Ajax Resources PLC (AQSE: AJAX) has highlighted the increased value of its investment in uranium explorer Reveille Resources PLC (AQSE: REV) following a sharp rise in Reveille’s share price.
Ajax owns 14 million Reveille shares, representing 17.52% of the company, making it Reveille’s second-largest shareholder.
At Reveille’s 8 October closing price of 10.25p, those shares were valued at approximately £1.435 million, compared with Ajax’s aggregate investment of £502,500.
That represents an unrealised uplift of approximately £932,500, with the quoted value approaching three times Ajax’s invested capital.
The calculation assigns no value to Ajax’s warrants, which provide further potential exposure to Reveille.
Ajax holds 5.8725 million warrants exercisable at 5p subject to conditions including project approvals or certain corporate transactions, together with 6 million warrants exercisable at 10p, including 2 million acquired in its latest investment.
Reveille is focused on the Novazza and Val Vedello uranium projects in Lombardy, Italy, which are progressing through the environmental impact assessment process.
Investor interest has also increased following Reveille’s announcement that Michael Pompeo, who served as US Secretary of State from 2018 to 2021 and CIA Director from 2017 to 2018, is proposed to become Non-Executive Chairman.
The appointment remains subject to completion of customary regulatory due diligence and onboarding requirements, so should not yet be treated as unconditional.
Ajax also corrected the regulatory classification of its original £200,000 investment in Reveille.
The company previously treated the transaction as a joint investment arrangement rather than a related-party transaction. Following further review with corporate adviser Allenby Capital, Ajax now considers the initial investment to have been an RPT because chief executive Ippolito Ingo Cattaneo invested alongside Ajax and contributed more than one quarter of Ajax’s investment amount.
Ajax’s directors, excluding Cattaneo, said they continue to consider the transaction fair and reasonable for shareholders.
The subsequent £200,000 investment did not meet the same RPT threshold.
Ajax’s entire Reveille shareholding is also subject to a one-year lock-in from Reveille’s July 2026 admission, meaning the current £1.435 million valuation cannot simply be realised through an immediate sale.
For investors, the principal attraction is Ajax’s leveraged exposure to Reveille through both its 17.52% equity holding and warrants, with the quoted shareholding now worth substantially more than its acquisition cost.
The key catalysts remain regulatory completion of Pompeo’s appointment, progress on the Italian environmental approvals and subsequent exploration of the Novazza and Val Vedello uranium projects.
