Thomson Resources - Quarterly Activities Report for June 2024
TMZ (TMZ) Share Update July 2024 Monday 29th
Thomson Resources Provides Quarterly Activities Update
Thomson Resources Ltd (ASX: TMZ) has released its quarterly activities report for the period ending 30 June 2024, detailing significant progress in exploration and corporate strategies.
Instant Summary:
- Continued planning for resource definition and expansion drilling at Webbs and Conrad Silver Projects.
- Exploration program planning across the Lachlan Fold Belt Gold Project, with Harry Smith gold prospect as a high priority.
- Resolution of outstanding issues with the Texas project.
- Renewal applications lodged for two Lachlan Fold Belt exploration licenses.
- Option agreement for the sale of EL8163 (Wilga Downs).
- Strategic review of current projects and planning for a capital raise.
- Exploration expenditure for the quarter totaled $172k.
- Cash at the end of the quarter was $4k.
- Change of registered office to 63 Sinclair Street, Wollstonecraft NSW 2065, saving ~$13,000 annually.
- 976,203,718 fully paid ordinary shares on issue.
Exploration Activities
Thomson Resources continued its exploration efforts in the New England Fold Belt and Lachlan Fold Belt regions. The company is planning resource definition and expansion drilling at its 100% owned Webbs and Conrad Silver Projects. In the Lachlan Fold Belt, exploration program planning is ongoing, with the Harry Smith gold prospect being a high priority focus.
Corporate Developments
During the quarter, the company's primary focus was resolving outstanding issues with the Texas project, mainly concerning the previous operator's actions from May 2023 to January 2024. Renewal applications were lodged for two Lachlan Fold Belt exploration licenses: EL9187 (Kildary) and EL9208 (Buddigower). Additionally, a private party entered into an option to purchase Thomson's EL8163 (Wilga Downs), which has potential for a Tritton-type volcanic hosted massive sulphide deposit.
Financial and Strategic Moves
The company is conducting a strategic review of all current projects and assessing new projects while planning a capital raise to recommence active exploration activity and trading on the ASX. Discussions regarding the capital raise are in advanced stages, with an announcement expected shortly. Exploration expenditure for the quarter totaled $172k, and cash at the end of the quarter was $4k. The company also changed its registered office to 63 Sinclair Street, Wollstonecraft NSW 2065, resulting in an annual cost saving of approximately $13,000. Thomson currently has 976,203,718 fully paid ordinary shares on issue.
The ongoing exploration activities and strategic corporate moves indicate Thomson Resources' commitment to advancing its projects and resolving operational issues. The planned capital raise could provide the necessary funds to continue exploration and potentially increase the company's valuation. However, the current low cash reserves and the need for additional funding may pose risks to investor confidence in the short term.
Investor Reaction:
Investors and analysts are closely monitoring Thomson Resources' progress with the capital raise and resolution of the Texas project issues. The company's proactive approach to exploration and strategic planning is seen as a positive step, but the low cash reserves remain a concern for some investors.
Conclusion:
Investors should keep an eye on Thomson Resources' upcoming announcements regarding the capital raise and further developments in their exploration projects. The company's ability to secure funding and successfully advance its projects will be crucial for its future growth and investor confidence.