A constituent of the mining sector is morphing into a company specialising in womens health and fertility.
Concepta Diagnostics is reversing into cash shell Frontier Resources (LON:FRI) with investors in the former receiving just over £3mln, mostly in paper.
At the same time Frontier, which is being renamed Concepta PLC, is raising £3.5mln via a placing of new stock.
The newly-listed company already has regulatory approval for the launch of its MyLotus fertility monitoring device for China.
The first order from a distributor, which is likely to pay in advance, will come after the kit is tested in hospitals.
Regulatory approval in the form of CE Mark for the UK and Europe is expected in 2017.
Frontier chairman Adam Reynolds said: "We have found a compelling acquisition target in Concepta which we believe, if approved, will be in the best interests for the company, wider stakeholders and offers a value accretive opportunity for our supportive shareholders.
"Since its foundation in 2013, Concepta has established itself as a leading and innovative developer of personalised mobile health diagnostics with a primary focus on women's fertility, where a significant market opportunity exists to develop a best-in-class product to help women with unexplained infertility to conceive.
I have been looking at this company has they appear to have exciting reserves but I am encouraged when a director in this case Jack Keyes makes a very large personal investment instead of many AIM mining stocks where the directors draw large salaries and hold minimal stock. My main large holding which is similar and where news is expected at any time is North River Resources wjere the director Martin French has also invested heavily.
With Frontier coming off a low of 0.85 on Friday I purchaed at 1.00 and I refuse to use the jargon multi bag but with news also very close and a small free float there could be significant movement in this share. Could be exciting times for both stocks
Beaufort peddled this one when they were HB. I expect that they want us to buy more shares!
Frontier Resources International (FRI.L) - Speculative Buy at 1.8p (Target: 9p)
Frontier Resources is almost unique amongst AIM's fraternity of junior explorers. Its prized asset is an onshore Block in Oman with geologic formations considered analogous to other prolific salt plays in the region. It even comes with its own prospective resource estimate. The fact that such a potentially significant opportunity, in a territory routinely dominated by the supermajors, has landed in the hands of such an exploration minnow certainly raises some eyebrows. Yet the opportunity to identify a cluster of fields, similar in scale and number to those found in adjacent Block 6 operated by state-controlled PDO is very real. As foreshadowed in Offering the Group's Offering prospectus, Frontier has now successfully raised additional funding in order to progress development both in the Middle East and Africa. This work will continue to de-risk the individual projects as management look for a potential multiplication of its estimated resource in Oman, while continuing farm-out discussions with potential partners. Speculative Buy
Frontier Resources International (FRI.L, 3.25p) - Speculative Buy
Yesterday, Frontier Resources International provided an update on its operations in Namibia and Zambia. With encouraging results from evaluation done over the Block 34 in the Kafue Trough prospect in Zambia and the Blocks 1717 and 1817 in the Owambo Basin in Namibia in 2013, the company is now planning to proceed with the next phase of operations. Frontier holds 100% paying interest and operatorship in both these licenses. In Namibia, Frontier plans to conduct a soil gas sampling survey and acquire 2D seismic data, while, in Zambia, it aims at obtaining airborne gravity and magnetic data. Frontier has put in place an online virtual data-room to facilitate data review by potential farm-in partners for these two prospects, with another one planned for Q2 2014 for the Block 38 in Oman.
Our view: Positive results from geological, geophysical and geochemical studies at the Namibian and Zambian licenses highlight the high-grade prospectivity of these areas. A potential partnership with suitable industry peers is likely to accelerate the progress of these projects through enhanced funding, and knowledge & expertise of the potential partners. In recent months, Frontier has made good progress in its exploration programme at the Owambo Basin, with confirmed presence of oil producing source rocks and extension of the exploration license. In light of these milestones and an aggressive exploration strategy, we remain optimistic about its future growth prospects and reiterate our Speculative Buy rating.
Beaufort Securities Limited acts as joint corporate broker to Frontier Resources International plc.
The Board of Frontier (AIM Ticker: FRI), the AIM - traded international oil and gas exploration company with assets in Oman, Zambia and Namibia is pleased to provide shareholders with an operational update on its activities in Namibia and Zambia.
Frontier's Zambia Block 34 is located in the Kafue Trough in the southwestern region of the country and covers an area of approximately 6,427 square kilometers while the two Namibian Blocks, 1717 and 1817, are located in the Owambo Basin in northern Namibia and cover an area of approximately 18,933 square kilometers. Both licences are operated by Frontier which has a 100% paying interest with NAMCOR in Namibia and METPROSOL in Zambia retaining a 10% carry.
The Company is pleased with the encouraging results obtained to-date from the evaluations completed during 2013 and is now preparing to proceed with the next phase of operations. This phase includes the acquisition of new block-wide airborne gravity and magnetic data in Zambia and an additional soil gas sampling survey and 2D seismic data acquisition program in Namibia.
During the first quarter of 2014 Frontier has started to approach industry partners with the intention of farming out an interest in both Zambia and Namibia. As part of this potential farm-out process the Company has established an online virtual data-room to facilitate data review by interested parties.
During the second quarter of 2014 Frontier will open a virtual data room for parties interested in farming in to Oman Block 38.
Commentating on today's update, Jack Keyes, Frontier's CEO said "The results of the recent geological, geophysical and geochemical work in both Namibia and Zambia have been very encouraging and the Company now considers it timely to attract industry partners to join in our ongoing exploration activities."
I think you are correct. And today Circle confirmed they will drill block 49 by June this year. That block only has a 10% cos mind. There was a reason Jack wanted this block in particular.50% cos without hardly any prep work is incredibly high. But of course if Circle hit, great for us. If they do not, no issue as their block is not on the trendline that goes all the way into Yemen.
And then of course Zambia with a mirror to Green River and Namibia now oil prone source rocks rather than gas. I actually think all three will hit when drilled. Just my opinion.
Getting an entry point sub 3.5/4p here is looking very good. Having reviewed all info and comm's I can see a great story about to be played out here. Funding position will be clarified shortly (BOD have already said mid-2014). I believe progress to drilling a well in Oman will be very rapid due to location & low-cost and will take many by surprise. Time to get in is now - before the herd.
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