Today’s Market View – Phoenix Copper, Piedmont Lithium, Oriole Resources and more…


SP Angel . Morning View . Thursday 01 07 21

Shanghai steel futures hit new high on policy-driven production curbs

Graphene producer funding – EIS approved

The company wishes to fund a ramp up in graphene production to get ahead of demand and to develop markets for a number of new, graphene products

The business is also able to upgrade graphite to a higher grade/specifications using its process – rolling out this process also requires funding

Please email if you wish to invest in the company

*SP Angel’s role is limited to making introductions and interested parties should be aware that investment in a private company can present certain risks not present in listed companies (e.g. limited or no liquidity and no rules compelling disclosure of information to investors). This offer is open to professional investors only and is not offered to retail investors.

AEX Gold (LON:AEXG) – New exploration license application in Greenland

Altus Strategies* (LON:ALS) – BUY, 118p – High grade copper and silver results in Morocco

Castillo Copper (LON:CCZ) – Geophysical survey to start shortly in Zambia

Cornish Metals*+ (LON:CUSN) – Restructuring of deferred consideration

IronRidge Resources* (LON:IRR) – Full funding agreed for development of Ewoyaa Lithium project in Ghana

Kodal Minerals* (LON:KOD) – CEO meeting with new Minister of Mines in Mali on Bougouni lithium project plans

Oriole Resources (LON:ORR) – Drilling results from Thani Stratex Djibouti

Piedmont Lithium (LON:PLL) – Deal with IronRidge and granting of approval for its joint bid with Sayona Mining for the acquisition of North American Lithium (NAL) assets.

Sayona Mining (ASX:SYA)

Phoenix Copper* (LON:PXC) – Submission of Empire pit operating plan to BLM

Rambler Metals and Mining* (LON:RMM) – Confirmation of the convertible financing

Shanta Gold (LON:SHG) – Infill drilling at West Keya continues to deliver high grade results

Dow Jones Industrials +0.61% at 34,503

Nikkei 225 -0.29% at 28,707

HK Hang Seng -0.57% at 28,828

Shanghai Composite -0.57% at 3,589


China’s steel industry faces significant ‘policy-driven supply contraction’ in H2 21

China is expected to intensify efforts to rein in rampant steel output as authorities get serious About cutting output to meet their carbon goals, according to Mysteel.

Beijing had pledged that last year’s steel output of more than 1 billion tons would be a high-water mark for the sector, however production in the first five months amounted to 473mt.

China will have to cut output by more than 50mt in the final six months of this year to meet its carbon emissions targets.

The risk for the Chinese government is that steel prices will continue to surge higher if supply is constrained, threatening the gov’s broader effort to contain commodity price inflation.

Mysteel expects an initial curtailment of 10mt of steel in July compared to the same period last year.

Chinese steel futures rose for a seventh straight session on Thursday on output curbs, rising 1.8% to a two-week high.

We will soon discover if steel price inflation is more important to the Chinese authorities than emissions targets. And as always we watch to see what China does, rather than listen to what the politicians say.

Australia posts record trade surplus with China in May

China accounted for 39% of Australia total exports of A$42.23bn in May, well above Australia’s second-largest trading partner Japan that accounted for almost 10%, according to ABS data.

Export receipts were driven by another record for iron ore export revenues of almost 40% of all the country’s exports in May.

Iron ore exports were 17.5% above the previous record of A$14.12bn in March.

The A$9.7bn trade surplus with China exceeded the previous record trade surplus of A$8.5bn in June 2019.

Combined export receipts from iron ore, LNG thermal and coking coal and metal ore rose to a record high of A$25.08bn in May, 10.8% above the previous record of A$22.63bn in April.


US$1.1853/eur vs 1.1894/eur yesterday. Yen 111.23/$ vs 110.49/$. SAr 14.248$ vs 14.228/$. $1.383/gbp vs $1.383/gbp. 0.750/aud vs 0.752/aud. CNY 6.460/$ vs 6.455/$.

Commodity News

Precious metals:

Gold US$1,777/oz vs US$1,758/oz yesterday

Gold ETFs 100.8moz vs US$100.8moz yesterday

Platinum US$1,080/oz vs US$1,065/oz yesterday

Palladium US$2,757/oz vs US$2,686/oz yesterday

Silver US$26.26/oz vs US$25.81/oz yesterday

Base metals:

Copper US$ 9,394/t vs US$9,392/t yesterday

Aluminium US$ 2,511/t vs US$2,554/t yesterday

Nickel US$ 18,110/t vs US$18,470/t yesterday

Zinc US$ 2,980/t vs US$2,954/t yesterday

Lead US$ 2,263/t vs US$2,332/t yesterday

Tin US$ 31,135/t vs US$31,610/t yesterday


Oil US$74.9/bbl vs US$74.8/bbl yesterday

It has been reported overnight that Russia is having trouble reversing an oil production decline it implemented under its agreement with OPEC+

Russia has been producing some 10.42MMbopd of crude oil and condensates since the start of June, which is lower than May’s average of 10.45MMbopd

According to Reuters, the reason for the decline could be related to difficulties with boosting production at older fields

There was talk about such difficulties as early as last year when OPEC+ first agreed to take some 7.7MMbopd off the market in response to the demand destruction caused by the pandemic

Initially, when Russia had joined OPEC members in their production control efforts, its oil companies cut a relatively small portion of production, slowly, and for a few months only

In 2020, these companies were asked to cut much deeper and much faster, as well as for much longer

With such long production suspension, there is the risk of never being able to restart some of the wells

The longer a well sits idle, the more likely pressure changes become, as well as water content changes capable of rendering the well unusable ever again

OPEC+ is meeting today to discuss the next steps in its production control agreement

Early reports said the cartel was mulling over bringing additional supply online from August in response to the fast rebound in demand

Natural Gas US$3.714/mmbtu vs US$3.702/mmbtu yesterday


Iron ore 62% Fe spot (cfr Tianjin) US$203.2/t vs US$206.0/t

Chinese steel rebar 25mm US$757.2/t vs US$756.0/t

Thermal coal (1st year forward cif ARA) US$87.5/t vs US$85.3/t

Coking coal swap Australia FOB US$174.0/t vs US$172.0/t


Cobalt LME 3m US$49,680/t vs US$48,580/t

NdPr Rare Earth Oxide (China) US$73,444/t vs US$72,507/t

Lithium carbonate 99% (China) US$12,383/t vs US$12,393/t

China Spodumene Li2O 5%min CIF US$690/t vs US$690/t

Ferro-Manganese European Mn78% min US$1,938/t vs US$1,945/t

China Tungsten APT 88.5% FOB US$273/t vs US$273/t

China Graphite Flake -194 FOB US$515/t vs US$515/t

Europe Vanadium Pentoxide 98% 8.9/lb vs US$8.9/lb

Europe Ferro-Vanadium 80% 42.25/kg vs US$42.25/kg

Spot CO2 Emissions EUA EUR48.72/t vs EUR54.20/t

Battery News

AirCar: Flying car prototype completes inter-city test flight between airports

The prototype from Slovakian company Klein Vision fulfilled a key development milestone by completing a 35-minute inter-city flight between Nitra and Bratislava.

The AirCar Prototype 1 is equipped with a 160HP BMW engine with a fixed propeller and a ballistic parachute. It has completed over 40 hours of test flights including steep 45 degree turns and stability and manoeuvrability tests.

AirCar Prototype 1 has flown at 8200ft and reached a maximum cruising speed of 190km/h.

The pre-production model, AirCar Prototype 2, will be equipped with a 300HP petrol engine and receive the EASA CS-23 aircraft certification with an M1 road permit. With its variable pitch propeller, the Prototype 2 is expected to have a cruise speed of 300km/h and range of 1000km.

The vehicle takes 2 minutes 15 seconds to transform from car to aircraft, but unlike ‘drone-taxi’ prototypes it cannot take off and land vertically and requires at least 300m of runway before it can reach 120km/h to take off.

Nissan to build GBP1bn gigafactory in the UK

Nissan has announced details of a new battery gigafactory that will massively increase the production of EVs at their Sunderland car plant.

The battery plant will be built in partnership with Chinese battery manufacturer, Envision, and will become the largest battery gigafactory in the UK.

Nissan will invest up to GBP423m to produce a new all-electric crossover vehicle at the Sunderland plant, and Envision will invest GBP450m to develop and expand battery-cell making.

Envision already produces lithium-ion batteries for the Nissan Leaf at a plant in Sunderland with 1.7GWh capacity.

The new plant is expected to have capacity for 9GWh which would be enough to produce batteries for up to 100,000 vehicles a year.

The investment “is a major vote of confidence in the U.K. and our highly-skilled workers in the North East,” Prime Minister Boris Johnson said in the statement. “This is a pivotal moment in our electric vehicle revolution and securing its future for decades to come.”

Company News

AEX Gold (LON:AEXG) 28p, Mkt Cap GBP49.6m – New exploration license application in Greenland

AEX reports that it has applied for a new exploration licence in the Kobberminebugt region of South Greenland covering an area of approximately 266km2.

The area hosts numerous copper-gold showings including the small past-producing Josva copper mine, which was last worked in 1914 with reported grades up to 5% Cu, 1.5 g/t Au and 250 g/t Ag.

Copper mineralisation discovered to date is found within volcanic and sedimentary sequences as disseminated stratabound sulphides, and locally enriched into layers due to strong folding or in quartz veins and breccias.

At the company’s Nalunaq operations, AEX reports that construction of the expanded temporary camp and new exploration camp to support exploration activities is progressing well.

The exploration team has also commenced the drilling programme at Valley Block, the results of which will be announced to the market over the coming months.

Altus Strategies* (LON:ALS) 61p, Mkt Cap GBP49m – High grade copper and silver results in Morocco

BUY – 118p

The Company reports high grade copper and silver in reconnaissance exploration at the recently granted Azrar, Izougza and Tata projects in Morocco.

Outcrop and float samples results include:

Izougza (Cu-Ag) project: Up to 8.37 % Cu in breccia

Azrar (Cu-Ag) project: Up to 3.41 % Cu and 56 g/t Ag in breccia over 50m strike

Tata (Cu-Au) project: up to 0.24 % Cu in sediments

Additionally, the exploration field team mapped historic hard rock artisanal mines.

Results point to potential for stratiform sediment-hosted and contact breccia copper-silver mineralisation.

The Company is now carrying reconnaissance exploration at the Jafra (Cu-Zn), Tiddas (Cu-Pb) and Amsa (Sn) projects with results to be reported in due course.

Conclusion: Reconnaissance fieldwork at recently granted licenses in Morocco returns high grade copper/silver results helping the team to identify priority targets for follow up exploration.

*SP Angel acts as Nomad and Broker to Altus Strategies

Castillo Copper (LON:CCZ) 2.15p, Mkt Cap GBP21.8m – Geophysical survey to start shortly in Zambia

Castillo Copper reports that a comprehensive induced-polarisation (IP) geophysical survey will start shortly over its Luanshya and Mkushi projects in the Zambian copper-belt.

The survey, which is expected to last for 6-8 weeks, is expected to follow-up a 6km long soil geochemical anomaly which was identified during 2020 at Luanshya and to investigate two parallel, north-east trending shear zones and five geochemical soil anomalies at Mkushi.

Managing Director, Simon Paull, explained that “already completed soil sampling campaigns that have delineated anomalous areas across the Luanshya and Mkushi Projects … [and] … undertaking comprehensive IP surveys will potentially facilitate identifying targets to test drill”.

Cornish Metals*+ (LON:CUSN) – 13.95p, Mkt cap GBP38m – Restructuring of deferred consideration

Cornish Metals has announced an agreement with Galena Special Situations to restructure due for the acquisition of the South Crofty tin project and other associated mineral rights.

The company highlights the “Replacement of fixed and variable payments under the original share purchase agreement with fixed payments linked to pre-agreed project related milestones” and says that:

“Subject to shareholder approval, the new fixed payments comprise:

o 7,000,000 common shares without par value in the share capital of the Company (“common shares”) (issued to the Sellers immediately upon receipt of shareholder approval);

o US$4,750,000 to be paid in common shares upon closing of either the financing for the dewatering of the mine at the South Crofty tin project, and / or any interim financings (up to 10% of the gross proceeds of such interim financings); and

o US$5,000,000 to be paid in common shares upon closing of the development and/or construction financing of a mine either at the South Crofty tin project or at the United Downs property”.

CEO, Richard Williams, highlighted the improved clarity and certainty the new structure would provide to the market “about what is required to make our Cornish projects a success”.

He also explained that “we see this agreement as the opportunity to accelerate the work we are doing to revive the tin and copper industry in the UK.”

The new agreement with Galena replaces one under which Cornish Metals would have issued 2m shares upon the earlier of the completion of a positive feasibility study or the start of commercial production at S Crofty plus “a cash and/or common share payment (at the election of CML) to the Sellers equal to 25% of the after-tax net present value (“NPV”) of the South Crofty tin project upon making a decision to go into production” with a series of provisions relating to adjustments based on the company’s market value relative to the NPV.

Conclusion: Clarification of the deferred payment due to Galena for South Crofty, and associated mineral rights,which requires shareholder approval, replaces a relatively complex formula with a straightforward payments schedule based on issuing shares as a series of definable milestones are achieved.

* SP Angel acts as broker and financial advisor to Cornish Metals.

IronRidge Resources* (LON:IRR) 23p, Mkt cap GBP117m – Full funding agreed for development of Ewoyaa Lithium project in Ghana

IronRidge resources report agreement from an industrial company for the conditional full funding of the Ewoyaa Lithium Project in Ghana for US$102m.

The deal, which looks similar to Ganfeng’s recent agreement with Firefinch, is interesting as Piedmont, a US integrated supplier of raw materials is fully funding the project without going for a full takeover though they are earning into 50% of Ewoyaa and its associated licenses in Ghana.

Piedmont is subscribing for 54m shares at 20p/s and is earning into 22.5% of Ewoyaa for $5m of funding and $12m towards the DFS and can earn another 27.5% of Ewoyaa on the funding of $70m for the capex.

Piedmont has entered into a binding offtake agreement to take 50% of IronRidge’s Cape Coast Lithium Portfolio’s life of mine spodumene concentrate.

Spodumene projects are not overly expensive to build but the ongoing boom in mining activity is raising costs may raise the estimated capital cost requirement for Ewoyaa’s 2mtpa project beyond the $68m scoping study estimate particularly if further resources are found and IronRidge and Piedmont elect to install the flexibility to increase production.

Piedmont is a fully integrated LiOH (Lithium Hydroxide) chemical developerr and has a binding agreement with Tesla to supply lithium in spodumene concentrate, though we are not aware that Tesla has plans to become a converter of spodumene concentrate.

The Ewoyaa scoping study envisaged an initial capital cost of $68m which is fully covered by $70m of funding by Piedmont with a further $17m agreed to fund exploration drilling and to advance the scoping study to a DFS.

We suspect the DFS may increase the cost of the Ewoyaa project and that Piedmont may add additional funding to enable flexibility for the rapid expansion of the project if needed.

IronRidge have a JORC compliant mineral resource estimate at Ewoyaa of 14.5Mt at 1.31% Li2O in the inferred and indicated category, including 4.5Mt at 1.39% Li2O in the indicated category.

Piedmont have two lithium project in North Carolina and another in Sayona, Quebec. Piedmont’s projects envisage production of 248,000tpa from North Carolina and 30,000tpa of LiOH (Lithium Hydroxide) over 20 years

The Authier project in Sayona is at the DFS stage for 113,000tpa of spodumene concentrate over 13 years

The deal also adds $30m to its cash position for future growth.

Ewoyaa Scoping Study details:

Pre-tax NPV8% of US$539m

Pre-tax EBITDA of US$854m

Post-tax NPV8% of US$345m

Post-tax IRR of 125%

EBITDA of US$105mpa average

The study proposes a contract mining operation, mobile contract crushing facility and fixed conventional Dense Media Separation (DMS) processing facility.

Costs: US$247/t of spodumene concentrate

Price: US$650/t assumed for 6% spodumene concentrate.

Payback is expected to be <1 year.

Recovery rates: currently up to 72% for the P1 Fresh ore and average 51% for the P2 Fresh after re-crushing and gravity middlings,

Waste:ore stripping ratio of 1.5:1, and 4.4:1 over the life of the mine.

Power is likely to be source from hydropower plants in China.

The Ewoyaa project has an internal exploration target range of 2.5mt to 7.5mt, with a view of supporting a plus 10yr mine life though we suspect the mine will run beyond that.

IronRidge also intends to demerge its gold asset portfolio in the Ivory Coast and Chad into a separate gold-focussed entity to be listed on a recognised stock exchange.

Conclusion: We have been highlighting the lack of available, defined, high-grade hard-rock, spodumene lithium projects for several years to a market which has been deaf to the need for battery raw materials.

While there is no shortage of spodumene in this world there is a shortage of suitable lithium project.

The deal follows Ganfeng’s offer to fund Firefinch’s Goulamina project for $130m with $91m subject to a final investment decision by the new 50:50 jv . Ganfeng have also offered to takeover Bacanora subject to final approval from the PRC.

Kodal Minerals* which owns the Bougouni lithium project next to Goulamina is also subject to a potential deal with SinoHydro, part of PowerChina, that is working through potential development plans on the project.

*SP Angel act as Nomad to IronRidge Resources

Kodal Minerals* (LON:KOD) – 0.50p, Mkt cap GBP78m – CEO meeting with new Minister of Mines in Mali on Bougouni lithium project plans

Kodal Minerals report its ceo Bernard Aylward is meeting with the new Minister of Mines to discuss Bougouni lithium project plans in Mali.

Kodal recently received confirmation that the feasibility study and mining development plan had been ratified and approved by the DNGM committee and has paid the GBP135,000 application fee to advance the application process.

Kodal are currently engaged with Sinohydro (Power China) on the potential development of Bougouni and are in contact with Suay Chin and Shandong Ruifu Lithium Industry Co Ltd, which are expected to take the Bougouni spodumene concentrate. Shandong Ruifu produces lithium carbonate and lithium hydroxide in China.

Bougouni lithium project key stats:

220,000tpa of 6% spodumene concentrate over an initial 8.5 years

71% recovery rate of contained lithium based on laboratory metallurgical recoveries of 75%;

>USD$1.4bn of total revenue at $680/t starting H2 2021 and rising 2%pa

2mtpa throughput with DMS and conventional flotation circuit. Recoveries are acceptable with the DMS on its own.

USD$431/t C1 cash costs or USD$466/t inc. royalties and sustaining capital.

US$117m Capex est. plus contingency:

1.7 year payback est.

LoM production of 1.94mt of concentrate. Sales >$1.4bn assuming spodumene concentrate sales price of $680/t increasing 2% year-on-year;

58% IRR pre-tax

51% IRR post tax

US$300m NPV7% pre-tax

US$200m NPV7% post-tax

*SP Angel acts as Financial Advisor and Broker to Kodal Minerals. The analyst holds shares in Kodal Minerals.

Oriole Resources (LON:ORR) – 0.58p, Mkt cap GBP9.5m – Drilling results from Thani Stratex Djibouti

Oriole Resources reports that its’ 10.6% owned Thani Stratex Djibouti’s Phase 2 drilling at the Assaleyta project in the East African Rift Valley has intersected gold mineralisation in reverse-circulation (RC) drilling.

Selective sampling of five drillholes produced the following highlights:

A 2m wide intersection at an average grade of 1.15g/t gold from a depth of 12m in hole Ar-R-12, which also intersected a single metre at a grade of 1.01g/t gold from 17m; and

A 2m wide intersection also at an average grade of 1.15g/t gold from a depth of 9m in hole Ar-R-14, which also encountered a second 2m wide intersection averaging 1.16g/t gold from 107m depth as well as a 5m wide intersection at a grade of 8.97g/t gold from 110m depth; and

A 16m wide intersection at an average grade of 1.08g/t gold from a depth of 12m in hole Ar-R-15, including a single metre grading 7.89g/t as well as a second intersection of 7m width averaging 1.12g/t from 49m depth.

Additional samples from both the Assaleyta project and the Hesdaba project drilling are awaiting “ministerial clearance in Djibouti before being dispatched for assay”.

The current exploration is being funded and managed by African Minerals Exploration & Development Fund III (‘AMED Fund III’) under an agreement reached in 2019.

Conclusion: Encouraging exploration drilling results from Djibouti as AMED funds exploration programme in the African Rift Valley

Piedmont Lithium (ASX:PLL) US$78.16, Mkt cap $1.2bn – Deal with IronRidge and granting of approval for its joint bid with Sayona Mining for the acquisition of North American Lithium (NAL) assets.

Sayona Mining (ASX:SYA) A$0.08, Mkt cap A$423m

Piedmont have today offered a conditional deal of $102m to investigate and fund IronRidge’s Ewoyaa lithium project (see IronRidge comment)

Separately, Piedmont Lithium reported yesterday that Superior Court of Quebec has granted approval for its joint bid with Sayona Mining for the acquisition of North American Lithium (NAL) assets.

Assets will be acquired by Sayona Quebec that is jointly owned by Sayona Mining (75%) and Piedmont Lithium (25%).

Piedmont also holds a ~20% interest in Sayona Mining.

Both companies announced a strategic partnership in Jan/21 that involved Piedmont taking stakes in Sayona Mining and Sayona Quebec in exchange for a US$12m investment as well as agreed a binding offtake agreement for acquisition of up to 60kt pf spodumene concentrate from Sayona Quebec to supply Piedmont Lithium Project in North Carolina.

NAL is a brownfield fully permitted operation that went into administration due to a drop in lithium prices in 2019/20.

NAL assets are located only 20m away from the Sayona’s core Authier project in the Abitibi region of Quebec and hosts 57.7mt at 1.05% Li2O in mineral resources with over $400m in historical investments.

Sayona Mining flagship Authier hard rock lithium project hosts 12.1mt at 1.00% Li2O in reserves and 20.9mt at 1.01%Li2O in mineral resources with 2019 FS envisaging a ~115ktpa in spodumene concentrate production.

The deal offers significant development synergies and highlights Piedmont drive to secure spodumene feedstock supply for its planned lithium hydroxide plant.

Piedmont own hard rock deposit hosts 39.2mt at 1.09% Li2O located next to the planned lithium hydroxide chemical plant in North Carolina with the latest updated scoping study considering 248ktp SC6 / 30ktpa LiOH operation.

Piedmont has also signed an offtake agreement with Tesla in Q3/20 for supply of SC6 at around a third of then planned 160ktpa SC6 production rate over an initial five year period (latest scoping study upgraded annual production to 248ktpa SC6).

Phoenix Copper* (LON:PXC) 47p, Mkt Cap GBP53.5m – Submission of Empire pit operating plan to BLM

(Phoenix holds 80% of the Empire mining property in Idaho)


Phoenix Copper reports that it has filed its construction and operating plan for the Empire open-pit mine in Idaho for review and approval by the Bureau of Land Management.

Submitting the plan is an important milestone in “moving the Empire Mine towards production” and the company says that as “No significant environmental issues have been identified on the Empire Property … [it] … anticipates a straightforward permitting process”.

The company explains that it began environmental baseline studies for the project in 2017 and that based on the extensive subsequent information, the “Plan of Operations provides the Federal, State, and County regulatory authorities with a detailed outline of proposed mining and processing activities and addresses any potential impact from those activities on the environment, the economy, and the local community”.

Explaining the process, Phoenix Copper says that the “regulatory agencies will commence their review of the Plan, assess any alternatives or mitigative steps, and ultimately provide a Record of Decision formally approving the Plan to permit the Empire Mine Open Pit for further development and production”.

Explaining that “The Empire Mine will require a substantial workforce and provide numerous, well-paid employment opportunities for the citizens of Custer County, as well as generating business opportunities in the construction, material supply, retail, and transportation sectors throughout Idaho”, CEO, Ryan McDermott, pointed to the contribution the development would make to State and County revenues and said that “As a primary copper deposit, production from the Empire Mine should be timely as the new administration in Washington D.C. is actively encouraging the clean energy revolution which will include the development of metals essential for electrification projects. Our Empire copper resources fit neatly into that category”.

Conclusion: The submission of the operational plan to the BLM for its review represents an important milestone in the development of the Empire pit. The company explains that its extensive environmental monitoring has not identified any issues of concern and, we suggest, its detailed studies on an environmentally benign ammonium thiosulphate technology for precious metals recovery should help to eliminate a potential source of environmental concern.

*SP Angel act as Nomad for Phoenix Copper

Rambler Metals and Mining* (LON:RMM) 28.75p, Mkt Cap GBP32m – Confirmation of the convertible financing

(Rambler owns 100% of the Ming Copper-Gold Mine)


Rambler Metals & Mining has confirmed the completion of the convertible note financing for up to US$30 announced yesterday as part of the overall US$50m package to restore production at the Ming mine and to establish the long term mine development to ensure the mine’s future.

The note, with Riverfort Global, comprises an initial US$2m tranche, followed by 2 further tranches each also of US$2m available at the company’s request before the end of 2021 followed by further advances of up to US$24m “subject to the Company and noteholders mutual consent and is conditional on necessary shareholder approval to increase the authority to issue shares”.

Yesterday’s announcement explained that the notes, which are non-interest-bearing, are convertible into shares at “at a price of the lower of:

a 40% premium to the average of five-day VWAP (“Fixed Conversion Price”) immediately prior to the drawdown of each advance; and

the average of the five lowest daily VWAPs of ordinary shares of Rambler during the 20 trading days immediately preceding the date of any conversion notice”.

The company also confirms that it “has requested the initial advance of US$2.0 million today and expects to receive this shortly”.

CEO, Toby Bradbury, said that “This represents the delivery of the first leg of the financing package announced on 30 June 2021 and enables Rambler to maintain its momentum in the turn-around of the Ming Mine”.

He also alerted investors to “further announcements on our drilling, the Little Deer project and the financing within this quarter”.

Conclusion: Confirmation of the completion of the convertible as part of the wider US$50m financing announced yesterday positions Rambler to implement its operational turn-around strategy at the Ming Mine to restore processing rates to 1,350tpd during 2021 and to position the mine for an increase to 2,000tpd by the end of 2022 and to establish the developed ore reserves and multiple operating ore sources for production stability and further growth in 2022.

*SP Angel act as Nomad and broker to Rambler Metals & Mining

Shanta Gold (LON:SHG) 16.8p, Mkt Cap GBP176p – Infill drilling at West Keya continues to deliver high grade results

The Company released another series of drilling results from the ongoing programme at the high grade West Kenya Project in Kenya.

Isulu drilling highlights include:

3.0m at 94.4g/t from 93m (252)

1.0m at 48.2g/t from 167m (254)

2.0 at 23.8g/t from 170m (257)

2.5m at 18.1g/t from 206m (260)

Bushiangala drilling highlights include:

1.4m at 25.6g/t from 51m (249)

3.0m at 14.3g/t from <50m (253)

4.4 at 11.1g/t from 62m (253)

The update relates to ~2,600m of drilling completed across 15 holes in April and May.

The Company has now completed ~9,400m of drilling (Phase 1) with a resource updated focusing on ~10% of the total NI43-101 Inferred resource of 1.2moz covering 0-200m in depth to follow.

Phase 2 drilling targeting 200-450m below surface started in June with a third rig to be expected to be mobilised later this month

The Company is planning to complete ~25-40% of planned West Kenya drilling by the end of 2021 with ~10% of total planned drilling over thee phases having now been reported.

Three phases of drilling covering 0-600m levels is focused on improving the confidence in the resource and converting current inferred ounces into the indicated category.

The West Kenya project is estimated to host 1,182koz at 12.6g/t in the NI 43-101 compliant Inferred Mineral Resource contained within two greenfield deposits, the Isulu and Bushiangala Prospects, both of which remain open at depth.

Recent Interviews:

IGTV: Stock picks in the small-cap mining space:

Evolution of Chinese construction and implications for commodity demand:

VOX Markets: 10/06/21:

BBC: Catalytic converters

*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.

We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.

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The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020


John Meyer – [email protected] – 0203 470 0490

Simon Beardsmore – [email protected] – 0203 470 0484

Sergey Raevskiy [email protected] – 0203 470 0474

Joe Rowbottom – [email protected] – 0203 470 0486


Richard Parlons [email protected] – 0203 470 0472

Abigail Wayne – [email protected] – 0203 470 0534

Rob Rees – [email protected] – 0203 470 0535

Grant Barker – [email protected] – 0203 470 0471

SP Angel

Prince Frederick House

35-39 Maddox Street London


*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)

+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.

Sources of commodity prices

Gold, Platinum, Palladium, Silver

BGNL (Bloomberg Generic Composite rate, London)

Gold ETFs, Steel


Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt


Oil Brent


Natural Gas, Uranium, Iron Ore


Thermal Coal

Bloomberg OTC Composite

Coking Coal




Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite

Asian Metal


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