While many traders may be CBD and Blockchain crazy at the moment, it can be said that the backbone of the post pandemic rally remains the commodities space. This point has been underlined by the interest in diversified metals and minerals group, Xtract Resources (XTR), at a time where there could be a physical shortage in some key markets. While Xtract Resources Executive Chairman Colin Bird has of late been serving up almost daily updates on new start project Bushranger, it was the announcement of 1,000,000 shares at a price of 5.8373p, which boosted the stock to the tune of 28%.
Switching to the tech space, and particularly Edtech, and it was the turn of Dev Clever (DEV) to unveil a deal which will no doubt consolidate the recent length bull run in the stock. The highlight was that according to the terms of the deal Sitius Limited an investment vehicle wholly owned by Dr David vonRosen, has conditionally agreed to acquire a material interest in the Company by way of entering into a series of transactions. Sitius is focussed on taking significant and long-term positions in highly disruptive and scalable technology businesses.
Pre-IPO investor Vela (VELA) announced it was doing what it says on the tin, in terms of its latest move. It has invested £350,000 in Aeristech Limited, a producer of efficient, power-dense compressors for hydrogen fuel cells, as part of Aeristech’s £5.1 million pre-IPO funding round.
Much followed mining group Asiamet (ARS) arguably served up the fund raise that the market was expecting, tapping investors for up to £10m. The proceeds (amongst other things) are set to help complete a second phase value engineering programme for the proposed 25ktpa BKM copper project, which will include metallurgical and process flowsheet optimisation together with associated operating and capital costs refinement.
There was plenty of buzz in the market surrounding the imminent arrival of Cellular Goods (CBX), the Beckham backed Cannabinoid skincare company whose IPO values it at £25m. Given that most private investors who managed to get any stock will have been scaled back to some £500, it may be that only a 10 bagger performance on the day will give them a meaningful payday. That said, Kanabo (KNB) and MGC Pharma (MXC) have soared of late, so CBX may deliver the goods for punters to close what has been a difficult week in the markets.
There was further celebration by the bulls regarding the soaring price of copper, at Phoenix Copper (PXC), with its shares rising another 8%. This came after the AIM quoted North American focused base and precious metals emerging producer and exploration company, announced earlier this week that it has drawn down on a £2 million debt facility to accelerate development of the Empire Mine open pit copper project in Idaho, USA. Phoenix said the open pit contains Measured & Indicated resources of some $1.4 billion, and the base case EM generates net revenue of almost $800 million and an EBITDA of over $300 million over an initial 10 year project life, at a copper price of $3.60 /lb. The pre-production capital expenditure is expected to be paid off in under two years, with over $40 million of free cash generated in the first year of operations. So all in all, it would appear that there is plenty for the buyers to shoot for here as compared to a £29m market cap.
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