Galan Lithium (ASX: GLN) has just banked $50 million to finance advancement of the company’s lithium projects in Argentina and Western Australia. Before heading off to the South West Connect Conference, Galan managing director JP Vargas de la Vega zoomed into The Resources Roadhouse to explain to Wally Graham how the money is to be spent.
Kin Mining’s (ASX: KIN) recent efforts at the company’s Cardinia Gold Project in Western Australia have been good enough to attract a recent takeover bid from St Barbara (ASX: SBM). Kin Mining managing director Andrew Munckton zoomed into The Resources Roadhouse to explain to Wally Graham why the company said ‘thanks, but no thanks’.
Musgrave Minerals (ASX: MGV) managing director Rob Waugh zoomed into The Resources Roadhouse to provide Wally Graham with some insights into the company’s Cue gold project in Western Australia before heading to the South West Connect Conference in Busselton.
Corazon Mining (ASX: CZN) is finalising the acquisition of a new Western Australian nickel project as it gears up drilling at the company’s Lynn Lake nickel project in Canada. Corazon managing director Brett Smith zoomed into The Resources Roadhouse to explain the ins and outs of current proceedings to Wally Graham in the lead up to the South West Connect Conference in Busselton.
THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) declared its hand as it vies for the affections of Apollo Consolidated (ASX: AOP) shareholders with rival bidder Ramelius Resources (ASX: RMS).
Gold Road Resources has emerged with an unconditional off-market takeover offer of 56 cents cash per share for all the issued and outstanding ordinary shares in Apollo Consolidated.
Gold Road’s asserted its offer superior to the offer announced earlier this week by Ramelius saying it provides Apollo shareholders with a compelling opportunity to realise certain and near-term value for their shares at a price that represents the all-time highest price paid for an Apollo share.
What also emerged from the Gold Road announcement is that it has been in discussion with its target leading up to making the offer.
“Gold Road makes an unconditional off-market takeover offer for Apollo Consolidated Ltd following prior engagement with Apollo and due diligence access,” the company revealed.
Like its rival in Ramelius before it, Gold Road highlighted Apollo’s healthy bank balance of approx. $35 million and its flagship Lake Rebecca gold project, complete with a JORC compliant Mineral Resource of 29.1 million tonnes at 1.2 grams per tonne gold for 1.1 million ounces of gold, as the prize for any successful suitor.
“The Offer aligns with Gold Road’s strategy to grow and diversify its growth pipeline with high quality, low risk opportunities in tier one jurisdictions,” Gold Road explained.
“Given a successful outcome, Gold Road intends to undertake continued exploration and studies designed to advance the Lake Rebecca project.
“Gold Road has the balance sheet and capabilities to grow resources at Lake Rebecca and develop new mining operations.
“These activities are exactly aligned with Gold Road’s core competencies, as demonstrated by the discovery of the Gruyere deposit, subsequent resource growth and definition and successful mine construction, commissioning and ramp-up.
“Gold Road’s geological assessment has highlighted a number of as yet untested targets, and Gold Road’s exploration team is experienced at exploring beneath transported cover in the region.
“This strategic acquisition will complement and enhance Gold Road’s existing exploration pipeline by providing an advanced exploration project and diversifying the company’s resource base, aligning with the company’s objective of developing a second operating mine.”
Gold Road’s Bidder’s Statement was released this morning and was greeted with the traditional TAKE NO ACTION response from Apollo Consolidated.
Let the games begin.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: perth@goldroad.com.au
Web: www.goldroad.com.au
THE BOURSE WHISPERER: BlackEarth Minerals (ASX: BEM) has struck an Operational JV agreement with India-based private company Metachem.
BlackEarth Minerals informed the ASX the JV with Metacheman is determined to commence plant construction and the production of Expandable Graphite with planning already underway on site selection, executive recruitment and scheduling for other logistics and development matters.
The JV has eyes on the expandable graphite market, which it said is expected to grow in demand as fire retardant material and for further downstream use in the automotive, EV and alternative energy sectors.
The BlackEarth and Metachem JV plans to supply a material portion of all imports of expandable graphite into Europe – expansion plans being initiated to capture a greater share of worldwide demand.
Key elements of the JV are:
1. BlackEarth are to source, in conjunction with its Sales and Marketing partner LuxCarbon, high-quality graphite concentrate for treatment for the new expandable graphite plant;
2. Following completion of its own plant, BlackEarth will provide large and jumbo flake graphite to the JV;
3. Each JV partner proposes a 50/50 equity and profit share arrangement with CAPEX estimated to be US$3 to 3.5 million in total;
4. BlackEarth and LuxCarbon to provide end user and product technical advice to the Metachem operational team;
5. BlackEarth will manage sales, marketing and the growth of sales worldwide;
6. Estimated initial production to be 2,000 – 2,500 tonnes per annum growing to 4,000tpa, with plans to materially grow production;
7. BlackEarth estimates Gross JV Revenue of $9 million per annum in the first year, growing to approx. $17 million – upon production ramp up to 4,000tpa;
8. Production sites have been identified and appropriate economic, social and environmental conditions have initially been assessed as highly favourable. A decision on a preferred site within the Indian Special Economic Zone (“SEZ”) will be concluded in the short term; and
9. Company names and branding is currently being prepared with a detailed announcement due in the short term.
“The signing of this JV is an exciting development in the growth of our Company,” BlackEarth Minerals managing director Tom Revy said in the company’s ASX announcement.
“To form this JV with a world leader of Expandable Graphite production is a wonderful outcome and this event follows many months of discussions between the executive teams our two companies.
“Now that we have signed off on this JV, we will shortly move to our preferred site in India and also conclude the recruitment of senior executives in India to manage the planning, construction and development phase.
“Having an offtake partner prepared to buy all initial production has also given us confidence to move forward with plant expansion plans so that we can increase production and sales over the medium term, whilst minimising operational risk.
“With first year sales projected to be almost $9 million for the JV, we expect to start receiving a steady and strong cash flow during 2022 which will also contribute to the planned development of our Maniry site in Madagascar; consistent with our initial fast-track to cash flow strategy.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: info@blackearthminerals.com.au
Web: www.blackearthminerals.com.au
THE BOURSE WHISPERER: The battle for Gascoyne Resources (ASX: GCY) between Firefly Resources (ASX: FFR) and Westgold (ASX: WGX) entered a new chapter this morning with Westgold releasing its Bidder’s Statement.
Westgold presented its case, saying in its Statement that it, “is aware of the current Firefly Scheme with Gascoyne and presents this Offer as a value accretive alternative to join with a well-funded, debt free and growth orientated Western Australian gold producer.”
“Our Strategy and Offer Westgold’s strategy is to keep Dalgaranga running at full capacity, managed by the current Gascoyne operating team and contractors, to increase gold output by supplementing the ore feed with higher grade ore from our existing Cue mines.
“Westgold has three operating hubs across the Murchison and is seeking to expand its business by acquiring Dalgaranga.
“The combined company will become one of the top 5 Australian domestic gold producers creating a wealth of opportunities for stakeholders.”
Gascoyne informed the market that it had seen the Westgold Bidder’s Statement and that, “alongside its financial and legal advisers, are currently reviewing the Bidder’s Statement and Gascoyne expects to be in a position to issue its Target’s Statement by no later than 29 October 2021”.
“The Company continues to recommend that shareholders REJECT the Westgold Offer and take no action in response to all correspondence from Westgold.
Gascoyne also made reference to Westgold’s announcement to the ASX on 15 October 2021 which directed shareholders to a separate statement on its website, the “Westgold Statement”.
“The Westgold Announcement was indicated to have been made in response to Gascoyne’s announcement regarding a revised Business Plan for Dalgaranga (refer to Gascoyne ASX announcement of 13 October 2021),” Gascoyne said.
“Gascoyne considers that key aspects of the Westgold Statement are misleading and strenuously refutes the statements made by Westgold that the revised Business Plan escalates operational and financial risk to the Company.”
Whichever way this goes in the end, it is currently making for compelling observance.
TO READ THE FULL ANNOUNCEMENTS: CLICK HERE & CLICK HERE
Email: admin@gascoyneresources.com.au
perth.reception@westgold.com.au
Web: www.gascoyneresources.com.au
www.westgold.com.au
THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) provided Apollo Consolidated (ASX: AOP) shareholders something to blow their morning coffee over by announcing a takeover bid.
Ramelius Resources reported entering into a Bid Implementation Agreement (BIA) with Apollo Consolidated that will result in the former acquiring all issued ordinary shares of the latter by way of an off-market takeover offer.
Under the terms of the offer, Apollo shareholders will receive cash consideration of 34 cents and 0.1375 Ramelius shares for each Apollo share held, valuing each Apollo share at 56 cents that, based on the 3 day volume weighted average price (VWAP) of Ramelius shares up to and including 15 October 2021 of $1.60, implies a total equity value for Apollo of approximately $163 million.
In response, the Apollo Consolidated Board of Directors unanimously recommended that Apollo shareholders accept the Offer, in the absence of a superior offer.
Ramelius’ takeover of Apollo makes sense when one considers Apollo’s primary asset being the 100 per cent-owned Lake Rebecca project in Western Australia, located just outside of Kalgoorlie.
Apollo holds approximately 160 square kilometres of granted tenure within a greenstone belt on the eastern margin of the Norseman-Wiluna Greenstone Belt.
This belt lies at the southern end of the Laverton Tectonic Zone, a regionally important structural corridor that hosts multiple major gold camps.
Apollo has taken Lake Rebecca to an attractive stage, with three main deposits currently defined, Rebecca, Duke and Duchess.
Rebecca hosts the high-grade Jennifer Lode and adjoining mineralised surface.
In April 2021, Apollo announced an updated JORC Mineral Resource Estimate (MRE) for the project of:
29.1 million tonnes at 1.2 grams per tonne gold for 1.1 million ounces of gold, 74 per cent of which is in an Indicated category.
Ramelius owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia and Penny gold mines, all in Western Australia.
Ore from the high-grade Vivien underground mine, located near Leinster, is hauled to the Mt Magnet processing plant where it is blended with ore from both underground and open pit sources at Mt Magnet.
The Penny project is currently under development with first ore scheduled for late FY22.
Ramelius sees Lake Rebecca as a highly attractive opportunity to ultimately develop a greenfields mining operation in one of the world’s premier gold mining jurisdictions.
The project’s existing 1.1 million ounce Resource provides a strong platform from which Ramelius can pursue the commercial development of a mining operation which fits its criteria in terms of scale and asset quality.
The Lake Rebecca tenement package offers the potential to continue expanding the existing MRE, with a view to both expanding any future operation or extending mine life.
“Lake Rebecca is an outstanding opportunity for Ramelius to add a key growth asset to its portfolio of producing assets at Mount Magnet and Edna May,” Ramelius Resources managing director Mark Zeptner said in the company’s ASX announcement.
“The Apollo team has done an excellent job advancing Lake Rebecca to its current stage of development and have clearly demonstrated its potential for development into a high-quality gold mine in a tier-one gold mining jurisdiction.
“Subject to the offer being successful, Ramelius is looking forward to ramping up the drilling program across the tenement package to expand the existing resource and ultimately developing Lake Rebecca into a cornerstone producing asset within our portfolio.
“Our strategic target for the project is to identify a pathway to a mine life of 10 years at a run rate of at least 100,000 ounces per annum.
“We also look forward to welcoming Apollo shareholders as Ramelius shareholders and encourage Apollo shareholders to accept the offer as soon as possible.”
“The offer follows a period of significant corporate interest in Apollo and delivers an excellent result for our shareholders who, over the years, have seen Lake Rebecca transition from a greenfield exploration play to its status as a potential future stand-alone, long-life production asset,” Apollo Consolidated managing director Nick Castleden added.
“Ramelius brings excellent credentials in the business of taking new gold projects online and has ample experience, personnel, and funding to take the project forward.
“Lake Rebecca is clearly an excellent fit for Ramelius’ >250,000oz/pa production profile, and the Ramelius shares that Apollo shareholders will receive offer the stability of a multi-project production house while maintaining exposure to the upside as Lake Rebecca progresses along the path to development.
“The offer provides compelling value to shareholders with the circa 60 per cent cash component providing value certainty plus equity in a proven and well respected West Australian gold miner.
“We look forward to joining Ramelius’ existing shareholders to participate in the next stages of the journey.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: reception@rameliusresources.com.au
Web: www.rameliusresources.com.au
THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) was up early this morning exercising its Option to Acquire 100 per cent of the Miriam nickel sulphide project near Coolgardie in Western Australia’s Goldfields.
Corazon Mining took an option to acquire the Miriam project sometime around July, subject to completion of due diligence, which it has now completed and subsequently exercised its option to acquire the project making the agreed Stage 1 consideration payment to the vendors of $125,000.
Corazon considers Miriam a highly prospective nickel exploration project, representing a strategic addition to the company’s portfolio of nickel sulphide assets that includes the Lynn Lake nickel sulphide project in Canada where the company is currently undertaking its next phase of drilling.
The Miriam project comprises five Prospecting Licence applications (P15/6135 to P15/6139 inclusive) and is located approximately 10 kilometres south-southwest of Coolgardie on an ultramafic trend that hosts Auroch Minerals’ (ASX: AOU) Miriam and Nepean nickel deposits.
Having exercised its option to acquire the project, Corazon is now working to secure the granting of the tenement applications before commencing on-ground exploration programs.
This work should culminate in a first phase of drilling, targeting the Miriam nickel deposit, as well as other known nickel occurrences along the Miriam Trend.
Past exploration results, including drilling and geophysics, will be integrated into the company’s drill targeting exercise.
Email: info@corazon.com.au
Web: www.corazon.com.au
THE BOURSE WHISPERER: Alchemy Resources (ASX: ALY), via its wholly owned subsidiary company Goldtribe Corporation Pty Ltd picked up three new exploration licence applications from a raffle drawn straight out of the hat of the Mining Warden in Kalgoorlie.
Alchemy Resources reported that Goldtribe won three ballots for three key exploration licence applications (E28/3048, E28/3053 and E28/3058).
These tenements form part of Alchemy’s Lake Rebecca project that sits strategically between three major gold deposits and spans 50 strike kilometres covering 562 square kilometres.
The new licences are located just 140km to the east of Kalgoorlie and are contiguous with both Breaker Resources (ASX: BRB) to the south and St Barbara (ASX: SBM) to the north in what Alchemy described as being “a highly strategic geological position along the Claypan shear”.
Most of these applications are close to Northern Star Resources (ASX: NST) Carosue Dam operations and Breaker Resources’ Lake Roe project in an area Alchemy considers highly prospective.
As such, Goldtribe’s applications were competing with multiple applications.
It was decided the best way to determine who got the tenements was to hold a raffle, which resulted in Goldtribe being drawn first in all three ballots conducted by the Kalgoorlie Mining Warden.
The applications will now progress through statutory process with title expected to be granted in early 2022.
“E28/3048, E28/3053 and E28/3058 are strategically located along strike of Breaker Resources’ Lake Roe deposit and build on our footprint of highly prospective tenure which sits along some of the most prolific gold projects in Western Australia,” Alchemy Resources CEO James Wilson said in the company’s ASX announcement.
“The new leases cover 50.3 square kilometres of greenstone and intrusive units and have seen limited testing with modern exploration methods.
“We are delighted to have secured this ground and look forward to starting work as soon as the tenements are granted.”
Email: info@alchemyresources.com.au
Web: www.alchemyresources.com.au
