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Abney Associates Article Reference Number 85258081704 A&A

Proactive Investors Mid & Sml Cap Weekly Roundup - Technology stocks lead the way

Seeing Machines (LON: SEE) this week showed the kind of rewards available when research and development breaks through to commercial success. This week the firms AIM quoted shares gained over 50% after it struck a deal with US machinery giant Caterpillar, which will distribute Seeing Machines fatigue monitoring system in mining trucks.

The tie-up could also joint product development and collaboration in the future.
With approximately 38,000 Caterpillar mining vehicles in operations around the world, and the monitoring systems priced at $10,000, the partnership potentially opens a very significant market for the 16mln valued technology group.

A few other technology stocks were also on the move this week, as the small cap market generally edged higher. Internet firm blur Group (LON:BLUR) raised 7.6 million in an oversubscibed placing to accelerate the use of its global services exchange which allows companies to outsource directly to experts via an online platform. Renewable energy specialist Kedco (LON: KED) has got its hands on planning permission for Killuagh and Knockavadra, two single wind turbine projects in Ireland. Both projects will host a single turbine with a maximum capacity of 500 kilowatts. Indian power station developer and operator OPG Power Ventures (LON:OPG) said both its plants performed ahead of expectations in the first quarter of 2013. Boiler efficiency group Sabien (LON: SNT) has picked up a 1mln contract to install its technology across 6,000 Ministry of Defence buildings. The contract is with PriDE, a joint venture between Interserve Defence and SSE Contracting, and Sabien expects it to place more orders before its year-end in June.

In the oil and gas sector, Parkmead Groups (LON:PMG) takeover of Lochard Energy (LON:LHD) hangs in the balance after a number of shareholders, represented by Cornhill Capital, rejected the all-paper deal. The shareholders, together holding a total of 20.37%, believe the offer materially undervalues the company. Parkmeads offer already had irrevocable acceptances for 41.4% of Lochard shares, and the firm needs 75% of the votes so it can't really afford to lose the support of any of the other outstanding shares. Aminex (LON:AEX) and Solo Oil's (LON:SOLO) farm-out plans got a boost on Thursday as the Tanzanian authorities approved changes to contract terms that mean the next well can be put back into the next exploration period, which starts in later 2013. Talks are ongoing for a farm-out deal and the change to the contract is likely to remove a degree of the uncertainty that has been a shadow over the shares in recent weeks.

Shares in junior miner Alecto Minerals (LON: ALO) surged on Wednesday as it revealed details of a potential tie-up with FTSE 250 gold miner Centamin (LON: CEY). As part of the proposed deal Centamin will invest 250,000 in Alecto, buying shares at 1.6p, a 74% premium at the time of the deal, and together the partners will pursue opportunities identified in Ethiopia.

Alecto gained more than a third as the market sized up the potentially transformational deal. Gold miner Archipelago Resources (LON: AR.) massively boosted its financial firepower with the agreement of a new US$160mln bank facility and five year off-take deal.

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