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11 Jan | Purchase – MeDaVinci

Although it sounds like a back-street peddler of pharmaceutical art, MeDaVinciafter a change in direction – is nowadays firmly in the mineral exploration game.

The change in strategy and resultant restructuring (MeDaVinci was originally a Medical tech investor) came about following a review of their investment portfolio in mid 2009. In the period since, MeDaVinci has been looking at it’s options.

This from the Final Results for the year ended 31 March 2010:

Since the year end the company has re-focused the investment strategy of the company to one focused on companies involved in mineral exploration and production in Europe. As part of this re-focus the company has successfully raised £842,042 and made an investment in Orogen Gold Limited in return for a 49% shareholding.

Orogen Gold

So MeDaVinci now has a 49% stake in Orogen Gold Limited which it purchased for £370,000 with a 12 month option to acquire the 51% balance.

Here’s a little about Orogen Gold taken from Money AM website:

Orogen Gold is an Irish company incorporated in April 2010 for the purpose of holding investments in companies involved in mineral exploration and related activities. Its initial focus will be on the Deli Jovan Gold Project, a 69 sq km permit area in eastern Serbia covering two shallow underground gold mines that were last in production pre World War II. Under an Earn-in Agreement with TSX (Toronto Stock Exchange) listed Reservoir Capital Corporation, Orogen Gold has the right to an initial 55% interest in the Deli Jovan Gold Project, if it spends a minimum of approximately US$1.5 million on exploration by June 2012, and a further interest of 20% will be obtained upon an additional spend of approximately US$2 million by December 2013, giving Orogen Gold an aggregate interest in 75% of the Deli Jovan Gold Project.

Moving forward, this from Adam Reynolds, the Chairman of MeDeVinci (taken from the Interims for the six months until 30th September 2010):

It is my view that we have secured the future for MedaVinci and it is our intention early in the New Year to invite John Barry, Ed Slowey and Alan Mooney (“Proposed Directors”), all currently directors of Orogen Gold Limited, onto the Board of the Company at which point a further announcement will be made; all three have substantial experience and are very well respected within the mining and exploration industry.

And some post-period highlights from the same set of Interims:

  • New exploration licence re-issued by the Serbian Ministry of Mining and Energy to Deli Jovan Exploration d.o.o. in which MedaVinci plc is earning an interest through its holding in Orogen Gold Limited
  • The appointment of XCAP Securities as joint brokers alongside Zeus Capital Limited
  • The successful fund raising of £1.5m through the issue of 375m new ordinary shares
  • Exploration programme now initiated and plans being submitted to the Serbian Mining Ministry for the re-opening of the two former mines at Deli Jovan to facilitate detailed underground structural mapping and close-spaced channel sampling

So with a change in strategy now firmly in place, a new board of directors being ushered in, a name change (which in itself will probably attract a few sniffers) and some sampling results expected soon, MeDaVinci (Orogen Gold) seemed worth a punt.

We jumped in on 30th December picking up 97,605 shares at 0.86 pence a share (currently trading at 1.165 pence as I type) for a total outlay before dealer costs of £839.40.

Here’s a one year chart for MeDaVinci below courtesy of SharePrice.co.uk. Notice the spike in volume since results were released in September.

Remember always do a ton of your own homework before investing. Here’s a little further MeDaVinci info to get you started:

Thanks again for dropping by.

Paul
rsvp@investorsoiree.co.uk