SMALL-CAP WINNERS & LOSERS: Ferro-Alloy secures high-profile investors

Mon, 15th Mar 2021 11:08

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.

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SMALL-CAP - WINNERS

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Zenith Energy, up 15% at 1.33 pence, 12-month range 0.35p-1.38p. Says fully owned subsidiary, Zenith Energy Africa Ltd, enters into share purchase agreement with Candax Energy Ltd for the acquisition of Candax's fully owned subsidiary in Barbados, Ecumed Petroleum Zarzis Ltd, which holds a 45% interest in the Ezzaouia concession. Ezzaouia is located onshore Tunisia on the Zarzis peninsula. Zenith Energy Africa will pay an aggregate USD150,000 for Ecumed, and Zenith will part with an additional USD100,000 in shares. The two also have agreed a royalty deal of USD0.35 per each barrel of hydrocarbons produced from the Ezzaouia oilfield, with the royalty not being less than USD50,000 per annum for a period of ten years.

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Ferro-Alloy Resources Ltd, up 43% at 14.95 pence, 12-month range 8.00p-14.98p. Enters subscription agreement for up to USD12.6 million with Vision Blue Resources, a company led and founded by former Xstrata Chief Executive Mick Davis, and a limited number of co-investors, which includes former Anglo American PLC CEO Tony Trahar. Miner Xstrata merged with Glencore PLC back in 2013. Davis will join the company's board as chair following completion of the investment. Current Chair Chris Thomas will stay on the company's board, taking up a non-executive director role. The total funding package of up to USD12.6 million at a subscription price of 9p per share comprises an initial investment in two stages of up to USD3.1 million by VBR, and further investment rights granted to VBR of up to USD9.5 million at the issue price. The deal will see VBR acquire 21% of Ferro-Alloy. Also notes 2020 vanadium pentoxide production up 56% from 2019 at 237.3 tonnes. Ferro-Alloy has granted VBR offtake rights worth USD10.0 million for up to 25% of all the vanadium materials it produces.

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Henry Boot PLC, up 1.9% at 275.00 pence, 12-month range 185.00p-287.00p. Begin works on a major GBP42.5 million urban development scheme in the city centre of Sheffield. Henry Boot Construction selected on two developments within the Heart of the City scheme, to build a new low-carbon office building, covering 70,000 square foot over 7 floors, a food hall and live entertainment venue.

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By Paul McGowan; paulmcgowan@alliancenews.com