Small Cap Feast

9th May 2022

Dish of the day
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Dish Of The Day:
No Joiners Today
Off The Menu:
McKay Securities has left the Official List.

What’s Cooking In The IPO Kitchen?

GS Chain, a company established with the purpose of undertaking acquisitions of an interest in an operating company or business in the technology sector, intends to list on the Main Market (Standard). Timing TBC.

Altona Rare Earths, the AQSE listed mining exploration Company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company’s Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Company will change its EPIC from AQSE:ANR to REE. The Company also seeks to raise funds to finance its current and future rare earths mining projects in Southern and Eastern Africa. Due May 2022.

Breakfast Buffet

AEX Gold 44.5p £85.5m (AEXG.L)

Announced results of its 2021 exploration campaign across the Vagar licence, South Greenland. The exploration results more than double the Vagar Ridge footprint, confirming its potential to be a multi-million ounce prospect. As a result of the 2021 exploration results, AEX believes that Vagar Ridge may host up to 4 Orogenic gold veins with new rock chip samples giving up to 86.7 g/t gold. The 2021 program included hyperspectral imaging, reconnaissance sampling and a 385 km2 high resolution airborne magnetic survey, interpreted by SRK Consulting, which has defined a significant deformation zone which extends for more than 50km across the licence and into AEX’s neighbouring licences, highlighting 5 priority targets. Vagar Ridge was historically sampled and drilled across 2km discovering up to 2,533 g/t gold in vein material and 13m at 70.1 g/t gold from follow up channel sampling and a core drilling program. It also identified granodiorite-hosted mineralisation up to 14.4 g/t gold, opening up the potential for a large scale Intrusion Related Gold mineralisation. 2021 results confirmed gold mineralisation within the host rock, verifying the presence of widespread granodiorite-hosted mineralisation including 9.25 g/t gold in scree samples from a previously unexplored northern target. Ground-based hyperspectral imaging, a powerful tool for areas with limited vegetation such as in Southern Greenland, is proving to be an effective method for identifying hydrothermal alteration and altered granodiorite, the preferential host of both Orogenic and Intrusion Related Gold mineralisation in the Vagar licence.

Amur Minerals 1.9p £26.5m (AMC.L)

The nickel-copper sulphide mineral exploration and resource development company focused on the far east of Russia, announces that it, together with its wholly owned subsidiary Irosta Trading Limited, has entered into a Share Purchase Agreement) for the sale of 100% of its interest in Irosta’s wholly owned subsidiary, AO Kun-Manie (AO KM or Kun-Manie). For a total consideration of US$105m, Stanmix Holding Limited will purchase AO KM and the benefit of all amounts owed by AO KM to Amur under intra-group loans (the Transaction). AO KM is an exploration and mining company which holds the Detailed Exploration and Mine Production mineral licence for the Kun-Manie nickel-copper sulphide project located in Amur Oblast of the Russian Federation.

Clontarf Energy 0.5p £11.2m (CLON.L)

The Company has acquired a 10% interest in the high-impact multi-TCF (Trillion Cubic Feet) Sasanof exploration prospect (located mainly within Exploration Permit WA-519-P) through the acquisition of a 10% interest in Western Gas (519 P) Pty Ltd (WG519P), which wholly owns the prospect; plans to drill the main target horizon (the Sasanof-1 Well) in this prospect during May/June 2022; the Acquisition consideration will be comprised of a cash consideration of US$4m and 100,000,000 ordinary shares of 0.25p each, valued at £480k as at May 6th close. In the event of a discovery being declared at the Sasanof-1 Well, the consideration will be further increased by 150,000,000 Ordinary Shares, up to a maximum of £8.7m.

Cora Gold 7.35p £21.28m (CORA.L)

The first drill results from its 2022 drill programme at the Company’s Sanankoro Gold Project in southern Mali. Drill programme consisting of 11 aircore (AC) shallow holes for 897m and 78 reverse circulation (RC) holes for a total of 6,992m (4,958m at Zone B North; 1,092m at Selin South, 504m at Fode 1 and 438m at Target 6) now completed at Sanankoro. Drilling targeted both converting existing Inferred Mineral Resources to Indicated Mineral Resources, as well as identifying new discoveries at Sanankoro. RC drill highlights at Zone B North: 25m @ 2.38 g/t Au from 65m in hole SC0595; 27m @ 1.40 g/t Au from 18m in hole SC0600; 5m @ 4.64 g/t Au from 48m in hole SC0598; 20m @ 1.09 g/t Au from 83m in hole SC0597; 8m @ 2.47 g/t Au from 39m in hole SC0593; 8m @ 1.88 g/t Au from 39m in hole SC0593; 8m @ 1.74 g/t Au from 37m in hole SC0583. Two new discoveries: Fode 1 and Target 6 both in close proximity to existing Mineral Resources. AC drill highlights: 2m @ 3.56 g/t Au from 41m in hole SC0572 at Fode 1; 6m @ 0.65 g/t Au from 66m, including 2m @ 1.62 g/t Au in hole SC0573 at Fode 1; 3m @ 1.24 g/t Au from 7m in hole SC0579 at Target 6; Awaiting results from RC follow up drill holes at these discoveries. Drill results consist of all the AC holes and the first 28 RC holes completed at Zone B North. Drill results for the later RC holes are expected imminently.

K3 Capital Group 230p £169m (K3C.L)

The multi-disciplinary professional services firm providing advisory services to SMEs, notes the recent performance of its share price and confirms that it is not aware of any reason for such a decline. In the Interim Results announcement on 7 February 2022, the Board confirmed that the outlook for the remainder of the financial year, and beyond, was positive and were pleased to report a strong start to H2 FY22. Trading since then has continued to be positive. The Board remains very confident in its outlook for the year, with all three divisions showing strong levels of activity. Recent acquisitions are performing in line with plan. The acquisition pipeline is healthy with various bolt-ons being evaluated. The Company looks forward to providing more detail in its year end trading statement in June.

Life Sciences REIT 103p £360.5m (LABS.L)

The real estate investment trust focused on UK life science properties, announces that, on 6 May 2022, it completed the acquisition of 7-11 Herbrand Street, an iconic Art Deco building close to University College Hospital and University College London in London’s Knowledge Quarter. The purchase price of £85m, excluding acquisition costs, was satisfied entirely in cash and reflects a net initial yield of 4.42% based on the underlying net passing rent of £59.85 per square foot. The entire building is currently let to Thought Machine, one of the UK’s leading fintech companies, until October 2026. The property, which currently comprises Grade A office space, totals a net internal area of 67,097 square feet on four floors with a partial basement, and represents an ideal opportunity for development as a major life science asset. It is situated in close proximity to a number of major academic institutions, healthcare organisations and innovative companies including University College London, University College Hospital, the Francis Crick Institute and the Oriel project. The property is well-located for access to Euston, King’s Cross, St Pancras and Tottenham Court Road transport hubs with Russell Square tube station just 100 metres away. Life Science REIT, has undertaken a feasibility study to determine the suitability for lab conversion. The study confirmed that the building has great potential and benefits from large floor to ceiling heights, structural slab and large, column-free floor plates.

Mincon Group 102p £223.6m (MCON.L)

The Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated consumable products, today provides a trading update for the period from 1st January 2022 to date, incorporating the first quarter to 31st March 2022. Mincon has carried the positive revenue momentum from H2 2021 into the first quarter of 2022, while continuing to build on order books during this quarter, driven by the strong underlying demand for our products across the Construction, Mining and Waterwell/Geothermal sectors. Manufacturing remains under pressure to supply the increased demand, though Mincon has increased capacity across the Group through investment in factories and through the acquisition of Spartan Drilling Tools, a drill pipe manufacturer in the USA, in January 2022.

Nostra Terra Oil & Gas 0.63p £4.5m (NTOG.L)

The international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, announced that the Grant East #1 well, in the Permian Basin, West Texas, has reached total depth. Following the spud announcement on the 3rd of May, the Company reports that the Grant East #1 reached a total depth of 3,200 feet on May 3, 2022, just below the Clear Fork Formation. Log analysis shows the well encountered the Upper Clear Fork at approximately 2,560 feet and the Lower Clear Fork at approximately 2,806 feet with 24 feet of gross reservoir section in the Upper Clear Fork and 108 feet of gross reservoir section in the Lower Clear Fork. This well compares favourably with the NTOG operated wells on an adjoining lease to the west (the Grant #5 and #6 wells). The well has been cased and cemented through both pay intervals. The perforations have been selected and fracture stimulation program has been designed and is scheduled to take place later this week. Construction of the tank battery has commenced. Following completion, the well is planned to be put into production. Nostra Terra owns a 100% working interest and is the operator.

Quadrise 2.19p £30.8m (QFI.L)

Presents an update following a board review of the Company’s projects, operations and business development activities. The conclusion of the board review is that the Company is on track to achieve its commercialisation targets following positive engagement with counterparties during the past month. The Company therefore intends to progress with each of its core projects as well as with the development of bioMSAR™ fuel and its derivatives. MSC: Quadrise recently met with MSC executive management in Cyprus and both parties are now working to finalise an agreement covering the LONO trial programme aboard MSC container shipping vessels and the subsequent commercial framework. The conclusion is that the Company is on track to achieve its commercialisation targets following positive engagement with counterparties during the past month. The Company intends to progress with each of its core projects as well as with the development of bioMSAR™ fuel and its derivatives. Morocco: an updated Material Transfer and Cooperation Agreement with our international chemicals and mining client is now expected to be signed this month ahead of an MSAR ® combustion trial that is expected to conclude early Q3 2022. Utah: following signing of Commercial Development Agreement in April 2022, Quadrise and Valkor have commenced preparatory steps under Phase 1 of the CDA to identify target consumers of MSAR ® and bioMSAR ™ fuel. Testing with Aquafuel this quarter will conclude the bioMSAR™ engine efficiency optimisation work, with results expected in early Q3 2022. Discussions are underway with several candidate sites in Panama and Honduras for MSAR ® and bioMSAR ™ power plant trials later in 2022.

9 May 2022
*A corporate client of Hybridan LLP or retained by Hybridan LLP for certain services
** Arranged by most recent first
*** Alphabetically arranged
**** Potential means Intention to Float (ITF) has been announced, or it is a rumour


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