Fin Resources Limited is gearing up for a key geophysical survey at its McKenzie Springs copper-nickel-cobalt project while securing $445,000 in funding through convertible notes amid challenging market conditions.
- Upcoming Fixed Loop Electromagnetic (FLEM) survey at McKenzie Springs
- Convertible notes raise $445,000 to support project funding
- Limited exploration on Cancet West Lithium and Ross Lithium and Uranium projects
- Continued cost reduction and cash preservation efforts
- Plans to issue shares in lieu of cash for board and consultant fees
Exploration Momentum at McKenzie Springs
Fin Resources Limited (ASX – FIN) has announced the commissioning of a Fixed Loop Electromagnetic (FLEM) survey at its McKenzie Springs copper-nickel-cobalt project in Western Australia. Scheduled to commence in mid-August and conclude by the end of the month, this geophysical survey aims to pinpoint new drilling targets following promising rock chip sampling that revealed visible copper mineralisation.
The McKenzie Springs project, located approximately 85 kilometres north of Halls Creek, is a joint venture with Fin Resources holding 70% and Cazaly Resources Limited 30%. The upcoming survey will be funded proportionally to these interests, underscoring the company’s commitment to advancing exploration despite prevailing market headwinds.
Financial Position and Funding Strategy
During the June quarter, Fin Resources raised $445,000 through the issue of convertible notes, a move approved by shareholders earlier in the year. This injection bolsters the company’s cash position, which stood at $647,000 at quarter-end, providing essential working capital for ongoing project activities and corporate costs.
Cost discipline remains a priority, with the company maintaining initiatives introduced in 2024 to extend its financial runway. Administrative and corporate expenses were modest at $62,000 for the quarter, reflecting a lean operational approach amid challenging commodity and financial markets.
Exploration Activity and Market Conditions
Exploration work on the Cancet West Lithium and Ross Lithium and Uranium projects was limited during the quarter, a direct consequence of constrained funding and subdued market sentiment. Nevertheless, Fin Resources continues to safeguard its core tenements and actively evaluates new opportunities that could complement its existing portfolio and enhance shareholder value when market conditions improve.
Looking ahead, the company plans to seek shareholder approval at its upcoming Annual General Meeting to issue fully paid ordinary shares in lieu of cash payments for board and technical consultant fees, a strategy aimed at conserving cash while aligning interests with shareholders.
Outlook and Strategic Focus
Fin Resources’ approach reflects a cautious but proactive stance in a volatile market. The imminent FLEM survey results at McKenzie Springs will be a critical catalyst, potentially unlocking new drilling targets and advancing the project’s development. Concurrently, the company’s funding strategy and cost management efforts position it to navigate current challenges while remaining poised for growth opportunities.
Bottom Line?
Fin Resources’ upcoming survey and funding moves set the stage for potential exploration breakthroughs amid a cautious market backdrop.
Questions in the middle?
- What will the FLEM survey results reveal about McKenzie Springs’ drilling potential?
- How successful will Fin Resources be in securing additional strategic equity investment?
- Will the share issuance in lieu of fees gain shareholder support and how might it impact share value?