Pensana (PRE) The rumour mill suggests that a $15m Loan from the Anglo Wealth Fund to the PLC is set to default with dire consequences. Today’s short announcement stated the Anglo Wealth Fund, who are a major investor and shareholder, will be rolling this relatively trivial amount into the $200m funding package when the full project funding is finally completed. Therefore the ‘crisis’ is adverted, and the share price can improve. The recent update reported progress in Longonjo rare earth mine in Anglo, with pictures of pouring concert as a 316- person $1.3m modular camp is constructed. All the site access roads have been completed and a 5,000-litre potable water tank is ready for installation. There is a timetable of how $200m will be spent with the processing plant is to be constructed from May 2024 commissioning of the various circuits will commence in March 2025 with final commissioning of the mine by April 2026. An offtake agreement would show money coming in.
Comment: At 21.5p with a £62m mkt cap the valuation should soon start reflecting the size and strategic importance of Pensana’s rare-earth project, a point the company should continue to underline.
Kavango Resources (KAV), the Southern Africa focussed metals exploration company, is pleased to announce that it is tendering for the first phase of scope drilling on the Kalahari Copper Belt (KCB) Karakubis Project with shortlisted drill contractors. KAV said it was moving quickly towards drilling in the Kalahari Copper Belt. This is the most rigorous and promising exploration programme Kavango has conducted in Botswana. It has a high degree of confidence in the targets areas it has identified and its interpretation of the structural geology.
Comment: KAV is fast proving to be one of the better, well funded exploration plays on the London junior market, with the recent share price re-rate highlighting this notion.
EQTEC (EQT), a technology innovator, notified that the Company and Verde Corporation have agreed an amendment to the Subscription Letter to allow for the proceeds of the Subscription to be received by the Company on or prior to 16 May 2024. The Company’s £3.00 million syndicated funding facility, announced on 20 November 2023, remains in place, with a current drawn amount of £950,000 with £2.05 million left undrawn.
Comment: While it is great to know how EQT is juggling its finances, it may be that the company should spend some time telling the market / shareholders how the operational side of its business is going and how it will avert seeing its share price fall for four consecutive years.
Venture Life Group (VLG), which is involved in developing, manufacturing and commercialising products for the international self-care market, announces that it has, renewed its Revolving Credit Facility with Santander UK PLC and HSBC Innovation Bank Limited. VLG said it has also finalised an exclusive long-term license and distribution deal in the United States for Gelclair, an FDA-approved oral mucositis prescription product, with Jaguar Health (NASDAQ:JAGX).
Comment: VLG is and always has been a much better company than it has led the market to believe. A non-cyclical, largely non-discretionary, scalable, international company, at least today’s announcement reminds us of the potential Stateside.
Bluejay Mining (JAY), the exploration and development company, said it intends to expand the scope of its corporate strategy to include the exploration and development of helium, industrial gases, and hydrocarbons. JAY said the new strategy will complement its existing portfolio of battery metal projects namely Disko-Nuussuaq, Dundas, and Hammaslahti. It is important to note that while it is actively exploring these opportunities, no decision has been made on any potential acquisition.
Comment: Today’s call to action, albeit something of a reminder to itself, that it needs to deliver something significant, sounds like the way to go. However, with a market cap at just under £5m JAY will have to be quite selective in terms of what it buys to boost the business.
SDX (SDX) announced that it has executed a binding sale and purchase agreement for the disposal of the Company’s West Gharib interests in Egypt. The total amount of sale proceeds to be received from the buyers, New Horizons LLC and NPC Petroleum Services Ltd is estimated at US$6.6 million. The Company also continues to progress the binding documentation for the sale of its South Disouq assets. SDX said the sale of its West Gharib assets represents a milestone in the execution of our new growth strategy in Morocco. SDX will continue to deliver shareholder value and growth – re-energising and scaling the Company’s Moroccan upstream business.
Comment: With shares of SDX bumping along the bottom for quite some time, it will be interesting to see whether even today’s news will be enough to move the dial in favour of the bulls.
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