Alderan & Golden Mile Drill Investors
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We wouldn’t describe demand for new junior resource listings as effervescent, but this duo has made it to the starting line despite June being more of a time to shed dud scrip rather than take on new speccie plays.
There’s a Syrah segue to Alderan, in that Syrah’s founding chairman Tom Eadie is on the board and former Syrah MD Tolga Kumova holds 13% via a family vehicle.
But there’s not a flake of the grey stuff in sight: Alderan’s target is a primarily porphyry copper ground in Utah, which has a rich history of both mining and Mormonism.
Alderan’s Frisco project includes mineralisation of both copper-gold-silver and copper-molybdenum-gold, so there’s a few marketing options there should commodity fashions change.
Golden Mile, meanwhile is also hedging its bets as a multi-commodity play but its headline investor appeal lies with that other battery ingredient of the moment, cobalt.
“It’s no surprise that when people who have got cobalt in a project then they are talking about cobalt,’’ says CEO Tim Putt.
Strictly speaking, there are few pure play cobalt deposits globally, with the metal produced as a by-product of copper or nickel production.
Golden Mile’s Quicksilver nickel-cobalt ground is just down the road from laterite nickel producer Ravensthorpe, which just happens to be the biggest local cobalt producer.
Putt says he was looking at copper-cobalt projects in the Congo in the early 2000s, long before cobalt was sexy. Even then, he says, the cobalt credits were valuable enough to carry many a project.
Golden Mile raised $4.5m at 20c apiece. While oversubscribed, the shares have ebbed below the issue price since listing last Monday. Sigh!
Not to be confused with the doomed Star Wars planet Alderaan, Alderan raised $8.5m, also at 20c but the stock has more than doubled.
May the force be with you!
The New Criterion is authored by Tim Boreham.
Many readers will remember Boreham as author of the Criterion column in The Australian newspaper, for well over a decade. He also has more than three decades' experience of business reporting across three major publications.
Tim Boreham has now joined Independent Investment Research and is proud to present The New Criterion, which will honour the style and purpose of the old column. These were based on covering largely ignored small to mid cap stocks in an accessible and entertaining manner for both retail and professional investors.
Disclaimer: The author nor Independent Investment Research have received a fee or any kind of inducement for this article. The New Criterion is not intended as specific investment advice and readers should contact a licensed financial adviser.