At Turner Pope Investments, we are committed to proving quality research to our Corporate Clients which is MiFID II compliant and disseminated to our database of Retail, Professional, Family Offices and Institutions.
Turner Pope Investments takes a holistic view to service provision and our research plays a central and vital part within it. Although the investment world is rapidly changing (as for example, the influence of social media), this further enhances the need for widely distributable quality research. We provide marketing communications, which are pertinent to the widest possible audience, on a regular basis, keeping companies ‘on the radar’ and front of mind with investors across the board.
We have analyst coverage across a variety of sectors including Technology, Healthcare, Oil & Gas and Mining. We also have full institutional coverage, including access to major UK based Fund Managers as well as servicing a selection of Family Offices and High Net Worth Individuals.
Please be aware that any research displayed on this page is posted one month in arrears. If you would like to benefit from these insightful reports as they are distributed to our clients, please click below and complete the contact form so we can add you to our research distribution list.
The COVID-19 Pandemic, has brought the need for disinfection and hygiene products & services in to sharp focus. But demand for such services goes much wider than COVID-19. Pre-lockdown hospital acquired infection, for example amounted to 48,000 cases in 2017. the heightened application of disinfection and hygiene products & services witnessed over the past two years is therefore likely to be sustained or even expanded going forward. Recognising the scale of the international opportunity being presented within this highly fragmented sector, together with the need for increasingly sophisticated/simple-to-use technologies, IIG has announced its acquisition of the entire share capital of Touchless Innovations Limited (‘TI’). Immediately prior to this corporate action, TI acquired the business and assets of Sanoserv International Franchising Limited (‘Sanoserv’).
DeepVerge’s consumer skin test subsidiary brand, Skin Trust Club, has announced further significant growth of its platform. Since mid-January, 10 leading skincare manufacturers have enlisted on the Skin Trust App marketplace to sell their skincare product catalogues, including Tula, a recently acquired brand of Procter & Gamble. With a total of 23 Labskin clients requesting to have their products tested in just the past four months, the Club’s full partners list can be expected to continue to expand throughout 2022. Moreover, given that an exceptional 82% of registered Club members (>1,500) who received Home Test Kit results since the marketplace opened subsequently purchased ‘high ticket’ recommended skincare products via the Skin Trust Club App, which realistically can be expected to enjoy a wholesale margin similar to, for example, the 48% enjoyed by leading health & beauty retailer, Boots UK Limited, the long-term value of the recurring revenue streams generated through this unique service could become very significant.
Orosur has announced its signing of an Exploration & Joint Venture agreement (‘the Agreement’) with shareholders of a private Argentinean company, Deseado Dorado S.A.S., (‘Deseado’) in relation to its El Pantano Gold Project (‘the Project’) in the Province of Santa Cruz, southern Argentina. The Agreement covers nine licences over a combined 607sq.km in the prolific Deseado Massif region, c.45km from Anglo Gold’s Cerro Vanguardia mining camp. With no upfront payments, a low commitment for the first phase, and a low-cost path to 100% ownership, El Pantano provides Orosur with a substantial foothold in one of the world’s major gold provinces. Given that the soon to be completed hand-over of Orosur’s Colombian Anzá Project’s operatorship will free up technical and logistical capacity along with support from a balance sheet that presently holds free cash of c.US$5m, near-term exploration of this new high-potential, early-stage JV is to be internally resourced.
Alien has successfully intersected bonanza-grade silver mineralisation at its Elizabeth Hill Project (‘the Project’) in Western Australia. Results from the 4 diamond drill holes completed to date list amongst the highest of any Australian silver project, with initial assay results supporting the management’s long-held view that the near-surface oxide expression of the deposit was never fully tested, nor its potential fully explored for both the silver and the base metals present. The large number of results from the remaining RC drill holes, due in the coming weeks, can be expected to enable further interpretation combined with historic data in support of comprehensive follow-on work programmes capable of rapidly advancing what appears to be a very highly prospective mineralised system.
Zephyr Energy is placing at least 240 million new shares at a price of 5.0p per share to raise gross proceeds of £12m. In tandem with this, the company has also confirmed a US$28m senior debt facility. The combined proceeds will be used to complete the US$36m acquisition of a large portfolio of non-operated working interests in 228 wells located in the Williston Basin, North Dakota and also to fund further activities in the Paradox Basin. We believe that this transaction will be transformational for the Company, contributing anadditional 1,100 boepd net to the Company initially with output expected to increase steadily as more wells are brought on stream over the coming months.
Graft Polymer is active in a number of multi-billion dollar polymer modifier and drug delivery system markets which are expected to sustain strong annual growth for the foreseeable future. With an existing offering of more than fifty different products, the Group’s core expertise centres on a wide range of proprietary techniques that enable customers to achieve better performance characteristics at comparable or lower cost than available through competitors. Its abilities are particularly recognised in grafted, nano-structured and crosslinking polymer alloys along with a variety of delivery vehicles for pharma and biotechnology applications.
Midatech has announced an extension of the Q-Sphera R&D Collaboration (‘the Collaboration’) that was originally detailed on 21 July 2020, while also disclosing that the previously unnamed party is, in fact, Janssen Pharmaceutica NV (‘Janssen’), the Belgium-based pharmaceutical arm of the world’s largest and most broadly-based healthcare company, Johnson & Johnson (NYSE: JNJ).
Today’s news follows Midatech’s 17 June 2021 announcement that it had successfully encapsulated a proprietary Janssen experimental large molecule medicine while preserving its functional integrity. Considering no other commercial or academic organisation has been able to deliver any such experimental medicine over extended periods using methods capable of commercial scaling, Janssen’s decision to extend the Collaboration clearly reflects very positively on the potential of Q-Sphera’s technology in the delivery of active pharmaceutical ingredients (‘API’) via long acting injectables. Midatech will now focus on maximising drug loading and optimising in vitro duration of release while utilising the technology.
Following its entering a non-binding of Letter-of-Intent (‘LOI’) on 7 July 2021, Orosur has today announced its signing of a Joint Venture (‘JV’) agreement with Meridian Mining UK Societas (TSX-V: MNO) (Frankfurt: 2MM) (Tradegate: 2MM) (OTCQB: MRRDF) (‘Meridian’) in relation to its Ariquemes Tin Exploration Project (‘the Project’) in Brazil. The terms are consistent with those indicated in the LOI, whereby the Group can earn an equity interest of 75% in the Project by spending US$3m over a four-year period, in two phases. Given that the soon to be completed hand-over of Orosur’s Colombian Anzá Project’s operatorship will free up operational capacity with support from a balance sheet that presently holds free cash of c.US$5m, this new high-potential, early-stage JV provides management with opportunity to diversify shareholders’ interests by geography and geologically with a new and highly critical commodity.
DeepVerge has released a post-31 December 2021 year end trading update along with a statement detailing its outlook for the current year. Unaudited figures point to another year of triple digit percentage growth, taking revenues to £9.33m (2020: £4.48m – audited) on the back of higher margins and an increase in recurring revenues despite supply chain delays and reduced production staff due to COVID infection/isolation in the fourth quarter. With several substantial 2021 shipments plus a backlog of regular reagent supplies needing to be pushed into Q1 2022, continued expansion of order books across all divisions supported by an exceptionally strong balance sheet provides strong foundations for the current year.
Microsaic has provided an unaudited trading update for the year ended 31 December 2021 (‘FY21’). Confirming revenues for the period significantly exceeded those of the FY20, recovering to a level slightly ahead of that in FY19, CEO Glenn Tracey also noted that “If 2021 was about turnaround and transition, then 2022 is about significant business inflection”. This reflects his Board’s conviction that the Group’s transition to workflow solution sales will establish higher-level end-user engagement going forward, having already reported a healthy sales opportunities pipeline at the opening of the new year.
Graft Polymer, a business focused on the development of polymer modification, biological/food supplements and drug delivery systems, has today announced the Admission of its ordinary shares to trading on the Main Market of the London Stock Exchange and first day of dealings. A Placing and Subscription (‘the Placing’) of c.2.32 million new ordinary shares at 21.5p each raised approximately £5 million (gross) in order to fund expansion of the Group’s research and production facility, upgrade existing laboratories, accelerate growth and increase both inventory and marketing abilities. Upon Admission Graft Polymer’s market capitalisation will be approximately £22.4m. Turner Pope acted as Sole Broker in relation to the Group’s Placing and Admission.
Cora Gold is advancing the Sanankoro Gold Project, located in Southern Mali, towards production with construction anticipated to commence in 2022. The scale and economics of the potential mine are expected to be defined in a fully funded definitive feasibility study, which is already underway and is due for completion in H122. Given the recent 200% increase in the total JORC 2012 mineral resource estimate, to 809,300 ounces of gold, at a grade of 1.15g/t Au, it is likely that the definitive feasibility study economics will be a significant improvement on those published in the 2020 scoping study that returned a NPV8 of US$30.9 million (£23.3m) and an IRR of 84%.
Midatech has announced its Investigational New Drug (‘IND’) application for a Phase 1 study of MTX110, a panobinostat complex to be administered by convection enhanced delivery (‘CED’) in patients with recurrent glioblastoma multiforme (‘rGBM’), has been cleared by the US FDA. The Group has initiated preparations for a signal-finding study to commence in H1 2022 that could point the way to a new treatment paradigm for this intractable brain cancer. First data could be available as early as Q3/Q4 2022. With the Group’s monthly cash burn now reduced to c.£0.5 million and having successfully raised £10 million (gross) through a UK equity placing on 29 June 2021, its Board expects to have sufficient cash resources to fund operations into the first quarter of 2023.
DeepVerge has announced its proposed Q1 2022 launch of compact Microtox® PD surveillance units. This upgraded system significantly expands surveillance capabilities into smaller communities and/or facilities/locations where larger groups of people routinely gather, thereby extending the reach of real-time national pandemic response to local community level. By accelerating its product evolution beyond just the monitoring large populations through fixed semi-permanent installations, the Group now seeks to capture the technology’s true global potential through development of smaller, mobile and mass producible designs that enable Microtox® PD to become a standard part of home or office utility.
After 23 days of production testing of the State 16-2LN-CC well located on Zephyr’s Paradox Basin project in Utah, the company notes that the well has demonstrated stronger than expected production potential coupled with the capacity to drain a considerably larger hydrocarbon resource than expected at the pre-drill stage. The company is now proceeding with plans to equip the well and facilitate the sale of gas and liquids in the near future. The Directors believe the well could provide significant shareholder returns with not only a high liquids content but also substantial gas production and optionality on how it will be monetised.
IIG yesterday released its final results for the period from 11 June 2020 (its date of incorporation) to 30 September 2021. This inaugural report reflects a period of substantial progress during which it successfully executed on the plan outlined at flotation, generating substantial growth across a portfolio of fast growing and high potential life sciences investee companies. Investment in both quoted and unquoted companies commenced with the Group’s AIM Admission on 14 December 2020, following which it delivered a 10% increase in the Group’s Net Asset Value (‘NAV’) during its first 9.5 months of activity. The opening weeks of the new financial year saw the successful AIM flotation of Light Science Technologies Holdings plc (AIM:LST), which subsequently delivered an unrealised 2.9x return-on-investment (‘ROI’), contributing to a 19% increase in NAV over the first c.11.5 months of activity to 30 November 2021.
In anticipation of a sharp ramp-up in operational activities during 2022, MGC has today announced its successful raising of £5.5m (gross) new funding through an equity placing priced at 2p/share that was subscribed by a mix of new and existing shareholders. Added to the AUD$4.2m cash-at-bank held at the end of September 2021, along with access to an additional AUD$9.25m undrawn from its AUD$15m facility with Mercer Street Opportunity Fund LLC, the Group now appears to be well resourced to accelerate a number of key and timely projects. These include its Phase III Clinical Trial for CimetrA™, in tandem with securing Good Manufacturing Process (‘GMP’) accreditation for its new Maltese facility with the aim of commencing the drug’s first scale production in mid-2022, given potential for both Emergency Use Authorisation in India and fast-track approval in the US.
Alien has entered into a Binding Heads of Agreement (the ‘Agreement’) with ASX listed Platina Resources Limited (ASX: PGM) (‘PGM’) to acquire its 30% joint venture (‘JV’) interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia (‘the Project’). Covering four granted Mining Leases and one Exploration Lease over a combined 75.9 km2, Artemis Resources Limited (ARV:ASX) (‘ARV’),the JV’s Project operator, holds remaining 70%. Hosting what is generally considered to be one of Australia’s largest platinum group elements (‘PGE’) deposits and having seen more than AUD$20m spent on it over the past two decades, Alien’s Board consider there is significant potential to rapidly update feasibility and development planning of this exciting palladium dominant opportunity.
Zephyr Energy has entered into a binding agreement to acquire a large portfolio of working interests in 228 wells, of which 163 are already producing, from Kaiser Acquisition and Development – Sanish Non-op LLC for a consideration of US$36m. This deal is forecasted to be highly accretive as well as non-dilutive for shareholders and following the payment of a non-refundable deposit of US$3.0m, the balance is expected to be funded through a structured debt facility. We believe that this transaction will be transformational for Zephyr, contributing an initial 871 boepd of production to the company upon the anticipated closing date of 22 December 2021.
Cora Gold has completed a substantial upgrade to its mineral resource estimate for the Sanankoro Gold Project, located in Southern Mali, which is likely to feed into the upcoming definitive feasibility study. The new total JORC 2012 mineral resource estimate has increased the gold inventory by over 200% to 809,300 ounces of gold, at a grade of 1.15g/t Au. Importantly, not only is this resource estimate pit constrained, over 77% is located with the oxide zone and 22% in the transition zone (Figure 1), and recoveries have previously been shown to be above 95%, making the gold mineralisation open-pittable, free-digging with high-recoveries.
After two weeks of flow testing on highly restricted chokes, the State 16-2LN-CC well is demonstrating highly encouraging average daily facility-constrained hydrocarbon flow rates of 420 boepd with hourly peaks in excess of 690 boepd when chokes are reduced slightly. With further results to be determined as completion fluid continues to be recovered and facility constraints are addressed, indications are that State 16-2LN-CC is a highly successful and commercial ‘proof of concept’ well in the Cane Creek reservoir.
Orosur has provided an update on its Anzá Project in Colombia (‘the Project’). Assays from five additional holes that were drilled primarily for geological and stratigraphic reasons, demonstrated a high level of consistency with further intersections of thick anomalous zones of mineralisation. Coming shortly after the Board confirmed much anticipated news that its Colombian Joint Venture (‘JV’) partner, Minera Monte Águila SAS (‘Monte Águila’), had elected to exercise its right to assume operatorship of the Project, today’s news is a useful reminder of the scale of the regional opportunity seen by two of the world’s largest gold miners.
The global megatrends of increasing water scarcity, unabated climate change, heightening population and relentless urbanisation are accelerating the international reduction in stock of arable-grade land per capita. Such circumstances are seen not only to prospectively undermine the world’s traditional farming model, but also heighten food insecurity for the worst affected countries/regions, whose governments also increasingly recognise their populations’ vulnerability to a potential breakdown of international supply chains, as was recently exemplified during the worldwide Pandemic.
In a potential landmark announcement, the Irish Government has today become the first to fully publicly endorse DeepVerge’s COVID-19 Microtox® PD technology. This follows extensive due diligence and numerous site visits as part of a detailed verification process. Recognising that a number of the original non-disclosure agreements (‘NDAs’) that DeepVerge entered with international government agencies (including the UK and European/Asian countries) are now also starting to fall away, other similar endorsements might be expected to follow shortly.
DeepVerge has today announced a significant further step toward it becoming a key supplier to a national long-term COVID early-warning solution. Being part of an as yet unnamed government’s COVID Infrastructural Trial, DeepVerge has today received orders amounting to £480,000 for its newly enhanced monitoring equipment. This multiplex development trial, which will facilitate automated real-time and remote wastewater monitoring and pathogen detection, is expected to last until the end of February 2022, during which time the Group will continue to collect ongoing servicing/consultancy fees.
Further to detailing in Interims published on 30 March 2021 that it was at an advanced stage of negotiations with a strategic investor to assist the Group with its next stage of development, Ironveld has today announced a proposed major new investment by Grosvenor Resources Pty Limited (‘Grosvenor’). Conditional only on shareholder approval, Grosvenor will subscribe £5.6 million for 5,615 million new shares in Ironveld at 1.0p per share (the ‘Fundraising’), representing 29.9% of the enlarged issued share capital at a premium of 90.5% to the mid-market price on 29 March 2021, being the last trading day prior to the disclosure that was in discussions that might lead to a material transaction.
News updates from both DeepVerge and Microsaic have been released this morning. Modern Water, a division of DeepVerge, announced a total of £2.2m of new orders for its enhanced monitoring equipment, including a contribution from Microsaic mass spectrometer products for monitoring ‘forever chemicals’ and contaminants of emerging concern. Following a recent software upgrade, second-generation real-time pandemic response units with fully integrated facilities for SARS-CoV-2 detection are being shipped to the UK, India and China in order to meet customer and partner obligations for delivery in this financial year.
Following September’s publication of a much-anticipated maiden iron ore resource estimate (‘MRE) in excess of 10Mt Direct Shipping Ore (‘DSO’) on its Hancock Iron Ore Project (‘the Project’) in the Pilbara region of Western Australia, Alien has today released the results of an initial independent scoping study (‘the Scoping Study’). Optimisations completed using an iron ore price of US$100/tonne (compared with a current spot price of US$123.4/tonne for Fine China Import 62% Fe grade), resulted in the design pits extracting all of the initial JORC resources identified to date (10.4Mt @ 60.4% Fe) over an estimated 8-year with Life of Mine (‘LOM’).
Further to the Heads-of-Terms announced on 9 August 2021, Microsaic has confirmed its signing of an agreement (‘the Agreement’) with Jiangsu Henzhihe Technologies Co. Ltd. (‘HZH’), to provide services including product manufacturing, integration and operation of a service centre in support of distribution and prospective OEM partnerships in China. Remaining on track to secure a China medical device licence in 2022, the Group is now developing a local capability with Chinese partners for the mass production of its miniaturised mass spectrometry (‘MS’) instruments, with a view to maximising available margin through reduced costs while broadening its marketing reach.
Alien has announced a much-anticipated maiden iron ore resource estimate (‘MRE) in excess of 10Mt Direct Shipping Ore (‘DSO’) on its Hancock Iron Ore Project in the Pilbara region of Western Australia. The initial Inferred JORC compliant resource stands at 10.4Mt @ 60.4% Fe including 7.8Mt @ 60.1% at the Sirius Extension target, 1.5Mt @ 61.2% on the Ridge E target and 1.1Mt @ 61.9% Fe at the Ridge C target. Yet with not even a quarter of the available ridge targets having been tested, the Board is confident there remains considerable potential to define substantially further accessible DSO grade material.
The Wressle oil field, in which Europa holds a 30% working interest, has achieved flow rates in excess of 950 boepd from the primary Ashover Grit reservoir. This has been attained on a restricted choke setting and no formation water has been produced as the well continues to clean up. This is very positive news for the company given that the reported flow rate exceeds initially forecasted rates by a substantial margin and further operations to increase gas handling capacity could increase hydrocarbon flow rates further still.
eEnergy has announced its successful completion of the acquisition (‘the Acquisition’) of UtilityTeam Trading Limited (‘UT’) on a cash and debt-free basis for initial and deferred considerations totalling up to £21m. A placing (the ‘Placing’) of new shares to new and existing institutional investors by way of an Accelerated Bookbuild (‘ABB’) priced at 15p each raising £12m was completed yesterday in order to satisfy the cash element of the transaction, with the balance being due in ordinary equity. Coming with attractive deal metrics, this UK Top 20 Energy Management business is a high growth energy consulting and procurement company that generates exceptional quality, recurring revenues from a large contracted industrial and commercial customer base, is expected to materially enhance Group earnings in its first year of ownership.
DeepVerge has announced its unaudited interim results for the six months ended 30 June 2021. Once again delivering on best financial expectations, H1 2021 revenues expanded by 231% to £3.319m (H1 2020: £1.004m) in tandem with gross margins rising to over 52% (H1 2020: 41%). EBITDA losses crept up by only 26% as a result, despite a 172% hike in administration costs in anticipation of sharply higher levels of activity again being seen in the second half. With over £9m finance available at period end to support not only a production ramp-up of Modern Water’s Microtox® PD wastewater SARS-CoV-2 detection systems, high volume processing capacity for the Skin Trust Club’s home test kits and ongoing joint venture negotiations with China Resources, the Board’s overall revenue guidance presently remains unchanged at £10 million given that it is still too early to provide an accurate prediction of their impact on year end numbers.
Orosur’s Board has confirmed much-anticipated news that its Colombian Joint Venture (‘JV’) partner, Minera Monte Águila SAS (‘Monte Águila’), has elected to exercise its right to assume operatorship of the Anzá Project (‘the Project’) in Colombia. As such, Monte Águila will now steer the Project into its fourth year of Phase 1, during which time a further minimum of US$4 million is required to be spent. Although investors will see little obvious external change, the decision by Orosur’s major exploration and production partners to assume control of onsite day-to-day activities, including responsibility for collation and submission of data generated, reflects their clear confidence both in the scale of the Project’s exploration potential and confidence in its longer-term economic viability.
Hydrogen Utopia International plc (‘HUI’), Powerhouse’s independent agent for its Distributed Modular Gasification (‘DMG®‘) technology, has announced a potentially far-reaching agreement with Linde AG (‘Linde’, NYSE: LIN). Coming very shortly after having established a binding exclusivity agreement (the ‘PGH Exclusivity Agreement’) for deployment in Poland, Greece and Hungary, a press release from HUI confirms Linde has finalised the technical feasibility evaluation for a project in Konin, Poland which, when completed, will contain as many as ten DMG® units in one location, helping the city, which was originally built around coal, make a clean energy transition.
The global megatrends of increasing water scarcity, unabated climate change, heightening population and relentless urbanisation are accelerating the international reduction in stock of arable-grade land per capita. Such circumstances are seen not only to prospectively undermine the world’s traditional farming model, but also heighten food insecurity for the worst affected countries/regions, whose governments also increasingly recognise their populations’ vulnerability to a potential breakdown of international supply chains, as was recently exemplified during the worldwide Pandemic.
Zephyr recently completed a diagnostic fracture injection test (DFIT) on a 3ft interval of the lateral portion of the State 16-2LN-CC well located on the company’s acreage within the Paradox Basin in Utah, USA. In addition to a raft of complementary data gathered to date, the DFIT test provided compelling evidence of the potential to develop the primary Cane Creek reservoir as a Hydraulically Stimulated Resource Play (HSRP) and utilise State 16-2LN-CC as a ‘proof of concept’ well for a wider development within the Paradox Basin via hydraulic stimulation.
Powerhouse has signed a binding exclusivity agreement (the “PGH Exclusivity Agreement”) for deployment of its technology in Poland, Greece and Hungary with its independent agent, Hydrogen Utopia International plc (“HUI”). This important step follows the non-legally binding heads of terms (‘HoT’) reached with HUI that were announced for Poland on 12 November 2020, followed by Greece and Hungary on 10 May 2021. It anticipates significant opportunity for deployment of DMG® technology going forward. More information about HUI’s corporate mission to create such a project pipeline on the European Continent through its securing of funding from and partnering with states, regional authorities and the private sector in targeted regions, potentially also including various partners with whom it will be working, is expected to be published in due course.
Cora has announced the tenth set of drill results from its largest ever drilling campaign at its Sanankoro Gold Project (‘Sanankoro’ or ‘the Project’) in southern Mali. Focused on targeting resource growth as well as infill drilling to convert existing Inferred resources to Measured and Indicated, these latest results echo exceptionally encouraging data from earlier in the campaign, once again demonstrating good widths and grades in generally shallow oxide ore. In particular, multiple high-grade drill intercepts that continue to be reported from Zone B and Selin underpin both the scope and scale of the Project, while providing shareholders with confidence in the Board’s ability to deliver a materially enhanced resource inventory later this year.
The State 16-2LN-CC well located in the Paradox Basin, Utah, reached Total Depth (TD) at 14,370 feet in the Cane Creek reservoir last week, at which point Zephyr ran a full suite of wireline logs and production casing was set. Initial analysis of the wireline log and other data has now been completed indicating that a high percentage of the horizontal lateral has the potential to be completed for testing and production. In addition, porosity and permeability estimates are equivalent to other producing basins where Hydraulically Stimulated Resource Play (HSRP) developments are prolific.
Alien has released a much-anticipated update on its Hancock Iron Ore Project (‘the Project’) in the Pilbara region of Western Australia. Initial assay results from the second phase of resource drilling have demonstrated significant widths of direct shipping ore (‘DSO’) grade intersections at the Sirius Extension from surface, all of which point to a contiguous grade deposit. With the Project potentially firming up as a standalone operation, selected results include 47m @ 61.50 % Fe from 2m from hole AM21RC002 001 and 78m @ 61.20 % Fe in hole AM21RC002 002 from 1m highlight the scale of the opportunity. Having now defined continuous DSO grade iron ore over a strike length of 350 metres at the Sirius Extension alone, once all laboratory results are available management will have sufficient data to calculate a maiden JORC resource for the prospect.
Drilling operations on the State 16-2LN-CC well, located on Zephyr’s flagship project in the Paradox Basin, Utah, have been concluded safely and successfully. The State 16-2LN-CC well, which was spudded on 13 July 2021, reached Total Depth (TD) at 14,370 feet in the primary target: the Cane Creek reservoir. Following this, a full suite of wireline logs was run and production casing was set in anticipation of plans to complete and test the well in the coming weeks.
Cora Gold’s latest drill results from the Selin Deposit at the Sanankoro Gold Project, located in Southern Mali, can only be described as scintillating. Very high-grade gold oxide mineralisation has been established over large intercepts in the near-surface environment, demonstrating just how much exploration potential exists at the Project.
DeepVerge’s AGM of 26 July 2021 provided its Board with an ideal platform to highlight both the Group’s transformational past year and the exceptional opportunities it now has to deliver substantial, profitable growth going forward. While COVID-19 continues to present major, ongoing challenges for the global economy, this extraordinary predicament has nevertheless positioned the Group to capture multiple, newly created opportunities in sizeable and wholly unsatisfied, long-term global markets.
Europa has confirmed that it has now collated and submitted all relevant work to the Spanish Government Centre for the Development of Industrial Technology (‘CDTI’) in relation to its Stage 1 completion of the €0.47 million (the ‘Grant’) Innovation grant-loan for its 100%-owned Toral Pb/Zn/Ag project (‘Toral’, ‘the Project’) in north-west Spain. Upon completion of a formal review process, the Europa Metals Innovation Partnership intends to draw down Stage 2 funds of €0.16 million, following which the Board looks forward to updating investors on the Toral Pre-Feasibility Study (‘PFS’) campaign (of which 3,000m of drilling has been completed so far) and other activities.
Deltex has published an update on trading for the half-year ended 30 June 2021. While the shock of COVID-19 and its associated hit on levels of elective surgery now appears to be fully reflected in the Group’s share price, the scale of the opportunity that is expected to be presented through international healthcare providers seeking to tackle the huge procedural backlogs that have subsequently built up clearly has not. Governments and healthcare providers, led by the UK and US, have already committed substantial new investment in an effort to accelerate clearance as soon as they have sufficient evidence regarding the success for their vaccination programmes and improved general availability of ICUs.
IronRidge Resources is an exploration and development company with a portfolio of gold and lithium projects across Africa. The Company is currently in the process of spinning-out its gold projects into a gold focused exploration company that will be listed on a recognised stock exchange with its own board and management team. IronRidge will then be able to focus on advancing its portfolio of hard rock lithium projects, located in Ghana. The most advanced of these lithium projects, the Ewoyaa Lithium Project, is now fully funded to production following the signing of a conditional binding agreement with Piedmont Lithium Inc. (Nasdaq: PLL).
Much awaited assay results from nine additional diamond drillholes have been received, providing an important update on the progress of Minera Anzá’s drilling campaign that is currently underway at the Company’s Anzá project in Colombia. Multiple high-grade gold intersections have been identified, including 59.55m @ 9.61g/t Au and 61.75m @ 2.05g/t Au, with further results anticipated as the current campaign nears its planned completion. With regional field work progressing well, large geophysical surveys are now also being planned in the light of today’s exceptional results which provide the Board with significant comfort that Anzá has the potential to become a major field.
Since the detailed analysis of the data gathered from the ‘dual use’ stratigraphic test well, State 16-2, located on Zephyr’s flagship project in the Paradox Basin in Utah, Zephyr has confirmed that the proposed State 16-2LN-CC lateral well is located in a suitable location from which to test the natural fracture play (NFP) in the Cane Creek reservoir. As such, rig mobilisation is now underway with drilling operations and subsequent testing scheduled thereafter.
Powerhouse this morning published its 2020 AR&A. The accompanying detailed statements summarise an exceptionally busy year during which the Group signed commercial terms with a division of the major infrastructural investment enterprise, Peel Group, and secured planning permission for its first DMG application, while also strengthening its balance sheet and building out the skillset of its Board of Directors. Despite the lockdown, activity levels remained high in the opening month of 2021, and with Peel’s financial closure of the Protos project anticipated soon, execution of this first application of the technology should commence before year end.
Midatech has announced it has raised £10 million (gross) new funding through a UK equity placing (‘the Placing’) to new and existing UK investors at an issue price of 28.5p/share. Turner Pope acted as sole bookrunner to this Placing.
The Placing follows publication of the Group’s breakthrough data on successful encapsulation of a biologic using its Q-Sphera technology, along with details of significant progress across several of its other continuing internal and collaborative R&D programmes since announcing its strategic review some 13 months ago. The outcome was to halve cash burn while also adopting a more commercial approach to monetising its assets and technologies. Midatech meanwhile had been seeking a means to take the Q-Sphera platform into new and innovative applications in order to fully exploit the opportunities it presents.
Cora Gold is a West African focused gold exploration and development company listed on AIM. Cora’s most advanced project is the Sanankoro Gold Project, located in Southern Mali. At Sanankoro, Cora has completed a Scoping Study that returned a post-tax NPV8 of US$32.2m and a post-tax IRR of 91%, assuming a gold price of US$1,500/oz Au. The Company is currently undertaking a 35,000m infill and expansion drill programme, due to be completed by July 2021. Around 16,000m of drilling has already completed, as of the start of June 2021, and assay results on the first 5,168m have been reported. This programme is focused on increasing the category of the inferred resource estimate to measured and indicated, as well as the size of the current mineral resource estimate.
Zephyr has announced that it intends to achieve carbon-neutrality across its operational footprint by 30 September 2021. This industry-leading pledge is a major first step towards near-term delivery of hydrocarbons produced with an operational ‘net-zero’ carbon impact. Not only is the Board unanimously committed to this initiative, but it also appears to make good business sense. Recent market-based evidence suggests that purchasers and supply chain partners of ‘net-zero’ operated volumes are willing to absorb costs associated with the purchase of Verified Emission Reductions (‘VER’) offsets related to oil and gas production. While eliminating its operational carbon footprint is important from an environmental perspective, the Board believes that shareholders will also benefit from the potential for premium commodity pricing, access to a wider pool of institutional investors and cheaper cost of capital, as well as enhanced relations with regulatory partners.
Europa has confirmed the uncovering of significant intersections along with today’s publication of Pre-Feasibility Study (‘PFS’) drilling results from its 100%-owned Toral Pb/Zn/Ag project (‘Toral’, ‘the Project’) in north-west Spain. With initial drilling focus on the upper siliceous material zone (100 to 800m horizon), the present campaign appears not only to be proving up areas previously considered sub-economic, but also offering potential to incorporate a new resource zone within early years production. Along with its ongoing drilling/metallurgical program, the Board hope to provide an updated resource while further enhancing Toral’s economics as the PFS gets underway. Operations on the ground continue to progress despite ongoing Pandemic complications, which demonstrates the benefit of comprehensive operational planning and a highly experienced on-site team.
Deepverge has announced its intention to raise £10.0 million (gross) through a conditional placing and subscription (the ‘Placing’) of c.33.3 million new ordinary shares with existing and new investors at an issue price of 30 pence each. Comprising two tranches, the first of which (£6.33 million) is based on existing authorities, while the second (£3.12 million) plus the Subscription (£0.55 million) remain subject to shareholder approval that will be sought through a General Meeting on 23 June 2021. The funds will be used to scale operations, meet increased demand and expand revenues faster across the Group. Reflecting primarily the major investment and growth opportunity it now finds itself presented with, Deepverge’s business model has focussed on the application of artificial intelligence (‘AI’) to life science and environmental health test services for bacteria, viruses and toxins, capable of servicing a global community that is highly incentivised to ensure no possibility of Pandemic conditions repeating in coming years.
Alien has announced that it has entered a conditional share sale agreement (‘SSA’) to increase its interest in the Hamersley Iron Direct Shipping Ore (‘DSO’) project (‘the Project’) from 51% to just over 90%. Backed by recent strong results from its maiden drilling program on the Hancock Iron Ore project (‘Hancock’), and with iron ore prices having recently touched record highs, tracking Chinese steel output which is now a full 16% higher than this time last year, the rationale for this move is clear. In obtaining the major controlling interest, the Board will secure much greater flexibility to both manage and monetise the Project as continuing exploration takes it further up the value curve at a time when governments worldwide are committing significant new funding to major, longer-term infrastructural projects in an effort to kick-starting their post-Pandemic economies.
Alien has today announced that it has received initial results from the maiden drilling program on the Company’s Hancock Iron Ore project (‘the Project’), which is part of the Hamersley Iron Ore Project (‘Hamersley’), Western Australia. Drilling completed in March on three main target areas, with 53 reverse circulation (‘RC’) holes for 3,350m of shallow drilling across priority high grade direct shipping ore (‘DSO’) targets. In addition to the known DSO grade iron ore at the Sirius Extension prospect, initial assay results from 17 of the drill holes confirm the existence of outcropping DSO grade mineralisation in initially identified ridges, while new highly prospective areas of the tenement previously not explored have been also identified as having further DSO grade potential. Significantly, the majority of assays that remain outstanding are from holes that had thick branded iron formation (‘BIF’) intercepts (up to 55m widths) and are expected to add to the Project’s potential.
Following on from its 22 April 2021 report of maiden results from its largest ever drilling campaign at its Sanankoro Gold Project (‘Sanankoro’ or ‘the Project’), in Southern Mali, Cora has today announced further strong drill results from the Selin deposit. These include 24m @ 2.5 g/t from 16m depth and generally comprise more shallow oxide intersections with good grades. Cora has also updated some preliminary results reported on 22 April 2021 with final results which have also shown increased average grades. Over 11,000m of drilling has now been completed in this programme and later this month management plan to mobilise two further rigs. A large booster-compressor auxiliary air pack has also recently arrived at site to shortly commence targeted deep reverse circulation (‘RC’) drilling with an initial exploration priority centred on potential down-plunge extensions and further resource definition work.
Zephyr yesterday provided shareholders with a number of news updates covering Group operations. Significantly this includes confirmation that the Board has officially delivered a key corporate objective, that of becoming a cash-flowing oil producer. As such, Zephyr has now successfully transformed into a fully-funded, self-sustaining platform with the potential for significant organic growth from the forthcoming drilling programme on its Paradox project. Individually, the news items comprise an update on the Group’s recently acquired non-operated working interests in North Dakota, USA (the ‘Whiting wells”), the acquisition of additional near-term production interests in the nearby area (the ‘Continental acreage’), and further details regarding drilling preparations for its flagship asset, State 16-2 CC LN well, in the Paradox Basin that remain on schedule.
Microsaic has released two important news announcements today: (i) its Final results for the year end 31 December 2020; and (ii) its signing of a Heads of Terms (‘HoT’) for patient-centric diagnostics with an unnamed partner for the Chinese market. While investor focus clearly now rests on the Group’s significant post-period events, including its Board reorganisation, oversubscribed fund raising and Framework Services Agreement with DeepVerge plc (‘DeepVerge’, AIM: DVRG), it is positive to note that despite the hit to activity seen during the Pandemic, management nevertheless managed to reduce Microsaic’s operating expenses sufficiently to ensure full year losses ended below those of the comparative period.
Orosur has announced an update on the progress of Minera Anzá’s drilling campaign that is currently underway at the Company’s Anzá project in Colombia. Assay results for four additional diamond drillholes, MAP-079, 080, 081 and 082, include significant high-grade gold intersections: 23.75m @ 17.40g/t Au (including 0.4m @ 948g/t Au) and 29.45m @ 2.50 g/t Au. Having all but completed the preliminary 2,300m drill program, valuable guidance has been gained with respect to the nature and distribution of the mineralisation at APTA that will permit future drilling to be more efficiently targeted. With the number of rigs on-site having risen to five following the Board’s 22 February 2021 decision to move into the next phase with a new 7,000m program, it hopes shortly to be able to develop a more detailed understanding of the prospect’s polymetallic mineralisation as the substantial sample backlog that is currently being held back by COVID-19 related laboratory delays is cleared gradually over the coming weeks and months.
Europa has today confirmed that three primary holes and four ‘daughter holes’ for metallurgical sampling have now been completed at its 100%-owned Toral Pb/Zn/Ag project (‘Toral’, ‘the Project’) in north-west Spain. With drilling and internal review work remaining on schedule and within budget, first assays from holes TOD-028 and TOD-029 have already been sent for independent laboratory assessment. The objective of the current campaign is to infill known gaps in the resource drilling pattern, centred around the Project’s known Indicated resource between the 100 to 800 metre horizon. As such, operations on the ground continue to progress despite ongoing Pandemic complications, which demonstrates the benefit of comprehensive operational planning and a highly experienced on-site team.
Deepverge has announced it has signed a Memorandum of Understanding (‘MoU’) for a Joint Venture (‘the JV’, ‘the Agreement’) with China Resources Environmental Protection Development Limited (‘China Resources Environmental’), a pollution monitoring subsidiary of one the country’s key state-owned enterprises. Under the terms of the Agreement, China Resources will own 51% and Deepverge will own 49% of the share capital. The JV will take responsibility for the manufacture, assembly and sale of Modern Water’s environmental monitoring equipment, with a view to future development of smart environmental platforms, equipment/devices and network management software capability.
Cora yesterday announced results of the reanalysis of samples from the drilling carried out in Q4 2020 at the Dako II permit (‘Dako II’) which is contiguous with the Company’s flagship Sanankoro Gold Project (‘Sanankoro’) in southern Mali. Using more representative bottle roll analysis, the Company is able to report this has generally delivered significantly enhanced results in terms of intercept widths and grades, compared with those previously reported on 20 January 2021 from first-pass screening fire assay. Being 7km south of its existing resources at Sanankoro and with over 3km of surface mineralisation still to be drilled, Cora is optimistic that this surface oxide discovery will be turned into part of the future resources and mine plan for the Project.
Zephyr yesterday announced a placing and subscription of 500 million new ordinary shares (the ‘Placing Shares’), at a price of 2.0p per Placing Share, to raise £10 million before expenses (the ‘Placing’). It is intended that the proceeds will be used to fund the Paradox Project’s (‘the Paradox’, ‘the Project’) upcoming lateral well (the ‘Paradox Lateral’) while also being used to acquire and fund new oil producing interests in the Bakken Formation USA (‘the Acquisition). The Board’s objective is to enable Zephyr’s transformation into a self-sustaining platform for organic growth with a diverse portfolio of production assets in two established USA oil producing basins.
Further to Microsaic entering a non-binding Heads of Terms (‘HoT’) with Deepverge (‘the Group’) on 15 February 2021 the two companies have, as expected, today formally announced their signing of a three-year full technical and commercial agreement (the ‘Agreement’). Under this Agreement, Microsaic will supply regulatory approved, CE Mark, miniaturised mass spectrometry (‘MS’) equipment and services on a non-exclusive basis across Deepverge’s global sales, marketing and distribution channels, delivering portable solutions for environmental contamination detection and healthcare diagnostic evaluation of samples.
MGC yesterday received Ethics Committee approval for the Phase III Clinical Trial (‘the Trial’) of CimetrA™ on Patients Diagnosed with COVID-19 (SARS-CoV-2). CimetrA™ is designed with the scientific aim to target viral infections with inflammatory complications, having already been successfully evaluated on infected patients in a double-blind placebo controlled, Phase II clinical trial. Although a significant initial worldwide supply agreement has already been signed for ArtemiC™ Rescue in its form of a food supplement, the product has now also undertaken a name change to CimetrA™, in recognition of the transfer of its status to an Investigational Medicinal Product (‘IMP’) ahead of the Trial’s commencement.
Deepverge has published initial data from its ongoing Phase III clinical studies for the detection of SARS-CoV-2 from samples of breath condensate and identification of confirmed COVID-19 positive patients. The studies demonstrated detection and identification of the virus S-Protein in quantities as low as 40 femtogram per millilitre (‘Fg/mL’) at close to 100% sensitivity and specificity on DeepVerge’s Microtox® BT nano-optofluidic chip. Capable of being confirmed within 60 seconds and indicating a nine-times increase in the digital spectrum signal when using Microtox® BT, compared to controls of nano-optofluidic chips with binding agents, this represents the passing of a significant technological milestone.
eEnergy yesterday released its financial results for the six months ended 31 December 2020. In line with guidance already provided through a trading update published on 4 February 2021, an exceptional second half of the calendar year saw the enlarged Group’s revenues rise 245%, underpinned by organic growth of 140% having completed 111 projects (up 95% on the comparable period). Significantly also, the average contract value of each project was 50% higher year-on-year. In particular, the Group enjoyed strong growth within the UK academy and state school sectors as well as entry into new markets, including Northern Ireland.
Cora has announced its commencement of a significant new drilling campaign at its flagship Sanankoro Gold Project (‘Sanankoro’, ‘the Project’). Assuming expansion to 35,000m, this will be the largest single programme the Company has ever undertaken, representing almost a doubling of previous work completed on the permit over the previous two years. Focussed both on targeting resource growth as well as infill drilling to convert existing Inferred resources to Indicated, rigs now arriving on site are due to get underway in the coming days. First results could be released as early as mid-April, with further updates coming every couple of weeks thereafter in anticipation of providing a busy six or so months on the news front.
Alien Metals (“Alien”) is an AIM-listed precious and base metal exploration company with projects in Mexico, Australia and Greenland. The Company is, by and large, a project generator, leveraging its teams’ technical experience and skills to evaluate and acquire earlystage exploration projects, to advance these projects completing next stage exploration before seeking partners to assist in funding the exploration and development costs while retaining a significant interest. This strategy reduces Alien’s financial exposure and risk to any one project but ensures it benefits from any increase in value of each project within the portfolio. It also provides the Company with a level of diversification and a reduced risk exposure that conventional exploration companies, focused on one to two assets, would not have.
Orosur has provided a further update on the progress of Minera Anzá’s drilling campaign that is currently underway on its Anzá project in Colombia. Following last month’s addition of a third rig, diamond drill holes MAP-073, 074, 075 and 076 were completed during December 2020 and January 2021. Drilled on three sections, these holes returned high-grade gold intersections, including 21.6m @ 6.02g/t Au, 12.25m @ 5.39g/t Au and 4.35m @ 2.53g/t Au, as well as high grade zinc intersections, including 19.85m @ 6.46% Zn. While assisting in addressing several of the discovery’s key structural questions, the uncovering of wide intersections of high-grade zinc added further weight to the concept of its mineralisation being a polymetallic Volcanogenic Massive Sulphide (‘VMS’) model.
Deepverge has confirmed receipt of contractual orders to the value of US$5m (£3.6m*) for Modern Water equipment so far in Q1 2021, including eight of its units being retrofitted with MicrotoxPD SARS-CoV-2 wastewater detection systems. This is particularly significant in two respects: (i) That it heightens confidence in the forecast made on 11 January 2021, in which the Group guided investors to anticipate full year 2021 revenues of £10m; and (ii) The fact that 80% of the equipment presently being produced by Modern Water has been earmarked for the Chinese market.
Microsaic has signed a non-binding Heads of Terms (‘HoT’) with Deepverge to enter a multi-year Framework Services Agreement (‘Agreement’), which is expected to be signed on or before 31 March 2021. Microsaic will supply miniaturised mass spectrometry equipment and services across Deepverge’s sales, marketing and distribution channels for the purpose of quality control and contamination detection in a range of markets. These include Human, Environmental Health and Diversified Industries in which Deepverge already commercially operates, including point of need and laboratory solutions for the chemical, biochemical, biofuel, brewing, biodegradable plastic, biologics and waste-water treatment industries.
AfriTin has today released two separate news announcements, both of which reflect increasing confidence in the Company’s management and its operational progress. Firstly, concerning offtake agreements, not only will AfriTin extend its existing tin offtake agreement for Uis with Thaisarco for a further three years, but also it has concluded an inaugural tantalum offtake agreement with AfriMet Resources AG (‘AfriMet’), which will become a second product alongside tin concentrate later this year. Secondly, AfriMet has elected to convert its outstanding convertible loan notes plus accrued interest into fully paid AfriTin ordinary shares, as a result of which it will hold 5.1% of the Company’s enlarged share capital.
The exceptional prospectivity of Cora’s project portfolio that is located across a world class gold region in southern Mali, West Africa, was further recognised yesterday with its announcement a series of new gold discoveries derived from satellite imagery and surface prospecting programmes at the Sanankoro Gold Project (‘Sanankoro’, ‘the Project’), on the Yanfolila Gold Belt. It also announced the award of a new Convention agreement, one of the first under the new Malian mining code, with respect to the Sanankoro Permit area. With the local team continuing to demonstrate its ability to regularly uncover such new opportunities, Cora’s management remains confident that further drilling due to commence shortly will, over time, enable Sanankoro resources and effective life-of-mine (‘LOM’) to expand significantly.
Europa has raised £1.5m before expenses through the placing of 115.4 million new shares at 1.3p per share with new and existing investors. These new funds will be used to improve recovery rates from the company’s UK onshore oil fields and also to advance Europa’s strategy to farm down its high impact exploration interests in Morocco and Ireland. The company has also earmarked cash to identify and evaluate the potential acquisition of a new appraisal/development asset which will provide the opportunity to improve the balance within Europa’s overall licence portfolio.
MGC yesterday became the first medical cannabis company to be admitted onto the main market of the London Stock Exchange through a Standard Listing. Founded in 2015, MGC commenced trading on the Australian Stock Exchange (ASX:MXC) in February 2016 as a European-based, Australian-headquartered bio-pharma company specialising in the production and development of Affordable Standardised Phytomedicines. Following the Board’s request for an ASX trading halt on 2 February 2021, on 4 February 2021 Turner Pope announced completion of a strongly supported £6.5m (c.AUS$12m*) equity placing with institutional investors (including PremierMiton and Chelverton Asset Management), family offices and high net worth (‘HNW’) UK investors on the Group’s behalf at 1.475p/share, in line with recent trading on the ASX based on current exchange rates.
Deepverge has announced its addition of two Containment Level 3 (‘CL3’) laboratories at its York, UK HQ facilities. This expansion will not only create a Centre of Excellence for the EcowaterOS consortium, but also enlarge facilities available to Labskin for its coronavirus therapeutic research, detection and monitoring developments, which now include the new variants along with a range of other infectious viruses and bacteria. In response also to a 95% conversion rate in pre-registration for personalised skincare Home Test Kit during the first 10 days of offering, further laboratory space is being made available for the Skin Trust Club ahead of its formal launch later in Q1 2021.
AfriTin Mining is an AIM-listed mining company focused on increasing production levels at its 85%-owned Uis Tin-Lithium-Tantalum Project, located in Namibia. AfriTin has evolved over the past 12 months, from being a tin focused development company, to being a polymetallic mining company. Additional studies completed by the company during the year have further highlighted the importance of by-products, including tantalum and lithium, to further improve the economics of its operations at Uis.
eEnergy has released a Pre-Close Trading Update for the six-month period to 31 December 2020. During an exceptional second half of the calendar year, revenues for eLight increased by 235%, underpinned by organic growth of 125%, having completed 111 projects (up 95% on the comparable period). Significantly also, the average contract value of each project was 50% higher year-on-year. In particular, the Group enjoyed strong growth within the UK academy and state schools sector as well as entry into new markets, including Northern Ireland. The successful integration of Renewable Solutions Lighting Ltd (‘RSL’) reduced the division’s unit costs and improved pricing to its clients.
Deepverge has today announced its appointment of a former IBM Legal Counsel as inhouse lawyer and Company Secretary. Fiona Joyce’s engagement is seen as an important signal from the Board, as it strengthens management in support for Group Executives tasked with meeting ambitious expansion plans for all Group divisions that now reach across three Continents. In particular, Fiona’s international legal expertise that includes working across a variety of areas at IBM, such as managing mergers & acquisition, is expected to provide invaluable support for sustaining a robust global corporate infrastructure.
Last Friday, Zephyr released the latest in its recent run of very positive development and evaluations updates, as it progresses toward unlocking value from its Paradox acreage. Although the Group presently awaits initial core analysis from an independent laboratory, it confirmed early observations and assessment from the open hole logs that include positive indications of multiple stacked, continuous oil and gas plays, with evidence of hydrocarbon saturation across a majority of potential reservoirs. Further evaluation is now underway to calibrate this with the core data, which will enable more precise selection of additional zones that have the volumetric potential to act as viable targets, while also determining whether hydraulic stimulation can act as a viable reservoir drainage strategy.
Midatech yesterday published a business update which included a number of elements of positive news. These included:
• An expansion of its Q-Sphera™ collaboration with a global healthcare partner from one active pharmaceutical ingredient (‘API’) to three;
• Formulations have been optimised for the Group’s first two internal Q-Sphera™ products with one already undergoing in vivo studies and the other about to start;
• A restructuring of its MTX110 clinical development plan to include a Phase I pilot study in glioblastoma multiforme (‘GBM’) (a market opportunity Midatech considers to be 30 to 50 times the size of its existing DIPG study) for no additional cost, making the programme considerably more attractive to potential partners;
• Efficient closure of the Group’s operations in Spain without shortening its cash runway; and
• Working capital into Q4 2021 in the absence of licensing milestones.
Zephyr Energy is an upstream oil and gas company with a strategic focus on the Rocky Mountain region of the US. The company’s core asset is a 75% operated interest in more than 25,000 acres of lease holding in the underexplored yet highly prospective Paradox Basin in Utah. In a project team with the University of Utah’s Energy & Geoscience Institute (EGI) and the Utah Geological Survey (UGS), coupled with sponsorship from the US Department of Energy (DOE), Zephyr recently drilled the State 16-2 stratigraphic test well located on the company’s acreage.
Orosur has released an update on the progress of Minera Anzá’s drilling campaign that is currently underway on its Anzá project in Colombia. Following submission of assays from the first drill hole, MAP-072, positive results – including 70.50m @ 3.53g/t Au – have been received. Four additional holes in the APTA deposit for this exploitation campaign have also been completed, all of which have intersected wide zones of mineralised breccia. Although Pandemic-related delays in assay processing appear set to continue for some time to come, stark visual indications observed in sample core have been deemed sufficiently positive by the Company’s highly experienced works and management team to take the decision to immediately expand and accelerate its preliminary drill campaign.
Microsaic has announced an oversubscribed £5.0m (gross) conditional equity placing at a Placing price of 0.1p/share (the ‘Transaction’) that was undertaken by Turner Pope Investments with both existing and new investors. A Conditional Broker Option of up to 500m New Ordinary Shares at the same price will now remain open until 5.00 p.m. on 22 January 2021. The new funds raised will be applied to further commercialisation of the Group’s unique range of miniaturised mass spectrometry products and services while supporting their further development and related services along with general working capital, as it drives to secure increased sector activity that is expected to accrue globally in a post-Pandemic environment.
Following publication of an independent Preliminary Economic Study (‘PEA’) on 18 November 2020, Europa has today announced that further to a diamond drill rig being mobilised to site earlier this month by Sondeos y Perforaciones Industriales de Bierzo SA (‘SPI’), drilling has now commenced at Europa’s wholly-owned, Toral lead, zinc and silver project (‘Toral’ or the ‘Toral Project’) situated in the region of Castilla y León, north-west Spain. This campaign forms part of the Pre-Feasibility Study (‘PFS’) workstreams initiated at the Toral project. The first phase of the drill programme is targeting above approximately 600m below surface, to delineate further the resources in this siliceous zone.
Powerhouse this morning has confirmed its successful raising of £10 million (gross) new funding (‘the ‘Fundraising’) by way of an oversubscribed, strategic equity placing and subscription priced at 5.5p per share (the ‘Issue Price’). Participating in the Fundraising were both an institutional investor and a small number of private shareholders, including the White Family (the Company’s largest shareholder). The Directors believe that the availability of these new cash resources will expedite significantly financial close of the funding needs for the first commercial scale DMG® installation utilising the Company’s technology, which is targeted to be reached during the first quarter of 2021.
Zephyr has released an update detailing its progress with the State 16-2 stratigraphic test well. Drilling & data acquisition has been completed significantly ahead of schedule, and the Group successfully secured 113 feet of continuous core in the Cane Creek reservoir, sidewall cores from seven shallower reservoirs, and open hole logs across the Paradox Formation. With data evaluation already underway, initial indications suggesting the presence of hydrocarbons across multiple reservoir intervals are expected to be supported by detailed reservoir analysis within the next 30 to 60 days.
Alien has today announced that following the signing of an Earn-in Agreement (the ‘Agreement’) with Capstone Mining Corp (‘Capstone’) (TSX: CS) on 22 October 2020, covering its Donovan 2 Copper-Gold Volcanogenic Massive Sulphide project (the ‘Project’) in Mexico, Capstone has confirmed completion of their initial 2020 obligation for exploration expenditures and will now advance to the next phase of the Agreement. With Alien having managed to get the previous drilling permit re-granted at the end of 2020, Capstone has indicated a planned initial 2,500m drilling program as part of its required US$450,000 commitment to the Agreement in 2021.
Following IIG’s Admission to AIM on 14 December 2020, the closed-end investment company yesterday announced a first investment from its pipeline of opportunities. It has undertaken a pre-IPO investment of £1 million by way of unsecured convertible loan notes (‘CLNs’) in Light Science Technologies Holdings Limited (‘LST’). LST is intended to become the holding company for a UK-based light technology company, with initial applications in the controlled agriculture environment sector and a longer-term development application in non-invasive medical diagnostics.
Further to the completion of an oversubscribed c.£4.0m (gross) placing on 30 November 2020, Orosur has today announced a new appointment to the Board, while also providing a drilling update at its Anzá project (‘the Project’). Given the increasing number of corporate activities being undertaken, the Company’s Non-Executive Chairman, Mr Louis Castro, will now move up to the role of Executive Chairman. In tandem with this, Mr. Nicholas von Schirnding, an individual with over 25 years’ experience in mining and natural resources, is joining as an Independent Non-Executive Director under which he will discharge, amongst other things, a number of Mr Castro’s duties and responsibilities.
Deepverge has today announced a post-period trading update along with revenue guidance for full year 2021. Sharply exceeding the £4m 2020 full year revenue target it set back on 15 June 2020 on the back of rising activity levels and new product innovation, the Group has confirmed an unaudited figure of £4.4m for the period (excluding any pre-acquisition contribution from recently acquired Modern Water plc (‘MWG’, ‘the Company’) and representing a rise of 332% on 2019’s audited figure of £1.07m). Deepverge also confirmed that Q4 2020 was its first ever profitable (at the EBITDA level) quarter, during which time order books built strongly with the signing of 12 new contracts for Labskin Services.
Baron has released an update on the TL-SO-19-16 Production Sharing Contract (the ‘Chuditch PSC’) which is located in the Democratic Republic of Timor-Leste. Holding an indirect interest of 25% through its 33.33% shareholding in SundaGas (Timor-Leste Sahul) Pte. Limited (‘SundaGas TLS’), today’s announcement notifies investors of a proposal that has been presented to the region’s National Authority of Petroleum and Minerals (‘ANPM’), in an effort to initiate new discussions to resolve the key data issues that have hampered progress on the project to date, along with a request for a 12-month extension and a doubling of its aggregate Gross Prospective Resources gas estimates to over 3.5 TCF.
Ahead of its year-end target date, Zephyr has announced that it plans to spud the ‘dual-use’ State 16-2 well (‘the Project’) today. Over the last week, the main Rig #34 contracted from Cyclone Drilling Inc. (‘Cyclone’) was mobilised to the well site where it was subsequently assembled and tested. In addition, all ancillary services and service providers required to support drilling operations are now on location. Once spudding has been completed, follow-on drilling is expected to take between 30-40 days in order to acquire continuous core and electronic log data from Cane Creek reservoir, as well as a comprehensive log suite across other shallower reservoirs.
Powerhouse has provided an update covering the Group’s operational progress following its AGM of 30 September 2020. It confirmed that Peel L&P (‘Peel’) has commenced site preparation for the building of the first commercial scale DMG® waste plastic to hydrogen technology plant at the 54-acre Protos site near Ellesmere Port in Cheshire (‘Protos’), which is expected to serve as a model for a subsequent roll out both in the UK and worldwide. This phase includes the initial site ground works, the preparation of access roads/laydown areas and utility service installation on Protos Plot 10b where the DMG® plant will be installed.
Delivering on its stated ‘ buy-and-build’ strategy to develop into a broader sectorrelated services company, eEnergy on Friday announced its acquisition (‘the Acquisition’) of Beond Group (‘Beond’, ‘the Company’), together with its successful closing of a £3.2m (gross) equity Placing (‘the Placing’) conducted through an Accelerated Bookbuild (‘ABB’) that was priced at 10.0p/share. The Acquisition was completed for a total consideration of c.£2.4m cash (including c.£0.7m free cash in the business) sourced through the ABB, plus c.64.9m new eEnergy shares.
IIG has today been Admitted onto London’s AIM. IIG is an investment group that seeks to leverage the expertise and extensive networks of its Board and Advisory Panel in the multi-billion-dollar Life Sciences sector to drive value creation in its Investee Companies. Bringing proven capability in transaction origination and strategic business plan execution, while recognising opportunity and positioning to drive significant growth, the team has come together to create and direct this internally managed alternative investment fund (‘AIF’), which has been granted registration by the FCA as a small registered UK AIFM pursuant to regulation 10(2).
DeepVerge has announced its new R&D service, which was launched in August 2020, has already generated £400,000 in completed sales in Q4 2020. Work agreements have been signed with ten new clients that had previously not used Labskin services. These agreements include framework Master Services Agreements with two of the world’s largest suppliers of consumer products related to skincare.
Zephyr this morning provided a further update on its project in the Paradox Basin, Utah, USA, where it is now in the final stages of preparation ahead of the spud of its ‘dual-use’ State 16-2 well (the ‘Project’) that has been expected by the end of this month. The release confirmed the Group ‘remains firmly on track’ to deliver on this key corporate objective, noting that a conductor rig is now on-site, where it has commenced work to drill and set conductor casing.
AfriTin has today released an operational update for the month of November 2020. The Board confirmed that during this period ‘nameplate’ tin concentrate production was surpassed in tandem with the completion of Stage I of its Phase 1 pilot facility production ramp-up at its Namibian Uis Tin Mine Project (‘Uis’). Progressing beyond the 60.0 tonnes that had been projected for December 2020, production of tin concentrate for the month increased to 63.9 tonnes, representing a 32% month-on-month increase.
Alien has received final laboratory analysis of assays and submitted drilling plans for its next stage of exploration at the Group’s Hamersley Iron Ore Projects. These confirmed high grade iron ore results of up to 66.95% Fe, supporting the findings from x-ray fluorescence (‘XRF’) readings that were published on 29 October 2020. As a result, drilling access at the Hancock Ranges Project, which will focus on the Kalgan prospect where laboratory results have displayed excellent levels of Direct Shipping Ore (‘DSO’), has been scoped to finalise a maiden programme that will consist of between 3,500-4,000m of RC drilling.
Recognising the prospectivity of its portfolio of projects that are located across a world class gold region in southern Mali, West Africa, Cora yesterday announced its commencement of a new drilling programme in the Yanfolila Project Area. 5,000m of Air Core drilling is planned across three permits, targeting extensions to existing discovery holes that are generally located in shallow oxides. This is particularly exciting, considering that all work being undertaken will be within a 25km radius of Hummingbird Resources plc’s (AIM: HUM) operating Yanfolila Gold Mine.
Orosur has announced its raising of c.£4.0m (gross) through an oversubscribed placing (the ‘Placing’) of new ordinary shares at a price of 17.0p per Placing Share, together with a grant of one unlisted warrant (‘Warrant’) for every two Placing Shares subscribed. Warrant holders have the right to exercise on a 1-for-1 basis into new ordinary shares at any time up to 7 December 2022 at a price of 25.5p each. TPI considers this funding will potentially be sufficient to carry Orosur through to the completion of its Anzá Project’s pre-feasibility study.
DeepVerge has announced breakthrough interim analysis that demonstrates its ability to host the SARS-CoV-2 virus on Labskin-cloned human skin microbiome. This is highly significant in the respect that to date society has been forced to depend on anecdotal or theoretical evidence (from the World Health Organization (‘the WHO’) and various health agencies) to determine how infectious skin is, as humans touch different surfaces and each other.
Alien has announced an oversubscribed equity Placing through which it has conditionally raised £2.5m (gross) at a price of 1.1 pence per share (‘the Placing’). Reflecting rising confidence following the recent run of positive development news flow, including the announcement of an earn-in agreement on its Donovan 2 Copper-Gold project, encouraging soil sampling from a region surrounding its Elizabeth Hill Silver Project, the awarding of a new licence adjacent to the major Citronen Zinc-Lead mine in Greenland and identification of drilling targets at the Hamersley Iron Ore Projects, the Placing was completed at twice both the size and price of the Group’s previous raise on 4 September 2020.
The transformative phase of capital raising that Scancell has undertaken to date in 2020 now appears to have drawn to a close. What is likely to be its final stage, the Open Offer that Scancell made available to Qualifying Shareholders on 12 October 2020, on the basis of 1 new ordinary share for every 27 held, was declared unconditional on 5 November 2020, raising a further c.£3.0 million gross at an issue price of 13p each.
Zephyr this morning has provided an update on its project in the Paradox Basin, Utah, USA, where it is now preparing to spud the ‘dual-use’ State 16-2 well (the ‘Project’) before the end of this year. Having completed a detailed initial well design back in October and undertaken a tender process for the related contracts, the Group is commencing remediation work on the Project’s well pad and access road. This work is expected to take less than five days and is expected to finish well ahead of the scheduled rig mobilisation in early December.
Cora Gold offers exposure to a significant gold exploration and development business with a lead project at Sanankoro in Mali that should be ready for construction in 2022 followed by first production shortly after. The Company has just recommenced drilling activities at Sanankoro after a delay caused by the wet season. This current programme is intended to test a recently identified target named Dako II which has the potential to add substantial near-surface oxide resources to the project. The Company currently benefits from a healthy cash balance with Net Current Assets of US$5m at the end of September 2020.
Europa has announced results of an independent Preliminary Economic Study (‘PEA’, ‘the Report’)) for its Toral lead, zinc and silver project (‘Toral’ or ‘the Project’), located in North West Spain. It details an impressive US$156M NPV, together with a 31.3% IRR and 49% Operating Margin, with a significant reduction in both start up and life-of-mine (‘LOM’) Capex (US$79m and US$131m resp.) This represents a significant expansion from the original 2018 Scoping Study, with enhanced economics derived from a change in mining method, increased ROM, addition of ore sorting and improved understanding of the Project’s metallurgical characteristics.
As part of the extended field trial for DeepVerge’s Microtox PD unit, its COVID-19 enabled near-source wastewater contamination test system, deployment into a number ofIrish water treatment plants has now commenced. Similar arrangements across multiple sites in Northern England are also expected shortly with first shipments to China and the US following by the year-end.
Alien has published encouraging soil sampling results from its ELA 47/4422 tenement, which includes priority prospects surrounding the Group’s Elizabeth Hill Silver Project (‘the Project’). Anomalous trends identified appear consistent with mapped/interpreted structures and contacts, further cementing their veracity as genuine new targets to be added to an already sizeable list. More detailed review of this data will now be undertaken in conjunction with historic information, which is expected to result in a follow-on stage of planned exploration work.
Europa has announced the successful renewal of the investigation permit (‘Investigation Permit’) for the Company’s wholly owned, Toral lead, zinc and silver project (‘Toral’ or ‘the Project’) situated in the region of Castilla y León, North-West Spain, for a further three years. Significantly, with the IP now secured, the Company expects to shortly conclude and release new economics for the Project that will outline the key parameters for the Pre-Feasibility Study (‘PFS’) currently underway.
AfriTin has today released an operational update for the month of October 2020. The Board confirmed that during this period its Phase 1, Stage I ramp-up of the Namibian Uis Tin Mine Project (‘Uis’) continued according to plan, with production of tin concentrate increasing to 48.2 tonnes, representing a 24% month-on-month increase. The Company remains on track to achieve nameplate production of 60 tonnes/month by the end of 2020.
With DeepVerge’s recommended all share Offer (‘the Offer’) for Modern Water plc (‘Modern Water’, AIM:MWG) having being declared unconditional on 3 November 2020, new DeepVerge shares representing c.77.5% of Modern Water were yesterday Admitted to trading. The Merger, which was originally announced on 28 August 2020 along with a 10:1 consolidation (effective 15 September 2020) of the then Integumen plc’s equity, was followed by the Group’s official renaming on 6 October 2020.
N4P has announced its appointment of Nanomerics Limited (‘Nanomerics’) to investigate the potential utility of Nuvec® in cancer therapy. The project is designed to explore the role of its unique, non-viral adjuvant as a delivery system for DNA and small interfering RNA (‘siRNA’), with an initial aim to test a silica based, delivery system in a proof of concept (‘POC’) preclinical tumour model (the ‘Oncology Programme’). Not only could this represent a third commercial application for Nuvec® addressing a giant, unsatisfied and rapidly growing market, but also offer potential to be developed as a combination product capable of carrying an external nucleic acid load and an internal small molecule chemotherapeutic.
N4P has released an update on its ongoing work programmes. Taking advantage of its virtual model and contracted laboratories, the Group has been able to make significant progress, moving its testing schedules forward despite the Pandemic lockdown. Data derived from optimisation work investigating different formulations of Nuvec® is now being analysed in anticipation of incorporation into the optimised strand of the pending in vivo study.
Alien has successfully completed a detailed geological mapping and sampling programme at the Group’s Hamersley Iron Ore Projects. Test work completed over four of the five planned priority targets indicate that the BHP 19 and BHP 20 prospects may be part of the same, larger system. Having now also validated previously announced Maiden Exploration Targets across both projects, the Group is now preparing a Program of Works (‘POW’) for submission ahead of drilling.
Further to last Monday’s General Meeting, Erris Resources plc (‘Erris’) has been renamed Zinnwald Lithium plc (effective today) in order to better reflect the Group’s revised focus and development strategy following its acquisition of a 50% interest in Deutsche Lithium GmbH from Bacanora Lithium plc (‘Bacanora’, AIM:BCN) via a reverse takeover (‘RTO’). Deutsche Lithium’s principal asset is the Zinnwald Lithium Project (the ‘Project’).
AfriTin has today released an operational update with respect to its flagship asset, the Uis Tin Mine (‘Uis’) in Namibia. Further to the progress detailed in its half year report to end-August 2020 on 29 September 2020, the Company has continued the production ramp-up of its pilot mining and processing facility, achieving 39 tonnes of tin concentrate during September 2020 (August 2020: 37.5 tonnes), containing 27.5 tonnes of tin metal (August 2020: 25.6 tonnes).
Zephyr yesterday morning released details of its recent receipt of an initial tranche of grant funds and the commencement of a tender process for its Paradox Basin stratigraphic dual-use vertical research well (the ‘Paradox Project’, ‘State 16-2’) contracts, along with the appointment of a highly experienced Drilling Manager who previously drilled some of the most successful wells in the Paradox Basin.
Further to the exclusivity agreement for a potential farm-out of an interest in its Donovan 2 Copper-Gold project that was detailed on 9 September 2020, Alien has this morning announced its execution of an Earn-in Agreement (the ‘Agreement’) with Capstone Mining Corp. (‘Capstone’) (TSX:CS). This transaction, which is in accordance with the Group’s stated business model of unlocking value across its portfolio, is expected to result in significant exploration investment in Donovan 2 over the next few years as the project progresses through to feasibility studies.
Midatech has today announced encouraging headline results from a Phase I study at the University of California, San Francisco (‘UCSF’) in patients with the orphan condition, Diffuse Intrinsic Pontine Glioma (‘DIPG’) (the ‘UCSF study’ NCT03566199). Having demonstrated that repeated delivery of MTX110 via micro-catheter using convection enhanced delivery (‘CED’) is feasible and safe, improved overall patient survival data has determined a proposed dose range for adoption in a Phase II study to assess safety and efficacy that could potentially commence within a few months.
Zephyr passed a watershed moment on 5 October 2020 when it entered into a definitive binding agreement (the ‘Agreement’) with the University of Utah’s Energy & Geoscience Institute (‘EGI’) to sanction and substantially fund its planned Paradox Basin stratigraphic dual-use vertical research well (the ‘Paradox Project’, ‘State 16-2’). Further to this, the Group has today announced its completion of a conditional equity placing (‘the Placing’) to raise £2.25m (gross) at 0.55p/share, leaving it well funded with respect to pursuing both its Paradox Project obligations and other strategic ventures.
OptiBiotix Health plc, the life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and cardiovascular health, is now in a pivotal position. Having delivered a five-fold increase in H1 2020 revenues on the comparable period, the Group’s scalable business model is positioned to capture long-term growth from a portfolio of highly protected and proven products through licensing, royalties and distribution agreements with multiple international partners.
Alien Metals (UFO.L) is an exploration and development company with a diversified portfolio of assets including base metals, silver and iron ore projects in Australia and Mexico. The company has now successfully completed the follow-up geological programme at its 51% owned highgrade Hamersley iron ore projects. Detailed geological mapping and sampling has now been completed over four of the five priority prospects; 95 samples were collected with assay results expected towards the end of October 2020.
Avacta released its unaudited interim results for the six-month period ended 30 June 2020 on Monday. They detailed a period of significant advancement for the Group despite the restrictions placed upon it by the ongoing Pandemic. Very much echoing the view of many investors, the Chairman and CEO both described the milestones that the Group shortly expects to pass, including clinical validation of a rapid, saliva based coronavirus antigen lateral flow test and its regulatory filing for AVA6000 pro-doxorubicin, the first pre|CISION pro-drug, as being ‘momentous’.
AfriTin has today released its unaudited interim results for the six months ended 31 August 2020. With the ramp-up of its Phase 1 pilot plant at its flagship asset, the Uis Tin Mine (‘Uis’, ‘the Project’) in Namibia, a production record of 37.5 tonnes of tin concentrate was achieved in August 2020, by which time the sixth shipment of concentrate to the Thailand Smelting and Refining Co., Ltd (‘THAISARCO’), an industry leader in the manufacture of tin, tin alloys and tinrelated added value products, had been successfully completed.
Powerhouse has today released its unaudited interim results for the six months ended 30 June 2020. Statements from both the Chairman and CEO summarise the pioneering hydrogen production company’s operational, sales, financial and corporate progress that has been recorded to date in 2020, during which time its equity valuation has also undergone a dramatic re-rating. Having recently completed its acquisition of Waste2Tricity Limited (‘W2T’), deepened its strategic partnership with The Peel Group and significantly strengthened its balance sheet, momentum is expected to remain high for the remainder of this year and into 2021, as Powerhouse moves towards completion of the first, full-scale application of its DMG® waste plastic to hydrogen technology at the 54-acre Protos site near Ellesmere Port in Cheshire (‘Protos’), which is expected to serve as a model for a subsequent roll out both in the UK and worldwide.
Deltex Medical has published its interim results to 30 June 2020. The figures and their accompanying statement, which primarily reflect a revenue hit from reduced UK and US probe sales as a result of the coronavirus Pandemic, remain very much in line with the operational scenario detailed in the Group’s 9 July 2020 Trading Update. That said, it has becoming increasingly clear that following the UK’s 3-month postponement of non-urgent elective surgery that began in April 2020 and resulted, according to Birmingham University, in June’s routine NHS procedures plummeting by as much as 72% year-on-year, the hoped for resumption of normal UK and US operating theatre (‘OR’) activity remains hindered both by concerns of a second wave of the coronavirus along inability/reluctance of trusts, hospitals, etc. to revert as rapidly as desired.
N4P has released its unaudited interim results for the six months ended 30 June 2020. Having become well-resourced following May’s successful £2m (gross) equity placing along with the exercising of certain warrants and options, the Group’s efficient virtual development model is now funded to complete all currently planned work streams. While comprehensive losses for the first half were slightly below those of the comparable period, the anticipated commencement of a full in vivo study designed to demonstrate the capability of Nuvec® loaded across a range of different DNA plasmids (including Coronavirus) amongst other variables in optimised and unoptimised forms, in expectation of generating antibodies following optimisation work that is now underway, means that cash burn is likely to continue to rise in the coming months.
eEnergy has released its unaudited results for the year ending 30 June 2020 along with a trading update for the period from 1 July to 11 September 2020. Highlighting both timeliness and opportunity of the Group’s business model, which has benefitted from a number of operational moves taken since January’s AIM Admission, eEnergy delivered positive operating EBITDA for each month of its fourth quarter despite coincidence with the Pandemic lockdown, since when it has experienced a significant uplift in new business wins and installation momentum.
N4P has announced an update on its COVID-19 proof of concept (‘POC’) work utilising Nuvec® loaded with Coronavirus plasmid. Although the single intradermal injection used in the recently completed stage 3 pre ( initial pilot) in vivo study did not result in a measurable expression of the spike protein, the Group has nevertheless decided to proceed to a full in vivo study in order to demonstrate the capability of Nuvec® to generate COVID-19 specific antibodies.
Midatech has announced unaudited interim results for the six months ended 30 June 2020. These cover a period of significant transition for the Group, subsequent to which it has raised substantial new equity funding, signed a further major research collaboration for its Q-SpheraTM platform and announced the Termination of its Formal Sale Process. Together these appear to provide endorsement and early validation of the revised corporate policies adopted by its restructured Board following its Strategic Review.
Powerhouse has confirmed its raising of £5.0m (gross) by way of an oversubscribed placing (‘the Placing’) and subscription of new ordinary shares at 2.5p each in a transaction arranged by Turner Pope Investments. Significantly, Peel Holdings (IOM) limited (‘Peel’), took up 40m subscription shares. The Company’s largest investor, the White family, also participated in the Placing sufficient to ensure their 26% holding in the Company was retained, with the balance being taken up by one institutional investor and a small number of private shareholders.
AfriTin has today provided investors with an operational update for its flagship asset, the Uis Tin Mine (‘UiS’, ‘the Project’)) in Namibia. Despite the impact of an extended shutdown due to implementation of improvements resulting from completion of modification to address bottlenecks in the fines dewatering circuit of the processing plant, monthly concentrate production for August 2020 was still maintained at 37.5 tonnes (plant availability: 72%, plant utilisation: 80%). Management will now look to leverage these changes in order to reach their Stage I production target of 60 tonnes/month (‘tpm’) towards the end of H2 2020/21.
Avacta has announced that it will launch a high performance Affimer research enzyme linked immunosorbent assay (‘ELISA’) test in order to support global research efforts into the coronavirus that causes COVID-19. While the Group’s primary focus remains on its much larger, saliva-based coronavirus antigen rapid test opportunity being developed with Cytiva, its management has also recognised that there are thousands of researchers around the world in need of such a powerful, standardised laboratory ‘research tool’ to support their studies of the virus and develop solutions by which to combat the Pandemic.
Alien has announced its conditional raising of £1.25m (gross) in a Placing and Subscription (‘the Placing’) of c.227.3m new ordinary shares at a price (‘the Placing Price’) of 0.55p per share. Subject to lockdown restrictions, the proceeds will be utilised to pursue maiden drilling programmes on the Group’s Mexican San Celso and Los Campos Silver projects while also fasttracking its operations in Australia, including the Hamersley Iron Ore projects and the high-grade Elizabeth Hill Silver Project acquisition which is due to complete shortly.
Recognising that manufacturing capacity now represents the key challenge it faces in the global provision of its innovative, rapid, saliva-based SARS-CoV-2 antigen test that is being developed with Cytiva (formerly GE Healthcare Life Sciences), Avacta yesterday announced a further production agreement, this time with Abingdon Health (‘Abingdon’). Claiming Europe’s largest lateral flow test contract manufacturing capacity and capable of delivering millions of units/month, this follows a similar partnership agreement that was put in place with BBI Solutions back on 6 August 2020.
Zephyr has this morning confirmed that its project acreage in the Paradox Basin, Utah, USA (the ‘Paradox’), has been selected for a vertical stratigraphic test well funded by the US Department of Energy and its National Energy Technology Laboratory (‘USDoE’). Available through an existing grant awarded to the University of Utah’s Energy & Geoscience Institute (‘EGI’) in collaboration with the Utah Geological Survey (the ‘UGS’), this development could result in the first well spudded on the Group’s Paradox acreage before the end of calendar 2020.
N4P has announced the appointment of Ardena Holding NV (‘Ardena’) as its contract development and manufacturing organisation (‘CDMO’) partner for the technology transfer and upscaling manufacture of Nuvec®, the Group’s unique silica nanoparticle delivery system. With focus remaining on the optimisation of Nuvec®’s formulation along with continued generation of data for its advancement and prospective applications, N4P recognised the importance of having access to a highly consistent product across its studies along with the potential to move to GMP certification as and when required.
Europa has announced the results of the Phase III independent, metallurgical testwork carried out by Wardell Armstrong International (‘WAI’), along with analysis examining potential for implementing X-Ray Transmission (‘XRT’) ore sorting that was undertaken by TOMRA GmbH (‘Tomra’) and overseen by Bara Consulting (‘Bara’). Together these appear to demonstrate that the Toral Project (‘the Project’) is capable of delivering recovery and grades at a consistent premium to market average concentrates, while also opening potential for additional zones of the resource to be brought into the mineable area.
Alien yesterday detailed the outcome of an extensive data review of the Hamersley Iron Ore Projects, including the generation of Maiden Exploration Targets and proposed next step exploration plans. Field work undertaken last year replicated the high-grade Direct Shipping Ore (‘DSO’) results previously recorded at the 51%-owned Brockman and Hancock Ranges projects, leaving Alien’s next objectives to carry out further exploration work, including a maiden drilling programme with a view to converting the Exploration Targets into JORC-compliant resources.
PowerHouse has confirmed that Peel L&P Environmental (“Peel”), with which it has an exclusive licensing and partnership arrangement, has now completed on schedule the Engineering Definition phase of the contractors’ work for the DMG® plant at its 54-acre Protos site near Ellesmere Port in Cheshire. This represents an important step toward the delivery of the Company’s innovative DMG® technology to the UK’s first commercial operation designed to provide a community-based distributed source of hydrogen, which Peel considers to be the blueprint for a series of similar plastic-to-hydrogen plants throughout the country.
Modern Water this morning released audited final results for its year ended 31 December 2019. While reflecting the financial challenges of the past 12 months, its statement highlights foremost the transformative steps that have subsequently been taken by the Group’s new Board of Directors in order to optimise its now obvious business opportunity in supply and service for more permanent and rigorous “early warning” contamination and virus detection programmes being demanded through government intervention and regulation in the battle against the COVID-19 Pandemic..
Europa has announced a fundraising arranged by Turner Pope that raised, in aggregate, £2.0m (gross) through a placing of new ordinary shares at 12.75p each, representing a c.22.7% discount to the closing price on 18 August 2020 and c.31.9% of the Company’s enlarged issued share capital. Confidence in the Company’s future opportunity has been reflected through major shareholder, Deutsche Balaton Aktiengesellschaft’s participation, along with subscriptions from both the CEO and Chairman, in this funding round which follows last Friday’s publication of an updated resource model that delivered a c.40% increase in the Indicated Resources from Europa’s 100%-owned Toral Project (‘the Project’).
Avacta has announced the expansion of its existing multi-target collaboration and development agreement with LG Chem Life Sciences (‘LG Chem’), the life sciences division of the South Korean LG Group, to include new programmes incorporating Affimer XT™ serum half-life extension system. In a clear reflection of the value Big Pharma places on the Group’s proprietary technology, this new arrangement lifts the potential total value of upfront and near-term development milestones plus option fees due to Avacta from US$310m to as much as US$408.5m, on top of a further undisclosed upfront payment plus additional royalties on all future Affimer XTTM product sales by LG Chem.
Falanx has been awarded an important contract for the provision of cyber security services to one of the major suppliers of such services to the UK public sector through a new reseller agreement. This represents an important development as not only does it open another potentially significant sales channel, but also provides further customer validation of the recently introduced Triarii Managed Detection & Response service (‘Triarii MDR’) following a stringent series of trials and technical evaluations.
N4P has announced that Nuvec® loaded with coronavirus plasmid has successfully transfected Human Embryonic Kidney (“HEK”) cells in vitro and induced an expression of the spike protein in the cells. This successful outcome for the second stage of the Group’s three stage plan for its COVID-19 proof of concept (‘POC’) research project being undertaken with contract research organisation (‘CRO’) Evotec International GmbH (“Evotec”), means that it will now move into its third stage being a pre in vivo study to demonstrate expression of the spike protein in targets cells in a murine target.
Erris has announced further results from its Loch Tay gold project (‘Loch Tay’, ‘the Project’) in central Scotland, where fieldwork continues to upgrade the Lead Trial Prospect and also identify new targets. First metallic screen assay analysis from a mine waste sample produced an exceptional weighted average grading of 7.22g/t Au. Moreover, mapping of outcrop and boulders in conjunction with regular sampling has outlined an extensive area of well-developed quartz vein stockworks and localised hydrothermal breccias over a distance of at least 400m, suggesting a much larger system than was previously anticipated.
Alien has announced the details of its proposed maiden exploration drilling program on the Donovan 2 Copper Gold Volcanic Massive Sulphide (‘VMS’) project in Mexico. A total of 6 diamond core drill holes for 1,000m are planned within the highly prospective Zacatecas geological corridor; 4 of these will be at Cerro de la Cruz (to test defined magnetic and gravity anomalies) and 2 at El Alamos (to test an identified geological anomaly).
eEnergy has announced an important agreement with a new project funding partner, SUSI Partners AG (‘SUSI’). Coming via the SUSI Energy Efficiency Fund II, this will provide a dedicated funding facility to the Group of up to €15 million. This facility will underwrite the expected growth of eLight business in Ireland for the next three years, by helping to accelerate the roll-out of its LaaS (‘Lightas-a-Service’) product to different companies and organisations with a specific focus on the public sector, including education and healthcare, which seek both to participate in such green initiatives as well as benefit from the immediate cost savings on offer.
Avacta has announced its appointment of BBI Solutions, part of BBI Group (‘BBI’), to manufacture the saliva-based rapid SARS-CoV-2 antigen test that is being developed with its partner, Cytiva (formerly part of GE Healthcare Life Sciences). This follows news from 22 April 2020 , that the partnership had progressed rapidly with several highly specific Affimer® reagents having already been successfully generated.
Falanx has provided investors with a trading update for its year ended 31 March 2020, together with a Q1 2020/21 update. Broadly in line with expectations set out in its pre-close statement released on 31 March 2020, the Group expects to report revenues for the period of c.£5.8m (2019: £5.2m). Based on this, the completion of a substantial cost reduction exercise including successful transfer of many of Group staff to remote working, the first quarter of the new financial year saw overall unaudited EBITDA losses reduce by c.60% despite coinciding with the peak of the UK’s COVID-19 Pandemic.
Following its closing of an equity Placing and direct Subscription on 3 August 2020, AfriTin this morning has also provided an update covering its flagship asset, the Uis Tin Mine (“Uis”) in Namibia. It confirms that Uis has displayed significant operational improvements over the past three months which, together with the rebound in the open market tin price, the renewal of its offtake agreement with Thaisarco and its newly strengthened balance sheet, provides a good platform for delivery of further progress into 2021.
Integumen yesterday announced it had secured a £3 million, 3-year loan facility with an independent debt provider that requires no loan repayments until calendar year 2021. An initial, immediate drawdown of £1.5m will provide the Group with working capital to allow it to achieve the Board’s 2020/2021 objectives relating to COVID-19 AI product development and Labskin expansion of services into the US and Asia.
The Moroccan focused upstream oil and gas company has announced its successful conclusion of a placing (‘the Placing’) to raise new funding of £2.75 million (gross) through the issue of c.129.4 million new ordinary shares at a price of 2.125p each. Sound also announced a proposal to raise up to a further £1.75 million through its sole agent to the Placing, Turner Pope Investments, by way of a Broker Option for the issue of additional new ordinary shares at the Placing price.
Avacta has announced an extension to its collaboration and license agreement with Daewoong Pharmaceutical Co. Ltd. (KSX: 069620, ‘Daewoong’). AffyXell Therapeutics, the joint venture established in South Korea by the two companies, will now also undertake research covering the SARS-COV-2 neutralising Affimer molecules for the treatment of COVID-19, while also ensuring that it is prepared for rapid development of similar therapies for future global pandemics.
Cora this morning has announced its discovery of a new 1.5km gold zone at its flagship Sanankoro Gold Project (‘Sanankoro’) in Mali. This follows results from a reconnaissance aircore drilling programme at the bordering Bokoro II permit (‘Bokoro’) which are considered positive given that this is the first time the prospect has been systematically drilled. Located close to Selin, one of the Cora’s existing deposits, with other similar oxide targets remaining within the project area in close proximity to the defined resources, upside potential remains significant, before considering the future potential for the deeper sulphide mineralisation.
Midatech Pharma has announced it has raised gross proceeds of £5.0m from a UK Placing (‘the Placing’) of new ordinary shares at an issue price of 27p each. As sole Placing agent, Turner Pope received significant oversubscription for the Placing shares and then went on to fully exercise its Broker Options into c.2.78 million ordinary shares that were provided by Midatech in order to deal with additional requests to participate on the basis they were received between the time of the RNS release and 8.00 am this morning.
Integumen this morning announced the launch of another world first, this time in the form of a remote clinical skin trials platform. It is designed to provide both convenience and safety for trial volunteers, ranging from healthy through to immune-suppressed, aged or infirm candidates, that otherwise remain disrupted by the Pandemic lockdown. By harvesting the microbiome of a human volunteer skin and transporting it to Group subsidiary, Labskin, for transplantation onto laboratory-grown skin, a clinical-grade medium containing an exact replica of the individual’s unique microflora can be created.
Midatech has today announced its signing of a further research collaboration, this time with an unnamed ‘global pharmaceutical’ group that wishes to utilise its Q-Sphera™ platform in order to improve/optimise the bio-delivery and biodistribution of its medicines. This news highlights the development potential available through each of Midatech’s three key platform technologies and quickly follows a similar, significant research collaboration, this time with Dr Reddy’s Laboratories (BSE:500124, NSE:DRREDDY, NYSE:RDY) (‘Dr. Reddy’s), the global pharmaceutical business, that was announced on 8 June 2020.
Avacta Group plc (‘Avacta’), Integumen plc (‘Integumen’) and Modern Water plc (‘Modern Water’) are collaborating to complete development and roll-out through an existing distribution channel, of a wastewater detection system that represents a ground-breaking initiative for control of the Pandemic. Their proposal comes in the form of an essential real-time wastewater detection and identification test package for governments, industries, military, corporates, etc. urgently seeking real-time identification of local COVID-19 hotspots, prediction of fresh coronavirus outbreaks and advice on required areas of containment.
Deltex Medical has released a trading update covering its half-year ended 30 June 2020. Somewhat foreshadowed by its detailed AR&A statement of 24 April 2020, the Group notes the period was affected in a number of different ways by the COVID-19 Pandemic, most notably in terms of an early decline in probe sales for elective surgery which was then followed by strong growth in sales to intensive care units (‘ICUs’). Although subsequent demand for elective surgery has so far failed to compensate for the fall-off from ICUs as UK incidence of COVID-19 cases passed their peak, TPI expects this to be compensated by a more general ‘postsummer rush’ by patients wishing undertake deferred surgery before the year end.
We have updated our valuation for Cora Gold (CORA.L) on the back of increasing gold prices and de-risking of its Sanankoro gold project with the recently signed Term Sheet with Lionhead Capital. Using a conservative US$1,600/oz gold price (previously US$1,400/oz) our updated risk adjusted (25%, previously 40%), DCF-derived valuation is £30.7m or 16.1p per share representing a 79% upside to the current share price for Cora’s Sanankoro project in Mali.
N4P has provided an update on its Nuvec® optimisation programme and proof of concept work involving COVID-19. Interestingly, delays imposed by the Pandemic lockdown presented an opportunity for the Group to explore a new initiative regarding Nuvec® ’s potential as an oral delivery system. Research on the Group’s proprietary silica nanoparticles indicates that their unique spiky structure could provide a significant competitive advantage compared to existing, established routes of administration for vaccines (such as by injection) that are already in use.
TomCo yesterday announced it has raised £1.5m new funds through the placing of 375m new ordinary shares (representing a c.136% dilution of existing share capital) at a price of 0.4p each. One half Warrant is also attached to each new share exercisable at 0.8p/share for up to two years post-Admission.
eEnergy has announced its acquisition of Renewable Solutions Lighting Limited (‘RSL’), a specialist in providing the UK education sector with fully funded LED lighting solutions. The total consideration for the acquisition, assuming all earn-out payments are made, is £2.2 million, which is to be paid to the existing shareholders of RSL entirely in new eEnergy shares issued at a 27.7% premium to yesterday’s closing price. This follows yesterday’s Trading Update which detailed unaudited revenues for the Group’s changed financial year to end-June 2020, including a resilient quarterly performance during the lockdown.
Rose yesterday published its full year 2019 results and provided notice of its 29th July 2020 AGM, at which it proposes to change the Group’s name to Zephyr Energy plc (‘Zephyr’). This completes a rebranding exercise following a transformative 2019, as a result of which the Group now presents itself as a lowoverhead, unlevered and value-focused vehicle with a management team equipped to deliver on its ambitious objectives.
The Moroccan focused upstream oil and gas company yesterday released an update in relation to its micro liquified natural gas (‘mLNG’) phase 1 development plan for the TE-5 Horst development (the ‘Phase 1 Development’) at its Tendrara Production Concession (the ‘Concession’). The signing of a Heads of Terms (‘HoT’) and award of exclusivity with a Moroccan conglomerate (the ‘Partner’), which has significant domestic liquified petroleum gas, butane and propane distribution and marketing operations, for the purchase of LNG represents an important step toward delivery of Sound’s production development plans.
Avacta has announced that its Affimer-based rapid point-of-care (‘POC’) test strips to detect the SARS-COV-2 spike protein, that have been developed and evaluated by its partners at Cytiva (formerly GE Healthcare Life Sciences), have shown positive initial performance data. Following this important news, the next step will be to optimise in order to achieve the best possible limit of detection, given that this will ultimately be a key factor in determining the clinical sensitivity of the test.
AfriTin Mining’s (ATM) flagship asset is the Uis tin mine in Namibia comprising a large tin (Sn), tantalum (Ta) and lithium (Li) bearing pegmatite field that is fully permitted and currently producing tin-in-concentrate. Mining operations have returned to full-scale following easing of COVID-19 restrictions. Production is now being ramped up to 747tpa of Sn concentrate with an off-take agreement already in place. A phased development approach is planned over the near-term by increasing throughput by 50% plus the production of Li and Ta concentrates for potential revenue streams.
Rainbow yesterday announced that it had conditionally placed 41,666,667 new ordinary shares with new and existing shareholders at a price of 3p each in order to raise gross proceeds of £1.25 million. Its Balance Sheet has also been bolstered by extension of the repayment terms of Pipestone Capital Inc.’s unsecured loan out to end-2021. This news anticipates the Company’s passing of a major milestone in the coming weeks, with its declaration of a maiden JORC (2012) compliant resource.
Integumen has announced it has signed a Material Transfer Agreement (‘MTA’) with the Aptamer Group Limited (‘Aptamer Group’) to develop and manufacture aptamers to detect local SARS-CoV-2 hotspots in wastewater. Aptamers have the potential to play a key role in the real-time identification of COVID-19 hotspots in wastewater, from which authorities can be alerted through Integumen’s real-time alert system to prevent the spread of the disease to the wider community.
Modern Water has announced its intention to strengthen its position in water monitoring through the unveiling of plans to roll out the latest technologies in data management, analytics and encryption. This will bring its business and suite of water monitoring solutions online. As part of the ecowaterOS consortium and in collaboration with Integumen plc’s (AIM:SKIN) data division, the Company now has the ability to increase remote surveillance capacity for its clients’ contamination monitoring solutions and better protect water systems in a world that must now cope with multiple threats including COVID-19 and related coronaviruses infections.
Cora has this morning confirmed its signing of a US$21m mandate and Term Sheet with investment firm, Lionhead Capital Advisors Proprietary Limited (‘Lionhead’), to fund the future development (the ‘Project Financing’) of its flagship Sanankoro Gold Project (‘Sanankoro’) in Southern Mali. This Project Financing, which remains conditional on, among other matters, the completion of a Definitive Feasibility Study (‘DFS’) on the Project before the end of 2021, now significantly de-risks Sanankoro.
Avacta has announced that collaborative work with the Centre for Virus Research at the University of Glasgow, has shown that Affimer reagents which bind to the SARS-COV-2 virus spike protein prevent infection of human cells by such a model virus and therefore provide a potential ‘neutralising’ therapy for COVID-19 infection. This is significant considering the uncertainties around the timeline for developing and deploying an effective vaccine.
TomCo has announced its raising of £1.5m new funds through the placing of 375m new ordinary shares (representing a c.136% dilution of existing share capital) at a price of 0.4p each. One half Warrant is also attached to each new share exercisable at 0.8p/share for up to two years post-Admission.
This morning, Midatech released its Preliminary results for its year ended 31 December 2019. The financial and operational details contained in the release were very much as had been anticipated by shareholders, with focus having since moved to post-period news, in particular the wide-ranging strategic review announced on 31 March 2020 which included termination of lead development MTD201, closure of the Group’s Bilbao operations and a re-alignment of the Board.
Integumen this morning released two separate news items, including its 2019 Annual Report and Accounts and the Group’s entrance into an unsecured 2-year £400,000 flexible loan facility. The former summarises not only a transformational year for Integumen, but also important post-period events that position it to secure significant new and long-term Pandemic-related business, both from its newly developed real-time contamination detection/environment sector solutions and its expanded activity within the core Labskin business.
Tower has released its preliminary results for the 12 months ended 31 December 2019. While its statement notes the exceptional challenges that had faced the sector during 2020 up to the more recent recovery in oil prices to around US$40 per barrel, its Board also points out that given its expected production profile, it is the price of Brent for forward delivery that is most relevant for it. In this respect, the price for forward delivery has been affected less by the recent difficulties in the prompt crude market, with the benchmark Brent for December 2025 delivery still above US$52 per barrel.
Yesterday afternoon Midatech announced receipt of a purported legal termination of its MTX110 Licence Agreement between Secura Bio Inc. (SecuraBio’) and its subsidiary, Midatech Limited. Midatech considers this to be wholly incorrect and entirely without merit. Indeed, Midatech presently has three ongoing clinical trials of MTX110 in accordance with this Agreement and has specifically stated its plans to use the proceeds of the £4.3 million fundraising announced on 18 May 2020 to continue to fund its clinical programme in diffuse intrinsic pontine glioma (‘DIPG’).
Avacta has announced that the BAMSTM diagnostic test for the COVID-19 infection being developed with its partner Adeptrix (Beverly MA, USA), has reached prototype stage and can detect the coronavirus spike protein in model samples in the concentration range appropriate for a clinical diagnostic test. Such an assay could provide highly sensitive and specific testing for up to a thousand samples per day in a hospital setting using standard equipment that is available (but not currently used for coronavirus testing) thus contributing significantly to an increase in global testing capacity.
Midatech has announced it has entered into a research collaboration with Dr Reddy’s Laboratories (BSE:500124, NSE:DRREDDY, NYSE:RDY) (‘Dr. Reddy’s), the global pharmaceutical company. One (or possibly more) of the Group’s proprietary technology platforms, each with their own unique mechanism focused on improving bio-delivery and biodistribution, is/are to be applied together with its in-house expertise, to certain of Dr Reddy’s nominated existing medicines with a view to expanding their treatment options.
Avacta has successfully completed the bookbuild of a heavily oversubscribed Placing that was announced yesterday morning. As joint broker to the Company, Turner Pope was able to secure a good allocation in the Fundraising for its clients through its participation in the bookbuild and also through a direct subscription. The Fundraising has conditionally raised gross proceeds of, in aggregate, £48 million, before expenses, through the issue of 40 million New Ordinary Shares at an issue price of 120p/share, representing just a 4.4% discount to 30-day volume weighted average price (‘VWAP’).
Toople has announced that Direct Market Services Limited (‘DMSL’), its recently acquired subsidiary, has won a major new contract with Carluccio’s, the leading hospitality and restaurant brand. The contract is an additional win for DMSL, who already services several businesses across multiple disciplines within the Boparan Restaurant Group, that last month bought-out control of Carluccio’s, where re-openings are expected in line with the current government guidelines. Success in securing such a prestigious contract to supply data/telephony services is evidence of how attractive its offering has become.
Positioning itself to secure revenues in a post-Pandemic environment desperate to mitigate potential risk of re-transmission of COVID-19 or similar future viruses, Integumen has today announced that its subsidiary, Labskin, will immediately begin the testing of anti-viral treatments on Labskin cloned human skin coated with SARS-CoV-2 virus. In the first instant, this will be to investigate the use of consumer and dental care products that have the potential to influence the spread of the disease. Such a detailed understanding could significantly influence or provide regulatory guidelines for their future design, composition and/or utilisation.
PowerHouse’s Board has confirmed that it is not aware of any material basis for the more than doubling of its share price over the past week. That said, significant operational progress is being delivered with the Waste2Tricity (‘W2T’) due diligence now near completion while the Protos project proceeds under Peel L&P (‘Peel’) direction. Meanwhile, heightened investor focus on such environmentally friendly sources of energy and the opportunity they present to deliver significant, commercial returns, has seen UK peers like ITM Power and Ceres Power Holdings undergo similar re-ratings since the Pandemic got underway.
Modern Water has announced it has secured the sale of its largest single order for 20 Microtrace® PDV (‘PDV’) units to China, plus 7 related reagent consumables. This latest milestone follows recent news of another important Chinese order won by the Company, this time for the sale of 10 industrial scale Microtox CTM units that are due to be shipped in the 3rd quarter. Together these reflect the major opportunity that Modern Water now has to gain significant long-term and growing exposure to China’s giant and increasingly environmentally aware water health and safety markets.
Avacta has entered into an exclusive distribution agreement with Medusa19 Limited (‘Medusa19’) for direct-to-consumer sales of a saliva-based rapid test for the COVID-19 antigen. Having established the giant and immediate global market opportunity for such a product, significant investment that Medusa19 is proposing to make along with its team’s track records, provides Avacta’s CEO with confidence that the commercial impact of this partnership could be ‘very significant’ for his Group.
Rainbow has provided an exploration update for its Gakara Project in Burundi (‘Gakara’). In March and April 2020, a structural and lithological review that involved the reinterpretation of high-resolution geophysical data was undertaken by TECT Geological Consulting. This confirmed the presence of three large carbonatite bodies at Gakara, which represent the regional source of rare earth elements (‘REE’). Moreover, a detailed understanding of the structural controls that gave rise to the mineralisation is a key element within the creation of the Company’s 3D mineralisation models alongside the existing mining and drilling data and will allow its initial JORC resource base to better reflect potential and drive future exploration activities in the correctly targeted manner.
Midatech Pharma has announced it has raised c.£1.8m from a UK Placing of new ordinary shares at a price of 27p each. Attached to each Placing share is a 1-for-1 warrant which is exercisable at 34p for five years and six months from Admission. A simultaneous Registered Direct Offering (‘RDO’) of American Depositary Shares (‘ADSs’) plus warrants has raised a further US$3.0m* (£.2.5m). Based on current strategy, existing cash plus new funding (which TPI estimates totals c.£6m) is expected to sustain a runway for the Group’s continuing operations into Q2 2021 and reflects recognition of the value and potential retained within its technologies and clinical/pre-clinical developments.
Cora Gold Limited, has announced its final audited results for the year ended 31 December 2019. During the period, the Company declared a pit constrained Maiden Inferred Mineral Resource at its Sanankoro Gold Project of 5.0 million tonnes (Mt) at 1.6 g/t Au for 265,000 ounces of gold towards the end of 2019, along with reconfirmation of the SRK-derived Exploration Target of between 30 Mt and 50 Mt at a grade of between 1.0 and 1.3 g/t Au, for approximately 1-2 million ounces of gold.
Avacta has announced that several of the Affimer reagents recently generated for development of a point-of-care COVID-19 antigen saliva test, have now also been shown to block the interaction between the virus’ spike protein and ACE-2, a receptor on human cells that is key to the virus infection pathway. This is a quite exceptional development against a rapidly moving background, offering significant new and unique potential for a therapy that could help prevent infection and limit the progression of the disease, thereby providing immediate benefit to patients.
N4P has announced the raising of additional development capital amounting to c.£2.03m (gross) from a placing of c.50.7m new ordinary shares at a price of 4.0p each. Significantly, the Group’s unique silica nanoparticle delivery system, Nuvec®, has already demonstrated that is capable of loading and transfecting both DNA and mRNA and producing an immune response. Focus now is on a phased work program designed to make Nuvec® more consistent, easier to handle and therefore more efficacious.
Modern Water has announced receipt of its first patented AMBC wastewater plant order from Ion Exchange (India) Ltd. This follows MWG’s collaboration agreement with this large international specialist water and environment management company (announced RNS: 23 December 2019), and whose President, Ajay Popat, has also noted his company is “now ready to move to
the first installation as we deepen our working relationship with Modern Water”.
Avacta has announced its Preliminary Results for the 17-month period ending 31 December 2019. Its accounts reflect strong revenue growth and a healthy balance sheet; its statement highlights the establishment of multiple, major long-term growth opportunities. Significantly, post period-end the Group also announced two partnerships established to develop Affimer-based COVID-19 antigen tests, having also completed a £5.75 million fundraising that left the business well capitalised with a £10.5 million net cash position as at 30 April which capitalises the business through into 2022 on its current plans.
Following its signing of a three-year revenue-sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’) on 18th January 2020, and Modern Water’s subsequent confirmation of a Q1 2020 spike in demand for its water contamination detection consumables, the Company has today announced the commencement of shipping to meet both back-orders and growing demand for water contamination detection bacteria from existing clients.
Further to its signing of a US$£3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘Modern Water’) back on 18 March 2020, Integumen has today announced the completion of its first batch of MWG reagent. Not surprisingly, the global COVID-19 public health crisis is resulting in a significant acceleration of customer demand for water contamination detection bacteria from existing clients, to which both companies have been able to rapidly respond.
Erris has today announced its successful raising of c,£330,000 (gross) through a placing of some 7.77m new ordinary shares at a price of 4.25p. This follows news last week of highly encouraging results for the Company’s recently optioned and highly prospective Loch Tay project (‘the Project’) in Scotland. Under an agreement with GreenOre Gold plc (‘GreenOre’) signed in December 2019, Erris will now undertake exploration work that is expected to result in it assuming both Operatorship and an 80% working interest in the asset.
Avacta has announced its second partnership to exploit the recently generated Affimer binders to the SARS-COV-2 virus in a high-throughput COVID-19 antigen test. This follows the Group’s stated intention to partner its SARS-COV-2 spike protein Affimer reagents with several select companies in order to support antigen test development on multiple diagnostic platforms. This is expected to contribute most effectively to the urgent need for rapid antigen tests to diagnose this coronavirus infection, such that it can be mass produced for rapid, professional screening of large populations and, potentially for self-testing by consumers themselves.
Baron today announced its final results and an update on its key areas of operation in Timor Leste, Peru and the UK for the year ended December 2019. In a separate release, the company has also announced a potentially exciting Work Sharing and Confidentiality Agreement with a large European E&P company in regard to UK Licence P2478 (Baron: 15%), located in the Inner Moray Firth (IMF) region of the North Sea.
Living up to the market’s best expectations, Deltex Medical delivered a pre-exceptional operating profit for its year to December 2019, while also ending the period with a reasonable cash cushion. The benefits of restructuring undertaken over the past 18 months, combined with a new strategy focussed on cost elimination and raised efficiencies, now place the Group on a springboard for grow both through the current situation and the post-Pandemic period. In this respect, it is significant that UK and US intensive care units have already started placing orders for its specialist haemodynamic monitoring technology, with a view to assisting clinicians select the optimal treatment regime for ventilated COVID-19 patients.
The technological collaboration, marketing and production agreement signed last month between Integumen (‘SKIN’) and Modern Water (‘MWG’) has already resulted in a significant joint product offering capable of uniquely addressing one of the world’s obvious current and post-Pandemic needs. To date, investment markets have almost exclusively focussed on the human race’s most immediate demand – that of COVID-19 detection, diagnostics and vaccination – and so has awarded a significant premium to the wider healthcare development sector in anticipation of its potential to deliver on these ambitions.
The Moroccan focused upstream oil and gas company has announced its audited final results for the year ended 31 December 2019. These highlight a period during which SOU’s Board successfully faced up to numerous challenges, as a result of which it effected a programme of structural cost reduction and explored options on monetising its Eastern Moroccan Portfolio, which presently remains ongoing. While the more recent COVID-19 Pandemic is not expected to significantly alter the anticipated schedule or broad economics of TE-5 Horst’s full field development, nearer-term it could possibly impose some delay on the Group’s micro-LNG (‘mLNG’) implementation.
After just four weeks, the Avacta/Cytiva Partnership has successfully generated several highly specific Affimer reagents for a COVID-19 antigen rapid test. Today’s news release perfectly reflects the exceptional value, advantages and opportunity the Group’s Affimer® technology is capable of creating. The need for antigen tests to diagnose this coronavirus infection that can be mass produced for rapid, professional screening of large populations, and for self-testing by consumers themselves, is crucial to limiting and tracking the spread of this disease.
Baron has executed a Shareholder’s Agreement (SHA) with SundaGas Resources Pte. Ltd (SundaGas) governing the operation of SundaGas (Timor-Leste Sahul) Pte. Ltd (SundaGas TLS) in which Baron now holds a 33.33% interest. SundaGas TLS’s sole asset is a 100% shareholding in SundaGas Banda Unipessoal Lda., which is the operator of the TL-SO-19-16 Production Sharing Contract (PSC), otherwise known as the ‘Chuditch’ PSC in Timor Leste. SundaGas Banda Unipessoal holds a 75% interest in Chuditch providing Baron with an indirect interest of 25% in the PSC.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company received its second phase metallurgical test results from mining consultants, Wardell Armstrong (WAI). Locked cycle testing confirms saleable concentrate of lead (60%), zinc (59.1%) and silver (1,350ppm within Pb concentrate). The locked cycle tests also demonstrated good metal recoveries including: 83.7% recovery for lead, 77.7% recovery for zinc and 87.1% recovery for silver. These results represent improvements of concentrate grades compared with the first phase test work.
Following last year’s successful appraisal programme on the Mako gas field on the Duyung PSC in Indonesia (Coro: 15% non-operated interest), the operator of Duyung, Conrad Petroleum Ltd, has prepared significantly upgraded resource estimates for the Mako field. In particular, Conrad has increased the gross 2C resource estimate by 79% from 276 BCF to 493 BCF.
Alien Metals (UFO.L) is an exploration and development company with a diversified portfolio of assets including base metals, silver and iron ore projects in top mining jurisdictions. The Company announced today an update on its Donovan 2 copper-gold project in Mexico following results from a recently completed IP (Induced Polarisation) survey. Results have generated specific drill targets coincident with previous geophysical surveys and sampling results. Two robust drill targets, referred to as the Cerro de la Cruz and Los Alomos, lie within highly prospective geological corridor.
The Zika virus, a member of the Flaviviridae family that was originally spread by daytime-active Aedes mosquitoes, has already provided an ideal demonstration that Avacta’s Affimer platform can very quickly develop highly specific reagents in response to an outbreak of an infectious disease. The Group’s global technology partnership with Cytiva announced today now provides it with immediate access to a COVID-19 diagnostic, which is essential if a practical and commercial solution is to be promptly offered to governments and healthcare providers around the world.
Baron has relinquished its 15% interest in Licence P2470 located in the UK Inner Moray Firth (IMF) region. All work commitments on the block have been completed and the decision to relinquish the licence was effective from 31 March 2020. The company has retained its 15% in the more prospective Licence P2478 which contains the large Dunrobin prospect. There are no near-term drilling commitments on P2478, which we believe is positive given the current operational environment. We also note that given Baron’s predominant exposure to gas rather than oil, determined by its primary assets in Timor Leste and Peru, the company also provides limited exposure to the current volatility of global oil prices.
eEnergy Group has released an update detailing its progress in the Schools Sector while also considering the impact of the Coronavirus. Through its eLight subsidiary, eEnergy provides LaaS (‘Light-as-a-Service’) to businesses and schools to help them switch to LED lighting for a fixed monthly service fee, avoiding any upfront payments. While the lockdown imposed due to the COVID-19 pandemic has inevitably resulted in some deferrals of scheduled installations amongst its commercial SME/retail customers, the schools shutdown has alternatively prompted many to accelerate such fitment programmes during the time their premises are unoccupied.
Alien Metals (UFO.L) is an exploration and development company with a diversified portfolio of assets including base metals, silver and iron ore projects in top mining jurisdictions. The Company has recently changed its board and strategy, now focusing on acquisitions of quality assets in Tier 1 jurisdictions led by a strong technical team. Assets include the Brockman and Hancock Ranges, both high-grade iron ore projects and the high-grade Elizabeth Hill silver mine in the Pilbara region of Western Australia. In addition, Alien continues to progress its portfolio of silver and base metal projects in Mexico by identifying priority exploration targets within its 12 mining concessions.
Falanx has provided investors with a pre-close trading update, along with a statement regarding the impact from, and the Group’s commercial response to, the ongoing global COVID-19 crisis. Not only does this highlight improvement in its pre-Pandemic order intake, but also opportunity created through an anticipated long-term rise in home-based working.
Cora Gold (CORA.L), the exploration company focused on gold discoveries in West Africa, announced yesterday that it has commenced drilling within the highly prospective Madina Foulbé permit in eastern Senegal. The project lies within the prolific Kedougou-Kebieba Inlier (referred to as the Kenieba Window), which historically has seen over 50Moz of gold discovered. The Madina Foulbé project has two drill ready targets for follow up based on previous drill campaigns including intercepts of 3m grading 41.2g/t Au and 3m grading 7.86g/t Au.
Tower has announced an update in regard to both its Thali PSC (Production Sharing Contract) in Cameroon and its binding heads of terms (HoT) in respect to a farm-out of a 24.5% interest in the PSC to OilLR Pty Ltd as announced on 2 March 2020. In particular, the company has notified the Cameroon Ministry of Mines, Industry and Technological Development (MINMIDT) of an event of Force Majeure under the terms of the PSC during which the company’s obligations are temporarily suspended.
Further to its signing of a US$£3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘Modern Water’) earlier this month, Integumen has announced that the global COVID-19 public health crisis has resulted in both a significant acceleration of anticipated customer demand and the Group’s planned response. In order to meet back-orders and growing demand for water contamination detection bacteria from existing customers across Spain, Italy and China, production of MWG’s monitoring reagent has commenced this week, some six weeks ahead of the originally planned production date.
Following its signing of a three-year revenue-sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’) on 18th January 2020, Modern Water has confirmed orders received for its water contamination detection consumables rose by 46% in Q1 2020 compared to Q1 2019. This demand spike, which came from existing customers across Spain, Italy and China, is thought to be significantly connected to the global COVID-19 public health crisis. Based on this and recognising that the pandemic still appears to be in a relatively early stage of its evolution across western zones, immediate demand could potentially significantly outstrip the initial production agreement signed between the two companies.
Inclusion of gas liquefaction within the CPF EIA approval, now enables the micro liquified natural gas (‘mLNG’) development planned as Phase 1 of the Concession field development plan to get underway. Phase 2, the Tendrara Gas Export Pipeline (‘TGEP’) led full field development, also continues to move forward having now formally secured its necessary land access approvals. Indeed, the last major hurdle is now just the tariff agreement with respect to this access. With the passing of this further significant milestone, negotiations continue with both the originally proposed purchaser (now of course on a non-exclusive basis) and other parties that had also expressed an interest what has become an increasingly de-risked asset.
Integumen has announced its signing of a three-year US$3.75m (£3.12m*) bacteria production agreement with Modern Water plc (AIM:MWG, ‘MWG’). This revenue sharing agency agreement (‘Agreement’) entails both the manufacturing and provision of logistical support for MWG’s monitoring reagent consumables. Not only does this news represent a further important move in the continuing, planned expansion of Integumen’s laboratories, but it also provides significant additional reassurance that the Group will deliver on the significant, four-fold revenue expansion already projected by its Board for the current year.
Modern Water, the global water crisis monitoring and solutions provider, has announced its signing of a three-year revenue sharing manufacturing agency agreement (the ‘Agreement’) with Integumen plc (AIM:SKIN, ‘Integumen’). This will provide manufacturing and logistical support for the Company’s supply of water monitoring reagent consumables.
The shares now appear to be incorrectly priced. Recent news flow has more than ‘knocked the stuffing’ out of Sound Energy (‘SOU’, ‘the Group’). The market took its failure to farm-down its Eastern Morocco Portfolio (‘the Portfolio’) badly, despite the reality that this was simply down to the (unnamed) purchaser’s inability to immediately satisfy the proposed transaction’s strict funding conditions. Indeed, the due diligence that the proposed purchaser undertook may be considered to have lowered the project risk for other parties that also expressed investment interest in the asset. While it works toward resolving this outstanding issue, the ending of exclusivity has opened the window for others now willing to enter the bidding.
Tower has received an updated reserves report from Oilfield International Limited (OIL) covering Tower’s Thali production sharing contract (PSC) in Cameroon. The document, termed the ‘2020 Reserves Report’ does not contain new technical information compared to the previous report prepared by OIL in November 2018. However, the 2020 report does include updated oil prices and costs reflecting the changes in the market over the intervening period.
eEnergy Group has announced the geographical expansion of its operations into Northern Ireland, while also providing shareholders with an operational update. Today’s news builds upon the Group’s established presence in both Eire and England. The Board sees significant opportunity in the region to capture a presently underdeveloped lighting-as-a-service (‘LaaS’) market opportunity, which it also considers offers potential to secure larger contract values. Being one of Europe’s leading operators in this segment of the developing energy efficiency industry, eEnergy is operating in an international marketplace that is projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6% over the next 7 years.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company has released high-grade assay results from drill holes TOD-024 and TOD-025. Results from TOD-025 confirmed a thick, high-grade zone outside of the current indicated resource estimate and returned 7.7m grading 17.3% ZnEq., including 4.3m grading 25.6% ZnEq. This represents the highest-grade intercept that Europa has drilled to date and could significantly increase the current indicated resource. Additional mineralisation was confirmed in TOD-024 returning 1.7m grading 5.1% ZnEq, which also lies outside of the current resource estimate.
PowerHouse has confirmed that planning permission has been granted to Peel and Waste2Tricity for the first of its planned commercial distributed modular generation (‘DMG®’) waste-to-energy installations at the Protos Energy Park (‘Protos’) in Cheshire. This represents the passing of a key milestone for the Company. TPI considers the facility, which is designed to produce low levels of safe residues and requires a small operating footprint, thereby making it suitable for deployment at enterprise and community level, could potentially be commissioned early in 2021E.
Midatech Pharma has confirmed further expansion of its MTX110 diffuse intrinsic pontine glioma programme. It has received mandatory regulatory and ethical approval to commence a new exploratory Phase I study for diffuse midline glioma (‘DMG’) brain tumours, which will be conducted at Columbia University in New York. This follows last December’s news of a €2.6 million EU Grant for further clinical development of MTX110 for the treatment of DIPG, a related rare and fatal form of childhood brain cancer and a subset of DMG, from the European Innovation Council (‘EIC’). Selection by these two prestigious research institutions is seen as a major endorsement and validation of the innovation and potential value contained within this proposition, for which the efficacy component of its Phase II clinical trials is expected to be released shortly. As expected, yesterday’s general meeting saw all resolutions passed.
MWG has further extended its operations and market opportunity through the signing of a non-binding Heads of Terms (‘HOT’) agreement with the private extractions and chemicals company, Cellulac plc. Having recently strengthened its balance sheet and refreshed its Board through the appointment of a series of highly experienced and wellconnected individuals, this association now opens new target sales and distribution channels across the expanding global water market. Its participation in the Integumen-led ecowaterOS consortium, also recognises the urgent international need for an end-to-end water contamination detection and decontamination provider network, that offers the ability to provide customers with real-time monitoring solutions.
Application of data-management and AI capabilities to existing core technologies has identified a significant new market opportunity for Integumen and its partners. Rising awareness of the direct impact of climate change on systems vital to the international population’s health and wellbeing, the Group’s new ecowaterOS platform offers a potential game-changing solution for water monitoring, recovery, treatment and recycling. A consortium led by Rinocloud has successfully integrated water management technologies and systems to address and automate resolution of such challenges into an end-to-end solution that addresses community, regional and even continent-wide demands.
Having now strengthened its balance sheet and refreshed its Board through the appointment of a series of highly experienced and well-connected individuals, Modern Water is now poised to capture the obvious and growing global water market opportunity through cutting-edge technology focused on making the treatment and recycling of water more efficient. In light of its recent successful placing, negotiations over the potential sale of its Monitoring Division have been suspended pending the outcome of a review by the new Board. It has also confirmed action to significantly reduce overhead costs across the whole business which has now been undertaken. The results of this and MWG’s vision for capturing its business opportunity is expected to be reflected within its forthcoming release of financial results and statement for the year ending December 2019.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just released first assay results from the current drilling campaign on its 95% owned Sanankoro gold project in southern Mali. Drilling mainly targeted deeper oxide and sulphide extensions to the maiden pit constrained inferred resource of 5Mt grading 1.6g/t Au for 0.265Moz of contained gold. Initial results from the first 13 RC holes have been received and the best intercepts are: 29m grading 2.61g/t Au including 12m grading 3.89g/t Au (RC hole SC-241), 7m grading 4.2g/t Au including 3m grading 8.38g/t Au (RC hole SC-246), 18m grading 1.08g/t Au (RC hole SC-248) and 4m grading 1.68g/t Au (RC hole SC-250). These encouraging results as well as further successful assay results bode well for increased open pit resources. Further assay results are expected in the coming weeks.
Since Rose entered into a Letter of Intent (LOI) to acquire an initial 10% of Captiva Energy Holdings’ (Captiva) 89.5% working interest in the McCoy lease in the DenverJulesburg Basin in Colorado on 4 November 2019, several key milestones have now been reached. These include a lease amendment with the lessor of McCoy which allows for the drilling of two-mile lateral wells across the lease. In addition, Captiva will support lease operator Great Western Operating Company’s pending application for a wider 1,280 acre Drilling Space Unit (DSU or the ‘Margil’ DSU) which includes the McCoy lease.
Integumen has signed a commercial and AI partnership with Acumen Software of South Africa. This represents the Group’s first RAWTestTM AI and distribution agreement. It is seen providing access across multiple continents for its real-time AI water contamination monitoring system, through its integration with Acumen’s wellestablished mobile asset and management software platform for wastewater and water utilities that has been established over the past 12-years. Given that the industrial sector is a major global water polluter, with only 60% of waste receiving treatment before being physically disposed of into the environment, escalating pressures from international governments to rectify the situation prospectively creates a significant, long-term market opportunity.
Avacta announces its signing of a collaboration and license agreement with AffyXell Therapeutics. Coming just two weeks after establishing its joint venture with Daewoong Pharmaceutical, Avacta already appears to be ‘punching well above its weight’. The unique opportunity presented through combination of two world-class technologies, Avacta’s Affimer antibody mimetic platform and Daewoong’s proprietary technology for generation of ‘off-the-shelf’ allogeneic mesenchymal stem cells (‘MSC’) therapies, offers potential to create the next generation of stem cell therapies. This not only opens up a giant new, long-term market opportunity but significantly also, AffyXell is committed to fund all of Avacta’s related costs despite it retaining the commercial rights to the proteins in all unrelated fields.
Coro will no longer proceed with the acquisition of a 42.5% interest in the Bulu PSC offshore Indonesia. With the long stop date for the completion of the transaction having passed on 2 December 2019 without the requisite government approvals in place and several concerns identified by Coro in regard to the company’s partner and new requirements to the proposed development plan for the asset, Coro has elected to allow the Bulu acquisition agreement to lapse in accordance with the terms of the proposed transaction.
Highly encouraging results for Avacta’s TMAC programme. The Group’s first TMACTM drug conjugate molecule has demonstrated ability to out-perform Bavencio (avelumab) in an animal model. In vivo and pharmacokinetic data collected indicate superior efficacy which, together with ability to successfully target the warhead, provides initial proof-of-concept. As such, today’s news represents the passing of a key milestone with the very first TMAC tested. Given a peak sales projection of US$4bn/year for Bavencio, significant commercial interest that Avacta’s development programme has already attracted might now multiply still further.
A positive Trading Update. Detailing unaudited figures for a 17-month period in order to shift its financial year end to December, Avacta has reported a doubling of revenues compared with numbers delivered for the 12-months ended July 2018. Revenues were boosted by receipt of its first milestone payment from its partnership with LG Chem, along with significant growth within its Affimer® diagnostics business. Having also raised c.£9m gross proceeds from an equity placing and subscription last October, the Group presently sits on a good ‘cash cushion’ which is now being focussed on taking its first pre|CISION pro-drug, AVA6000, into the clinic during 2H’2020 while also forwarding its partnered programmes and licensing relationships for its Affimer® diagnostics reagents.
Commercial property owners and operators are waking up to opportunities being presented in the still relatively nascent Energy-Efficiency-as-a-Service sector (‘EEaaS’). An early mover with focus on the UK and Ireland, eEnergy Group plc’s (‘eEnergy’ or ‘the Group’) wholly owned eLight Group Holdings (‘eLight’) is one of Europe’s leading operators in the Lighting-as-a-Service (‘LaaS’) segment of the industry, a global marketplace projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6%1 over the next 7 years. A strong and growing contract pipeline with excellent cash conversion, provides Directors with confidence in the Group’s ability to deliver its first net profits for its year ended June 2021E, after which we expect it to throw off significant free cash.
Integumen has provided both a trading update and announced the signing of a cooperative alliance with the Shanghai-based Innocare Group. This MOU has been established to promote innovation and cooperation between research institutions developing cosmetics and skincare products. It will assist commercial enterprises in China seeking routes to regulatory compliance using Labskin and LabskinAI without the need for animal testing. Today’s trading update also provided unaudited figures for the year to end-December 2019 confirming, as expected, 12-months pro-forma revenues of just over £1m, representing almost a four-fold increase on the comparable period. This reflects the fact that skincare and personal product manufacturers continue to find themselves overwhelmed by excessive data and strict new EU, US and Chinese regulation, together with an urgent need to heighten clinical trial efficiencies.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed an initial Scoping Study on its 95% owned Sanankoro gold project in southern Mali. An open pit constrained (c.100m) inferred resource consists of 5.0Mt grading 1.6g/t Au for 0.265Moz of contained gold. Extensive shallow oxide-mineralisation augurs well for a standalone heap-leach operation. Assuming a gold price of US$1,400/oz, AISC (all-in-sustaining-costs) of US$942/oz and pre-production capex of US$20.6m the project returns a NPV(8%) of US$30.9m (US$24.2m post-tax) with an IRR of 84% (73% post-tax); based on an annual production of c.46koz. This generates c.US$19m in annual free cash flow. Although the current life of mine is only 3 years, we expect this to expand given that only 25% of the 40km mineralised strike length has been drilled to date
Erris Resources plc (Erris) announced today that it has successfully completed its due diligence on an option agreement signed with GreenOre Gold plc (previously announced on 9 December 2019) regarding the Loch Tay gold project in Perthshire, Scotland. As such, Erris will now proceed with exploration work to acquire 80% of Loch Tay. Erris can earn its 80% interest by defining a minimum inferred resource of 250koz of gold, to be verified by an Independent Competent Person, within four years. Loch Tay is located 43km from Scotgold Resources’ Cononish gold mine, which has a combined resource of 266koz grading 13.4g/t Au, including total reserves of 198koz grading 11.1g/t Au with first gold production expected in May 2020.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Agproject in northern Spain. The Company has recently recieveda preliminary independent metallurgical studyfrom mining consultants, Wardell Armstrong. Locked cycle testing confirms saleable concentrate of lead(57.5%), zinc (55.8%)and silver(1.5kg/t). The locked cycle tests also demonstrated good metal recoveries including: 84.3% recovery forlead, 70.7% recovery for zinc and 90.3% recovery forsilver. Toral has JORC (2012) compliant resource of 18Mt grading 7.4% ZnEq. (based on a 4% Zn cut-off grade including Pb credits) and 24g/t Ag, including an Indicated resource of 2.7Mt grading 8.9% Zn Eq.
A significant step forward for Avacta. Through a joint venture agreement announced yesterday with Daewoong Pharmaceutical, the Group has identified an ideal champion to help prove the opportunity its Affimer® technology presents in the area of cell and gene therapy. In combination with Daewoong’s stem cell technology and associated research, Affimer® technology holds potential to outperform existing treatments for immune-mediated diseases, such as rheumatoid arthritis, multiple sclerosis and type 1 diabetes, and to form the next generation of stem cell therapies. While extended time-schedules and high costing for such trials must be taken as read, the prospective value created for shareholders, should the joint venture and Avacta’s wholly owned in-house drug development be successful, will be exceptional.
Integumen Plc “Integumen” is seizing an opportunity presented by skin care and personal product manufacturers that find themselves overwhelmed by excessive data, strict new EU, US and Chinese regulations and the need to improve product claims while responding to consumer-led demands for an end to laboratory-based animal testing. Surging demand for its laboratory and data services has resulted in the Board reiterating guidance that anticipates afour-fold revenue increase for the year just ended being matched by a further, similar improvement in 2020. Significantly also, the incorporation of Rinocloud’s high margin data analytics and AI services offer potential for the Group to be generating positive monthly cash flows by the end of H1’2020E, with anticipated demand f rom global-scale manufacturers potentially even testing its newly expanded laboratory capacity before the year end.
All resolutions were duly passed at today’s General Meeting. Further to its announcement of 20th December, however, the Board again reminded shareholders that the Company’s working capital position remains very weak. Having now been provided with increased authorisation to issue shares on a non-pre-emptive basis, it went on to state that it is in advance negotiations with a number of parties and was hopeful that it would secure up to £100,000 of immediate short-term debt funding, which would enable it to continue trading. The terms and amount of any subsequent placing are yet to be determined and a further announcement will be made in due course.
Falanx has sold its serverless stream processing platform, Furnace (‘Furnace’), to a team led by Falanx’s Chief Strategy Officer and Founder, John Blamire. As part of the sale, John Blamire has resigned from the Board with immediate effect. Following the sale, Falanx will continue to benefit from Furnace technology through licensing and support agreements. As such, this transaction is seen benefitting shareholders through reduced Group cash expenditure while also ensuring they continue to participate materially from any increase in Furnace’s future value. Significantly, it frees Falanx to concentrate on its core operations which are now trading in their traditionally stronger second half.
Rinocloud Limited (‘Rinocloud’), Integumen’s wholly owned subsidiary, has signed a 3-year Framework Agreement with Parity Professionals Limited (‘Parity’), a subsidiary of Parity Group plc. This Agreement, which follows Heads of Terms to enter a multiyear Framework Agreement announced on 13th November, is for the supply and rollout of mobile enterprise resource, data management and business tool software services to clients ranging from the National Health Service (‘NHS’), Public Sector, Utilities, Housing Associations and Private Institutional companies. Within this, Integumen seeks opportunity to cross-sell intelligent data management and extraction of value-creating analysis with a focus on improving return on investment to Parity’s 150+ institutional clients.
In a placing and subscription led by Integumen’s broker Turner Pope, the Group has raised gross proceeds of £1.368 million (c.£1.245 million net) through the aggregate issuance of 91.25 million new shares at a price of 1.5p per share. Admission of the new shares is expected to be no later than the 16th December 2019. Funds raised will provide working capital and investment in laboratory space, new equipment and marketing, in response to a sharp increase in demand for Labskin services. Product development supported by successful incorporation of Rinocloud’s AI platform, in tandem with pressure for compliance with the EU’s medical device regulation (2017/745) by international skin product producers, has sufficiently improved visibility for management to reiterate its full year revenue guidance for both 2019 and 2020 at £1 million and £4 million respectively.
Midatech Pharma announces confirmation of a €2.6 million EU Grant for further clinical development of MTX110 for the treatment of Diffuse Intrinsic Pontine Glioma, a rare and fatal form of childhood brain cancer. Selection by the European Innovation Council (‘EIC’) is seen as a major endorsement and validation of the innovation and potential value contained within this proposition, for which the efficacy component of its Phase II clinical trials is expected to be released shortly.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed a JORC (2012) compliant maiden resource estimate on its Sanankoro gold project in southern Mali. The open pit constrained (115m depth) maiden inferred resource is 5Mt grading 1.6g/t Au for 0.265Moz of contained gold. Of this, 88% is derived from oxide material. This is just the first step in determining the overall potential of Sanankoro deposit, which currently has between 1 and 2Moz Exploration Target within 100m of surface grading between 1.0g/t and 1.3g/t Au. We note that shallow oxide mineralisation coupled with encouraging preliminary metallurgical test results (up to 97% recoveries) bodes well for a standalone operation at Sanankoro.
TomCo has raised gross proceeds of £925,000 by way of a placing of 142.3 million new shares at a price of 0.65p per share through its broker Turner Pope Investments (TPI). The company will use a significant proportion of the net proceeds of the placing to undertake a resources report and engineering study for a potential oil/tar sands opportunity across its leases within the Uintah Basin in Utah, USA. This project is anticipated to be expedited in tandem with Valkor LLC with which TomCo has signed a non-binding Memorandum of Understanding (MoU).
Coro has entered into a sale and purchase agreement with Zenith Energy Ltd (LSE: ZEN) for the proposed disposal of Coro’s entire portfolio of Italian assets for a total consideration of £3.9m payable in Zenith shares. The deal is subject to the approval of the Italian regulatory authority and Coro’s shareholders at a General Meeting of the company to be held on 20 December 2019. When completed, the divestment of the Italian assets will free up significant amounts of management time and future capital expenditure commitments enabling Coro to focus efforts entirely on its South East Asian expansion strategy.
Falanx reported further strong revenue growth for the six months ended September 2019, during which time the Group invested heavily in anticipation of capturing significant new business opportunities available across both the global cyber security and intelligence markets. While this resulted in some overall gross margin slippage for the period, the benefits of new product roll-out and a high level of repeat revenues are expected to be reaped during the Group’s traditionally stronger second half. With evidence of this already being delivered amid an expanding sales pipeline and gross margin recovery, the Board continues to focus on driving profitable top-line growth and further cost reduction as it targets cashflow breakeven.
Commercial property owners and operators are waking up to opportunities being presented in the still relatively nascent Energy-Efficiency-as-a-Service sector (‘EEaaS’). An early mover with focus on the UK and Ireland, eEnergy Group plc’s (‘eEnergy’ or ‘the Group’) wholly owned eLight Group Holdings (‘eLight’) is one of Europe’s leading operators in the Lighting-as-a-Service (‘LaaS’) segment of the industry, a global marketplace projected to grow at a compound-average-growth-rate (‘CAGR’) of 16.6%1 over the next 7 years.
W Resources (WRES.L) has reached an important milestone with commencement of commercial production of tungsten and tin concentrate from its flagship La Parrilla mine in southwest Spain. This means that La Parrilla has achieved stable operating plant performance. The Company is now on track to realise its T2 Phase target of 2Mtpa run of mine material and producing 2,700t of tungsten (WO3) concentrate.
Union Jack has raised £5.0m by way of a placing and subscription of 3,333.3 million new shares at a price of 0.15p per share. The net proceeds of the placing will be used to fund the company’s contribution to further appraisal drilling and reprocessing of new seismic data at West Newton (UJO: 16.665%). Union Jack will also utilise part of the placing proceeds to fund its share of an anticipated side-track well at Biscathorpe where the company holds a 22% working interest.
Rainbow Rare Earths (RBW.L) announced the latest results from its exploration and mine development programme on the Gakara project in Burundi. Assay results from two diamond core drill-holes in the Kiyenzi deposit reveal continuous mineralisation from shallow depths. Highlights include intersections of 13.87m grading 4.85% total rare earth oxides (TREO) and 11.64m grading 3.86% TREO. Additional drill cores totalling more than 1,000m have been sent for analysis in order to evaluate and generate an updated compliant mineral resource estimate. These results should give RBW additional mining flexibility as it continues to development the Gakara project.
Coro, which holds a 15% interest in the Duyung PSC, offshore Indonesia has successfully completed the Mako field appraisal programme. In particular, the Tambak-1 well has encountered 24 metres of high quality reservoir sandstones, confirming a common gas-water contact across the whole field, and a drill stem test (DST) has flowed dry gas at 11.4 mmcfpd, confirming the deliverability and commercial potential of the Mako field reservoir.
Integumen has announced successful results from its participation in a water research project that utilises Rinocloud Artificial Intelligence (‘AI’). The three-year development Remote Automated Water Test research project (‘RAWTest’), comprising a consortium partly funded by the Irish Environmental Protection Agency (EPA), anticipates increasingly global dependence on recycling and recovery of water supplies. As such, a regular, rapid and accurate means of wireless monitoring is urgently needed to ensure they are fit for human consumption. Rinocloud AI has demonstrated its ability to deliver exactly this, by remotely detecting E.coli contaminated water with 99.3% accuracy in just 3.37 seconds, thereby offering significant potential to improve global healthcare.
Integumen has signed a Heads of Terms with Parity Group plc (AIM: PTY) to enter a multi-year Framework Agreement for the supply of AI software across Parity’s NHS, Central Government and private institutional client base. This exciting news is augmented by a positive trading update from Integumen which states that the company expects 2020 revenue to be approximately £4m excluding any contribution from developments with Parity at this stage.
Coro, which holds a 15% interest in the Duyung PSC, offshore Indonesia has announced that the Tambak-1 well which spudded in early November 2019 has intersected the intra-Muda reservoir of the Mako gas field and a full suite of technical data has been recovered. Initial results are very positive, indicating a gross sandstone reservoir of approximately 25 metres, considerably thicker than the original Mako South-1 discovery well. As such, the management is confident that pre-drill 2C resource estimates of 276 BCF of gas could be enhanced by an additional 100 BCF, representing a very significant uplift in the potential value of the Mako field.
Following the drilling of the West Newton A-2 appraisal well on UK onshore licence PEDL183 in which Reabold holds an indirect interest of 39.3% through its 59.0% interest in operator Rathlin Energy, Rathlin has undertaken a detailed range of technical studies focusing on the Kirkham Abbey formation. Consequently, the operator has upgraded its estimated volumes of in-place hydrocarbons within the reservoir. Of particular interest is the conclusion that the dominant phase of the inplace volumes is oil rather than gas and that these volumes are indicated to be significantly greater than those assumed by the existing CPR produced prior to the drilling of West Newton A-2.
Rose has signed a binding Letter of Intent with Captiva Energy Holdings II LLC to acquire an initial 10% of Captiva’s 89.5% net working interest in the 317 acre McCoy lease located in the Denver-Julesburg (DJ) Basin in Colorado. This acquisition represents the initial stage of ownership in what may ultimately become a considerably larger Drilling Space Unit (DSU) to accommodate a multi-well drilling programme of two-mile horizontal wells targeting up to four reservoir formations. This deal is being expedited with a view to establishing early production and cash flow within the next 12 months.
Integumen has launched Rinodrive AI, an independent Artificial Intelligence platform for the company’s collaboration joint venture partners. Rinodrive is a standalone open source cloud-based ecosystem which Integumen is rolling out with its existing healthcare clients in addition to an increasing list of higher education institutions, an international financial advisory company and a major UK bank. Rinodrive is also being tested in government departments which could provide a potentially huge market for the company’s AI platform.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in northern Spain. The Company has updated its JORC (2012) compliant resource to 18Mt grading 7.4% Zn Eq (based on a 4% Zn cut-off grade including Pb credits) and 24g/t Ag, representing a 12% increase to the total resource tonnes. More importantly, Toral now has an Indicated resource of 2.7Mt grading 8.9% Zn Eq. Overall, the updated resource represents a 30% increase in total contained zinc to 0.83Mt. The updated resource model will be used by management to identify potential new drill targets both within and outside of the defined resource. In addition, the revised resource model will be reviewed alongside the metallurgical, geotechnical and hydrological results for inclusion in the PFS (Pre-Feasibility Study).
Recent operations on the Tambak-2 well on the Mako gas field in the Duyung PSC (Coro: 15%) offshore Indonesia focused on conducting a Drill Stem Test (DST) across the intra-Muda reservoir in order to assess gas flow rates. The operator reported that the DST was not successful as a consequence of formation damage in the reservoir. Nevertheless, the main objective of the Tambak-2 well, demonstrating primarily a continuous gas-bearing reservoir, has been achieved and Coro remains confident of an uplift in the contingent resource base for the field. Tambak-2 will now be plugged and abandoned, as was always planned, and the drilling rig will now move to the Tambak-1 well location.
With the assistance of the company’s joint broker Turner Pope, Avacta is raising gross proceeds of up to £9m through the issue of up to 59.8 million new shares (including 200,000 subscription shares) at a price of 15p per share. Admission of the new shares to AIM is subject primarily to a General Meeting which will be held on 4 November 2019. The net proceeds of the placing will be deployed as Avacta enters the clinic with its first programme and also to advance drug development partnerships and grow revenue and licensing relationships for the company’s Affimer® diagnostics reagents.
Kavango Resources (KAV.L) is an early stage exploration company focused on discovery of world-class copper, nickel, and platinum group mineral deposits in Botswana. The Company was formed by a team of geologists with a history of exploration success in Africa. Kavango’s strategy is to repeat past success through new discoveries of world-class deposits.
The Tambak-2 well on the Duyung PSC located offshore Indonesia, in which Coro holds a 15% interest, has reached a total depth of 503 metres. The coring programme, wireline logs and pressure surveys subsequently conducted have confirmed the well as a successful appraisal of the Mako gas field. In particular, the company believes that the quality of the reservoir implies that a significant proportion of 3C contingent resources could be converted into the 2C category enhancing substantially the commercial potential of the field.
Velocys has signed an agreement with Oxy Low Carbon Ventures LLC (OLCV), to capture CO2 emissions from Velocys’ planned biomass-to-fuels project located in Mississippi USA and store them securely in an underground geologic formation. The company outlines that the ability to transform its flagship facility into a net negative emitter of CO2 is highly advantageous from both an environmental and also a commercial standpoint.
Avacta has entered into an agreement with ADC Therapeutics SA (Lausanne CH) under which the parties will develop jointly Affimer drug conjugates combining Avacta’s Affimer® technology with ADC Therapeutics’ pyrrolobenzodiazepine (PBD) based warhead and linker technologies. This collaboration is expected to harness the benefits of Affimer proteins to selectively and efficiently target ADC Therapeutics’ PBD drugs to the sites of tumours with the intention of developing breakthrough oncology treatments.
Integumen has signed multi year agreements with two major international cosmetics companies for recurring LabskinAI services. These framework agreements are already being rolled out in the US, Asia and the EU markets and low six-figure aggregate payments have been received by the company. With Integumen also anticipating contract extensions with existing clients in the nearterm, the management is confident that group revenue will exceed £1.0m in the current financial year.
Coro’s participation in a fully funded two well drilling programme on the Duyung PSC located offshore Indonesia (Coro: 15% non operated interest) has commenced with the spudding of the Tambak-2 appraisal well. The well, which is expected to take approximately 33 days to drill, will appraise the southern region of the Mako field and has the potential to move up to 100 BCF of gross contingent resources from the 3C to the 2C category increasing further the commercial potential of the Mako field. We believe that this would also enhance the appeal of the field as a source of gas for the Singaporean market.
Tower has disclosed technical and commercial information to a major international oil company in respect of Tower’s Namibian exploration blocks. Preliminary discussions initiated by the major and held earlier this summer have addressed the potential of cooperating in respect of future exploration activity. Although these discussions are at a very early stage and may not lead to a formal agreement between the parties, they do serve as a reminder that in addition to the company’s more advanced appraisal and development activities in Cameroon, Tower also possesses significant exploration upside in Namibia as well as South Africa that could represent major upside to the current share price in the event that farm-out agreements in either region are expedited successfully.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn-Ag project in NW Spain. The Company has recently completed a drill programme with Toral’s high-grade core with the aim of collecting a bulk sample for metallurgical testwork as well as increasing confidence in the current JORC (2012) compliant inferred mineral resource estimate of 16Mt grading 3.9% Zn, 3.1% Pb and 24g/t Ag. Best intercepts included 13.1m grading 2.47% Zn Eq (TOD 023) and 6.1m grading 1.06% Zn Eq (TOD-022). Whilst the overall grade was lower than expected an additional mineralised zone was intersected in the hanging wall, 25m above the main contact zone. Drill hole TOD 023D intersected 10.5m grading 2.23% Zn Eq in the hanging wall zone. With these results, Europa’s consultants will now be able to upgrade the inferred resource to indicated category.
Hummingbird Resources (HUM.L) is a gold production, development and exploration company. The Group has two core gold projects, the relatively high-grade Yanfolila open-pit mine in Mali and the large (4.2Moz) undeveloped Dugbe gold project in Liberia. Yanfolila produced its first gold bar on time and on budget in December 2017. Following the recent installation of a second ball mill, full year guidance is set for 110-125koz. Pre production probable reserves of 710koz grading 3.14g/t Au, total resources of 1.8Moz and an additional 390koz of non compliant exploration offer mine life upside.
Over the last six months, Toople has experienced accelerated growth in customer acquisition numbers. We expect this to translate into increased sales over H2 and an improvement in margins as a function of increased orders for superfast fibre broadband in the product mix.
In the months of April, May and June 2019, Toople received over 900, 1,000 and 1,100 orders respectively. In particular, order numbers for May 2019 were three and half times the level achieved only 12 months previously. This momentum has continued in Q2 with strong growth in the traditionally seasonally affected period of July and August 2019 and Toople added a further 1,300 and 1,000 new customer orders respectively in these months.
Cora Gold (CORA.L) is an exploration company focused on gold discoveries in West Africa. The Company has just completed another successful round of drilling, confirming continuity of oxide gold mineralisation at Zone A, Zone B and Selin prospects within its Sanankoro gold project in southern Mali. Best intercepts include 46m grading 4.48g/t Au and 24m grading 2.83g/t Au. These results are very encouraging and support further drilling to define potential starter pits and sulphide mineralisation at depth. Shallow oxide mineralisation coupled with encouraging preliminary metallurgical test results (up to 97% recoveries) bodes well for standalone operation at Sanankoro. With a Scoping Study and and maiden resource estimate expected in Q4 19 Cora is a gold junior in the making.
We believe that Union Jack’s (UJO) interim results focus justifiably on the exciting drilling result at the West Newton A-2 appraisal well where an Extended Well Test (EWT) has been paused in order to optimise operations and revise the well test design to focus on the oil column when the test resumes. UJO and its partners in West Newton also intend to commission a revised CPR which could imply a significant upgrade to pre-drill resource estimates suggesting that the discovery has the potential to be the biggest UK onshore find since Wytch Farm in 1973.
With higher than expected flow rates from the Burnett 2B well on the Monroe Swell licence in California, in which Reabold has earned a 50% working interest, the company is currently increasing the capacity of the production facilities on site. With a concurrent programme to boost production from Burnett 2A likely to increase volumes further, the company is evaluating the potential to drill additional wells on Monroe Swell. Reabold is experiencing a similar situation on the West Brentwood licence (RBD: 50%) where strong output from wells VG-3 and VG-4 has accelerated plans to drill a third well; VG-5, in Q4 2019.
Falanx reported a strong increase in sales and a reduction in underlying EBITDA losses in the year to March 2019 driven by the integration of acquisitions completed in 2018 and increased levels of monthly recurring revenue. Against a market backdrop of a rapidly growing cyber security market, the company is witnessing continued growth in the current year buoyed by a growing sales pipeline.
In Q4 2019, Coro will participate in a two well drilling programme on the Duyung PSC located in the West Natuna Basin offshore Indonesia (Coro: 15% non operated interest). The operator will focus on the central and southern regions of the Mako gas field appraising 2C contingent resources of at least 276 BCF and targeting an additional 200-300 BCF of prospective resources in a deeper gas exploration play. Mobilisation of the Singapore-based Asian Endeavour 1 jack-up rig is scheduled for late September and the back-to-back drilling programme is then expected to last until the end of November/early December 2019.
The acquisition of RinoCloud in April 2019 and recurring revenue from higher margin software services has reduced EBITDA losses compared to the previous period. Operationally, the Labskin business has also added a raft of new contracts including 4 blue-chip clients from the US and EU and six CBD (cannabidiol) test contracts with more in the pipeline. With the wider reorganisation of the company completed prior to the period end, we anticipate that the full impact of the operational and financial progress outlined in these results will be seen starkly in H2 and beyond.
Since the beginning of 2019, Reabold has gained major exposure to the exciting West Newton discovery, potentially the biggest onshore UK gas discovery since 1973, while in the US; the company has drilled two wells apiece on the West Brentwood and Monroe Swell fields providing an ongoing 50% share of revenue from each field. Looking ahead, the appraisal programme on Iecea Mare in Romania provides major near term drilling exposure and the likelihood of an appraisal well on the Corallian operated Curlew-A prospect in H1 2020 has the potential to significantly augment Reabold’s UK business.
In conjunction with the company’s attendance at the Microbiome AI Conference currently taking place in San Diego, California, Integumen has announced that its Labskin business has achieved the successful multiple cloning of human volunteers. This is a highly significant breakthrough for the company as it enables multiple skincare products to be tested simultaneously on the same subject without the attendance of the original human volunteer. This development is likely to reduce substantially product development time and clinical errors as well as lowering recruitment, supervision and testing costs for subsequent product testing programmes.
Initial testing at the West Newton A-2 well has indicated a substantial accumulation of oil and gas rather than solely a gas discovery as originally anticipated. Early analysis indicates a significant hydrocarbon column of 65 metres comprising a gross oil column of 45 metres underlying a gross gas column of 20 metres. The operator, Rathlin Energy (with a 66.67% interest), has paused the extended well test (EWT) in order to optimise its operations and will revise the well test design to focus on the oil column going forward. Reabold holds a 24% economic interest in West Newton through its 36% interest in Rathlin.
W Resources (WRES) is currently focused on near term production from its wholly owned La Parrilla tungsten and tin mine located in southwest Spain. The Company is in the final construction stage of the new large-scale concentrator plant and has already commissioned the new crusher and jig plants. The newly commissioned crusher and jig plants are now operating at near design capacity. As such, we expect the Company will be able to ramp-up production during Q3 2019.
Since the beginning of 2019, Reabold has gained major exposure to the exciting West Newton discovery, potentially the biggest onshore UK gas discovery since 1973, while in the US; the company has drilled two wells apiece on the West Brentwood and Monroe Swell fields providing an ongoing 50% share of revenue from each field. Looking ahead, the appraisal programme on Iecea Mare in Romania provides major near term drilling exposure and the likelihood of an appraisal well on the Corallian operated Curlew-A prospect in H1 2020 has the potential to significantly augment Reabold’s UK business.
Primorus has acquired a diverse portfolio of direct and indirect interests in a range
of companies in the natural resources, leisure, corporate services and brand licensing sectors. Operating a clear investment strategy, Primorus is typically a long term investor and uses several instruments to finance its investments including cash and shares while maintaining the capacity to issue debt securities or borrow to complete an investment. Primorus has established a track record of successful divestments and although the market for IPOs is currently challenging, Primorus notes that it remains underserved and we anticipate that the company will seek to crystallise the value of several of its investments, predominantly through the IPO channel, within the next 12-18 months.
Since the beginning of the current year, Integumen has delivered a wide range of commercial and corporate milestones. These have included disposing of underperforming subsidiaries and the reduction of group indebtedness, the acquisition of RinoCloud to augment the growing Labskin business, new blue-chip customer agreements, significant expansion of facilities in York and Ireland and the appointment of key personnel.
Highlands Natural Resources (HNR) is a diversified resources company with a broad portfolio of activities. The group’s core assets are located in Colorado and include a vertically integrated cannabidiol (CBD) products business and a 7.5% carried working interest in the East Denver Project, a producing oil and gas field. These businesses represent the foundations of HNR’s strategy to assemble a portfolio of projects whereby up to 80% of its assets generate sustainable revenue streams, complemented by more speculative projects which offer the potential for longer term capital appreciation.
Reabold is making solid progress across its key areas of activity in Romania, the US and the UK. In particular, rig mobilisation to drill the Iecea Mare-1 appraisal well in Romania is expected to commence imminently. In California, the VG-4 well on the West Brentwood field has been placed on permanent production and at the Monroe Swell field, the operator is poised to re-enter the Burnett 2A and 2B wells to implement clean-up activities and restore the wells to initial production rates. In the UK, the results of a rig site survey for the Curlew-A prospect is also expected to be completed by the end of the week.
Integumen has expanded its wound care business, LifeScienceHub Ltd (Wound pHase), through the extension of its technology licensing agreement with Cellulac plc, a company in which Integumen holds a 9.35% interest. This new remit will include the refinement of medical grade cannabidiol (CBD) derived from hemp for the development of CBD-infused wound dressings. This enhanced agreement will be in collaboration with the Department of Chemical Sciences at the University of Limerick and the Irish government supported body; the Research Centre for Resource Efficiency (tcbb RRSOURCE).
Integumen has signed new open-ended agreements with two of the world’s Top-10 cosmetic companies for initial testing on multiple ingredients and products within its clients’ portfolios. The company has also announced that LabskinAI has completed Beta testing and has fully transitioned from a product sale only company to a virtual and physical test platform for new products.
Coro has renegotiated the terms of the proposed acquisition of a 42.5% interest in the Bulu Production Sharing Contract (PSC) located offshore East Java in Indonesia. The Bulu PSC contains the Lengo gas field estimated to contain gross certified recoverable gas resources of 359 BCF.
Egdon Resources, the operator of UK onshore licence PEDL253, in which Union Jack holds a 22% interest, has stated that further analysis of the results of the Biscathorpe-2 appraisal well confirms the likely presence of a 35 metre column of good quality oil in the Dinantian Limestone interval. This is coupled with elevated gas readings and oil shows within the well which indicates that a working hydrocarbon system exists within the PEDL253 licence area.
Europa Metals is an exploration and development company focused on its wholly owned Toral Pb-Zn project in NW Spain. The company is currently drilling Toral’s high-grade core with the aim of collecting a bulk sample for metallurgical testwork as well as increasing confidence in the current JORC (2012) compliant inferred mineral resource estimate of 16Mt grading 3.9% Zn, 3.1% Pb and 24g/t Ag. Currently trading on an in-situ resource multiple (US$/t) of just 1.5x, the stock is significantly undervalued compared with our peer group multiple of 24.8x. As such, we value Europa at 0.095p per share which is a simple average between our DCF derived (0.13p per share) and our peer based (0.06p per share) relative in-situ valuation. Our blended valuation offers significant upside to the current share price.
As a function of the restructuring of the company since the end of 2018, Integumen has delivered a nine fold increase in revenue in H1 2019. The company has also transformed the balance sheet with the disposal of underperforming subsidiaries, the removal of outstanding debt and the acquisition of RinoCloud to augment Integumen’s Labskin business. With a successful fundraising of £2.75m also completed in April 2019 providing significant working capital, we believe that Integumen is very well placed for continued sales growth in H2 2019.
Falanx has been active on the corporate front during 2019. Following a successful £4.16m fund raising at the end of 2018, where the company attracted significant institutional support to the shareholder base, the company has also strengthened both the board and its team of advisers as it moves into its next phase of development. At the end of March it announced further growth in its third quarter and that its cash balances remained strong and were able to support its next phase of growth.
Following the earlier distribution of the Union Jack Oil Research Note, we identified an error regarding the percentage holding of the Keddington oilfield. Please be aware that the interest held by Union Jack in the Keddington oilfield is 20% and not 10% as was previously stated.
Preliminary data from the West Newton appraisal well suggests that the discovery is at least as big as the pre-drill estimate of 189 BCF of gas. This implies that West Newton could be the largest onshore UK gas field discovered since 1973, assuming that subsequent testing confirms the scale of the resource. Reabold holds an indirect interest of 24.7% through its 37.08% interest in the operator, Rathlin Energy (UK) Limited.