Mindflair (MFAI), the company that invests in next-generation technology focused on AI, announces that it has agreed to subscribe £300,000 for 315,790 new shares in Sure Ventures plc at a price of 95 pence per share. MFAI said the recent announcement of the sale of one of SVV1’s portfolio companies, Landvault, in which SVV1 has a 7% interest, to Infinite Reality for US$450 million, could potentially generate a very significant uplift in the carrying value of this investment with a realisation expected to follow thereafter if this company implements its IPO on Nasdaq. Based on the figures set out above, this disposal generated a circa 470% uplift on SVV1’s carrying value of Landvault as at 31 December 2023 and an increase in the net asset value of SVV1 compared to the value at 31 December 2023. Infinite Reality is now also on the Crunchbase Unicorn Board list of the most valuable private companies in the world.
Comment: Let’s try and get this straight. MFAI has taken a new small stake in a company which has a stake in another company, which has a small stake in a big company, which could go up a lot in value? Sounds good.
Capital Metals (CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka, provided Project updates. CMET said the receipt of BOI status is the result of extensive collaboration over many months between the Company, the BOI, and multiple government ministries. It is further evidence of strong in-country support for both the Company and its Project. While it does not alter the Company’s ultimate economic value in the Project, which remains practically 100%, there are a whole raft of fiscal and other advantages that will benefit the Company in due course.
Comment: CMET has certainly had quite a ride in the past year. But it does appear that Board of Investment status, and government collaboration is supportive of this story, and the potential it has.
Ananda Developments (AQSE: ANA) a life sciences company focused on the research and clinical development of CBD-based therapies for a range of complex inflammatory pain conditions announced that trading in its ordinary shares, effective from 8a.m. today (5th August), will move to the senior Apex segment of the Aquis Stock Exchange Growth Market. ANA said the move to the Apex segment is recognition of the commitment of the team to evolve Ananda into a sophisticated life sciences company, with a clear strategy and promising results. Apex provides even further visibility for investors, and it welcomes the increased emphasis on transparency, liquidity and corporate governance which aligns entirely with its own internal ideals.
Comment: ANA quite rightly gets promoted to the Apex segment of Aquis, a place it perhaps should already have been for quite some time given the progress the company has made. It is good to see Aquis supporting one of its star pupils, and having done so from the start.
Gunsynd (GUN), the AIM quoted investing company, announce that it has entered into a farm-in agreement with Pinwheel Resources Ltd in relation to certain licences over prospective acreage in Canada. Gunsynd has acquired a 100% legal and beneficial interest in the Falcon Lake U-Cu-Co project and Bear-Twit VMS project in Canada and consideration of £200,000. GUN said it was pleased to announce the acquisition of the Falcon Lake U-Cu-Co Project and the Bear Twit VMS Project in Canada. These acquisitions align with its strategic objective of expanding our portfolio with high-potential exploration assets.
Comment: It would appear that GUN is still keen on a decent farm-in, replacing the recent Metals One deal, with the still relatively sexy uranium space.
UK Oil & Gas (UKOG) announced that it has conditionally raised gross proceeds of £1.0 million by means of a placing at a price of 0.05 pence per share. The Placing’s proceeds will be directly employed to further specific activities required to materially advance the Company’s hydrogen storage projects. Specifically, it will permit the Company to initiate essential new studies, including but not limited to environmental surveys, engineering studies and other works necessary to submit applications for: (i) government Revenue Support in the first hydrogen storage allocation round and (ii) Development Consent Orders under the Nationally Significant Infrastructure Project planning regime.
Comment: It would appear that as far as UKOG is concerned, a leopard cannot change its spots with regard to placings, and even if it assured us that it was debt free. It is now even more debt free with another £1m in the kitty.
Alkemy Capital Investments (ALK) provided a corporate and strategic update. Project and mezzanine funding discussions are progressing with several groups now shortlisted to provide up to $25m at project (TVL) level. The $300m approximate capital cost of train 1 is expected to be financed largely through green bonds (for which TVL will seek accreditation) combined with a mix of debt, strategic equity finance and grant funding, all at the project level. ALK said it continues to make good progress on a number of fronts. The growing interest in Tees Valley Lithium, particularly from prospective UK customers, is very encouraging. It is excited about the potential for the technology partnership with scope for both capital and operating cost reductions. Its main focus remains on progressing the mezzanine financing which is well advanced.
Comment: It has certainly been a tough ride for shareholders of ALK. But the promise of cash coming in at both the project and the mezzanine levels, keeps the dream alive here for now.
hVIVO (HVO), a fast-growing specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announced its intention to cancel its admission to trading on Euronext Growth. HVO said its primary operations, along with the majority of its employees and investor base, are in the UK, the Board has decided to consolidate trading of the Company’s stock to its primary listing on the AIM Market of the London Stock Exchange. The Cancellation will also remove certain costs, complexities and duplication that comes from administering two listing regimes and will have no impact on hVIVO’s Ordinary Shares which will continue to trade on AIM under the ticker “HVO”.
Comment: It is interesting that after all the character assassination that the AIM market has perhaps deservedly had (it is very expensive), a star company on this market has decided to leave one of its competitors and stick with London’s flagship growth market.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company, announced the release of a new National Instrument 43-101-Technical Report for its 100%-owned Ditau Project in Botswana. KAV said SLR’s new report underlines the discovery potential within Kavango’s Ditau Project in Botswana for a range of critical and precious metals. It also announced the interpretation of several new structures, as well as extensions to structures associated with old mines, in recent Induced Polarisation survey work at its Nara Gold Exploration Project in Zimbabwe.
Comment: Two RNS updates from KAV in a day, something that rather reminds the market that among the plethora of London listed explorers, this may be one of the best. The shares have retained the bulk of their 150% peak gain on the year.
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