Suddenly there’s cash swilling around the AIM natural resources sector, at least there is for the right company and the right project.
Hurricane Energy Plc (LON:HUR) last week banked £70mln, taking its funding tally to £120mln for the year, and Tuesday brought more encouraging funding news for London’s investors.
Sirius Minerals PLC (LON:SXX) the company developing the world class fertiliser project in Yorkshire today unveiled a US$300mln deal with Australian mining tycoon Gina Rinehart. It essentially secure a third of the Phase 1 project financing, leaving around US$800mln left to find between debt and equity in the coming weeks and months.
Experts in the City hailed the transaction – agreed in royalties and a differed share subscription – as another key milestone and a major endorsement.
88 Energy Ltd (LON:88E), another of the 2016 success stories, has raised A$11mln in a share placing to two US institutional investors. The cash comes ahead of the next big well in the group’s Alaska shale venture, and some has been earmarked for new opportunities.
This afternoon also marked what is likely the end for an AIM favourite of the past – as Xcite Energy Ltd (LON:XEL) confirmed liquidators would soon be appointed after bondholders quit restructuring talks.
Xcite’s lenders were already set to take 98.5% of the listed company through a debt-to-equity swap, so news that shareholders will receive nothing now leaves little but slightly more spilt milk to cry over.
Elsewhere in the sector there are high hopes for Canadian Overseas Petroleum Limited ahead of next month’s Exxon led exploration well offshore Liberia – broker Shore Capital today upgraded its price target from 16p to 21p, so it now sees some 100% upside to the current price.
In the junior mining section Landore Resources Ltd was a highlight as it conveyed that the BAM East gold discovery is shaping up well. “It’s a serious discovery,” says Landore’s Bill Humphries.
Galileo Resources PLC (LON:GLR) was boosted by exploration results from the Ferber gold project in Nevada.
In the biotech and pharma space Clinigen Group PLC (LON:CLIN) told investors it is extending its four-year partnership to manage early access to the drugs of the speciality pharma company BTG PLC (LON:BTG).
The company’s Idis Global Access division will oversee BTG's critical care portfolio in Europe and new territories in Asia. The agreement also includes the supply in the UK of DigiFab, a drug used to clear digoxin from the body.
Cancer-focused ValiRx Plc (LON:VAL) says its technology has been further endorsed with the award of new patents in Japan and the US.
Tekcapital PLC (LON:TEK) investee Belluscura has concluded an oversubscribed US$675,000 funding, valuing the whole company at US$5.25mln – and leaving the AIM quoted firm with 65% of Belluscura.
Boiler controls specialist Sabien Technology Group Plc (LON:SNT) hit its target of 35 pilot installations in its last financial year and remains confident in can raise this to 40 in the current twelve months.