Motif Bio (LON:MTFB) – BUY*: Scientific board appointment
Market Cap: £41.1m; Current Price: 64p; Target Price: 89p
Appointment of Dr Thomas File to the Scientific Advisory Board
- Appointment of Dr Thomas M File to Motif’s Scientific Advisory Board. Currently, Dr File, a renowned expert in infectious diseases, chairs the Division of Infectious Diseases at Summa Health System, Akron (Ohio), is Professor of Internal Medicine and Master Teacher, and the Chair of the Infectious Diseases Section of Northeast Ohio Medical University.
- Dr File is respected and recognised expert on infectious diseases including skin and skin structure infections (SSSIs) and pneumonia. Previously, Dr File served as Past-President and as a member of the Board of Directors for the National Foundation for Infectious Diseases and on the Board of Directors for the Infectious Disease Society of America.
- No change to forecasts, BUY rating and 89p price target.
NORTHLAND CAPITAL PARTNERS VIEW: Motif has further strengthened its Scientific Advisory Board. Dr. File has extensive clinical and research experience in infectious diseases, particularly in the management and treatment of skin infections and pneumonia. His appointment provides a strong addition to the team.
Mariana Resources (LON:MARL) – SPECULATIVE BUY*: Chile update
Market Cap: £16.8m; Current Price: 2.2p
Receives Stage 1 funds from Assets Chile
- Mariana Resources’ subsidiary company AMG Chile SpA has received the first US$450,000 out of the total US$1,650,000 from Asset Chile as part of its earn in the Doña Ines and Exploradora East projects.
- Mariana will now use the funds to commence an initial programme of ground based IP over geochemical and alteration anomalies with follow-up drill testing of priority targets.
- Work expected to commence in Q315 with drilling to commence in Q415.
NORTHLAND CAPITAL PARTNERS VIEW: As expected, Mariana Resources’ joint venture partner Asset Chile has provided US$450,000 as the Stage 1 payment as part of its earn in to the Doña Ines and Exploradora East projects. As a result, Assets Chile owns 20% of the projects. The second phase of funding will see Asset Chile fund US$1,200,000 and Mariana fund US$200,000 at which point Asset Chile will own 50% of the projects. The farm-out is a sensible deal for Mariana that allows it to benefit from any upside at the project at a limited financial cost. It also allows it to focus its existing funds at the exceptional Hot Maden gold-copper-zinc discovery where it will likely have a larger impact.
Following the acquisition of the Remhoogte/Holsloot Mine (28/05/2015), grades and volumes have been on plan for the first four weeks of operation.
Rockwell plans to further rationalize the various processing plants into one operational structure by August 2015.
Expansion plans also include construction of an infield screen to increase monthly volumes to 200,000m3.
Financing to repay the bridging loans is expected to be completed in Q216.
Forecasts, rating and price target remain under review.
NORTHLAND CAPITAL PARTNERS VIEW: The Q116 results from Rockwell Diamonds reflect the recent transition the Company has undergone with the acquisition of the Remhoogte/Holsloot Mine and associated equipment from Bondeo, combined with the closure of Saxendrift Hill Complex and suspension of production at Niewejaarskraal. As a result, these results are not representative of where the Company currently stands as the Remhoogte/Holsloot Mine only contributed a nominal three days of production during the first quarter. In the second quarter we expect to see a steady ramp up in production at what we expect to be a long life and higher margin operation that will form the cornerstone of Rockwell’s rejuvenated Middle Orange River portfolio. Operations at the Saxendrift Mine are being wound down with the plant and fleet to be redeployed at the Company’s project pipeline. This pipeline includes the Lanyonvale Project where a mapping programme is planned and Wouterspan Project where a further bulk sample is planned. After a difficult year. Rockwell now looks better positioned going forward.
Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: Benin update
Market Cap: £15.4m; Current Price: 2.375p
From yesterday: Awarded exploration tenements prospective for Tantalum
- Premier African Minerals’ 100%-owned subsidiary G&B African Resources Benin SARL has been awarded 249.75km2 of tenements in Benin prospective for tantalum, cassiterite, manganese and gem stones.
- The licences are valid for three years and renewable thereafter.
- Prem plans to explore a number of existing targets that have artisanal workings as well as follow up on 37 targets generated from satellite imagery.
- Initial work has already defined three distinct pegmatite structures between 3km and 10km long.
- Surficial eluvial mineralisation appears to overlay tantalum-bearing pegmatites.
- Prem also plans a regional survey in October/November 2015 to assess the potential for other commodities including gold.
- Prem is required to spend US$125,000 during the first year and believes it can do this from its existing cash position
NORTHLAND CAPITAL PARTNERS VIEW: It is positive to see Premier African Minerals diversifying its portfolio geographically from its existing core of operations in Zimbabwe. Prem is planning to advance this project in a similar manor to that of the RHA Tungsten Mine and Zulu Lithium project but focusing on near-term and low capital production.