Companies: FDI    GLA    SIR    WNL   

The celebrated Jim Slater is deputy chairman and RAB Capital and Lord Rothschild are backers of AIM-quoted Galahad, which paid £2.8 million cash and issued ten million shares for 26 per cent of British Virgin Islands-domiciled Uranco. Claiming 150 million lbs of uranium in South Africa and Namibia, Uranco will go for its own AIM flotation shortly if a hefty £28 million pre-float funding goes well.

Uranium’s rise from $9 to $29 a lb, fuelled by the rehabilitation of nuclear power, has triggered a hunt for projects. Battle-scarred investor relations practitioner Mark Watson-Mitchell and shrewd commentator Robert Wallace are seeking £500,000 at 2p on Ofex for aspirant (and undoubtedly high-risk) uranium venture backer Yellowcake. Another factor is demand from China, which has boosted many metals, including stainless steel ingredient molybdenum, where loss-making Galahad is lining up another float.

This is 91 per cent-owned International Molybdenum, claiming a potential 118 million tonnes of ore at 0.24 per cent molybdenum at Malmbjerg in Greenland. After raising £2.5 million from RAB and others, it is now going for a £7 million AIM float to fund a feasibility study.

With stakes in large, low-grade Alaskan gold and copper deposits via its 24 per cent stake in Northern Dynasty Minerals and Greenland’s Skaergaard palladium deposit, Galahad claims assets worth the equivalent of 42 million oz of gold. At a modest 10.38p, Galahad shares have undoubted speculative possibilities.

Kenny’s African sparkler

More cheer for Philip Kenny, dogged boss of AIM-quoted Firestone Diamonds. Gem giant De Beers is to spend ‘several millions’ on Firestone’s alluvial diamond project at Groen River in South Africa.

De Beers can earn 61 per cent of the project by funding the key feasibility study. Firestone can then require De Beers to provide loan finance to take Groen River to production in return for another nine per cent.

Kenny hopes this will not be needed if Firestone’s other projects, notably Botswana’s Orapa kimberlite prospect, come up trumps. At 159p, up from 52p when Growth Company Investor recommended them a year ago, partial profit-taking might be prudent, but the shares have further potential.

A Balkan bet from Poulden

Advisers say barrister and entrepreneur Richard Poulden is poised to bring Sirius Exploration to AIM to pursue copper prospects in Macedonia on behalf of US metals giant Phelps Dodge. Nicholas Badham, former chief geologist at Rio Tinto, is managing director of Sirius, which aims to ‘deliver value through a portfolio of mineral resource properties’.

‘A small fundraising’ is likely to accompany the Sirius float. It might reward a brave punt.

Another £7m flows to White Nile

Phil Edmonds’ controversial oil play White Nile has raised £7 million at £1 to fund exploration of its 65,000 sq km licence area in South Sudan. The AIM-quoted company, which raised £9 million at a dramatically lower 10p from RAB, Artemis and other friends before its February float, now has £16 million, at least enough to fund a ten-month exploration and evaluation programme.

White Nile, 50 per cent-owned by the ex-rebel and now recognised South Sudan government, says new ‘financial institutions’ have come on board. The market would welcome hard evidence confirming suggestions of five billion barrels in the South Sudan concession.

French oil giant Total claimed prior entitlement to the area. White Nile argues the South Sudan administration’s authority is now accepted and fans hint a logical solution could be for Total itself to buy a stake in White Nile.

At 118p, White Nile’s shares remain 11 times what RAB, Artemis et al paid. Exploration and evaluation ought to indicate appropriate value. There could be high jinks on the way.