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Highlights:
- On Tuesday, the three ASX stocks- WFL, CPN and NVA were declining on ASX.
- Caspin Resources Limited (ASX:CPN) updated that it has obtained firm commitments from institutional investors for a capital raising of AU$3.8 million.
- Nova Minerals Limited (ASX:NVA) notified an independent global JORC Resource of 9.9 Moz Gold, estimated at the Estelle Gold project.
The Australian benchmark index S&P/ASX 200 was trading up by 1.26% at 7,309.80 at 4:02 pm AEDT on Tuesday, 11 April 2023. However, there are three ASX stocks that are underperforming the benchmark index today.
Let’s find out the reasons behind the decline in the three ASX penny stocks- WFL, CPN and NVA’s price.
Wellfully Limited (ASX: WFL)
The 100% integrated, science-based wellness company was trading down 26.666% at AU$0.011 on Tuesday, at AEDT 4:03 pm despite no price-sensitive news released today.
However, on 6 April, the company released its preliminary financial statements for 1H FY23 ended 31 December last year. During the reported period, revenue (and other income) decreased to AU$277K from AU$1.2 million in pcp due to Russia-Ukraine conflict and the lack of pertaining BORK sales. The net consolidated loss (after income tax) rose to AU$4.8 million from AU$4.3 million in pcp.
In another update, the company notified the conclusion of capital raise of up to AU$1.49 million through commitments from professional investors of CPS Capital Group Pty Ltd. The proceeds would be utilised to aid the in-house advancement of WFL’s commercial footprint leveraging the company’s industry knowledge and network to seek most resource-efficient outcomes in DTC channel progression for WFL’s beauty and health brands like REDUIT and SWISSWELL, etc.
Caspin Resources Limited (ASX: CPN)
The mineral exploration company decreased 23.170% and was trading at AU$0.315 on Tuesday, around 4:04 pm AEST, after it updated that it has obtained firm commitments from present and new strategic and institutional investors for a capital raising of AU$3.8 million (before costs). It will be concluded by way of the issue of 12,666,667 new 100% paid ordinary securities in CPN at AU$0.30 a new share.
Further, CPN notified its plan to make an SPP offer to current stakeholders registered on CPN’s share register on 6 April to raise nearly AU$1 million. This capital raising will allow CPN to continue its exploration programs at the flagship Yarawindah Brook PGE-Ni-Cu project.
In a company presentation published on the same day, CPN gave a corporate overview and updates pertaining to Yarawindah Brook and Mount Squires projects along with Serradella discovery details.
Nova Minerals Limited (ASX: NVA)
The mineral explorer was placed under trading halt on 5 April at its request pending the release of an announcement which it finally made on Tuesday, pertaining to an independent global JORC Resource of 9.9 Moz Gold (1,102 Mt @0.3 g/t gold) has been estimated at the Estelle Gold Project. On the same day, around 4:05 pm AEST, NVA fell 27.956% and was trading at AU$0.335.
The resource is based on the assay outcomes from around 85K of reverse circulation and superior quality diamond core drilling concluded on 9 March this year, begins from the surface, and is on less than 3% of the total project zone.
The present MRE interpretation has taken a very comprehensive approach. The international MRE update gives an enhanced platform for the forthcoming Phase 2 Scoping Study currently underway. It is anticipated to be concluded by the April quarter of this year. Post that, PFS-level trade-off studies will be utilised to investigate the prospect of determining an initial standalone processing plant within the RPM Mining Complex.
Drilling works this year will aim towards RPM-style mineralisation at the Train area adjacent to Estelle Gold Project, with the target to outline a third gold resource.
