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- Force Commodities (4CE) has provided an uneventful activities report for the last six months
- In the December quarter, Force completed a 26 hole drilling program at Small Canyon within its Tshimpala Project in Malawi
- While the company remains hopeful, this drilling returned disappointing results
- Force also holds interests in the Halls Peak-Gibson, Kitotolo-Katamba and Kanuka Projects however no exploration was conducted
- While not clearly stated, this could be due to its financial position and reliance on debt funding
- The company relied on a placement last quarter and debt funding to keep it afloat
- Furthermore it ended the March quarter with just $117,000 cash on hand – still a significant climb from a mere $9,000 last December
- Force Commodities’ shares are suspended and last traded for 1.2 cents each in mid January
Force Commodities (4CE) has provided a fairly uneventful activities report for the last six months.
The company holds a majority 51 per cent interest in the Tshimpala Project in Malawi which is currently Force’s main focus. Despite this however, Force hasn’t complete any exploration work at the project since the December 2019 quarter.
In its December 2019 activities report, which was also released today, Force Commodities completed a reverse circulation (RC) drilling program at Small Canyon. Drilling included 26 holes for 742 metres.
Unfortunately, the assay results achieved “unsatisfactory” results with the best intercept being 4 metres at 300 parts per million lead from a 40 metre depth. Despite this, Force still considers the nearby Grand Canyon prospect to be prospective.
Force Commodities holds a majority interest in its wholly-owned, highly prospective Halls Peak-Gibson Project located in the New England area of northern New South Wales.
Halls Peak-Gibson includes granted Exploration Licenses EL 4474 and EL 7679. Force is the 100 per cent owner of EL 4474, while EL 7679 is held by Force’s 55 per cent-owned subsidiary, Sugec Resources.
No work was completed on this project during the reporting period.
The company has interests in the Kitotolo-Katamba and Kanuka projects, which are both located in the Tanganyika Province of the Democratic Republic of Congo.
The Kitotolo-Katamba Project is located southwest of ASX listed-AVZ Minerals’ Manono Lithium Project.
The company didn’t conduct any exploration during this period but will continue discussions with its joint venture partner to determine how best to advance the project.
The Kanuka Project area comprises mining lease PE13082 and exploration license PR4100. These licenses cover an area of about 194 square kilometres and are located 20 kilometres east of Force’s Kitotolo Lithium Project.
Again, Force did not complete any exploration at Kanuka.
At the end of the March quarter, Force had just $117,000 in cash. This however is an increase from the mere $9,000 it ended the December quarter with.
As reported in the December quarter, Force entered into a convertible note agreement with Global Opportunities which provided funding of $250,000.
During this March quarter, Force fully paid out the cash component including a principal interest, fee and payment of $50,000 in lieu of shares. The balance of the fees remains payable through the issue of 2.5 million FPO listed shares and 3 million options with an exercise price of $0.02 and an expiry of June 30 2020.
In November 2019, Force announced a loan facility Briggs and Macadam for $2.5 million but the company failed to complete due diligence and formal documentation.
The company did however receive loans totalling $400,000 from major shareholder and director Jihad Malaeb. The company will pay a 10 per cent interest on the loan per year.
Force Commodities’ shares are suspended and last traded for 1.2 cents each in mid January 2020.
