Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has pulled off what small-cap dreamers sketch on the back of napkins: flog a tricky asset for a pile of cash and promise shareholders a decent slice of the spoils.
Shares in the AIM-listed copper explorer are up 40% this week after it agreed to sell its interest in the KSK project in central Kalimantan, Indonesia, to Norin Mining of Hong Kong for £81 million.
Even after the week’s ascent, the market capitalisation is still £30 million shy of what’s being paid for KSK.
With 53% of shareholders already backing the transaction and a general meeting set for late January, this looks like a done deal — barring any regulatory gremlins.
“This is a landmark transaction,” said chair Tony Manini, who reckons the deal “delivers a strong return for our shareholders.” Assuming, of course, the proceeds don’t disappear into the corporate ether.
A special dividend is on the cards, though nothing’s confirmed. A resource minnow unloading a copper project for nine figures is worth a cheer.
Sticking with the sector, Anglesey Mining PLC (AIM:AYM) shares have seen what’s termed a ‘dead cat bounce’ (the theory being that dropped from a sufficient height, even a deceased moggy will show some elastic qualities).
Anyway, the stock more than doubled in value on no news. Prior to this, an aborted fundraiser and capital reorganisation torpedoed the natural resources group’s valuation, which now stands at a mini micro-cap £100,000.
OOracle Power PLC (AIM:ORCP) shares rose 19% after drilling resumed at its Northern Zone gold project near Kalgoorlie.
A two-week grade control programme is targeting shallow gaps between known mineralised zones, with results expected shortly. Chief executive Naheed Memon said recent intercepts had “increased the footprint with every drill campaign” and called the work a key project milestone.
Turning to the wider market, the AIM All-Share felt the trickle-down from Wall Street’s ‘brain-fart’, with the small-cap index off almost 3% at 749.72. Its benchmark, the FTSE 100, was more resilient, moving 0.6% lower.
The week’s biggest faller was a bit of a bad news/good news story.
Buccaneer Energy shares fell 36% after raising £500,000, issuing shares at a discount and, of course, prompting the usual grumbles about dilution.
However, the new investment is being put to good use and should generate long-term value for investors.
It is being used to expand output and monetise associated gas through a new Bitcoin mining initiative. I know — gas to crypto; how does that work? Well, when you have a surfeit of cheap power, it is possible to parlay this into the processing required to mine virtual coins. It will be interesting to see how chief executive Paul Welch and the team get on.
Union Jack Oil fell 25% after its latest well in central Oklahoma failed to produce commercial quantities of oil, despite initial signs of promise.
It was another tough week for Next 15 Group PLC (AIM:NFG), the London-listed marketing services group, which tumbled 22% after it terminated talks with private equity firm Epiris that would have seen it taken over for £230 million.
There’s an old stock market adage that says it is often better to travel than arrive, and this seems to be the case with Rockfire Resources PLC (LSE:ROCK). Up 61% in the last six months, it tumbled 22% on what, on the face of it, were decent early exploration results from its Molaoi project in Greece.
Finally, shares in Xeros Technology Group PLC (AIM:XSG) tumbled 21% to 1.78p on Friday after the Sheffield-based innovator unveiled plans to raise up to £6 million through a discounted share placing and retail offer.
The fresh equity raise, priced at 1.75p per share (a 22% discount to Thursday’s close), aims to strengthen the company’s balance sheet and support the commercial rollout of its eco-friendly laundry and filtration technologies.
Xeros will collect £3 million initially via a placing and subscription, followed by a potential £2 million top-up and an additional £500,000 from retail investors.
Chief executive Neil Austin said the funding would help “accelerate the global adoption of Xeros’ technology,” which reduces the environmental footprint of garment care.
The company said the proceeds will secure at least 12 months of working capital. A shareholder meeting to approve the fundraising is scheduled for 28 November.