UK 17:06 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Amara Mining (AMA) has announced a conditional-on-shareholder-approval 16p per share placing to raise gross proceeds of £14.6 million ($22 million) – ostensibly to enable further exploration of its Yaoure gold project in Côte d'Ivoire and to fund it to the point of making a construction decision for the project, including the delivery of a bankable feasibility study late this year. However, the company also faces some potential - albeit we think low risk - legal nasties…
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Comments
DUCK AND DIVE
RNS timing was a bit dodgy wasn’t it? Announce placing intention at 16:46 (snooze o’clock) and then announce the results of the placing at 07:00 the next morning… Only the Nifty 50 could get away with it.
And wasn’t the big placing last year supposed to at least part-fund the BFS (as well as funding the PFS)? Did that cash run out even before delivery of the PFS (scheduled for March 2015)?
I reckon the legal issues make AMA a Hold at best for now.
wildrides
Cheers for that Tom …………. I think I will stick with it for now ……… but if it drops near the 14/15p boundry I will be out . I agree with duck and dive ………… the release times of the RNS were naughty ………… if necessary. To be honest I was expecting better than that behavior from this outfit and it very much came as a surprise which did unsettle me a bit . A 10% drop in sp on the bell and subtantial dilution to impact after the shareholder vote is somewhat galling opposite the gold price going up during the last 10 days .
paul
As a shareholder in Amara, I am pissed off to say the least at another placing! Typical aim behaviour, stock goes up nicely, and then wham! Private investors hit by placing news, share price back -10%. Why do the AIM bosses think it is fair game to roger the private investor over and over again.
It wouldn’t be as bad if it was an open offer, so that private investors with skin in the game, get the discounted opportunity. No, don’t be silly, this is AIM! The city spivs will get the discounted shares! Where is the benefit in backing (even exciting prospects) which I think Amara is, when the private investor is fleeced all the way!
Makes you wonder if AIM is investable for the private investor at all? It does resemble more of a casino, than a serious investment platform.
Shame on you Amara!
DUCK AND DIVE
I will be surprised if you don’t get the chance to buy as many as you would like at or below the placing price – or doesn’t Amara do flippers?
alcira16247
Tom
Lucky old me…… fleeced twice in as many weeks……Alecto and now, Amara!
As has already been commented, why oh why, cant these companies look to ‘rewarding’ their loyal private shareholders, by way of an Rights Issue, Open Offer and an Offer for Subscription?
I bring to your attention the RNS of Wed, 24th Sep 2014 by Assura Group (AGR). Why can’t more AIM companies follow AGR’s example?
Too many AIM companies seem more intent with ‘rewarding’ spiv bucket shops than their suffering shareholders!