AIM movers: Condor Gold progresses La India sale and Aferian continues fall

Condor Gold (LON: CNR) is entering the end of the first phase of the process to sell the La India gold project in Nicaragua. There are three formal expressions of interest, including two non-binding offers, with more likely to be received. The project requires $105.5m of investment and has an estimated NPV (5%) of $86.9m. There are additional areas to explore. The share price rose 12.7% to 17.75p.

The two largest movers today are Keras Resources (LON: KRS) and Ukrainian food producer UKrproduct (LON: UKR). There has been higher than normal trading activity in Keras Resources, which is one-quarter ahead at 3.75p. There has been no trading in UKrproduct, which is one-fifth higher at 3.9p.

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Pan African Resources (LON: PAF) has put in place the final component of the funding package for the Mintails project. Engineering optimisation studies are being finalised and construction could start in June. The share price is 8.92% ahead at 14.29p.

Ariana Resources (LON: AAU) has identified three additional targets at Kepez in Turkey. Ariana has a 23.5% stake in this project. The Kepez main vein extends for 1,800 metres and the north vein continues for a further 150 metres beyond previous findings. The share price moved up 9.43% to 2.9p.

Investors were reassured by Venture Life Group (LON: VLG) concerning its exposure to Silicon Valley Bank. The consumer healthcare products supplier has a £30m revolving credit facility with Santander and Silicon Valley Bank, but no deposits with the latter bank. It is possible for Santander to take over the Silicon Valley Bank proportion of the facility. A refinancing was due in June 2024 and this process will be accelerated. The share price increased 7.19% to 44.75p.

Concerns about the financial position of Rurelec (LON: RUR) led to a 23.5% slump in the share price to 0.325p. The South America-focused electricity generator is running short of cash and there is little prospect of a dividend from its Argentinian subsidiary. The majority shareholder is against issuing more shares. Management hopes to sell the investment in the Argentinian business and become a shell. The current cash should last into the second quarter of 2023.

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Aferian (LON: AFRN) shares continue to decline following last week’s profit warning due to customer destocking of streaming devices and its exposure to Silicon Valley Bank. Annual results to November 2022 will be delayed while discussions with banks continue over future covenant compliance. There are no breaches of covenants yet. Aferian has a $50m loan facility from three banks, including Silicon Valley Bank, with potential for a further $50m and it lasts until 23 December 2024. There has not been a statement about this exposure. The share price slid 14.1% to 27.5p.

Tungsten West (LON: TUN) has appointed Neil Gawthorpe as chief executive. He was previously at Allied Gold. He will review funding options for the Hemerdon tungsten mine. This could be a combination of royalty, debt and equity financing. The permit for the processing plant is still be awarded. The shares are down by 14.6% to 8.75p.

Africa-focused forestry company Woodbois (LON: WBI) has completed the expected £3m placing at 1.2p a share and appointed Novum Securities as joint broker. The company hopes to become cashflow positive during 2023. The shares are 7.48% lower at 1.175p.

Energy efficiency as a service provider eEnergy Group (LON: EAAS) says it has exposure to Silicon Valley Bank through currency hedging and a drawn down £5m credit facility. The acquisition of the bank by HSBC means that there should be no material impact on the business. The share price is down 5.26% at 2.7p, having been lower prior to the announcement.

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