BlackEarth Minerals Inks JV Agreement to Produce Expandable Graphite

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.”








Westgold Lodges Bidder’s Statement for Gascoyne Resources Takeover to Lukewarm Response

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.








Ramelius Resources Makes Welcome Advances for Apollo Consolidated Takeover

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.”








Corazon Mining Exercises Option to Acquire Miriam Nickel Project

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.








Alchemy Resources Wins Kalgoorlie Tenement Raffle

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.”







Encounter Resources Expands BHP Northern Territory Partnership

THE BOURSE WHISPERER: Encounter Resources (ASX: ENR) has expanded its formal Farm-in and Joint Venture Agreement with BHP covering the Elliott copper project in the Northern Territory.

Encounter Resources said the expansion will increase the size of the Elliott farm in from 4,500 square kilometres to 7,200sqkm while the earn-in amount for BHP to earn a 75 per cent interest has been increased from $22 million to $25 million.

Recent datasets provided by the Northern Territory Geological Survey and Geoscience Australia as part of the Exploring for the Future Program, have provided crucial new data to facilitate exploration in what is a covered, highly prospective and underexplored region of Australia.

New datasets released in 2019 and 2020 supported the conceptual and structural targeting model at Elliott where a standout, copper-in-groundwater anomaly (order of magnitude above background) in the extensive sampling program is located.

A joint BHP / Encounter designed validation program at Elliott was completed earlier in 2021, which involved the compilation, interpretation, modeling and integration of new and existing data packages at Elliott including seismic, airborne EM, magnetics, gravity, gechemistry and hydro-geochemistry.

“Irrespective of the pace of global energy transition, new sources of copper supply are required in the medium term,” Encounter Resources managing director Will Robinson said in the company’s ASX announcement.

“Greenfields exploration success of globally significant, new resources at projects like Elliott is vital to meet burgeoning copper demand projections.

“Encounter identified the Greater McArthur Superbasin in the NT as having significant untested potential for the discovery of large sediment-hosted copper deposits under shallow cover and we now control an extensive portfolio in the region.

“Through our portfolio of 100 per cent-owned copper projects, and an expanded partnership with BHP, Encounter provides exceptional leverage to the premium front end of the copper value chain.

“We are delighted to be working with BHP at Elliott and we look forward to providing shareholders with further updates on the groundbreaking search for Tier-1 copper deposits in the NT.”








Cazaly Resources Spin Out to List on ASX

THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) announced that Tara French has transitioned into the role of managing director of the company.

French steps into the role at an important time for the company as it prepares for the proposed divestment of the jointly owned Hamersley Iron Ore Project and subsequent listing of spin ot company Equinox Resources (ASX: EQN).

Equinox Resources has been admitted to the Official List of the ASX with commencement of trade of its securities anticipated for launch at 10:00am (WST) on Wednesday, 13 October 2021.

The admittance of Equinox to the Official List of the ASX, follows completion of a $9 million initial public offering.

Equinox’s sole focus is on the exploration and development of the Hamersley Iron Ore Project, led by a dedicated Board and management team with plenty of iron ore experience.

“This is a great result for Cazaly as the Hamersley project now has the requisite funds to progress and be managed by a highly experienced team whose sole focus is the further development of the project,” French said in the company’s ASX announcement.

“We congratulate the Equinox Board on their ASX listing and look forward to the future advancement of the Hamersley project.”









Kin Mining Rattles the Tin to Raise Exploration Funds for Cardinia Gold Project

THE BOURSE WHISPERER: Kin Mining (ASX: KIN) is looking to maintain momentum at the company’s Cardinia Gold Project (CGP) near Leonora in Western Australia.

Kin Mining announced it will undertake a non-underwritten non renounceable 1-for-6.5 pro-rata Entitlement Offer to raise up to $12.92 million to progress the next phase of exploration at the company’s 100 per cent-owned Cardinia gold project.

The company said the proceeds would be used for its next phase of exploration across established and new prospects at the CGP, as part of an exploration-driven strategy to further expand the project’s 1.28 million ounces inventory and make new discoveries.

The next phase of systematic exploration work will follow up on new discoveries and targets identified as part of Kin Mining’s drilling campaigns completed during 2020 and 2021.

These include the Mt Flora and Iron King discoveries, as well as multiple new prospects that were identified as the company improved its understanding of the geology and potential of the CGP, such as the Eagle and Crow prospects.

“We’ve had considerable success converting our improving geological understanding into exploration results, and then converting those results into additional Mineral Resources,” Kin Mining managing director Andrew Munckton said in the company’s ASX announcement.

“At Cardinia Hill, we have successfully added 106,000 ounces of new Mineral Resources, while the Bruno-Lewis Mineral Resource has been expanded by 20 per cent to 374,000 ounces.

“Our systematic approach to exploration has paid off in spades and given us a much better idea of where and how to target the next phase of drilling – which will be designed both to define new resources and to identify additional discoveries with the potential to deliver a step-change in the scale of the project.

“The additional funding will allow us to continue to assess the recent discoveries at Cardinia Hill and follow up on new prospects like Mt Flora, Eagle and Crow – in short to maintain the very strong exploration momentum we have built up over the past two years.

“These other targets have been identified by recent soil geochemistry and modern geophysical surveys over largely untested areas within the highly mineralised Cardinia area.

“We expect this work to generate new follow-up programs of work stretching into 2022.”








Gascoyne Resources Enters Trading Halt to Consider its Options

THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) responded to Westgold Resources’ (ASX: WGX) taunt’s by requesting the ASX place the company’s ordinary shares in a trading halt with immediate effect.

Gascoyne Resources requested the trading halt saying it requires time to complete, “the finalisation and Board approval of a material update to its business plan”.

The company indicated that once the trading halt is lifted it expects to be able to provide additional information in respect of the Westgold Resources’ announcements regarding its unsolicited intention to make a takeover bid for the company.

“The Company requests that trading of its ordinary shares be halted until after the expected announcement of the update to its business plan is made or until the market opens on Wednesday 13 October 2021, whichever is the earlier,” Gascoyne said in its request to the ASX.








Westgold Resources Goes Bareknuckle in Gascoyne Resources Takeover Stoush

THE BOURSE WHISPERER: Westgold Resources (ASX: WGX) called out the Board of takeover target Gascoyne Resources (ASX: GCY) in an announcement this morning comparing its offer against that of Firefly Resources (ASX: FFR).

Westgold declared it had received a good deal of incoming positive engagement from shareholders of Gascoyne Resources regarding its intention to make an off-market takeover offer for all the issued shares in Gascoyne.

Westgold’s offer is subject to the Firefly Scheme not proceeding and customary off-market takeover bid conditions including, inter alia, a minimum acceptance condition of 50.1 per cent.

Westgold intends to lodge its Bidders Statement with ASIC during the week commencing 10 October 2021.

“It has been more than a week since Westgold announced its intention to make a bid on terms that are far superior to Gascoyne’s proposed merger with Firefly,” Westgold Resources executive director Wayne Bramwell said in the company’s ASX announcement.

“Bemusingly, the Gascoyne Board has provided no guidance to Gascoyne’s shareholders nor to Westgold regarding the Board’s intentions on either the Firefly Scheme or the Westgold Offer.

“The silence from the Gascoyne Board in relation to our Offer is in stark contrast with the volume of calls and emails we are receiving from Gascoyne shareholders wanting our Offer to be considered by their Board.

“Westgold knows the Gascoyne Board is cognisant of its fiduciary duty to its shareholders and would expect the Board to dutifully and proactively act to ensure their loyal shareholders have the opportunity to evaluate and respond to our value accretive proposition.”

The company compared the details of each offer, saying that “Based on the Independent Expert’s Report contained in the Firefly Scheme booklet”, should the Firefly Scheme taken up the value would equate to 18.3 cents per Gascoyne share.

The Westgold Offer of one Westgold share for every four Gascoyne Shares implies a value of 44 cents per Gascoyne share.

The gloves were then removed:

“The Gascoyne Board must act in accordance with its fiduciary duties to its shareholders and take all steps necessary to terminate the inferior proposed Firefly Scheme,” the company stated rather firmly.

“At the very least, Westgold considers that the Gascoyne Board must postpone the proposed Firefly Scheme meeting to allow its shareholders the opportunity to consider the merits of the Westgold Offer, as compared to the dilutive Firefly Scheme.

“The Firefly Scheme structure denies Gascoyne shareholders any vote or choice on this value destructive transaction.

“Westgold considers that once given the choice, a Gascoyne shareholder’s acceptance of the Westgold Offer is in effect also a vote against the Firefly Scheme.

“Westgold encourages Gascoyne shareholders to demand that its Board act in its shareholder’s best interests and provide an opportunity for Gascoyne shareholders to consider and accept the Westgold Offer.

“Westgold is committed to ensuring that Gascoyne shareholders are provided an opportunity to consider and accept the compelling Westgold Offer and has appointed an advisory team of Argonaut PCF and HopgoodGanim Lawyers to assist with the preparation of our Offer.”


At the time of publication neither Gascoyne Resources or Firefly Resources had released responding statements.