Azzet reports on four ASX stocks with market-moving updates to share today.
Strike Energy/Carnarvon Energy both fall following corporate activity
Shares in Strike Energy (ASX: STX) were down around 15% at the open after the small cap energy company announced plans to offload 19.9% of the company to rival oil and gas small-cap Carnarvon Energy (ASX: CVN) which remained in a trading halt this morning.
Both stocks were in a trading halt prior to today’s not unexpected update.
Strike’s $89 million investment in Carnarvon will be done via a two-tranche equity placement.
The first tranche will see Strike raise around $52 million by issuing new shares to Carnarvon at a price of $0.12 each, a 19.7% discount to the 10-day volume-weighted average price of about $0.15.
Settlement of tranche one is expected on 29 July.
Subject to Strike shareholder approval on 11 September 2025, $34 million and $36 million will then be raised through the issue of Strike shares to Carnarvon.
It’s understood that eligible shareholders will be able to apply for an additional $30,000 worth of shares each.
Strike has already flagged plans to use sale proceeds to expand its exploration and gas power generation.
In addition to building a gas power station at its South Erregulla gas field in the onshore Perth Basin, Strike is also looking to accelerate its West Erregulla gas project with Gina Rinehart’s Hancock Energy.
As a result of the funding provided by Carnarvon, coupled with other available funding sources, Strike will be fully funded for:
Delivery of the South Erregulla 85 MW gas-fired peaking power station by October 2026.
The planned life extension of the Walyering domestic gas project.
Progressing toward FID on the West Erregulla gas project.
Maturation of an attractive portfolio of Perth Basin development and exploration opportunities such as Ocean Hill.
Meanwhile, with no movement in sight from Santos to proceed with their delayed Dorado oil and gas project, Carnarvon has chosen to deploy some of its $186 million war chest to take a strategic stake in Strike rather than risk being forced to hand it back to shareholders.
While Carnarvon is a minority staked in by Santos in the undeveloped fields of Dorado and Pavo - which together hold more than 200 million barrels of oil and gas – the latter does not appear to be in any hurry to press the button on the Dorado development.
Following the Strike investment, Carnarvon will retain its balance sheet strength, with at least $96 million in cash plus the US$90 million CPC Dorado carry.
Commenting on today’s market update, Carnarvon Chair, Rob Black told the market that the Strike investment represents an attractive opportunity for the company to help Strike unlock the value in its high-quality portfolio of Perth Basin assets on attractive terms, while retaining full exposure to its own assets in the Bedout Sub-basin.
Strike Energy has a market cap of $387 million; the share price is down 34% in one year and down 12% in the last week.
The stock’s shares appear to be weak with little demand from investors.
Consensus is Moderate Buy.
Carnarvon Energy has a market cap of $201 million; the share price is down 30% in one year and down 6% in the last month.
The stock’s shares appear to be on a strong near-term rally within a longer-term bearish trend.
Consensus is Moderate Buy.
Perseus Mining rises on encouraging drilling results
Shares in Perseus Mining (ASX/TSX: PRU) were trading around 4% higher heading into lunch after the large cap gold miner reported highly encouraging results from its ongoing resource definition drilling at the Nyanzaga Gold Project in Tanzania, following its final investment decision (FID) in April 2025.
Over 58,000m of drilling has been completed since acquiring the project, with standout intersections including 23m @ 20.87g/t Au, 84m @ 3.24g/t, and 54m @ 9.69g/t.
Many high-grade results are located below the current pit design, supporting the potential for deeper mineralisation and possibly future underground mining.
Current mineral resources stand at 3.2Moz Au (Indicated) and 0.6Moz Au (Inferred), with 2.34Moz in Ore Reserves.
An updated Ore Reserve is expected in Q1 2026.
Commenting on today’s update, CEO Jeff Quartermaine told the market that today’s drill results have resulted from this second phase of drilling and reinforce the company’s confidence to expand Nyanzaga’s Mineral Resources and Reserves and as a result, potentially extend the life of the mine beyond the currently predicted Phase 1 of 11 years.
“Of particular interest to us are the excellent drill results that have been achieved as part of the current drill program at depths below the bottom of the currently envisaged large open pit,” said Quartermaine.
“While more drilling is required to confirm extensions of mineralisation at depth, the early indications suggest further exploitation of the mineralisation, including the potential for application of UG mining methods, may be possible resulting in even a further extension of the mine life.”
Perseus Mining has a market cap of $4.9 billion; the share price is up 38% in one year and up 43% year-to-date.
The stock appears to be in a long-term uptrend because its 200-day moving average is upward-sloping and shows that there has been overall investor demand. Consensus is Moderate Buy.
The stock is currently trading at $3.675.
Dreadnought Resources leaps after uncovering major gold anomaly
Shares in Dreadnought Resources (ASX: DRE) were up over 9% at noon after the Perth-based small cap miner identified a major gold-in-soil anomaly at its Steve’s Reward prospect within its 100%-owned Mangaroon project in WA, measuring over 2,600 metres by 600 metres.
This anomaly includes a peak soil result of 770ppb Au and remains open along strike.
Marking one of the largest anomalies at Mangaroon to date, this anomaly could potentially lead to a major gold discovery, enhancing the company’s exploration strategy and positioning in the gold mining sector.
RC drilling is already underway, with assays pending from both Steve’s Reward and nearby targets including Inevitable, Popeye, and Star of Mangaroon.
Earlier rock chip assays returned results as high as 155.5g/t Au.
The company is targeting shallow, high-grade deposits to feed an open-pit mine at Star of Mangaroon under a self-funded strategy, supported by high metallurgical recoveries (96.7%).
Further assays are due across July to September, with additional updates expected from the Noosa and Diggers & Dealers conferences.
Commenting on today’s update, Dreadnought’s managing director, Dean Tuck told the market that exploring for the next major gold discovery at Mangaroon is a key pillar of the Finding More Gold, Faster strategy.
“As part of that, target generation and definition work like surface geochemical surveys are critical to building compelling drill targets,” Tuck said.
“The drill programs at Steve’s Reward currently underway are the first to focus on discoveries. We are excited by the scale and grade of these gold-in-soil anomalies at Steve’s Reward and eagerly await assays from the recent lode drilling there.”
Within the quarterly activities report for 30 June, the miner had strengthened its balance sheet, securing substantial funding for advancing Mangaroon and Illaara:
- $8.5 million capital raise with Tranche 1 completed for $6.1 million and Tranche 2 completed for $2.4 million.
- With $10.2 million in cash the company is well positioned to develop the high-grade Star of Mangaroon.
Dreadnought Resources has a market cap of $60 million; the share price is down 45% in one year and up 33% in the last month.
The stock’s shares appear to be in a strong near-term rally within a longer-term bearish trend.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
