Companies: AEN    BFG    CBM    ZAR   

The new issue tide in the mining sector flows unabated, with the US dollar under persistent pressure and gold and other metals showing continued strength

Financier Tony Frizzell of Resources Management & Finance is preparing the launch of Beaufort, a new million (£41.5 million) resources investment hedge fund, that hopes for backing from London and across the Pond.

Closer to home, Brian Moritz, the ever-optimistic resource company floater at accountant Grant Thornton, is working on bringing Erebus, a new diamond play in Sierra Leone, to AIM. The genial Moritz brought another African diamond miner, Namibian Resources (headed by ex-tycoon Lord Sheppard) to Aim in May at 15p as nominated adviser and the shares have gone to 27.5p.

Moritz chairs Zari Resources, an exotic African mineral spec that has so far proved a lively speculative performer at 4.6p. The company shares at least one director with fellow AIM counters and strong performers Cambrian Mining (156.5p) and Bangladesh coal-focused Asia Energy (482.5p).

That compares with April's 75p float price, when Growth Company Investor recommended Asia Energy as a punt, and from 289p last month, when we suggested taking some profits while holding on for more potential growth. These companies are flavour of the month, though all have a distinctly entrepreneurial angle and carry speculative risk.

Maghreb Minerals eyes London

Forthright Robyn Storer, Aussie exploration geologist and mining consultant, is leading Maghreb Minerals, a company set up to exploit potential lead and zinc opportunities in Tunisia, to AIM with a fundraising of between £3 million and £4 million. Hedge fund group RAB Capital has some 20 per cent of Maghreb, which has a six-month option on two state-owned lead and zinc mines, Fej Lahdoum and Bou Jabeur.

Westhouse Securities, where Storer is employed as a consultant, intends to float Maghreb, which has exploration permits in other, historically mined parts of Tunisia and has applied to explore across the border in Algeria. Pricing has yet to be finalised.

Vane's rerating hopes

One lacklustre performer thus far is Vane Holdings, a venture with gold and silver prospects in Mexico. It raised £4 million at 10p when it floated on AIM with the help of broker Seymour Pierce earlier this year. After a brief bull run, its shares now reside at 10p. The company blames early selling pressure.

Vane, run by US mining veteran Steven van Nort and with ex-Laing & Cruikshank investment luminary Matthew Idiens as commercial director, is using an extensive database from US mining group Freeport McMoran to identify projects. The company, where the ubiquitous RAB has nearly ten per cent, is focusing on two promising ones, Diablito and Mina Charay, hoping they will provide cashflow to help with its big potential prize, Guadalcazar.

In 1948, the US Geological Survey identified 329,000 oz of gold, 53.5 million oz of silver and 33 million lbs of tin at Guadalcazar but modern techniques are expected to reveal significantly different findings in the New Year. Vane has lately obtained exploration permits in Paraguay.

Vane is a gamble. Punters will know soon whether it is likely to pay off.

Angostura sweetens Greystar

AIM-quoted Greystar Resources, which recently followed finding 'bonanza' gold grades at Angostura in Colombia with an £8 million placing, says its second phase of drilling has intercepted further exceptional grades, including 42 grammes of gold per tonne of ore over 5.7 metres and 102 grammes a tonne over two metres. Vancouver-based Greystar, headed by Toronto-based entrepreneur David Rovig, met this clutch of bonanza grades to the north-east of previously known mineralisation.

Greystar shares have risen from £1 to 171p since their August float, despite the launch of an £8.2 million placing of units at the equivalent of 137.5p. These contain one share and one warrant to buy new shares within two years at the equivalent of 177p.

Greystar is a potentially rewarding gamble.