- Metals explorer Alderan Resources listed on the ASX in 2017
- The company closed its first day of trading at $0.47 per share
- Within months the share price hit an all-time high of $2.18
Alderan Resources joined the ASX with four prospective copper/gold assets in Utah in the US, with the flagship at the Frisco Project.
Alderan delighted investors with an early announcement of a drilling program at Frisco, followed within a month by the news the company was expanding the project.
Positive drilling news at Frisco and other projects led to an ASX speeding ticket on 26th June, with a later ticket questioning Alderan’s ability to continue given its cash flow burn, starting the company’s plunge into sub-penny status.
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On 4th June this year, investors were disappointed at the news on the ASX website that a US subsidiary of Rio Tinto (ASX: RIO) was exiting a previous options agreement with Alderan for the exploration of the company’s Frisco Project.
On 14th September, euphoria returned as Alderan management announced via the ASX a significant move into Brazil’s lithium triangle by acquiring 100% ownership of seven assets from privately held Parabolic Lithium.
The seven project areas include 24 granted exploration licenses in the region prospective for spodumene deposits. The news sent the share price back into penny status.
An analyst at Peak Asset Management has a BUY recommendation on Alderan based on the scope of the project area and the confirmed presence of spodumene. According to the analyst, post-acquisition, Alderan will become “one of the biggest landholders in the highly prospective region.”
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