END OF DAY NEWS WRAP

The End of the Day Wrap provides a summary of the most interesting articles published by Proactive Investors during the day, including all of the main stories and exclusive interviews with executives.

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Proactive news summary, featuring Sula Iron & Gold, Archipelago Resources and TXO

January 18 2013, 7:31pm
Deltex raised cash to fund its strategically important collaboration with US healthcare giant Premier

There can be few better feelings for a resource company shareholder than positive exploration results, so whatever the weather, shareholders of Sula and Archipelago must have felt a warm glow today.

Sula Iron & Gold (LON:SULA) is to ready to start drilling its 153 square kilometre (km) prospect, adjacent to the huge Tonkolili iron mine in Sierra Leone, after 'highly positive' mapping results.

Initial work at the site has confirmed a banded iron formation over strike length of 3.1km located in Area 1, in the south-west of the licence area.

Archipelago Resources (LON:AR.) announced what it described as ‘exceptional’ drill results from the Jipang prospect at the operating Toka Tindung mine in Indonesia.

In 2012, Archipelago drilled 581 holes for a total of 82,391 metres as part of its near site exploration campaign.

The highlight results from Jipang had significant intersections that ranged from 2 to 18 metres in width with high gold grades of 3.94 grams per tonne (g/t) to 17.88g/t.

Champagne corks were probably popping board room of TXO (LON:TXO) as well after the Texan investment company was boosted by two contract wins for Grand Bahama Group (GBG), in which it has a 23.6% stake.

Tim Baldwin, TXO’s chairman, said: “We are delighted with the progress of GBG and are in the process of negotiating a new and revised investment and option agreement, so that we may invest further monies and increase our equity holding.”

On the fund raising front, miner Oracle Coalfields (LON:ORCP) and medical equipment maker Deltex were both active today.

Oracle had two bites at the cherry. It has raised around £0.93mln by placing around 62 million shares at 1.5 pence each.

The company also revealed it has brought in £26,667 via its £2million equity line facility by issuing Dutchess with around 1.13mln shares at 2 pence each.

Deltex Medical Group (LON:DEMG), meanwhile, is to raise £2.5mln through a placing of shares at 19p each.

The global leader in oesophageal Doppler monitoring said the funds will be used to finance the second phase of its collaboration project with Premier, announced on January 8.

Deltex’s CardioQ-ODM and other enhanced recovery steps in colorectal surgery are to be used in a few more Premier hospitals, giving Deltex vital access to real-world data in real-life conditions.

Unfortunately, getting access to Premier’s patient outcome and hospital cost data costs money, and some of the funds in today’s cash raise will go towards paying Premier’s fees.

Elsewhere in the medtech sector EKF Diagnostics (LON:EKF) was in rude health, up 7.7%, after it revealed full year revenues increased by around 20%.

In a pre-close update, the group said margin improvements helped it to trade "well" in the second half of 2012 with revenues for the full year to Dec 31 coming in at around £26.1mln compared to £21.7mln last year.

The company had cash at the end of the year of £4.2mln.


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