserves estimated from spodumene mineralisation with Li2O grades up to 8.1%
- LCT Pegmatite mines within a 30km radius of each tenure application have historical reserves estimated from spodumene mineralisation with grades ranging from 5% to 8% Li2O
- the tenure applications are approximately 70 km from the city of San Luis
- A systematic exploration program is being developed for each of the San Luis province tenure applications, leveraging the recent success in the verification of the satellite photographic interpretation via preliminary short field trips
Leonardo Project - Western Australia
Nearology:
o the Greenbushes mine held by privately owned Talison Lithium Pty Ltd
o the Mt Holland project held by Kidman Resources Ltd (ASX: KDR)
o the Mt Cattlin project held by Galaxy Resources Limited (ASX: GXY); and
o the Mt Marion lithium mine held by a consortium of listed entities (not including the Company).
- The Leonardo project application covers an area of 19,866 hectares. The Leonardo project is approximately 120 kilometres south-east of the Mt Marion lithium mine and 35 kilometres south-east of the Tawana Resources-owned lithium-tantalum Bald Hill mine.
- The total mineral resource and combined indicated and inferred mineral resource for the Bald Hill mine was estimated by CSA Global under the JORC (2012) Code 18.9 million tonnes with an estimated Li2O grade of 1.18% and Ta2O5 grade of 149ppm.
- GSWA surface regolith analytical results have been interpreted to indicate that weathered pegmatite material is present in the tenure application area, further interpretation of the trend data, complimented by geological mapping, path finder element analysis by hand held X-Ray Florescence units, selective sampling and laboratory geochemical analysis is proposed to facilitate selection and the ranking of drill targets within the tenure application area
New South Wales - Narraburra East project
- The Narraburra East project in New South Wales is located within 5km of the Narraburra rare earth element (REE) deposit, which is the only mineral resource within NSW containing an estimated grade and quantity of Li2O derived from spodumene mineralisation.
- An inferred mineral resource was estimated by Capital Mining Limited (ASX: CMY) during 2011 (Capital Mining Limited, 2011).
- The tenure application is 31,400 hectares and has an extensive area of geology with the potential to host an analogue to the Narraburra REE deposit
- Further Technical Desktop Study work is required to understand how the LCT Pegmatites were emplaced and the most likely granitic source(s) from the multiple granitic bodies in the area. The further technical Desktop Study work will assist in the selection of areas to be mapping and/or the ranking of drill targets proposed in the initial tenure application documents. At the present point in time this further work is scheduled for the first quarter of the 2018 calendar year.
Key risks and dependencies
- Re-quotation of shares on ASX - It is anticipated Eneabba’s securities will be suspended from the date of the general meeting convened to seek shareholder approval for the Proposed Acquisition until completion of the Proposed Acquisition, the Public Offer, re-compliance by Eneabba with Chapters 1 and 2 of the listing rules and compliance with any further conditions ASX imposes on such reinstatement.
- Exploration risks
- Tenure applications - time
Management
- Barnaby Egerton-Warburton, Managing director - current board member at ISX, IHS. Previous history includes GSC, IHS, BKT, FBR
- Gabriel Chiappini, Secretary – also secretary of FBR, BKT, HIS. Previous history includes GSC, YBR
- David Wheeler, CFO – current board member at POW, CCZ, THD, UTR, AVD. Previous history includes AMG, UTR, T3D
Current Top Holders Rundown
1. Jason Peterson – Owner of CPS capital and subsidiary Celtic Capital.
2. Black Rock Mining – ENB & BKT in joint venture for gas project.
3. Celtic capital – CPS / Jason Peterson co
4. Kuang Koo Sing – previous chairman of ENB
5. GetMeOutOfHere Pty Ltd – Glen Ross Whiddon super account. Chairman of AOU, CE1. On boards of HMO, FRN.
6. Pathways corporate – David Wheeler affiliation (previous employer). Also holds UTR, KIN.
7. Leong Wong William Tien – Lawyer firm partner in Singapore
8. Egerton-Warburton Barnaby – ENB managing director
9. Barron Morgan James – Runs Ventnor Capital. On board of LCD and Alto Capital. Previous ENB board member.
10. Riverview Corporation – Holds OGX, AUR, LCD, ENB, HRN.
11. 6466 Investments – Glen whiddons wife
12. Goh Thomas Lik Che – previous managing director ENB
13. Avenger Pty Ltd – Tim Putt company (CEO of G88), specialises in mineral project acquisitions and development.
14. St Barnabas Investments – Holds CDV, BCN, TNO, ARD, EMU, LEX. Unknown management.
15. Merle Smith
16. Redland Plains – Holds WGX, CDV, ARD, IDC, ANL. Unknown management.
17. Klein Matthew Steven – director at Environmental Resources Management, company that provides OH&S consulting services to miners.
18. Gotha Street Cap PL – fund based in QLD. Unknown details.
19. John Jacob Murray
20. First Investment Partners – holds CDT, EPM, QRX, RMI, HDY, VIC, AJC, GRV, LSR, PTX, HGM.
(20min delay)