On 30 December 2019, Vital Metals Limited (ASX: VML) has released its quarterly activity report for the period ended 31st December 2018. The company stated that during the December 2018 quarter it had identified a vanadium-titanium-magnetite (VTM) exploration target at Tiebele, part of its Nahouri project in Burkina Faso. Vital also discovered significant geochemical anomalies for Bi, Ag, Pb and As from the soil and rock chip samples of historic mining areas in Aue Cobalt Project, Germany.
Recently, the company revealed the departure of Chief Executive Officer and Managing Director Mr. Mark Strizek effective 24 January 2019. The company announced that Mr. Strizek has also resigned from the role of Director of the company.
Chairman Francis Harper said, âOver the period of around eight years, Markâs leadership has made a significant contribution in strengthening the companyâs financial position.â
However, the company did not explain any reason for Mr. Strizekâs exit in the media announcement dated 25 January 2019. The news came after the period of review and successful sale of Vitalâs Watershed Tungsten Project.
As stated in FY18 annual report for the period ended 30 June 2018, Vital has finalized the sale of its Watershed Tungsten Project to ASX-listed Tungsten Mining NL for $15 million cash consideration. This project, located in the north of Cairns in far North Queensland, was sold for all the exploration licenses and 100% of its project. The proceeds of sales were partially utilized by the company to pay off its debts worth $1.4 million to Macquarie. Further, the company intended to use the remaining funds towards the maintenance of an exploration program in West Africa Vital along with considering new opportunities in 2019 to pursue value for its shareholders.
In the sample assays from the Q2 2018 soil geochemistry program at Aue Cobalt Project, the company identified strong geochemical anomalies for bismuth, up to 0.29%, associated with Bi-Co-Ni mineralization near Waschleithe and Bockau in historic mining areas. The Aue project is located in the cobalt-rich Erzgebirge region of Germany.
Last year, Vital has also discovered a potential Vanadium-Titanium-Magnetite (VTM) target with a strike length of approximately 2km in historical soil geochemistry of Nahouri Gold Project in Burkina Faso. The company has stated that follow-up reconnaissance soil and rock chip sampling during the quarter with V2O5 concentrations up to 0.2% had supported the old data. The Nahouri Gold Project sits within the Markoye Structural Corridor in Burkina Faso, which is known to host several multi-million-ounce gold deposits, including two recent significant gold discoveries.
Going forward, the company intends to be highly selective with potential acquisitions as declining asset prices have made it difficult for the junior explorers to obtain equity market finance. As at 31st December 2018, Vitalâs cash balance stood at $13.74 million.
The exit of CEO Mr. Strizek follows the departure of former Chairman David Macoboy during 2018. In 2018âs Annual report, the company announced that former Chairman David Macoboy retired after more than seven years on the Board and current Chairman Francis Harper had been appointed to his position.
VML stock price surged up by 12.5% to last trade at $0.009 on 31 January 2019. Over the past 12 months, the stock has witnessed a negative performance change of 15.00% despite a positive price movement of 21.43% over the past three months.
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