Kingston Resources Ltd


KSN Details
 
Raised capital to fund its lithium projects portfolio: Kinston Resources Ltd (ASX: KSN) is acquiring four lithium projects in Western Australia and the Northern Territory. KSN is acquiring 100% interest in 20 lithium-prospective tenement applications covering its major four projects, Mt Cattlin, Greenbushes, Bynoe / Wingate and North Arunta for a consideration of a cash payment of $500,000 payable in two tranches and the issue of 165,000,000 fully paid ordinary shares. Tranche 1 placement has been completed recently with the raise of $840,000. The group even commenced exploration across four key lithium fields and drilling is expected by third quarter of 2016. Meanwhile, to fund the acquisition, Kinston Resources also raised a capital of $6.85 million by way of share placement. Meanwhile, the group appointed Mr Andrew Corbett as Managing Director.
 

Four projects drilling pipeline (Source: Company Reports)
 
KSN rallied over 420% (as of May 18, 2016) in the last three months driven by its positive updates and we believe that this momentum would continue in the coming months. Accordingly, we recommend a “Speculative Buy” on this stock at the current price of $0.024
 

KSN Daily Chart (Source: Thomson Reuters)
 
Lithium Australia NL


LIT Details
 
Focus on lithium business: Lithium Australia NL (ASX: LIT) is expanding its lithium portfolio with discovery of several additional lithium pegmatites. The company has added to a rapidly growing global lithium project suite with the granting of a mineral license in the Bynoe Pegmatite Field, located at 50 kilometers south-southwest of Darwin in the Northern Territory. LIT is also focusing acquisition of Australian and international lithium projects and thereby controlling sources of lithium.
 

Project Locations (Source: Company Reports)
 
The group also reported that they are planning to divest five graphite projects and focus on its prospective lithium projects. Recently, the group expressed their wish to advise the call of $0.02 per share on the quoted partly paid shares (LITCC) to raise a minimum of $3,277.28 (before costs). The quoted partly paid shares are currently paid to $0.021 (unpaid $0.029). Recently, Cazaly Resources announced about singing of a regional alliance with LIT with regard to the exploration and development of lithium projects in the Goldfields Regions of Western Australia. The GLiA is set to combine the two company’s present, and future lithium mineral interests within a 100 kilometre radius of Kalgoorlie, Western Australia, for an initial period of five years. We recommend a “Speculative Buy” on the stock at the current price of $0.235
 

LIT Daily Chart (Source: Thomson Reuters)
 
Prospect Resources Ltd


PSC Details
 
Acquisition of Option – Gold and Lithium:Prospects Resources Ltd (ASX: PSC) recently announced about signing of an option agreement on the high grade Arcadia Lithium Deposit. There is also the news about acquisition of an option of 12 Km Gold System – Moba Gold Project. According to Lithium option, Prospect is allowed to acquire via its 70% owned Zimbabwe subsidiary, a 90% interest in the Arcadia V claim and the mineral claim applications comprising the Arcadia Camp for the cost of US$10,000. Additional US$40,000 would be payable on exercise of the option. Prospect has also filed tenement applications over the remainder of the Arcadia Camp, which includes other deposits. After exercising the option, the company has to make decision in next four years with regard to mining. The drilling of Lithium would also enhance Prospect’s valuation as Lithium prices are continuously rising. Furthermore, the Arcadia Deposits have not been extensively drilled and therefore actual commercialization of mine would vary depending upon the further study of the resources. Similarly, the Moba Gold Project is a large gold system that has seen limited modern exploration. Historic mining has produced 325,000 ounces of gold from less than 35 meters depth.
 

Mineral production highlights (Source: Company Reports)
 
The exploration work to date has demonstrated the potential for open pit and underground gold mining operations. Prospect Resources is investigating early production options to fund a larger scale exploration program. There has been a strong surge in the stock by 100% in the last four weeks (as of May 18, 2016). We give a “Speculative Buy” on the stock at the current price of  $0.017
 

PSC Daily Chart (Source: Thomson Reuters)

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