Shares of Bradda Head Holdings (BHL) pushed up another 5% to end the session up nearly 3p from the initial support on Monday near 5p. Yesterday the North America-focused lithium development group updated the market on drilling at the Company's Burro Creek East asset in Western Arizona. The company said its fast-track programme has been designed to twin five existing holes and drill five new holes to target resource extension, with diamond core drilling set to test the extent and thickness of the clay towards the northwest of the lithium resource. The drilling is targeting an increase in both resource size and grade. So far 141 metres have been drilled of a planned 991 metres, and the first set of results are expected in Q3 2021.
The duality of the stock market was illustrated once again by the latest share price rise from Uru Metals (URU) where the shares were up 36%, but no explanatory RNS was forthcoming during the session. In fact, the company did release a “speeding ticket” RNS in May saying that it “notes the recent rise in the Company's share price and the Board confirms that it is not aware of any specific reason for this increase.” Of course, this can mean that there is something to justify the stock rising, but the company has not been told about it yet, or that there is indeed, nothing going on. It will be interesting to see whether on this occasion smoke leads to fire.
Monday’s sell off in the market saw many a small cap investor throw their toys and indeed their stocks out of the pram. The result of this is that not only has the stock market rebounded well, some stocks which were on the quiet side before the capitulation have sprung to life. A stand out sub sector of minnows which have started to rebound include the small cap markets contingent of Australia focused mining / investment companies. They include Empire Metals (EEE), Gunsynd (GUN), Oracle Power (ORCP) and Wishbone Gold (WSBN). Other jurisdictions have also joined the party on the metals revival, in the form of Bezant Resources (BZT) and Jubilee Metals (JLP), both of which hail from Africa.
For some reason investment company Vela Technologies (VELA) seems to have an uncanny knack of successfully goal hanging some of the best early bird opportunities in the small cap space. It is perhaps a shame that this skill has not yet been fully rewarded by the stock market in terms of its valuation. Nevertheless, Vela said it is investing £750,000 coding training software group Northcoders (CODE), which is floating on AIM on July 27. The IPO funding round for Northcoders has raised £3.5m, with Vela a cornerstone investor alongside Amati Global Investors.