Composite parts kits supplier Velocity Composites (LON: VEL) has announced a $100m plus work package agreement with GKN Aerospace in Alabama, which provides a significant boost to its entry to the US market. This has sparked a 72.2% increase in the share price to 46.5p. The 2017 placing price was 85p. The GKN agreement covers five years. The new production facility opens at the beginning of 2023. GKN is an existing client in the UK. Velocity Composites expects to report 2022 revenues of £11.9m. A loss of £1.5m is forecast and it will not be much less next year. Once the US is fully up and running the company could move into profit in 2024.
Freight business Xpediator (LON: XPD) has received a bid approach at 42p a share and the board is leaning towards recommending the offer. A consortium is led by Stephen Blyth, the former chief executive of Xpediator, and involves Justas Versnickas, who runs the Delamonde Baltics subsidiary. It has the backing of private equity firm Baltcap. The offer would be in cash and involve a partial loan note alternative. The two largest independent shareholders have indicated their willingness to accept the offer. Along with the consortium stake, this would take acceptances above 50%. Discussions continue. The share price is 22.3% higher at 37p.
Cloud-based software supplier i-nexus Global (LON: INX) grew underlying monthly recurring revenues by 12% to £250,000. In the year to September 2022, fell from £3.64m to £3.13m due to non-renewing contracts. The loss was flat at £1.1m. There was £99,000 in the bank at the end of September 2022. The share price rose 11.7% to 3.35p.
Kazera Global (LON: KZG) has sold African Tantalum to Hebei Xinjian Construction for $13m and retaining a 2.5% payment of 2.5% of gross sale of lithium and tantalum for the life of the mine. A sale of a 49% stake for $7.5m was previously proposed. Kazera Global will focus on its heavy mineral sands project in South Africa, which has commenced production, and look for other opportunities. The hare price increased by 7.7% to 3.5p.
San Leon Energy (LON: SLE) is selling its non-core investment in the Oza oilfield to generate working capital. Management has delayed using the $50m facility provided by MM Capital because it believes there are better alternatives. This includes an issue of shares to a prospective lender. Discussions have dragged on and will not be concluded until next year. This means that San Leon Energy has not been able to make progress with its expansion plans. The share price slumped by 25.2% to 27.95p.
Oil and gas company Empyrean Energy (LON: EME) invested £1m in exploration and there was a £591,000 cash outflow from operations. There was $800,000 in the bank at the end of September 2022. The company plans to drill the Topaz prospect in China before June. The share price is 13.9% lower at 0.689p.
Beowulf Mining (LON: BEM) intends to raise £8.8m via a preferential rights issue of SDRs raising £6.7m and a retail offer of shares raising £2.1m. The funding will be priced in January. The cash will finance the development of the Kallak North iron ore project in northern Sweden. There was a 11.8% decline in the share price to 3.75p.
Premier African Minerals (LON: PREM) has intersected multiple thick high-grade zones at the Zulu lithium and tantalum project. The pilot plant construction is progressing. Spodumene production should start in the first quarter of 2023. The share price has fallen 6.1% to 0.495p.