THE BOURSE WHISPERER: Azure Minerals (ASX: AZS) has announced two crucial outcomes in regards to the company’s Promontorio project, located in Chihuahua State, Mexico.

The company has completed the acquisition of 100 per cent of the Promontorio mineral concession and has also negotiated a 24 month extension of an agreement covering the adjoining Hidalgo concession.

 

Promontorio project Mineral concessions. Source: Company announcement

 

Under the original option to purchase agreements for the Promontorio and Hidalgo mineral concessions struck in 2008, and the extensions to those agreements granted in 2012, Azure had until 28 April 2014 to exercise these options by making two final payments totalling US$1.5 million plus taxes.

In order to secure and confirm ownership of the high-grade Cascada deposit, Azure exercised its option to purchase the Promontorio concession, making the final option payment to the vendors of US$750,000 plus taxes.

The terms of the revised agreement with the vendors to extend the Hidalgo contract for a further two years remain pretty much the same.

Azure will continue to make half-yearly payments of $75,000 for a further two years, with a final payment of US$600,000 due in April 2016.

“We have very strong relationships with the vendors of Promontorio, and we are pleased to have reached this mutually beneficial outcome,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“As a result we now have certainty of ownership of the Promontorio tenement which contains the Cascada deposit and likely extensions, and a further two years to advance exploration on the Hidalgo tenement.

“We intend to start drilling again at Cascada as soon as the company has received the required environmental approvals.”

The Promontorio project comprises four mineral concessions.

Azure has 100 per cent ownership of the Promontorio and surrounding 10,000 hectare Promontorio Extension concessions as well as holding the rights to purchase 100 per cent ownership of the Hidalgo and Magistral concessions.

Email: admin@azureminerals.com.au

Website: www.azureminerals.com.au

THE BOURSE WHISPERER: Blackthorn Resources (ASX: BTR) has reached a non-binding conditional agreement with Glencore Xstrata to sell the company’s equity interest in the Perkoa JV and related assets, in Burkina Faso.

The deal includes Blackthorn’s interests in the Northern Tenement exploration licences, consisting of the Poa, Guido, Seboun and Sepaogo licences adjacent to the Perkoa project.

The deal makes sound financial sense for Blackthorn with the company set to pocket a cash payment of up to US$12 million as consideration for the sale.

This consists of US$10 million for its equity interest in the Perkoa project and up to US$2 million for exploration expenditure already incurred by Blackthorn.

As a sweetener, Blackthorn Resources will not be required to contribute its share of the US$30 million working capital funding requirements with the company to be released from all claims and contingent liabilities in relation to the Perkoa project, including its contingent liability under a Working Capital Facility Agreement.

Blackthorn indicated it would now be focussing on the development of the Kitumba copper project, in Zambia.

“We are very pleased with the settlement agreed with our partners Glencore Xstrata for the Perkoa project, and while we are disappointed to end our association with the project, this settlement provides significant capital for Blackthorn Resources to move forward with, and will allow all parties to focus on the future,” Blackthorn Resources chief executive officer Mark Mitchell said in the company’s announcement to the Australian Securities Exchange.

“Our immediate focus remains on progressing the development of the Kitumba copper project in Zambia, which will continue with the benefit of the additional funds provided by the Perkoa settlement.

“Also, beyond Kitumba, we now have the means to consider new opportunities.”

Email: info@blackthornresources.com.au

Website: www.blackthornresources.com.au

THE BOURSE WHISPERER: Ironbark Zinc (ASX: IBG) has entered into a new non-binding Memorandum of Understanding (MoU) with China Non-Ferrous Metal Industry’s Foreign Engineering and Construction Co. Ltd. (NFC).

The MoU follows the completion of a Feasibility Study on the company’s Citronen base metal project in Greenland and following due diligence and site visits by senior NFC personnel.

This MoU replaces the previous MoU which was not based on a Feasibility Study or due diligence being conducted.

Ironbark explained the new MoU provides it with greater advantages than the previous MoU as it operates directly between Ironbark and NFC with no intermediary and is founded on a strengthening in the relationship between Ironbark and NFC.

NFC is one of China’s leading construction and engineering groups and builds, owns and operates base metal mines, processing plants and smelters around the world. NFC undertakes international contracted engineering, equipment and labour services and is rated globally as a high quality engineering house.

“We are delighted that a group with the expertise and scale of NFC has provided its support and cemented its relationship with Ironbark,” Ironbark Zinc managing director Jonathan Downes said in the company’s announcement to the Australian Securities Exchange.

“The new MoU shows not only support of the Citronen project but comfort with Greenland as a development destination.

“While the zinc market remains challenging, it faces uniquely positive future opportunities which will provide a strong platform to support the development of Citronen.”

The Citronen project currently hosts in excess of 11 Billion pounds of zinc and lead.

 

The current JORC-compliant resource for Citronen: Source: Company announcement

 

Under the new MoU the framework is established to conduct the following activities:

NFC to engineer, design, procure, supply, construct, test and commission Citronen on a full turnkey basis;

NFC to facilitate financing from banks in China to cover about 70 per cent of the project costs;

NFC to have an option to purchase 19.9 per cent of Citronen at a project;

NFC to have a right enter into an offtake agreement for a portion of the concentrate products from Citronen; and

NFC to provide a performance bank guarantee in favour of Ironbark to be released subject to plant performance tests to the satisfaction of Ironbark.

Meetings were recently held in Beijing between NFC and the Greenland Minister for Mines and his department representatives, with a subsequent meeting held between NFC and Ironbark’s key infrastructure engineering firm, MT Hojgaard, to collaborate on the development of Citronen.

Email: admin@ironbark.gl

Website: www.ironbark.gl

THE BOURSE WHISPERER: Base Resources (ASX: BSE) has moved the first shipments of rutile and zircon from the company’s Kwale mineral sands operations, located just south of Mombasa in Kenya.

Base’s first 7,000 tonne bulk shipment of rutile set sail from the Likoni Port Facility as the company’s first containers of zircon departed via the Mombasa Port container facility.

 

First container of zircon being loaded. Source: Company announcement

 

The company explained that both the rutile and zircon shipments were scheduled for late March.

However, these were delayed due to there being no vessels available to carry out the shipment at the time.

Base Resources said the shipment was the latest in a recent series of milestones for the company and the Kwale project.

“With these shipments, and the 45,300 tonnes of ilmenite exported to date, the Kwale Operations have now completed the transition from construction project to operating mine successfully producing all products to specification,” Base Resources said in its ASX announcement.

Base received payment for the first ilmenite shipment in March.

Having now successfully commenced shipment and sales of its rutile and zircon products, the company anticipates it will be generating positive operating cash flows within the next month.

Email: info@baseresources.com.au

Website: www.baseresources.com.au

THE BOURSE WHISPERER: With the APPEA Conference kicking off in Perth
this week our JV update has a bit of an Oil & Gas feel about it.

ROC 2P Reserves increase by 71 per cent TO 20.9 mmboe

Roc Oil Company (ASX: ROC) announced its proved plus probable (2P) petroleum reserves have increased to 20.9 million barrels of oil equivalent (mmboe) as at 1 January 2014.

The 2P reserves increase of 8.7 mmboe (economic interest to ROC 50 per cent) from 12.2 mmboe at 31 December 2013, represents a 71 per cent increase and is attributable to the farm in by ROC to the D35, D21 and J4 PSC (Fields), located offshore Malaysia.

The Fields also provide access to 2C Contingent Resources of 39.8 mmboe (economic interest to ROC 50 per cent).

The sale of BMG has reduced 2C resources by -14.6 mmboe, giving a net 2C position to ROC of 48.8 mmboe (economic interest).

Best estimated Prospective Risked Resources have also increased from 31.6 mmboe to 43.6 mmboe with the inclusion of prospective volumes within the Fields.

Cooper Energy acquires Gippsland Basin project

Cooper Energy (ASX: COE) has agreed to purchase a 65 per cent interest in the Basker/Manta/Gummy gas and liquids project (BMG) in the offshore Gippsland Basin through acquisition of a 65 per cent interest in  each of the production licences: Vic/L26; Vic/L 27; and Vic/L28.

Cooper Energy will also be appointed Operator for the project.

As a result of the acquisition, Cooper Energy will have the majority interest in a gas and liquids resource it claims is considered likely to be a competitive conventional source of gas supply for eastern Australia in the coming years.

The acquisition, which is effective from 1 January 2014, is subject to regulatory approval.

The BMG project contains undeveloped liquids-rich gas and oil which Cooper Energy intends to review and quantify to include in its year-end review and estimate of reserves and resources.

The project comprises the Basker oil and gas field, Manta oil and gas field and the Gummy gas discovery located 65 kilometres offshore Victoria.

Cooper Energy is to acquire its 65 per cent stake through acquisition of:

A 50 per cent interest from ROC Oil Company Limited (ASX: ROC) for consideration of $1 million (plus working capital adjustments which will be negligible) and a deferred payment of $5 million contingent on first hydrocarbons production from a commercial development; and

A 15 per cent interest from Beach Energy Limited.

As a part of the acquisition Cooper Energy will assume any abandonment liability for the interests being purchased.

This equates to 39 per cent of any abandonment liability in the period to October 2018 and then 65 per cent of any abandonment liability thereafter.

The BMG joint venture equity structure following the completion of the agreement will comprise Cooper Energy (65 per cent interest and Operator) and Beach (35 per cent interest).

“The eastern Australian gas market is developing as we anticipated, the gas supply outlook is becoming increasingly tight and the upstream gas prices are increasing,” Cooper Energy managing director David Maxwell said.

“We believe that the BMG joint venture has the right features for a new foundation economic gas supply to the eastern Australian gas customers in the medium term.”

Catalyst Metals signs Farm-in Agreement with Navarre Minerals

Catalyst Metals (ASX: CYL) has signed a Term Sheet with Navarre Minerals (ASX: NML) to enable Catalyst to earn a 51 per cent equity interest in the Tandarra project (EL 4897) located north of Bendigo in Victoria.

This transaction will result in a regional consolidation of two of the most prospective greenfields gold projects in Victoria and means that the entire 60 kilometre strike length of the Bendigo North Goldfield will be under single management for the first time.

The rationalisation will enable synergy benefits and shared technology to be realised in both exploration and development stages.

As part of the same transaction, Navarre will transfer to Catalyst its interests in two gold projects owned by Castlemaine Goldfields Limited (a subsidiary of LionGold Corp), which are subject to farm-in and joint venture arrangements between Navarre and Castlemaine.

Navarre has earned a 51 per cent interest in the Sebastian project (EL 4536 and EL 4974) and is earning a 51 per cent interest in the Raydarra project (EL 5266).

Navarre will maintain exploration upside by way of a 1 per cent net smelter royalty on Catalyst’s entitlement to proceeds from future production from the Sebastian and Raydarra projects.

Navarre shareholders will also have exposure to Catalyst’s Four Eagles gold project through Catalyst shares.

The parties have agreed to finalise and execute a binding Heads of Agreement expeditiously following satisfaction of conditions precedent.