Small Cap Feast

Small Cap Feast – 10/09/21

Dish of the Day:

No joiners today.

Off the Menu:

No leavers today.

What’s Cooking in the IPO Kitchen?

Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA
GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources plc and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: £5.12m. Anticipated Mkt Cap on Admission: £11.120m. Due mid-September
Responsible Housing REIT to join the Main Market (Premium) in late September raising up to £250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.
Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to £300m. Due on the Main Market (Premium) in October.
Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project. Offer TBA. Due Late September.
Euro Sun Mining Inc (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.

Breakfast Buffet

Altona Rare Earths 14p £0.3m (ANR.L)

The Rare Earths mining company focused on the evaluation and development of projects in Africa, announces it has raised, via a significantly over-subscribed placing, £1.25m (before expenses) at a premium to the current share price. The Company commenced groundwork operations at its Monte Muambe Project in Northwest Mozambique on 31 August, ahead of schedule, with the Project Manager and his team now in-situ. Exploration drilling is expected to commence before the end of September, in-line with strategy. Finally, the Company is in the final phase of its application for a listing on the London Stock Exchange, Standard Segment and will provide a further update when an admission date is known.

Deltic Energy 2.32p £32.3m (DELT.L)

The natural resources investing company with a high impact, natural gas focussed exploration and appraisal portfolio in the Southern North Sea, announced, following the recent Farm Out with Cairn Energy PLC in relation to five of Deltic’s gas licences in the Southern North Sea, the acquisition of 3D seismic data over Licence P2428 and surrounding areas has commenced. The Company has been informed by ION Geophysical that the seismic vessel, under contract to ION, has mobilised to site with survey commencement expected on 11 September 2021. The acquisition of approximately 700km of 3D seismic data, which is focussed on the Plymouth Zechstein Reef Prospect, will take approximately six to seven weeks to complete with processed data due to be delivered mid-2022. Under the terms of the Farm Out agreement, Cairn are responsible for 100% of the costs of the associated work programme (including seismic acquisition and processing) up to the point at which a well investment decision is made. Completion of the Farm Out is conditional on the entering into of a Joint Operating Agreement and obtaining standard regulatory consents from the UK Oil & Gas Authority. Following completion of the farm out, Deltic will hold a 40% non-operated interest in Licence P2428.

Fulham Shore 18.75p £116m (FUL.L)

Further update on the Group’s recent trading. Since the Group’s Final Results announced on 17th August 2021 Group revenues have continued to grow. In the three completed weeks since (up to 5 September 2021), Group revenues for all restaurants have increased 27% compared to the equivalent period in the 2019 calendar year. This represents a marked acceleration from the 8% average increase for the eight weeks ended 15 August 2021 announced in the Final Results. The Group’s 17 restaurants that are located in the West End of London and city centre office locations, although still down on 2019 levels, have, in these three weeks, continued to see a week-by-week improvement in footfall and revenues as tourists and office workers have started to return. So far, during the Group’s current financial year ending March 2022, FUL has opened two Franco Manca and, most recently, the 20th The Real Greek in Norwich. This Chantry Place location has opened with strong trading serving an enthusiastic local audience. This takes the total number of restaurants operated by the Group to 75. Since 17 August 2021, fitting out works have commenced on two new Franco Manca pizzeria, in Blackheath Village and on Baker St in London. 15 more potential sites are in solicitors’ hands for both Franco Manca and The Real Greek.

Gresham House 90p £m (GHE.L)

The specialist alternative asset manager intends to acquire the Venture Capital Trust business of Mobeus Equity Partners LLP for an initial consideration of £24m, with further consideration of up to £12.1m payable over a three-year period and subject to the achievement of certain criteria. The Company intends to raise gross proceeds of approximately £40m through a placing, which includes a £20m cash placing at a price of 910 pence per Placing Share and a £20m vendor placing. The intended net proceeds of the Placing will be used to fund the Acquisition as well as to fund development projects such as battery storage and solar projects, which are intended to be acquired by vehicles managed by Gresham House, thereby creating value for shareholders. Mobeus is a UK-based investment firm managing assets across two distinct client groups, one of which is the VCT business being acquired by Gresham House. The four VCT contracts being acquired from Mobeus are with Mobeus Income & Growth VCT plc, Mobeus Income & Growth 2 VCT plc, Mobeus Income & Growth 4 VCT plc and The Income & Growth VCT plc , with a combined AUM of £369m. Following an extensive due diligence process, the Mobeus VCT Boards have unanimously approved the transaction.

Katoro Gold 0.82p £3.1m (KAT.L)

The gold and nickel exploration and development company announced its unaudited results for the six months ended 30 June 2021. Drilling results from the RAB drill programme carried out at the Haneti project, confirmed the results from previous exploration work done, which was the primary objective. The latest results provided the confirmation desired, therefore subsequently refined planning and budgeting of the diamond drilling programme as well as the selection and engagement process for a suitable drilling contractor has been submitted for review and approval. Katoro is currently in the processes of compiling a comprehensive funding package in accordance with the Blyvoor Joint Venture that will allow the construction, commissioning and operation of a mining and processing facility capable of processing 500,000 tonnes of tailings material per month, at an average Life of Mine gold grade of 0.29 g/t and confirmed recovery of 51%, before incorporating recovery gains from the latest metallurgical optimization tests. Furthermore, the JV’s total project resource size of 1,410,000 oz gold consist of 500,000 oz gold in the measured category (35.5%), 368,000 oz gold in the indicated category (26.1%), and 542,000 oz gold in the inferred category (38.4%). Post period end: A period of limited political unrest in South Africa temporarily delayed the funding process when some of the short-listed parties requested additional time to re-assess the country risk profile as a result of the unrest. However, the Company announced that discussions with these potential funders have since resumed, and the joint venture partners hope to conclude a final funding arrangement for Blyvoor during the latter part of 2021.

Minds +Machines 8.95p £78.36m (MMX.L)

Further to the announcement made on 11 August 2021, and following completion of the sale of the majority of its TLDs, Minds + Machines Group Limited confirms that it intends to return a proportion of the sale proceeds to Shareholders by way of a Tender Offer. Return of up to £58m (approximately US$80m) to shareholders via a Tender Offer at 9.6 pence per Ordinary Share. The Tender Offer Price represents a premium of approximately 12.9% to the price of an Ordinary Share at the close of business on 8 September 2021 and a premium of approximately 13.1% to the volume weighted average price of an Ordinary Share for the period 11 August 2021 to 8 September 2021.

PCF Group SUSPENDED (PCF.L)

Further to the announcement of 3 August, PCF is providing a further update in relation to the ongoing review of its financial controls and reporting processes. During the course of this ongoing review PCF has identified certain accounting matters that impact the previously announced restatement of profit before impairment of goodwill and tax for the year ended 30 September 2020 on 11 March 2021, that stated it was anticipated that, such net reduction of profit would not be more than £750k. As a result of the matters identified the net reduction is now anticipated to be greater than £750k. It remains the case that none of the new matters identified indicate to the Board that any monies have inappropriately left the PCF Group. At this time PCF cannot give further guidance as work is ongoing to establish the actual extent of that further reduction. PCF will provide a further update in due course. PCF’s shares remain suspended from trading.

SigmaRoc 113p £721m (SRC.L)

Marshalls PLC and SigmaRoc have entered into a strategic collaboration to develop ultra-low carbon technology within the concrete building materials sector. The aim of this collaboration is to share learnings in the application of current technologies while working together to develop new low carbon methods of production. The collaboration enables Marshalls to develop low-carbon alternatives to its existing range of products in an increasingly environmentally conscious market. It also represents a further step in SigmaRoc’s journey to increase access to ultra-low carbon construction products following the launch of the world’s first cement-free block in 2021 and a commitment to manufacturing a cement-free alternative to every product within its precast product group from January 2022.

SolGold 28.42p £652m (SOLG.L)

Update on its Tandayama-Ameríca porphyry copper-gold deposit which lies approximately 3km north of the Alpala deposit that comprises 2,663 Mt at 0.53% CuEq in the Measured plus Indicated categories and contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz Ag, at the Company’s Cascabel project, held by Exploraciones Novomining S.A., an 85% owned subsidiary of SolGold. Drill hole assays from Hole 13 comprise the best drilling intersections achieved at the TAM deposit to date. Highlights include: 1,010m @ 0.55% CuEq, including: 824m @ 0.63% CuEq,m 736m @ 0.69% CuEq, 392m @. 93% CuEq o 132m @ 1.09% CuEq. Hole 13 results enhance potential for significant depth extensions amenable to bulk underground mining methods at TAM. Mineralisation forms a northwest trending corridor, occupying an area approximately 1,200m long, up to 750m wide, and extending from surface to a depth of over 1,200m. The TAM deposit remains open to the south and east and at depth. Hole 24 has encountered intense mineralisation within an early quartz-diorite intrusion from 507m depth. This zone is interpreted as an extension of the strong mineralisation encountered in Hole 13 and includes up to 85% B-type quartz-chalcopyrite veining with approximately 2% visible chalcopyrite and trace visible gold mineralisation.

Yourgene Health 16.75p £121.2m (YGEN.L)

The international molecular diagnostic group, announces that a Contract Award Notice has been published in relation to its contract with the Department of Health & Social Care (DHSC) for the provision of laboratory capacity to the NHS Test and Trace Programme for COVID-19 testing, as announced on 19 August 2021. As previously announced, the contract is the first to come from the National Microbiology Framework Lot wins announced earlier this year, using Yourgene’s high throughput automated COVID-19 services testing laboratory in Citylabs 1.0, Manchester. The final contract notice value of £34m is the maximum estimated value of the contract. Actual value will depend on services purchased and there is no committed spend under the contract. However, the Company confirms that samples are already being processed as part of the contract.

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