Ex-hedge fund manager David Kingsman is backing bombed-out Brazil gold play Serabi Mining’s £2.4m refinancing.
Greenwood Investments, a vehicle controlled by Kingsman, has taken more than half of London-based Serabi’s £2.1m placing at 1.5p and has provided a further £300,000 facility in loan stock convertible into shares at the same price. The funding will give Greenwood and Kingsman together 29.3% of AIM-quoted Serabi, which is seeking to establish substantial reserves around its Palito mine in Brazil’s Jardim do Ouro (Garden of Gold) region.
The company, floated in 2005 at 30p, saw its shares reach 54.5p the following year, only to watch them collapse to a nearly invisible 0.43p after chairman Graham Roberts and chief executive Michael Hodgson decided to suspend underground mining there in 2008 because of delays in obtaining equipment and a lack of adequate working capital. Now, however, using the findings of a 6,000-hectare helicopter survey over Palito and its surroundings, the Serabi team argues further evaluation of 18 geological anomalies identified by the survey might yield a target of two-to-three ‘Palito look-alikes’ and establish a total reserve equivalent to up to 600,000 oz of gold, within a potential resource equivalent to 1.2m oz of gold.
Kingsman, a London fund manager for ten years and now running a family investment office in Munich, is not the only business figure to back Serabi’s hoped-for return from the grave. In March, Steven Poulton, founder and former boss of Ariana Resources, director of Stellar Diamonds and involved in several other sector plays, bought nearly 4% of Serabi at less than 1p.
The shares have now bounced to 2.03p, where they are a high-risk recovery punt.
Market cap: £2.8m
PE Forecast: n/a
Share price: 2.03p
£7,277 That’s what you would have in your portfolio if you had invested £6,000 into the six Company Watch recommendations in our April 2009 issue.
Advertisement
Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.
M&A on AIM 2009 is a unique and wide-ranging examination of merger and acquisition activity on AIM over the past 12 months, with an analysis of all the acquisitions, disposals, takeovers and delistings on AIM, including
canvassing the opinions of some of the major M&A powerbrokers. To order click here.
Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.
Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.
The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today and benefit from a £10 discount!
This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.
Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Advertisement
Organic composting specialist TEG is pursuing long-term contracts after turning £1.6m of annual losses into £155,000 pre-tax profits in calendar 2009.
European Goldfields hopes to move from AIM to the Full List by the end of 2010 after securing a key permit in Romania.
Revenue visibility at StatPro, the Wimbledon-based provider of analytics and data to asset managers across Europe, South Africa and North America, continues to improve.