5 ASX resources small caps that have bought new projects recently

The dream of all ASX resources small caps is find the next big mine and bring it into production. This is a journey a handful of companies have made, but one that most fail at. But you have to be hopeful and have to start somewhere. And it all starts with picking up a project.

We thought we’d recap a few companies that have taken what could be the first step on that journey of a thousand miles.

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5 ASX resources small caps that have bought new projects recently

Alderan Resources (ASX:AL8)

Alderan has been around since 2017 and has focused on projects in the US state of Utah. But after a lack of success there, the company told shareholders last week that it was buying seven lithium projects in Brazil’s Eastern Lithium Belt in the state of Minas Gerais state. There’s plenty of lithium in that precinct, with companies present there ranging from Sigma Lithium (NDQ:SGML) to Latin Resources’ (ASX:LRS) Salinas Project.

Alderan’s projects cover 472 square kms and consist of 24 exploration licenses. The company plans on beginning exploration activities before this year is out and that there was plenty of historical data to suggest there was potential to find something. It is important to note that the deal is subject to shareholder approval at a vote in November.

Bubalus Resources (ASX:BUS)

A bit closer to home now, Bubalus Resources bought tenements prospective for lithium mineralisation in the Gascoyne Region of WA. The project, named Yinnietharra, lies just 2km east of the Malinda Prospect owned by Delta Lithium. The company intends to commence a surface sampling program in late September to identify drilling targets.

Bubalus has only been listed for a year, but had little drilling success like Alderan. Bubalus’ projects lie in the NT but are impacted by the wet seasons. So this gives shareholders something to look forward to.

Trek Metals (ASX:TKM) 

Moving on from lithium to niobium here, Trek Metals opened the month of October by purchasing an 80% interest in an Exploration License Application in WA’s West Arunta Critical Minerals Province, that lies near the NT border close to Kiwirrkurra. This is along strike from WA1 Resources’ (ASX:WA1) high-grade Luni niobium-carbonatite discovery. The best news is that there is no upfront cost payable, it is free-carried through to the Definitive Feasibility Study (DFS) stage.

We can’t blame investors for not knowing about niobium. But it is an important metal in high-tech industries, including the aerospace, automotive and electronics sectors. For instance, it plays a pivotal role in the production of superalloys used in jet engines and rocket propulsion systems. This is because of its unique properties that enable the strength and heat resistance of alloys.

Galan Lithium (ASX:GLN)/Redstone Resources (ASX:RDS)

The first of these stocks is a company that is much further down the track – its Hombre Muerto West project in Argentina is set to commence production in the first half of 2025. However, the company is hedging its bets by entering into a JV agreement with Redstone Resources to buy 100% of three projects in the heart of the James Bay lithium projects. This is right nearby Patriot Battery Metals’ (ASX:PMT) discovery.

The companies also secured an option to acquire 100% of a project in Ontario’s Electric Avenue that is adjacent to Frontier Lithium’s (TSX.v:FL) project that has North America’s highest-grade lithium resource.

The second of these companies is a penny stock that has previously had projects in WA. But teaming up with an experienced explorer and developer like Galan Lithium is a good sign that better times might be ahead.

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