GGE to acquire US Antimony project - Trump announces US$12BN critical minerals stockpile
Our micro cap Investment Grand Gulf Energy (ASX: GGE) just acquired a US critical minerals asset…
Around 12 hours after the Trump administration announced a US$12BN (~A$17BN) was being put toward building critical mineral stockpiles.
This is to ensure no shortages of these amidst ongoing tension with China, which currently has a monopoly on the production of these.
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GGE’s new project (The Dry Wash Antimony Project) is in Utah - next door to projects owned by ASX listed American Tungsten and Antimony (AT4) and Red Mountain (RMX).
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Based on initial data GGE has confirmed antimony (stibnite) mineralisation on the project - GGE’s theory is that northerly extensions of the Antimony Canyon system could be running into its ground:
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Fingers crossed, GGE can find similar results to the ones coming up in its neighbours ground - including channel samples up to 1.5m @ 33.2% Sb and recent drilling that intersected 19m of massive to semi-massive stibnite.
Though, we do note its very early days for GGE on this project.
GGE is picking up the asset via an “Option to Lease Agreement” with the Utah School and Institutional Trust Lands Administration (SITLA), who GGE have dealt with before.
Basically, GGE is paying ~US$25k per year to test the assets for the next five years.
Here are the terms of the acquisition:
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What’s next for GGE?
US critical minerals project
Next, we want to see GGE rank some drill targets on its ground through some sampling and targeted geophysical surveys planned for this year.
We also noticed GGE announced a $500k placement today at 0.2c per share which should give GGE enough of a cash runway to at least get the geophysical surveys started.
Offshore oil and gas asset
We are still waiting for GGE to convert its offshore oil and gas lease application into a granted license.
While sentiment is fairly negative for offshore oil and gas right now, we think that eventually sentiment will turn and the market could start to appreciate the location of GGE’s asset - offshore in Namibia…
Check out our deep dive note on that asset where we explain:
