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Northland Capital Partners View on the City: Active Energy, Premier African Minerals, Savannah Resources, Stratex International, Arian SIlver, Connemara Mining, Red Leopard Holdings

Published: 08:14 29 Jun 2016 BST

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Ultimate Sports Group plc (LON:USG) – CORP: Placing
Market Cap: £2.8m; Current Price: 18.5p

(From yesterday): Placing to raise £0.5m
 Ultimate Sports Group Plc, announced yesterday that it had raised £0.5m via the placing of 5.0m new shares at 10p.
 The new capital will be used to support the roll-out of its new online sporting platform for children called Ultimate Player.me. The platform promotes the engagement in sports and encourages children to improve their fitness levels and sporting skills. The platform includes a website shop which offers players virtual products and branded merchandise. Ultimate Player covers thirteen different sports and the programme became fully operational in the first few months of 2016.

NORTHLAND CAPITAL PARTNERS VIEW: The recent outlook statement in the final results was positive where management showed a confident outlook in both the Sports in Schools (ESS) business and UltimatePlayer.me. New government initiatives in the 2016 Budget  also provides for longer term support of the business in our view.

Active Energy Group (LON:AEG) – CORP*: Appointment of Nobro
Market Cap: £22.2m; Current Price: 3.8p

Active Energy appoints Northland Capital as Nomad and Broker
 Active Energy Group has appointed Northland Capital Partners as its Nominated Advisor and Broker.

NORTHLAND CAPITAL PARTNERS VIEW: Active Energy Group has three pillars to its current business. The first is its AEG WoodFibre division, an industrial wood fibre production business that is used in the construction of medium-density fibreboard (MDF) manufacture. The second, AEG Timberland, is a Forestry Asset Management and Development business with exclusivity to commercialise c. 750,000 acres of forestry with the Métis Settlements of Alberta, Western Canada. The third is AEG CoalSwitch, an advanced technology business that uses biomass coal replacement fuels and a fuel producing system to replace coal in conventional coal fired power plants.

Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: RHA Update
Market Cap: £12.7m; Current Price: 0.68p

Plant modifications expected to be completed by 6th July
 Fabrication of the plant modifications at RHA have been completed and are being transported to site. Civil construction work has commenced and the Company is targeting 06/07/16 for completion.
 Bulk test-work on the tailings indicates the potential to supplement ROM ore during the underground mining ramp up phase.
 Early XRT results on a low-grade bulk sample from the open pit confirm the potential for the upgrading of the ore.

NORTHLAND CAPITAL PARTNERS VIEW: Positive update from Premier African Minerals with the modifications to the plant remaining on schedule for the 6th July. The Company is looking to ramp up production levels to 9,000t per month from the underground mine.

Savannah Resources (LON:SAV) – CORP: Mutamba/Jangamo update
Market Cap: £10.8m; Current Price: 2.8p

Savannah Resources and Rio Tinto agree to extend the long stop date
Rio Tinto and Savannah Resources have agreed to extend the long stop date for fulfilment of the conditions precedent of the joint venture from 30/06/16 to 30/09/16, or a later date as may be agreed by the parties.

NORTHLAND CAPITAL PARTNERS VIEW: The continued delay in approval for the Mutamba/Jangamo joint venture from the Ministry of Mineral Resources and Energy of the Republic of Mozambique is frustrating but it is positive that Savannah Resources that joint venture partner, Rio Tinto, remains committed. In the interim Savannah has maintained its focus and continued to advance its copper projects, located in Oman, toward production and also acquired new lithium exploration projects in Finland.

Stratex International (LON:STI) – CORP: Goldstone FY15 results
Market Cap: £9.7m; Current Price: 2.1p; Target Price: 6.6p

RC drill programmed planned at Homase-Akrokerri
 Goldstone Resources a Company that Stratex International holds a 33.45% interest in has reported its FY15 results.
 LBT increased to US$1.3m in FY15 from US$1.2m in FY14.
 Net cash totalled US$0.2m in FY15 down from US$1.5m in FY14.
 RC drill programme planed at Homase-Akrokerri.

Arian Silver Corporation (LON:AGQ) – CORP*: FY15 results
Market Cap: £1.7m; Current Price: 0.95p

2015 figures reflect Quintana settlement and disposal of San Jose
 LBT in FY15 totalled US$15.5m up from US$5.9m in FY15, largely due to the US$12.7m loss resulting from the disposal of the Arian Silver de Mexico SA de CV and its assets, including the San Jose project.
 Net debt reduced to US$54k in FY15 compared to US$21.7m in FY14, following the disposal of Arian’s subsidiary.

NORTHLAND CAPITAL PARTNERS VIEW: 2015 was a difficult year for Arian Silver Corporation with the development issues at San Jose combined with the low silver prices meant that it was unable to make its debt repayments to Quintana. As a result of these issues, the Company had an orderly foreclosure and concluded a settlement deed with Quintana that resulted in the disposal of the San Jose Project, removal of the Quintana debt and associated finance, along with a cash injection in to Arian of US$700,000 from Quintana. Since this period the Company has reduced its corporate overheads by two-thirds and secured an exclusive option on the Noche Buena gold and silver tailings project. This project has a historic NI 43-101 mineral resource estimate of 100,000oz Au at a grade of 3g/t Au and 1.7moz Ag at a grade of 55g/t Ag and represents an attractive low cost near-term production opportunity.

Connemara Mining Company (LON:CON) – CORP: FY15 results
Market Cap: £1.4m; Current Price: 2.5p

From yesterday: LBT reduces as Company focus on Inishowen
 LBT in FY15 reduced to €202,961 from €308,292 in FY14.
 Net debt in FY15 increased to €306,010 from €72,524 in FY14.
 Drilling is ongoing at the Inishowen Gold Project, located in Donegal and results are expected in Q316.
 Connemara has been informed by its joint venture partner in the Wicklow/Wexford area ,Hendrick, that it has raised sufficient funds to enable some drilling in 2016.
 At the Stonepark zinc-lead project, joint venture partner - Teck, has indicated that they may have an exploration budget for the project in 2016.
 Connemara is expected to surrender three licences located around the now closed Lisheen zinc mine.
 The Company has applied for additional licences prospective for zinc.

NORTHLAND CAPITAL PARTNERS VIEW: Connemara Mining Company continues to be conservatively run. The Company’s focus is on the Inishowen Gold Project and drill results are expected in the next quarter. There is also the potential for additional advancement at the Company’s joint venture interests and for new zinc projects to be brought in.

Red Leopard Holdings (LON:RLH) – CORP: FY15 results
Market Cap: £0.4m; Current Price: 0.08p

LBT widens in FY15
 LBT in FY15 increased to £230,921 from £170,113 in FY14, largely due to an increase in finance cost.
 Net debt in FY15 totalled £83,460 down from £158,326 in FY14
 The Company is in discussions with engineers regarding the revaluation of the cost of reassessing the tunnel continue.
 The Company is continuing to evaluate other complementary resource assets.

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