Noventa shares lift after it secures equity finance facility

Shares in AIM-listed tantalum concentrate supplier Noventa lifted on Friday as the company announced that it had entered into an equity finance facility with Darwin Strategic.

Shares in AIM-listed tantalum concentrate supplier Noventa lifted on Friday as the company announced that it had entered into an equity finance facility with Darwin Strategic.

Darwin is a majority owned subsidiary of Henderson Global Investors' Volantis Capital (Henderson Volantis) which manages approximately $1.5bn of assets.

Noventa reported that the equity finance facility agreement with Darwin and Henderson Volantis provides it with a facility of up to £5.0m which can be drawn down at any time over the next three years subject to certain restrictions.

The company reported that it was under no obligation to make a drawdown and could make drawdowns at its discretion, up to the total value of the equity finance facility, by way of issuing subscription notices to Darwin.

Operations updateIn addition to announcing the new equity financing facility, Noventa also provided an update of its group operations. It reported that tantalum pentoxide concentrate "remains at low levels" and said the board was expecting tantalum concentrate to be between 1,700 and 1,900lbs for February.

The group added that the new production plant at Marropino continued to experience a number of technical issues that resulted in minimal levels of production from the plant.

The follow-on analysis of ore grades in the pit at Marropino remain "materially in line" with those outlined in the announcement of February 11th 2013, the group reported and it said that there have been no material developments at its other interests in Mozambique or the Democratic Republic of Congo.

Tantalum is a rare speciality metal which is used widely in the consumer electronics industry.

Noventa's share price was up 20.69% to 1.75p at 12:26 on Friday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021