Savannah Resources (LON:SAV) – CORP: Subscription update
Market Cap: £26m; Current Price: 5.75p
Al Marjan and Chairman, Matthew King, continue to support the Company
Following the recent placing and subscription for £2.24m (22/02/17), Savannah’s Chairman, Matthew King, and Al Marjan Ltd, the Company's major shareholder, have subscribed for 19,205,564 shares at a price of 5.25p per share, raising additional cash proceeds of £1,008,292.
Additionally, Savannah has granted options over 10,700,000 shares, and will issue a further 1,688,870 shares as part of its employee remuneration.
Following the additional total issued share capital will consist of 501,661,131 Ordinary Shares.
NORTHLAND CAPITAL PARTNERS VIEW: As expected Al Marjan maintains its 29.99% interest in Savannah Resources and Chairman, Mathew King, also takes part in the subscription, demonstrating their ongoing support for the business. Savannah will use the total £3.34m recently raised to complete a Mineral Resource Estimate update and scoping study at the Block 4 and 5 Copper Project, located in Oman, continue the scoping study for the Mutamba Heavy Mineral Sands Project, located in Mozambique and define drill targets at its lithium projects, located in Finland.
SalvaRx (LON:SALV) – BUY*: Update
Market Cap: £12m; Current Price: 33p; Target Price: 149p
Restructuring, loan note conversion and loan facility
SalvaRx announces a corporate restructuring, loan note conversion and new loan facility.
The Directors of SalvaRx have decided to streamline the group structure such that all investments will be held, and a new loan facility will be issued, by SalvaRx Limited, the group's wholly owned BVI subsidiary.
The Company's investment in Intensity Therapeutics Inc., together with the US$1 million convertible loan issued by the Company to Mr Mellon and Dr Bailey as announced on 22 April 2016 (the "Convertible Loan"), will therefore be assigned to SalvaRx Limited.
The Convertible Loan will immediately be converted into shares of SalvaRx Limited at a price of US$250 a share (equivalent to the conversion price of 35.5p under the Convertible Loan ("the Convertible Loan Exercise Price")).
Also, in order to evaluate and either invest in or acquire further assets in the immuno-oncology sector, SalvaRx Limited has constituted a loan note instrument of up to US$5 million in unsecured loan notes (the "Loan Notes"). The Loan Notes are repayable on the fourth anniversary following issue and when issued will carry a coupon of 7%. In addition, holders of Loan Notes will receive warrants to subscribe for new shares in SalvaRx Limited (the "Warrants").
Mr Mellon and Dr Bailey, who are both directors and substantial shareholders in the Company, have each subscribed for US$1 million of the Loan Notes.
NORTHLAND CAPITAL PARTNERS VIEW: With further access to capital, SalvaRx is well positioned to continue delivering on its expansion strategy. The company has done well so far at building a strong portfolio of immune-oncology assets. The new loan facility should further facilitate this task.
TechFinancials (LON:TECH) – DIVIDEND
Market Cap: £5.2m; Current Price: 7.5p; Target Price: Under Review
Final dividend received from subsidiary
TechFinancials (‘TECH’) this morning confirmed a final dividend pay-out by its subsidiary, DragonFinancials, the trading platform focused on the Asia Pacific region.
TECH will receive c. $1.5m of the $3m dividend pay-out in line with its 51% ownership of DragonFinancials. This takes the total dividend received by TECH to c. $2.5 after receiving an interim dividend of c. $1m.
NORTHLAND CAPITAL PARTNERS VIEW: This is positive news for TECH and strongly supports its strategy of looking to grow the business in high growth regions like the Asia Pacific region. As indicated previously the Board has deferred a decision on its own dividend until it has assessed the likely outcome for FY17 on the back of the loss of a key software licensee. We are reviewing our forecasts for FY17 as a result and will publish new forecasts once we have clarity on the likely impact on the business.
Sunrise Resources (LON:SRES) – CORP: CS Project update
Market Cap: £1.4m; Current Price: 0.1p
Consistent pozzolans and perlites too
Variability testing of samples from across the deposit indicate consistent high quality natural pozzolans. Sunrise has accelerated the pozzolan test work with samples submitted to an accredited laboratory for certification testing and results expected within 45 days.
The testing has also identified the presence of perlite, a glassy raw material that pops like corn when heated and expands by up to 20 times its volume into a white or pale coloured, low density material. It is used in insulation, paint texturing, plaster and concrete fillers, building materials fillers, formed insulation, field conditioners, fire proofing, filter aids amongst other uses.
A concept study to evaluate commercial options for development of the project will be expanded to include perlite production.
NORTHLAND CAPITAL PARTNERS VIEW: Positive test results from Sunrise Resources at the CS Project, demonstrating the consistent and quality nature of the pozzolans across the project. The presence of perlite could also add significant value to any mining operations allowing the Company to produce another product increasing its revenue sources and the number of potential customers for its products.