The AIM quoted mining company issued two updates this morning, the first confirming that the Reserve Bank of Zimbabwe had finally released a parcel of diamonds which it had been holding since 2010, enabling the company to reengage its investment strategy on the country. Further, an operational update covering work taking place at other mines in the portfolio has also been well received. The Vast Resources share price was almost 50% higher in early trade but was quick to hand back some of those gains.
FTSE-250 listed Mobico Group, formerly known as coach operator National Express, issued a note this morning to advise that they were intending to dispose of the North American School Bus division for up to $608m. The unit is proving to be capital intensive whilst failing to generate positive free cashflow so the sale proceeds will permit the company to pay down debt. The Group will retain responsibility for certain liabilities incurred before completion, including approximately £65m of provision in relation to historical claim liabilities. The sale also increases concentration risk at the business and investors are clearly showing some disquiet – the Mobico share price ws down almost 19% shortly after the open.
The mining group Premier African announced an interim funding round this morning, having raised £1.575m at 0.035p per share. The funds will be used to complete the next stage of the company’s Zulu Lithium and Tantalum project. Whilst the Premier African share price has fallen in response to the news, the stock is currently trading at a modest premium to the newly issued equity, down just over 10% at 0.038p per share.
Most read news on Investegate this morning
Proposed Sale of North America School Bus - - Mobico Group (MCG)
