W Resources (LON:WRES) – BUY*: Update note
Market Cap: £18.4m; Current Price: 0.5p; Target Price: 1p (from 1.1p)
Three stage development programme for La Parrilla
(Note attached)
Forecasts updated, BUY rating maintained and price target downgraded to 1p (from 1.1p)
NORTHLAND CAPITAL PARTNERS VIEW: W Resources is continuing to advance its La Parrilla Tungsten Project towards first hard-rock production before the end of the year. As part of the updated development study, expected to be completed in Q116, it has announced that it will increase production at La Parrilla in three phases. The first phase of production is in line with our previous expectations with c. 1,300 t per annum of tungsten bearing concentrate (85,000 mtu of contained WO3) produced during the first year of full production (2017). This development phase will cost US$16m and is expected to be funded by an EU Government or by a joint venture. The second phase, which is the new phase, will see tungsten concentrate production increase to 2,600 t per annum (170,000 mtu). The Company is opting for a second production stage because of the wide availability of crushing equipment in Europe, allowing it to design the initial plant with a higher front end capacity. The higher front end capacity means it can rapidly, by 2018, double production levels for a low incremental cost of US$6m once the project has been operationally de-risked. The third stage is in-line with our previous expectations and will see the production of 5,000 t (340,000 mtu) of tungsten bearing concentrate per annum, at a capital cost of US$31m (€27m). We have updated our forecasts to reflect the three stage development plan for La Parrilla, the recently completed financings, as well as other changes. As a result, we have lowered our price target to 1p per share from 1.1p.
Sunrise Resources (LON:SERS) – CORP: Placing
Market Cap: £1.1m; Current Price: 0.15p
Placing to raise £120,000
Sunrise Resources completes a placing of 45,454,545 shares and subscription for 63,636,363 shares to raise £120,000 at 0.11p.
Patrick Cheetham, Executive Chairman, has subscribed for £50,000 as part of the subscription. He now holds an 8.61% interest in the Company.
The Company has also issued 9,090,909 shares at 1.1p as consideration for £10,000 of professional fees.
The funds will be used for general working capital and the Company’s projects in Nevada and Australia.
Following the issue the Company will have 864,363,659 shares in issue.
IXICO Plc (LON:IXI): New five year contract, joins consortium
Market Cap: £10.3m; Current Price: 39p
IXICO was awarded a new five year contract and the group has joined a consortium
IXICO announced that it has been awarded a contract by Oxford Biomedica to support the use of novel brain scanning in a clinical trial of a novel experimental drug for Parkinson's disease, OXB-102.
This study is expected to start in mid-2016 and is a phase I/II study to evaluate the safety and tolerability of OXB-102 and establish the optimal dose in the study patient population.
IXICO will be involved for up to 5 years including long-term follow ups.
The group also announced that is has joined seven global pharmaceutical companies—including AbbVie, AstraZeneca, Biogen, Eli Lilly, Merck Sharp & Dohme, Pfizer and UCB—in the ground breaking Critical Path for Parkinson's Consortium (CPP).
Formed by Parkinson's UK and the Critical Path Institute, CPP has a common goal of establishing best practices and more efficient protocols for clinical trial planning.
Data from previous Parkinson's trials will be collected, standardised and integrated to inform new approaches to designing clinical trials focused on early-stage Parkinson's disease.
CPP brings together researchers, drug companies and regulators with the aim to accelerate the development of safe and effective therapies for Parkinson's disease.
NORTHLAND CAPITAL PARTNERS VIEW: IXICO’s Parkinson’s disease franchise is going from strength to strength. Today’s two milestones in this area significantly step up the group’s activity and reputation in this important disease category.