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Northland Capital Partners View on the City W Resources, ReNeuron, Rame Energy and Altona Energy

Published: 08:23 10 Jul 2015 BST

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W Resources (LON:WRES) – BUY*: La Parrilla update
Market Cap: £9.5m; Current Price: 0.265p
Infill drill programme underway

  • Completed infill drill programme at La Parrilla for the development of the Fast Track Mine. Assay results are in line with expectations with results including; 11.26m at 0.17% WO3 from 66m (IP-15), 16.5m at 0.128% WO3 from 74.5m (IP-16), 17.49m at 0.126% WO3 from 48m and 7.53m at 0.108% WO3 and 0.149% Sn from 74.1m (IP-13), and 17.8m at 0.093% WO3 and 0.115% Sn from 98.55m (IP-16).
  • The drill rig has now been moved to La Parrilla West to drill 2-4 holes in an attempt to better define a second and potentially higher grade open-pittable resource.
  • Grade control drilling is expected to commence in Q315.
  • An updated resource and reserve estimate is expected to be completed in Q415.
  • Forecasts and price target under review and BUY rating maintained.

NORTHLAND CAPITAL PARTNERS VIEW: The rapid completion of the infill drill programme at La Parrilla highlights W Resources commitment to rapidly advancing the Fast Track Mine to production in 2016. The Company will now follow up this drill programme with another programme to the West and subsequently a grade control drill programme in Q315. All of this additional data will then be included in an updated mineral resource estimate in Q415, a major milestone for the Company. We continue to believe W Resources looks significantly undervalued and note the recent developments with North American Tungsten that owns and operates the Cantung Mine that could have significant implications for the ammoniumparatungstate (APT) price.

Rame Energy (LON:RAME) – CORP: UK solar subsidiary
Market Cap: £8.1m; Current Price: 8p
UK solar subsidiary formed

  • Rame Energy has launch a UK solar generating subsidiary that will initially own and operate up to four UK rooftop photovoltaic projects with a total potential capacity of 120kW.
  • The first two Projects will projects under a 20 year PPA that has been entered into with an agricultural business for dairy related processes and one of Europe’s largest indoor motorcross arenas. The Projects qualify for feed-in tariff support under the Government’s ROO FIT scheme. Construction of the first project has now commenced and the first three projects are expected to be operational by October 2015. The projects will cost c. £180k to construct, in aggregate.
  • Rame has a substantial pipeline of rooftop and ground mounted PV projects and once the current projects are completed, management will roll out subsequent SPVs to finance, build and operate further PV assets in the UK.
  • Beco, Rame’s subsidiary, will install the PV systems and hence Rame will retain the traditional solar installer’s margin.

NORTHLAND CAPITAL PARTNERS VIEW: The acquisition of Beco in 2014 provided Rame with a solar capability that is being used to complement its existing wind power activities in Chile. Beco also is a long established solar installer in the UK and hence deploying PV projects in the UK is a logical addition to the business. The projects qualify for feed-in tariff support and are aligned with the Government’s strategy for the further deployment of PV in the UK.

Altona Energy (LON:ANR) – CORP: Update
Market Cap: £3.8m; Current Price: 0.475p
Licences renewed; formal relationship with Parsons Brinkerhoff

  • Exploration Licences, Nos. 4511, 4512 and 4513, in relation to the Altona’s Arckaringa Project drilling operations, have received permission from the South Australian government for a renewal of a period of 12 months.
  • Formal business relationship with Parsons Brinkerhoff, which has now delivered its exploration plan for Underground Coal Gasification (UCG) and a hydrology study for the Arckaringa site. Altona is adding its own evaluations to this information, ahead of the commencement of test drilling.
  • Remains in negotiation with JV partners, Sino-Aus Energy Group and Wintask Group. A final agreement is hoped for soon.

ReNeuron plc (LON:RENE) Placing to raise £68.4m
Market Cap: £87m; Current Price: 4.9p
Funds will allow the group to bring its lead programmes through to market authorisation

  • ReNeuron has raised a total of £68.4 million, before expenses, through a conditional placing.
  • The company has received firm commitments to raise the money through a placing of 1,367,411,939 new ordinary shares at a price of 5p per share.
  • The proceeds will provide working capital for core cell-based therapeutic programmes and a new exosome nanomedicine programme in oncology through to the first half of 2019.
  • The placing provides funding for the group’s stroke and retinitis pigmentosa programmes through to market authorisation application based on existing clinical development plans.

NORTHLAND CAPITAL PARTNERS VIEW: This raise represents a significant milestone for ReNeuron. The funds allow the company to independently bring its lead programmes through to market authorisation, capturing a larger share of the economics of these potential treatments.

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