ABR’s Fort Cady Project To Be Visited By Chinese Sinomach’s Representatives For Strategic Discussions

  • Jan 16, 2019 AEDT
  • Team Kalkine
ABR’s Fort Cady Project To Be Visited By Chinese Sinomach’s Representatives For Strategic Discussions

On 16 January 2019, American Pacific Borate and Lithium Limited (ASX: ABR) has announced that the representatives of Sinomach Group will visit the company’s Fort Cady project, California to undertake further strategic cooperation discussions.

American Pacific Borate and Lithium Limited is a mining exploration company. The company has two key projects: Fort Cady Projects and Salt Wells Projects. It is currently focussing on advancing 100% owned Fort Cady Borate Project.

In 2018, the China National Chemical Fiber Corporation signed a non-binding strategic cooperation agreement with American Pacific Borate and Lithium Limited. China National Machinery Industry Corporation (“Sinomach”) is a parent company of China National Chemical Fiber Corporation.

ABR’s CEO Mr. Michael Schlumpberger has mentioned that at the end of 2018 the company has released the Definitive Feasibility study which showcased the company in a strong platform due to the exceptional results, and with the help of it, the company will start strategic negotiations with large consumers of borates. US-headquartered Barr Engineering has prepared the DFS, and on 3 December 2018, the company has publicly delivered JORC Compliant Mineral Resource Estimate for the Fort Cady Borate and Lithium Deposit.

Currently, the company is anticipating a USD 321 million EBITDA in their first full year of production due to which it will make a Fort Cady Borate Project a substantial mining prospect with low risk and supportive jurisdiction.

Last year the company also signed an agreement with the Chinese SOE Sinomach. Bringing representatives to a tenement and making a professional visit in China will be a significant step for exploring options which will be used for mine construction.

Sinomach Group is a Chinese Conglomerate which primarily engages in four key areas of Research & Development and manufacturing: project contracting, trade & services, finance & investment and mechanical equipment.

In August 2018, ABR has announced that they have successfully completed an oversubscribed placement of A$4 million at 20c per share, issued to institutional and sophisticated investors. Funds will help the company in construction-related workstreams. As at September 30, the company had maintained a cash and cash equivalents of A$4.384 Million (up from A$2.882 million at June 30).

FY18 Financial Performance: The Company’s net loss for the year stood at $2,800,802 in FY18, (over the prior year which was -$848,511). The loss per share for the year stood at 1.70 cents per share. On Balance Sheet front, Net Assets for the year stood at $23,451,982 in FY18, (over the prior year which was $10,626,107). As at 30 June 2018, the company had cash and cash equivalent of $2,881,565 (over the prior year which was $4,883,114).

Stock performance: The shares of American Pacific Borate and Lithium Limited closed the day’s session at A$0.145 (16 January 2019), down by 6.452%. The market capitalization of the company stands at circa $29.62 Million with approximately 191 million outstanding shares. In the time span of the previous six and three months, the stock delivered the returns of -35.42% and 3.33%, respectively. During the last one month, ABR delivered the negative return of 6.06%.


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