Resources Top 5: US dials in funding as ASX juniors back in vogue

5EA is the latest ASX junior to receive a funding call from US government-backed export-import bank. Get your resources wrap here.

The US is making funding calls on ASX juniors. Pic: Getty Images

• 5EA the latest ASX junior to receive funding call from US government-backed EXIM

• Lunnon Metals keeps finding high-grade gold as it drills into Lady Herial

• Perpetual soars on hot find in Brazil's burgeoning Lithium Valley

Here are the biggest small cap resources winners in morning trade, Tuesday, October 1. Prices accurate at time of writing.

5E Advanced Materials (ASX:5EA)

5EA has received a non-binding letter of intent (LOI) from the Export-Import Bank of the United States (EXIM) that outlines the potential for a debt facility to backstop project debt financing of up to US$285 million.

US critical minerals spending seems to be getting rolled out at pace at the moment, as 5EA is the third ASX-listed junior in  just over week that's been given a funding nod from EXIM.

The other two being Anson Resources (ASX:ASN), also receiving an LOI for US$330m from the US government-backed entity for the construction of a lithium plant, and American Rare Earths (ASX:ARR) being backed with US$456m to develop its gigantic 2.34 billion tonne Cowboy State REE mine.

The funds would be utilised for the commercial scale development and construction of 5EA's Boron Americas Complex, producing boron and advanced materials and complemented by lithium co-product production.

Boron, known for its strength, stability, and lightweight properties, is one of the most versatile materials in the world. It's used in over 300 applications that enable our way of life, including permanent magnets, electric vehicles, wind turbines, solar panels, glass, fertilisers, body and vehicle armour, weapons systems, aerospace ceramics, and pharmaceuticals.

The US has set a clear initiative to de-risk from adversaries and establish secure and reliable domestic supply chains,” 5EA CEO Paul Weibel said.

“Programs like EXIM’s 'Make More in America Initiative' are a precise prescription to ensure critical materials such as boron are produced on US soil, drive domestic benefits and progress for the US economy and provide the foundation to the boron supply chain where valued-added derivatives are vital to the US defence and industrial base."

5EA has rocketed up the charts 16.2% on the news of the funding to trade at 8.6c a share.

Lunnon Metals (ASX:LM8)

LM8 is climbing the beanstalk in early trade today after revealing the discovery of a shiny new gold zone from surface at its Lady Herial prospect, part of the junior’s overall Kambalda gold and nickel project (KGNP) in WA.

Fresh, significant, near surface and high-grade intercepts from a current diamond and infill RC drill program returned 23m at 16.61g/t gold from surface including 6m at 62.47g/t gold from 17m in hole FOS24RC_056, with 13m at 4.1g/t gold from 3m in hole FOS24RC_023.

The explorer is only half surprised at the find as the Kambalda/St Ives gold camp is once again a burgeoning exploration and production centre for bullion.

LM8 MD Edmund Ainscough says new opportunities just keep opening up at Lady Herial.

“Just when we think we have found the limits on one structure; the next set of results identifies new mineralised zones we didn’t know about in otherwise poorly tested areas,” Ainscough said.

“Our goal is to define all the near surface gold mineralisation as quickly as possible so that open pit evaluation can commence.

“However, some of these zones will need follow up drilling at depth and along strike to understand how large the ultimate opportunity is on the multiple parallel structures we are finding at Lady Herial.”

Shares are up a sizeable 30%, adding to a 43.3% rise over the past week for LM8 to trade at 21.5c at time of writing.

Perpetual Resources (ASX:PEC)

There’s been an increased focus on Brazil’s hard rock lithium lately as WA’s lithium star Pilbara Minerals (ASX:PLS) became a global miner on the back of a friendly $581m takeover of ASX junior Latin Resources and its 77.7Mt at 1.24% Li2O Salinas project last month.

There’s also a plethora of Aussie juniors digging in the country’s Lithium Valley, including Solis Minerals (ASX:SLM), Oceana Lithium (ASX:OCN),  OzAurum Resources (ASX:OZM), Alderan Resources (ASX:AL8), Lightning Minerals (ASX:L1M) and Perpetual.

READ MORE: Kristie Batten: Brazil’s lithium potential in focus after Pilbara’s Latin takeover

PEC has confirmed multiple spodumene-bearing pegmatite trends while exploring its newly acquired Isabella lithium project.

The junior picked up the project in July as an emerging Li exploration opportunity adjacent to Atlas Lithium’s (NASDAQ:ATLX) Das Neves operation, which has a lithium-processing plant expected to come online in Q4 this year, and Sigma Lithium’s (NASDAQ:SGML) Sao Jose project.

The latest round of drilling was designed to develop high-potential lithium targets, which have now confirmed several trends extending up to 800m, supported by newly found artisanal workings that extend the previously mapped continuity.

Assays are pending, but pre-acquisition rock chip sampling by the company has already confirmed high grades of up to 5.62% Li2O from the finds.

PEC shares have jumped 25% on the news to trade for 1c.

Golden Mile Resources (ASX:G88)

Copper explorer G88 caught a wave this morning after loading the finding of up to 930g/t silver, 10.05% copper and 8.09% zinc in rock chip assays during first pass sampling at the Odyssey prospect within its Pearl project in Arizona.

The project was acquired in August this year after the company entered a joint venture acquisition with Outcrop Silver and Gold Corporation.

It lies within the world-class Laramide porphyry copper zone, which is in the prolific Southwestern North American porphyry copper province – an area that accounted for around 70% of total USA copper production in 2023.

Copper prices have remained volatile this year, with a fierce run from below US$3.70 to above US$5 from February to May, giving way to a pullback to below US$4 again more recently.

Mineralisation at Odyssey is visible at the surface with a strike length of >800m and includes multiple NNW-trending extensional veins, which contain copper minerals (malachite and chrysocolla) as well as silver and zinc mineralisation.

Hydrated copper carbonate samples at Odyssey. Source: G88.

G88 says the identification of both silver and zinc outlines much broader mineralisation potential for the undrilled prospect.

“These results – with exceptional high grades of copper, silver and zinc not only broadens the mineralisation potential of the Odyssey prospect but also provides increased confidence for additional prospects within the Pearl project area,” G88 MD Damon Dormer said.

“By any measure these are exciting results and will provide numerous targets for our maiden drilling program.”

Shares in G88 are up 16.7% on the back of the news, trading at 1.4c.

Altech Batteries (ASX:ATC)

ATC says its first Cerenergy ABS60 battery prototype is online and operating successfully.

The completed battery unit has passed all physical tests with flying colours after it was installed at Altech JV partner Fraunhofer IKTS’ test laboratory in Dresden, Germany, and integrated into a specially designed battery test station.

ATC CEO and MD Iggy Tan says the company is extremely pleased that the first battery prototype is now up and running and operating better than expected.

"Using common table salt technology and without the requirement for lithium, copper, cobalt, graphite and manganese, the Cerenergy battery can operate in a wide range of temperatures and has a life of 15 years, around double that of lithium-ion batteries," Tan said.

Shares are up almost 30% on the news to trade at 4.9c.

At Stockhead we tell it like it is. While Perpetual Resources, Golden Mile Resources and Altech Batteries are Stockhead advertisers, they did not sponsor this article.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Resources Top 5: US dials in funding as ASX juniors back in vogue