Arian Silver Corporation (LON:AGQ) – CORP: Placing
Market Cap: £1.3m; Current Price: 1.2p
£700,000 Placing
Arian Silver Corporation has raised £700,000 through the placing of 70,000,000 shares at 1p per share, with a one for two warrants at 1.5p.
The funds will be used to advance its mining concessions in Zacatecas, Mexico and in connection with the option agreement to evaluate the portfolio of assets held by Tierra Neuva Mining announced 27/01/16.
Following admission the Company will have 183,694,941 shares in issue.
NORTHLAND CAPITAL PARTNERS VIEW: A positive fund raise for Arian Silver that further strengthens its balance sheet as it looks to advance its existing projects alongside assessing other projects.
Premier African Minerals (LON:PREM) – SPECULATIVE BUY*: Acquisition
Market Cap: £14.8m; Current Price: 0.85p
From yesterday: Acquires interest in limestone project and completes a £1.1m placing
Premier African Minerals has agreed terms to conditionally acquire an initial 52% interest in Mozambique-based TCT Industrias Florestais Limitada (TCT) that owns a limestone deposit and significant forestry operations in the Sofala Province of Mozambique.
Associated with the acquisition Prem has also completed a £1.1m placing at 0.75p per share to fund TCT’s projected exploration, operating and development expense and the initial cash acquisition cost.
Prem will acquire a 26% interest in TCT from Transport Commodity Trading Mozambique Limitada (TCTM) for US$1.1m payable in four tranches in cash or shares and a further initial 26% interest from GAPI Sociedade de Investimentos S.A. (GAPI), for US$1m payable in five trances the first tranche in cash and the others in cash or shares.
Prem also has the right to fund the limestone exploration programme through a loan of up to US$1m that can convert into TCT equity increasing Prem’s interest to 68%.
The limestone licence covers an area of 27km2. Early test work on the surface material indicates the limestone is of a sufficient purity for cement production; and is soluble enough for agri-lime; and can also be used for aggregate production. The Tete/Beira rail link runs adjacent to the northern boundary of the project. Prem expects to commence the fully funded initial exploration and assessment work on the project shortly with a maiden resource estimate and a preliminary scoping study completed before the end of 2016.
The forestry business consists of 24,821 hectares of hardwood forestry concessions with allied milling and furniture manufacture and semi-finished goods export. It is expected to be self-sustaining after an initial capital injection from Prem and the Company believes it will have a positive contribution to the Company’s cash flow this year.
NORTHLAND CAPITAL PARTNERS VIEW: The acquisition of the limestone and forestry business in Mozambique seems like a significant departure form Premier African Minerals current core project, the RHA Tungsten Project, located in Mozambique. However, given Prem’s strategy is to focus on low capex and near-term production opportunities this acquisition is logical. Prem is securing a controlling interest in the project at what appears to be a low entry point with near-term cash flow generation potential from both the forestry business and the limestone business. The existing infrastructure makes the projects particularly attractive with existing haulage roads for the timber allowing good site access, a major rail link with spurs adjacent to the northern licence boundary, on site power and timber processing equipment.
Amphion Innovations Plc (LON:AMP) – CORP: Additional draw-down
Market Cap: £8.6m; Current Price: 4.4p
Additional draw-down on loan facility
Amphion announced that the Company has agreed terms for the draw-down of an additional tranche of US $1,765,000 (an Additional Draw) under the loan facility as announced on 5 June 2014 (the Facility).
Under the terms of the Additional Draw, the interest rate will be 10% with repayments starting on 1 May 2016 and with the final repayment due on 1 February 2017.
The proceeds are to be used to repay the existing amount due under the Facility and for working capital for Amphion and its Partner Companies.
The loan is secured by the pledge by the Company of 7,774,678 ordinary shares of Kromek Group PLC and 14,906,145 ordinary shares of Motif Bio Plc.
NORTHLAND CAPITAL PARTNERS VIEW: The Additional Draw provides working capital for Amphion to progress its business pipeline. The company is working towards moving other programmes forward.