Andrada Mining (ATM), the African technology metals mining company, said it has entered a conditional, credit-approved NAD 175 million (approximately GBP7.3m) funding agreement with Bank Windhoek Limited If completed, these facilities will replace UTMC’s current banking facilities of NAD111.3million and BWL will also provide all main transactional banking services to UTMC in Namibia. ATM said that the improved working capital facility will better support its production increases year on year. It looks forward to executing final documentation and entering into a collaborative relationship as its achieve its ambitious growth plans.
Comment: ATM shares have delivered a tentative rebound in recent weeks, as sentiment and prices improved in the metals it is involved in. Today’s funding news may help this process along.
Marula Mining (AQSE: MARU) an African focused mining and development company, has signed a long-term offtake agreement with Fujax UK Ltd for spodumene ore and concentrate from the Blesberg Lithium and Tantalum Mine located in the Northern Cape Province in the Republic of South Africa. MARU said this partnership allows it to move ahead at Blesberg with its longer term and larger scale plans, knowing it has the support of the Fujax’s global team of metals and minerals trading logistics, storage, risk management and financing professionals.
Comment: MARU seems to be travelling at double the speed of its peers in terms of its milestones, something that today’s update underlines. It also underpins the fate of the company, given the timeframe of the agreement, and the credibility of the counterpart, Fujax.
Atlantic Lithium (ALL), the African-focused lithium exploration and development company, announced further broad and high-grade assay results from resource drilling completed at the Company’s flagship Ewoyaa Lithium Project. ALL said these results are from the new mineralised area at the Dog-Leg target, located on the northern tip of the Ewoyaa Main deposit, outside of the current MRE, where drilling has returned multiple high-grade and broad near surface extensional intersections, including 69m at 1.25% Li2O from 45m. This follows the intersection of 83m at 1% Li2O from 36m in hole GRC1020 reported at Dog-Leg last month.
Comment: ALL continues to prove up Ewoyaa, reminding us, as if we did not already know it, of the world class nature of the asset.
ValiRx (VAL), a life sciences company, provided an update on the planned board restructuring and shareholder requisition. Dr Suzy Dilly commented “I’ve been honoured to play a leading role in establishing the new preclinically-focussed strategy for ValiRx in the period since my appointment in 2020, and as the Company grows it is appropriate for an individual with experience of leading larger companies is sought to better serve the Company’s needs.
Comment: The biotech area is tough enough in terms of UK listed companies, even at the best of times. It will be interesting to see who wants to take on the poison chalice, especially in the microcap area.
Tissue Regenix Group (TRX), the regenerative medical devices company, announced its audited final results for the year ended 31 December 2023, with record revenues and a positive adjusted EBITDA for the full year, a first for Tissue Regenix. TRX said 2023 was another year of solid progress for the Group. It has seen record revenues, Tissue Regenix’s first full year positive adjusted EBITDA, improved cash conversion and many operational highlights including further regulatory approvals, and new and improved relationships with its many partners.
Comment: Top marks to TRX for getting into the black, especially in the current environment where cost pressures alone can throw a business. One would expect the shares to at least return to pandemic highs through 80p sooner rather than later.
Gfinity (GFIN), a Digital Media provider, announced its unaudited results for the six-month period ended 31 December 2023. GFIN said the whole digital media sector experienced significant pressure in H2 2023, with several Google algorithm changes creating uncertainty and headwinds. However, the gaming vertical continues to generate interest, and remains an exciting part of the sector into the future. Now it has concluded its budget reduction process, it is confident it can deliver further improvements in profitability in H2 FY2024, with cashflow increasing as it improves and increases its sites and editorial.
Comment: People have grown old and died waiting for GFIN to get over the line, something which is rather ironic given the hopes and dreams served up when the company came to market. For 2024 to be the big turnaround year would indeed be quite an achievement.
First Class Metals (FCM), the UK listed metals exploration company, announced that is has signed a sixty day exclusivity agreement with Emerald Geological Services Limited in respect of an earn into the McInnes Lake Property in NW Ontario. FCM said this is an exciting development for FCM greenfield exploration opportunities on a property which potentially contains the same structure that is present at Red Lake. The lack of previous systematic or comprehensive exploration in a favourable geological setting presents realistic expectation for a significant discovery.
Comment: Anything which allows the chance of FCM monetizing its portfolio has to be welcomed with open arms, although perhaps an asset sale or two / liquidity event is what the market is yearning for here.
Galileo Resources (GLR) informed shareholders regarding full Phase 1 drill assay results received for the Company’s 80% owned Kamativi Lithium-Tin Project in Zimbabwe. GLR said in addition to the lithium/tin exploration, the Company has also undertaken exploration over targets in the vicinity of the historic Gwaii Copper Mine in the southern part of the licence, where new soil anomalies have been identified. These will be followed up concurrently with the lithium/tin programme.
Comment: It would appear that GLR has done more than enough in the recent past to justify a re-rate from the recent 1p – 1.30p trading range. But at least it has remained within a range, in contract to many of its explorer peers.
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