Cineworld shares plummet 34.14% to 3.9p on continued volatility after warning of share dilution and possible Chapter 11 bankruptcy in US
Cineworld shares remained volatile after the company confirmed last month it was considering filing for Chapter 11 bankruptcy in the US. The group is struggling under the weight of a near £9bn debt pile built up in an ambitious global acquisition spree, and said that although its Cineworld and Regal chains were still trading, admissions since the post-pandemic reopening had been below expectations due to a "limited film slate".
As well as a possible bankruptcy, Cineworld said that it was evaluating "strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction".
Shares bottomed at 1.9p and have since recovered to 3.9p. However, they remain down c. 80% since the initial warning of restructuring and share dilution on 17 August.
Prospex Energy shares rise another 20% to 7.2p after it raised £500,000 for Selva Field
Prospex Energy said yesterday it had successfully raised £500,000 via unsecured convertible loan notes to existing and new investors. The notes are convertible at 5.5p per share, the closing price on Friday, 2 September 2022. Interest at 15% is payable quarterly, compounded monthly.
Prospex said proceeds would complete the funding of its 37% share of development costs (totalling c. £2.3m) at the Selva gas discovery in Po Valley, Italy, as well as provide additional working capital for the company.
First gas at Selva field is targeted for Q2 2023.
Shares rose 7.14% on the news yesterday, and another 20% today.
Red Rock Resources shares fall 9.52% to 0.48p on volatility after gold was intercepted at Burkina Faso Project
Red Rock Resources said yesterday that its wholly-owned subsidiary Faso Greenstone Resources had intercepted gold in three of four drilled holes at the Bilbale licence in the southwest of Burkina Faso.
Chairman Andrew Bell elaborated:
"No ground geophysics was carried out, and we had to be guided by the pattern of previous artisanal activity and by the limited and large scale airborne geophysics in selecting the location of our drill holes.
Given these limitations, that three holes of our first four drilled encountered gold and one intersected three gold mineralised zones including a high grade zone near surface is a happy circumstance, and offers great encouragement for the next stages of drilling which will follow detailed ground geophysics.
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These first results are better than we could have expected, and if replicated in future holes, could lead to the declaration of an economic discovery.
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At the corporate level, we plan to raise external capital for our subsidiary Faso Minerals Ltd to accelerate the progress of the Burkina Faso assets towards a planned independent listing.
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We expect to follow a similar pathway with our Cote d'Ivoire subsidiary, which will be the subject of later announcements"
Red Rock shares were up 9% on the news yesterday morning, but today erased all of that gain, correcting down 9.52%.
Orosur Mining shares soar 42.92% to 17.15p after high-grade gold intercept is found at Anza Project, Columbia
Orosur Mining said assay results from the Pepas prospect, part of its Anza Project, had returned a substantial high-grade gold intersection at 150.90m @ 3.00g/t Au from surface.
Additional holes are currently underway across Pepas and Pupino prospects, the company said.
Brad George, CEO, commented:
"Results from PEP001 largely speak for themselves. To return such a result for the first hole in the first drill campaign in an untouched area is a spectacular demonstration of the potential of the Anzá Project. With Covid restrictions largely lifted, the increased pace of exploration bodes well for an exciting future ahead."