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Mining
Rolek Resources Ltd

Rolek Resources works to late March deadline as it rattles the tin

The manganese focused company’s $5 million capital raising will close on March 22.

Manganese
Rolek is focused on manganese from the Barramine project in the Pilbara
  • The company hopes to raise up to $5 million by March 22
  • This would support budgeted exploration efforts at Barramine Manganese Project in the Pilbara and other WA projects
  • Rolek hopes to then acquire Rolhold, its subsidiary Rolbar and the deed to the Barramine mineral exploration licence E45/4368 by March 25
  • It also hopes to issue new securities on March 25 and see its shares traded by end of March

What does Rolek Resources do?

Rolek Resources Ltd (ASX:RLK) specialises in exploration in Western Australia. It is led by non-executive chairman Luke Innes who, after an acquisition, is expected be joined on the board by geologist and proposed executive director Ian Stuart and proposed non-executive director Vincent Algar, the managing director of Australian Vanadium Ltd (ASX:AVL).

What does Rolek Resources own?

The key asset is the Barramine Manganese Project in the Pilbara region of WA.

Rolek is seeking readmission to the Australian Securities Exchange with the flagship project which has already attracted $7.2 million of exploration.

The West Perth company is working to a March deadline for its acquisition of Rolhold Pty Ltd and assets and was given extra time to execute the transaction by the market operator in January.

If Rolek meets a Friday, March 29 deadline it has the option of staying on the official list from April onwards.

The Rolhold acquisition is an attractive transaction for the company once known as Shaw River Manganese Limited (then ASX:SRR).

Rolhold has interests in exploration licences (and licence applications) in WA's Kimberley, Pilbara, Gascoyne and Murchison regions.

Among the assets Rolhold would bring to the table is its wholly-owned subsidiary Rolbar Pty Ltd and the WA mineral exploration licence it has been promised in a deed, E45/4368.

Barramine project is found at mineral exploration licence E45/4368 and its acquisition would bring a key part of the manganese project in-house.

Rolek’s plans for Barramine include defining a maiden inferred resource for upgradable manganese product for the steel industry.

The company also intends to test the ore’s grade suitability for use in the lithium-ion battery supply chain.

Barramine has an ideal geological setting only 70-80 kilometres from the Woodie Woodie manganese operations now owned by Consolidated Minerals Limited (ASX:CMI) buyer Ningxia Tianyuan Manganese Industry Co (TMI).

TMI’s old ConsMin operation could be an option for bulk mining operations of Barramine ore.

Rolek has compiled a database of 27,000 metres of historical drilling, geophysics and metallurgical studies for Barramine, giving it a good bank of information to draw upon.

About 2,500 metres are contained in a main target zone and Rolek believes JORC resources are achievable for the areas 3 and 4 prospects.

Thirty-three mineralised holes in the zone graded better than 5 metres at 10% manganese.

The best drill hole assays were 36-46% manganese while the average intersection was 10 metres at 16% manganese from 46 intersections in 39 mineralised holes.

Rolek’s plans to apply for a WA mining licence for Barramine, produce a scoping study for the steel industry and an assessment of the battery metals grade capacity of the ore by leaching manganese oxides.

Long-term plans include further exploration drilling to enable further resource upgrades, project economics to back the case for building the project, a mine plan that converts more areas to mining licence areas and multiple uses for its critical mineral, manganese.

The company hopes to sell into both the steel and battery metals industry.

How much is Rolek Resources raising?

Rolek has targeted a $5 million capital raising by offering 250 million shares priced at 2 cents each in a public offer being led by DJ Carmichael.

The company has set a two-year budget for cash spending if it raises the full $5 million.

This would involve spending $1.32 million at Barramine in year 1 and $1.134 million in year 2.

Five other exploration projects would get a collective $580,000 over the two years.

These projects are: Mt Dockrell and Lamboo Beryl-Lithium-Tantalum-Nickel-Cobalt Project in the Kimberley region; Maroonah Beryl Project in Gascoyne region; Red Hill Well Lithium-Tantalum Project in Murchison region; Milly Milly Nickel-Cobalt Project, also in the Murchison; and Balla Yule Nickel-Cobalt Project in Pilbara region near Port Hedland.

Working capital would be $1.4 million while public offer costs would come in at $646,916, taking total spending to $5.1 million.

The closing date for the public offer is March 22 as the company aims to complete its acquisition on March 25 and issue securities the same day so shares may be traded by the end of March.

Inflection points

- Capital raising of an amount suitable for advancing Rolek’s named projects, before the late March ASX deadline date

- Successful acquisition of Rolek, Rolbar and the mineral exploration licence E45/4368 deed, to support exploration at Barramine project, by about March 25

- Future acquisition of E45/4368 for the Barramine asset portfolio

- Manganese industry sentiment during exploration, feasibility study work and development decision periods

- Funding for appropriate feasibility study work

- Offtake interest in Barramine manganese and funding for project construction

- Progression, acquisition or divestment of other projects Rolek plans to explore in the beryl-lithium-tantalum-nickel-cobalt space

Incoming director Ian Stuart confident of manganese project value

“The Barramine Manganese Project is unique in that it’s had a lot of work done on it previously, some $7 million worth of drilling, over 300 holes, and a very solid comprehensive body of geological work,” proposed Rolek executive director Ian Stuart told Proactive Investors last October.

“It’s a near-term production opportunity for us.

“Manganese is a vital component in steelmaking and the price is always underpinned by steel — the market grows about 2% year-on-year — (however) increasingly it’s being used more and more as a component in cathode material in the battery space.”

 

Quick facts: Rolek Resources Ltd

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Market: ASX
Market Cap: £0.00
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