Premier African Minerals (LON:PREM) – CORP: Funding and projects update
Market Cap: £12.26m; Current Price: 0.65p
£3,500,000 loan from Darwin to fund project advancement
At the RHA Tungsten Project, located in Zimbabwe, optimisation of the plant continues and the updated mineral resources estimate nears completion. Concentrate shipments are expected to recommence in September.
At the Zulu Lithium Project, also located in Zimbabwe, test work is underway and drilling expected to commence in September.
At the Catapu Limestone Project, located in Mozambique, due diligence is advanced and the acquisition is expected to close in 30 days.
Prem has also secured 140 loan notes worth up to £3,500,000 from Darwin Strategic Limited. Each loan note will have a face value of £25,000 and is repayable at the rate of 8 per month from 01/02/17. Should the notes not be repaid they can be converted into Prem shares.
£1,750,000 of notes will be issued today with a further £875,000 issued at any time in the next nine months with the remaining £875,000 to be issued six weeks after the second issue of the first anniversary of the first issue. The second and third issue are at Darwin’s discretion.
Prem will receive 90% of the par value of each loan note and will be redeemable at 105% of the par value that also has an interest rate of 16% per annum. The Company will prepay a minimum of 6 months interest upfront. Darwin will also be issued with warrants equal to 30% of the par value of each loan note with an exercise price of 0.8437p and a three term.
The loan notes also have the following conversion triggers into 100% of the par value: APT price drops below US$160/mtu for two consecutive days; the WO3 content of Prem’s concentrate drops below 60%; if the outstanding loans are in excess of 20% Prem’s market capitalisation; the Catapu acquisition doesn’t close before 01/11/16; the issue of any loan notes other than the first group of notes.
Prem has also agreed with CEO George Roach to enter into a put option over the Companies 2m shares on Circum Minerals at a price of US$2 per share
These funds will be used to support exploration and development activities at the Zulu Lithium Project in particular.
NORTHLAND CAPITAL PARTNERS VIEW: Premier African Minerals continues to move the RHA Tungsten Project towards full production and is shortly going to begin drilling at the Zulu Lithium Project. The acquisition of the Catapu Limestone and Forestry Project is also expected to close in September and a liquidity event at Cirum Minerals is also anticipated. The potential cash flow from its operations (RHA and Catapu) and a liquidity event for its interest in Circum could give the Company the funds required to repay the loan notes to Darwin reducing potential dilution to shareholders.
SalvaRx (LON:SALV) – BUY*: Business update
Market Cap: £11m; Current Price: 30p; Target Price: 149p
SalvaRx secures further licensing deal and patent approvals for its existing assets
SalvaRx issued a business update as at 22 August 2016.
The company continues to progress its pre-clinical pipeline of immune-oncology assets.
The group expects to progress several therapies into the clinic in the next calendar year.
Also, the company has secured a further licensing deal and patent approvals for its existing assets. These include:
The negotiation of an option to license an NY-ESO1 vaccine from the Ludwig Institute for Cancer Research, which is being used in combination with portfolio company iOx Therapeutics’ lead assets IMM60 and IMM65. SalvaRx has a 60.5% interest in iOx Therapeutics.
The granting of a US patent covering IMM60 alone and in combination
The granting of a US patent covering portfolio company Intensity Therapeutics’ lead product INT230-6. SalvaRx has an 8.5% interest in Intensity Therapeutics.
Other highlights include the commencement of work on IMM65 with the Horizon 2020 EU consortium. Of note, a recent announcement by the EU stated that all pre-existing grants including to UK companies will remain funded, meaning that the work of Horizon 2020 is not impacted by the UK's EU Referendum result.
NORTHLAND CAPITAL PARTNERS VIEW: SalvaRx’s continues to advance its portfolio of preclinical immune-oncology assets, while further growing the portfolio and broadening its patent estate. Today’s announcement indicated that iOx’s lead asset, IMM60, is now covered as a standalone treatment along with additional uses in a co-formulation with a tumour vaccine or given as a combination therapy alongside an immunomodulatory agent. iOx continues to work with the University of Oxford on the parameters of the company's initial Phase I/II trial of IMM60, which is to be fully funded by the University. We expect this trial to commence in 2017. As well, work has commenced on the company’s second asset, IMM65. Also, the Ludwig Institute has granted iOx the rights to use a novel cancer vaccines in combination with its products. Finally, progress continues at portfolio company Intensity Therapeutics, with the granting of a further US patent and the advancement of the group’s lead candidate closer to the clinic.