As foreshadowed here, Lonrho (Africa) is putting £5 million into South African uranium explorer and AIM candidate Brinkley Mining.

Lonrho, headed by Asia Energy director David Lenigas, has agreed to pay 20p a share in a pre-float funding for a ten per cent stake in Brinkley, which holds rights to 162 square miles of uranium and molybdenum-bearing land in the Karoo region, some 280 miles north-east of Cape Town. Brinkley, which envisages an AIM float in the first half of this year, cites a report from SRK Consulting that says this 'is likely' to contain between 41 and 83 million lbs of uranium U308, plus 23 to 47 million lbs of molybdenum.

With uranium trading at nearly $40 a lb and molybdenum now fetching more than $20 a lb, Lenigas argues the SRK report suggests an 'in-ground' value – before capital and extraction costs – of between £1.25 and £2.35 billion, with other parts of the prospect still to be investigated. Grades are said to be encouraging.

Since its separation from platinum miner Lonmin, Lonrho (Africa), on AIM since 2001, has been chiefly focused on non-mining activities, such as hotels, tourism, motor dealerships and agriculture in Africa. Lenigas insists the Brinkley deal will not divert the company from these businesses.

He maintains the commercial climate is improving in many parts of Africa and points to the availability of World Bank and other funding. Lenigas says he sees Lonrho participating in infrastructure projects, agribusinesses, 'five-star hotels' and other ventures.

Brinkley will clearly be one to watch when it comes to AIM. Lonrho, at 23.75p up from 9p in 2004, should make more progress.