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RNS Hotlist June 22: Altona, DG Innovate, Firering, Fulcrum, Jersey, Netscientific, Oracle, Poolbeg, Powerhouse


RNS Hotlist June 22: Altona, DG Innovate, Firering, Fulcrum, Jersey, Netscientific, Oracle, Poolbeg, Powerhouse

Firering Strategic Minerals (FRG), an exploration company focusing on critical minerals, reported the definition of multiple lithium in soil anomalies and a planned auger drilling programme following the large-scale Phase II soil sampling programme at the Atex Lithium-Tantalum Project, in Côte d’Ivoire. The company said while it is still awaiting the remaining results from the soil sampling programme, it is confident that it has identified the most crucial soil anomalies, allowing it to proceed with auger drilling. It eagerly anticipates commencing the comprehensive auger drilling programme and sharing further updates on our progress soon.

Comment: As the latest RNS from FRG demonstrated, we should be on our way soon regarding the next phase at Atex, something which should lead to a resumption of the type of share price rises we were treated to in the stock in October / November last year.

Powerhouse Energy Group (PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, announced that it has completed the acquisition of the entire outstanding shareholding of the engineering consultancy company, Engsolve Ltd for a cash consideration of £572,000. PHE said it sees the integration of Engsolve into PHE as being critical for the company as it will give it a base on which to grow the engineering services arm of the company as well as strengthening the engineering support of its capital-intensive projects. This is the start of a new era for PHE.

Comment: It can be seen that PHE is keen on getting its ducks in a row in terms of having in house engineering support as far as its future projects. Bringing Ensolve in-house should deliver logical efficiencies in this respect.

Altona (REE), a resource exploration and development company focused on Rare Earths in Africa, is pleased to announce that it has appointed Snowden Mining Industry Consultants Pty Ltd to prepare its maiden JORC Mineral Resource Estimate and Scoping Study. REE said it has now started to receive the assay results from the 2022 drilling season, which will form the backbone of the MRE which it expects to announce in late August.

Comment: This is a good starting point RNS for Altona as it finesses its recent arrival on the standard list of the LSE. Keeping up with regular significant newsflow, and with the promise of more news in late August is a good start on the main market for the company.

Oracle Power (ORCP) announce that it has successfully raised gross proceeds of £363,000 at a price of 0.1p. The net proceeds of the Fundraising will be utilised primarily to support the advancement of the Company’s green hydrogen project via its joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum, and for general working capital purposes. ORCP said its continues to make significant progress in advancing its green hydrogen strategy in Pakistan and today’s fundraising will enable it to continue this upward trajectory.

Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, provided an update on the progress of the exploration programmes at the Big Bear and Jackfish properties that are part of the Group’s Schreiber – Hemlo project. The company said the second phase exploration at Big Bear has provided it with a wealth of important new data for geological mapping, and rock samples which are currently at the lab for assay. The results of this phase of work will be integrated into a robust targeting plan that will identify drilling and stripping targets.

Comment: FMET continues to provide the market with solid updates, something which is always important in the immediate aftermath of listing, as the company did in February. Given that we are in high summer now, one would expect further news as work ramps up.

NetScientific (NSCI), the investment and commercialisation group, announced the completion of a new £3.2 million investment round in its portfolio company, Vortex Biotech Holdings Limited, led by EMV Capital. NSCI said this transaction clearly showcases its unique ability to combine a capital light investment approach with value creation support for promising businesses. Following support by its value creation services and fundraising team, the company is now ready to accelerate its growth in the UK and US. With this new investment, Vortex is well positioned to advance its presence in the multi-billion dollar oncology liquid biopsy market.

Comment: Squeezed health services worldwide are the backdrop to the multi-billion dollar oncology liquid biopsy market, and therefore NSCI is Vortex right in the heart of this space. Securing a £3.2m investment in the current cash strapped environment is clearly a decent win.

Jersey Oil & Gas (JOG), an independent upstream oil and gas company, announced that it has completed the farm-out transaction with NEO Energy.  The companies each now hold a 50% interest in the licences that comprise the Greater Buchan Area, being P2498 and P2170, with NEO set to become the operator as part of the transaction. JOG said it was delighted to have completed the farm-out transaction and to be swiftly moving forwards with finalisation of the GBA development solution.  With the route and the funding secured for preparation of the Buchan Field Development Plan, its attention now turns to unlocking further value by securing an additional GBA partner ahead of FDP approval and retaining a fully carried 20-25% interest in the development programme.

Comment: Shares of JOG have nearly halved since the 355p April peak, something which perhaps can be regarded as more than a little unfair. It may be the case that after today’s farm-out completion news the stock may be ready for something of a revival.

DG Innovate (DGI), the advanced research and development company, announced that the Company and Peterhouse Capital Limited have conditionally raised gross proceeds of £517,000 at 0.05p. The company said the funds raised will primarily be used to fund the Company’s ongoing commercialisation strategy for its Enhanced Drive Technology and Enhanced Battery Technology. The SUPAR, MTorX and Marine projects are progressing well, and testing of the next design iteration of the 250kW/400kW Pareta® electric drive is expected imminently.

Comment: DG Innovate was initially portrayed as something of a golden prospect by the small cap cognoscenti when it came to market. Hopefully now that the good people of Peterhouse have managed to raised a decent amount of cash, DGI can get on delivering on the potential.

Poolbeg Pharma (POLB), a clinical-stage biopharmaceutical company, announced an update to its Oral Vaccine Programme following the award of non-dilutive grant funding by the Irish Government’s Disruptive Technologies Innovation Fund in November 2022, as part of the Poolbeg led EncOVac Consortium. Having finalised the research plan and all consortium members completing the Consortium and Grant Agreements, the EncOVac Consortium parties are now entering the next phase to commence the validation of the encapsulation process. The validation is expected to complete in H2 2023. POLB said the validation of the encapsulation process is a key step in the creation of a Phase I clinical trial ready oral vaccine candidate and Poolbeg is proud to lead the EncOVac Consortium.

Comment: Poolbeg continues to advance its oral vaccine candidate, and has the honour of heading up the EncOVac Consortium. All of this underlines the way that for POLB shares to be anything under their IPO price two years ago is something of an aberration.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.



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