Clontarf Energy (LON:CLON) – CORP: Peruvian update
Market Cap: £2.0m; Current Price: 0.45p
Progress on Peruvian Block 183 with involvement of Union Oil & Gas
- Peruvian Oil & Gas Exploration Limited (POGEL), Clontarf’s farm out partner for the Peruvian Block 183, where Clontarf holds a 3% over-riding royalty, has attracted Union Oil & Gas Group (UOGG), a subsidiary of Union Group, to further exploration of the block and the development of any commercial oil or gas discoveries. The 3% over-riding royalty is capped at $5m per oil and/or gas discovery and $10m in total.
- UOGG has acquired control of 80% of Hydrocarbon Exploration Peru Ltd, a British company that owns 100% of Block 183. The Block contains up to 2.2TCF of whole recoverable potential gas reserves and a high probability of C5 condensates. It has two oil and gas prospects in anticlines associated with Sarayaquillo sandstones local in the Marañón Basin, which has produced oil and gas since the 1940s, close to the border of the Ucayali Basin. The block covers 396,826 hectares.
NORTHLAND CAPITAL PARTNERS VIEW: UOGG’s acquisition of 80% of Hydrocarbon Exploration Peru should accelerate the development of Block 183 where Clontarf has a 3% over-riding royalty up to $10m.
Redx Pharma plc (LON:REDX) Maiden interims
Market Cap: £73m; Current Price: 113p
Interim results for the six months ended 31 March 2015
- Redx announced its maiden unaudited results for the six months ended 31 March 2015.
- Results were in line with management expectations. The group reported a comprehensive loss of £3.2m (H1 2014: £1.6m) and net cash at 31 March 2015 of £13.8m (H1 2014: £2.8m).
- The group reported continued strong progress with its drug discovery programs with a further program having achieved pre-clinical proof of concept.
NORTHLAND CAPITAL PARTNERS VIEW: Redx has had a good run since its IPO on AIM in March of this year. The company’s stock price is up 33% since listing. The group has developed an extensive pre-clinical pipeline of drug therapies across cancer and anti-infectives. Over the past nine months Redx has identified a further two drug development candidates, including one designed to tackle MRSA, which is a significant milestone for its commercial partnership with the NHS.
Vadim Alexandre +44 (0)20 7382 1134
valexandre@northlandcp.co.uk
Savannah Resources (LON:SAV): Jangamo update
Market Cap: £5.6m; Current Price: 2p
Enters into a joint venture with Rio Tinto
- Savannah Resources has entered into a joint venture with Rio Tinto International Holdings Ltd. The joint venture will see Savannah combine its Jangamo project with Rio Tinto’s adjacent Mutamba, Dongane prospects as well as Rio Tinto’s Chilubane heavy mineral sands projects located in Mozambique.
- This joint venture merges Savannah’s Inferred Mineral Resource estimate of 65mt of 4.2% total heavy minerals with Rio Tinto’s exploration target of between 7bt and 12bt at a grade between 3% and 4.5%.
- Savannah will be the operator with an initial 10% interest in the joint venture and can earn up to 51% in the combined Mutamba/Jangamo Project by undertaking initial reconnaissance exploration and a scoping study (20%), a RC scout drill programme and pre-feasibility study (35%) and a feasibility study (51%). Rio Tinto will be providing access to its existing camp, facilities and equipment.
- Rio Tinto will also enter into an offtake sales contract on commercial terms for the purchase of 100% of the production from any mine developed on the Mutamba/Jangamo Projects.
- In connection with the joint venture Savannah has agreed to acquire the remaining 20% of Matilda Minerals Limitada for AUS$100,000, payable in cash or shares.
NORTHLAND CAPITAL PARTNERS VIEW: A joint venture with Rio Tinto is a major development for Savannah Resources that gives it access to a potentially world class mineral sands play. The joint venture is targeting a mineable inventory of c. 200mt at 7% total heavy minerals for an initial operation that will produce c. 600kt of ilmenite and 40kt of rutile plus zircon concentrate per annum. As the mineralised system defined at the Jangamo project appears to continue into the Mutamba project, the combination of these projects should give the joint venture partners the best chance of success.
Haydale Graphene Industries (LON:HAYD) – Patent application
Market Cap: £13.8m; Current Price: 121p
Application for grant of patent in China allowed
- Application for a patent in China has been allowed. The patent is one of a number arising from the families of patent applications surrounding Haydale’s plasma process for the functionalization of graphene. The patent is expected to be granted in August.
- Last week, Haydale announced a supply agreement for an HY60 R&D reactor to the Centre for Process and Innovation (CPI). Initial revenue from the supply agreement will be approximately £0.17m that will be recognised over approximately a 12 month period. The reactor is expected to be operational by October 2015.
NORTHLAND CAPITAL PARTNERS VIEW: Whilst Korea has been the main area of focus for Haydale in the Far East, China obviously represents a huge market and home to a considerable amount of graphene related research.
Starcom (LON:STAR) – CORP: Appointment
Market Cap: £4.7m; Current Price: 4.875p
From Friday: Appointment of CFO
- On 29th May, the company announced the appointment of Ron Alroy as Chief Financial Officer with effect from 15th June 2015. Due to personal circumstances, Mr Alroy is now unable to take up the position. As a result, the company has now appointed Mr Ehud (Udi) Shenig in his place and Mr Shenig will take up that post immediately, replacing Mr Eitan Yanuv who stepped down as CFO with effect from 15th June. Mr Shenig will not be appointed to the board at this stage.
- Mr Shenig is a CPA who qualified with Deloitte (Israel) and has more than 10 years’ experience advising a number of private Israeli companies. He previously held the role of CFO with Maariv Holdings, a quoted Israeli publishing company.
- Earlier this month, it raised £475k for additional working capital.
- Forecasts, rating and price target are currently under review.