Cambridge Mineral Resources (CMR) added 35 per cent to end at 5.75p after reporting that it had sold its holding of 5.75 million shares in Falklands Gold and Minerals (FGML) to RAB Capital. The money received by Cambridge will be used to accelerate development of its gold properties in Colombia. Whilst this is good news, it would have been a lot better if the shares had been sold at the time of Falklands’ IPO a year ago as the price obtained was exactly 75 per cent below the level of the IPO.
Presumably, there was some sort of lock-in arrangement. Still, Cambridge will be pleased that it has got at least some money out as the operations update issued by Falklands Gold included the unhappy announcement that the exploration programme has not yet generated any assay results of economic significance. Falklands’ current market capitalisation is almost exactly the same as its remaining cash holdings, which tells us all we need to know about the market’s view of the likelihood of it making a gold discovery in the Falklands. The stock fell by 11 per cent to a new low of 12.5p. Interesting to know what RAB Capital sees in it.
