Savannah Resources (LON:SAV) – CORP: Mutamba update
Market Cap: £26m; Current Price: 5.1p
From yesterday: Significant resource with high-grade core established at Ravene
Savannah has completed its maiden mineral resource estimate for the Ravene Heavy Mineral Sands deposit, located in Mozambique.
The deposit has an Inferred JORC resource of 900mt at a grade of 4.1% total heavy minerals (THM), with a high-grade portion of 92Mt at 6.2% THM.
The global mineral resource estimate for the Mutamba Project, which is made up of the Jangamo, Dongane and Ravene deposits, now stands at 4.4Bt at 3.9% THM.
Further exploration potential remains at Ravene to expand the mineral resource estimate.
NORTHLAND CAPITAL PARTNERS VIEW: Completion of the maiden mineral resource estimate at Ravene is a major milestone for Savannah Resources. The Company has now established a substantial resource of 4.4bt at a grade of 3.9% THM at the Mutamba Project but is continuing to focus on establishing a low-capex and high-margin starter operation that centres on the high-grade areas within the deposits. The scoping study for the project is nearing completion and will be another major milestone for the Company that will give us the first indication of the project’s metrics.
TechFinancials (LON:TECH) – SHARES
Market Cap: £6.9m; Current Price: 10p; Target Price: Under Review
From yesterday: transfer of shares to Optionfortune partner
TechFinancials (‘TECH’) yesterday announced the transfer of 3,868,615 TECH shares to its joint venture (JV) partner in Optionfortune. Shares were held on deposit with a third party escrow company pending trading results of the Optionfortune business to December 2016.
The JV performed strongly in 2016 where it exceeded the net profit target of $2m and as a result has prompted the consideration in TECH shares. The deal which was struck in June 2016 where TECH received control of the business (51%) for $1.54m payable in TECH shares at a price of 27p per share.
NORTHLAND CAPITAL PARTNERS VIEW: TECH’s management team struck a good deal with the JV partner in June 2016, where not only has the JV performed strongly, TECH has received $2.5m in dividends from the JV for its 51% share in the business and paid a consideration of $1.54m in TECH shares at 27p for its stake