Six Sigma Metals wins Prospecting License for exploration of base-metals and gold minerals in Botswana for the initial period of three years. The news sent the stock price to jump 25% or $0.001 to last trade at $0.005 on 17 January 2019.
On Thursday, the Board of Six Sigma Metals Limited (ASX: SI6) announced that the Department of Mines in Botswana had granted an outstanding Prospecting License application late in 2018. Following this license award, the company confirmed the completion of all the official paperwork required.
The Prospecting License, PL389/2018, is prospective for gold and base metal mineralization and comprises of 40 square kilometers in the area same as that the company held in its current tenure in the Limpopo Mobile Zone. Initially, it has been granted for the period of three years, ending 30/09/2021.
Further, the company informed that the license contains at least three historical prospects all showing potential to host nickel sulphide and base metal mineralization. Historical exploration at these prospects reportedly shows ultramafic lithology at the surface, prominent nickel, copper and cobalt soil anomalies and electromagnetic (EM) responses indicative of possible sulphide mineralization. The Company intends to review all existing data from the license and design an exploration program to test priority targets during the 2019 field season.
The Group is the holder of exploration licenses covering circa 1,500 square kilometers of terrain prospective for Nickel-Copper-Cobalt-Gold-Silver-PGE-lithium and tantalum in eastern Botswana. Currently, the company focuses on assessing the Lithium and Tantalum exploration potential in Botswana.
On the financial front, the company had reported an operating loss after tax of $1,469,576 for the fiscal year ended 30 June 2018. It is in comparison to the previous year’s operating loss of 1,772,286. During the period, the company had entered into an Option Agreement to acquire an 80% interest in Shamva Lithium and Chuatsa Vanadium-Titanium projects in Zimbabwe. The proposed acquisition is planned as a three-phase staged option agreement whereby the Company can acquire up to an 80% interest in the Projects by acquiring an interest in the share capital of Mirrorplex.
As at 30 June 2018, the company’s net assets stood at $9,102,154, up by $2,533,100. Its cash and cash equivalents were $1,772,169 which declined to $1,474,000 as at the quarter ended 30 September 2018.
SI6’s market capitalization is $1.83 million as at 17 January 2019. Over the past 12 months to date, the stock price has witnessed a negative price change of 77.78% including a plunge of 20.00% in the last month.
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