THE BOURSE WHISPERER: They say that earning 50 per cent of a project is better than earning 50 per cent of no project.

Tanzanian regulators approve Nachingwea JV

IMX Resources (ASX: IXR) has received Tanzanian regulatory approvals for its joint venture agreement with MMG on the Nachingwea exploration property in Tanzania.

This property includes the Ntaka Hill nickel sulphide project.

Under the terms of the Agreement, MMG may earn up to a 60 per cent interest in the Nachingwea property by spending up to US$60 million over a five year period.

The approvals received comprise consent for the Agreement from the Commissioner for Minerals in the Tanzania Ministry of Energy and Minerals and the approval of Stage 1 of the Agreement by the Tanzanian Fair Competition Commission.

Discussions with the FCC regarding approval of the subsequent stages of the Agreement are ongoing and expected to be finalised before the completion of Stage 1.

MMG and IMX have agreed that in the unlikely event of delays in securing approval from the FCC for the subsequent stages, the timeframe for MMG’s expenditure commitments on any stage under the Agreement will be suspended until the approvals are provided.

They have also agreed that the requirement for IMX to contribute to costs related to any such delays will be limited to US$2 million for each stage.

Stage 1 of the Agreement, under which MMG is sole-funding expenditure of US$10 million to earn a 15 per cent interest in the project, is well advanced with assessment of geophysical surveys, soil sampling results and review of the various data sets and historical core almost complete.

This will enable targets to be generated for the upcoming aggressive drilling program at Ntaka Hill commencing in May 2014.

Joint Venture Agreement Signed

Discovery Metals (ASX: DML) has reached an agreement of a new joint venture programme with the Japan Oil, Gas and Metals National Corporation (JOGMEC) and BCL Limited for the Dikoloti nickel project in north-east Botswana.

The Dikoloti project comprises three prospecting licences covering an area of 283 square kilometres surrounding the three nickel deposits of BCL in the Selebi-Phikwe region of north-east Botswana.

An Inferred Mineral Resource has been reported in accordance with the guidelines of the JORC Code 2004 of:

4.1 million tonnes at 0.7 per cent nickel, 0.5 per cent copper and 1.2 grams per tonne PGE’s at a cut-off of 0.5 per cent nickel for 28,700 tonnes of contained nickel.
 
Discovery explained this has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

In 2009 Discovery signed a joint venture agreement with JOGMEC, which provided for JOGMEC to earn an interest of up to 60 per cent in the Dikoloti project by funding exploration of $3 million with Discovery acting as operator.

Following further expenditure by JOGMEC, it increased its participating interest in the project to 72 per cent while Discovery retained 27.9 per cent as of December 2013.

The new agreement between Discovery, JOGMEC and BCL represents the next step in progressing the Dikoloti project towards production.

THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Chief Executive Officer Succession

Kingsgate Consolidated (ASX: KCN) has advised that managing director and chief executive officer Gavin Thomas, will be stepping down from that role, effective June 2014, after nearly ten years in the position, after some recent health issues.

The company has commenced a succession process for the position of CEO.

To maintain a level of corporate continuity, Thomas will remain on the Board of Kingsgate as an executive director, to assist the transition to the new leadership.

“Gavin’s contribution to Kingsgate and the wider industry has been extraordinary, in both dedication and discovery,” Kingsgate chairman Ross Smyth-Kirk said.

“Gavin’s legacy to the mining industry goes well beyond his time at Kingsgate, with more than 40 years’ operating throughout the world.

“Under Gavin’s leadership, Kingsgate has evolved from a single operation in Thailand into a geographically diversified asset base that is well placed to enable the Company to grow into the future.”

 

Board changes

YTC Resources (ASX: YTC) has made some changes to the company’s board of directors.

Dr Wenxiang Gao and Robin Chambers have resigned as directors of the company.

Both have been directors since 2007 and Dr Gao was chairman for more than three years in this time.

Following his nomination by Yunnan Tin Australia TDK Resources YTC has appointed Dr Guoqing Zhang as a director of the company.
 
Dr Zhang is chief executive officer of Yunnan Tin Australia TDK Resources, the registered holder of 9.35 per cent of YTC’s issued shares and chairman of Hong Kong-listed China Yunnan Tin Minerals Group Company Limited.

A subsidiary of CYTMG is the registered holder of 3.71 per cent of YTC’s issued shares.

John Hancock appointed to Volta Mining Board

Volta Mining (ASX: VTM) has appointed John Hancock to its board.

“The Volta Mining team are delighted to welcome Mr Hancock to the board of Volta Mining, given John’s lifetime of exposure to the Australian iron ore mining industry, and his considerable experience and skills in financial markets are invaluable,” Volta Mining managing director David Sumich said.

“John’s appointment will provide strong leadership and direction to Volta Mining in the iron ore space, as well as access to a wide investor base in both Australia and Asia, better enabling us to advance our projects to create real value for our shareholders.”

“Exploration companies and the junior sector are vital to the future of Australia’s resource industry,” Hancock responded.

“As my grandfather said, ‘Minerals are not like crops of wheat or wool that grow every year. You have got to find more each year if Australia’s living standards are to continue.’

“Volta Mining holds interesting ground in the heart of the Pilbara, next door to a Hancock Prospecting tenement and less than 10 kilometres from the Hope Downs iron ore project.
 
“It is also contiguous to ground held by Fortescue Metals Group and BHP Billiton.

“I look forward to increasing my role with the company as it develops.”

Board Changes

Helix Resources (ASX: HLX) announced Gordon Dunbar has informed the Helix Board he wishes to step down as chairman and will retire from the Board to spend more time pursuing his personal interests.

Dunbar has been a non-executive director of Helix since 2006 and the non-executive chairman since July 2013.

As a consequence of the impending retirement of Dunbar, the company announced the following appointments:

Pasquale (Paddy) Rombola who is a current non-executive director will assume the role of non-executive chairman.

Jason Macdonald will join the Helix Board as a non-executive director.

In addition, the company will in due course seek to appoint a non-executive director with an appropriate technical background to complement the experience and skill-sets of the Helix Board and Management.

THE BOURSE WHISPERER: Victory Mines (ASX: VIC) has entered into an agreement with unlisted Australian public company South American Tin Limited (SAT).

SAT owns 80 per cent of a local Bolivian entity that holds contracts over seven large-scale tin hard rock, tailings and alluvial tin projects located in the North of Potosi region of Bolivia.

 

Specific projects contracted to SAT. Source: Company announcement

 

Historically Bolivia has been one of the world’s main tin producing countries and is currently the world’s No 4 tin producer.

SAT has tenure over a portfolio of tin projects including:

1.    A near-term development project through small-scale mining and processing operations working with the Juan del Valle Mining Cooperative at its tin/zinc/silver hard rock underground mine. It has been identified as SAT’s first project and has considerable local community support;

2.    Development of the world’s largest tin tailings processing operation from three tailings dumps. One project is already contracted to SAT, El Kenko, again with a local Mining Cooperative. This project has a small inferred tin resource estimated in 2005 that is compliant with the Canadian NI43-101 reporting requirements. SAT’s work, which includes some drilling, is aiming to upgrade this resource so that it is compliant with the 2013 JORC Code;

3.    The opportunity to redevelop what was one of the world’s largest hard rock tin deposits, the Siglo XX Mine, (‘Siglo XX’ means the ‘Twentieth Century’ in Spanish). Contracts have been signed with the Dolores, Siglo XX and XX de Octubre Mining Cooperatives that have exclusive contractual rights to the old mine from COMIBOL, Bolivia’s State mining company; and

4.    Multiple additional alluvial (Rio Andavillque and Rio Centenario) and hard rock (Pucro) projects that have small-scale and large-scale development potential.

“The Board has reviewed a number of opportunities to expand Victory’s portfolio beyond Western Australia and we have concluded that the opportunity presented by SAT was the most compelling and represents a far superior opportunity for our shareholders,” Victory Mines non-executive chairman Dr James Ellingford said in the company’s announcement to the Australian Securities Exchange.

“In the current investment climate for the junior resources sector, we are attracted to SAT’s strategy of developing small-scale ore processing operations, which if successful, can generate cash flows which will underpin the company’s future growth and give SAT the flexibility to re-develop tin projects that may rank among the largest in the world.

“The Board is also encouraged by SAT’s local community and government links and social expertise which we recognise are essential to operating successfully in Bolivia.

“The fact that the company is led by an experienced Australian mining engineer who has been working in Bolivia for eight years, and is supported by an experienced local team, gives us further confidence.”

Website: www.victorymines.com

THE BOURSE WHISPERER: They say that earning 50 per cent of a project is better than earning 50 per cent of no project.

Nido increases Participating Interest to 15 per cent in the Baronang PSC

Nido Petroleum (ASX: NDO) has, in accordance with the terms and conditions of the farm-in agreement with Lundin Baronang BV exercised its option to increase its participating interest in the Baronang Production Sharing Contract (Baronang PSC) from a 10% participating interest to a 15 per cent participating interest.

Nido further advised that on 21 February 2014 drilling at the Balqis-1 well location within the Baronang PSC reached the 13 3/8” casing point, at a depth of 768 metres Measured Depth (MD).

Once casing is set, Lundin will drill ahead through the Arang Formation to the planned 9 5/8” casing setting depth at or around 1,443 metres MD.

Senex and Origin Energy agree Cooper Basin gas farm-out

Senex Energy (ASX: SXY) and Origin Energy (ASX: ORG) have agreed to evaluate tight gas sands in key areas of South Australia’s southern Cooper-Eromanga Basin involving a work program of up to $252 million.

The parties have agreed a two-stage work program totalling $185 million with additional work program expenditure of up to $67 million, which is subject to operating committee approval.

The first stage will evaluate the potential of the tight gas sands, provide exposure to shales and deep coal seams, and provide proof of concept.

The second stage will evaluate the commerciality of the gas resource by undertaking extended flow testing through separate pilot programs.

“Origin has built an unrivalled position in the eastern Australian gas market and has access to international markets through its APLNG export facilities in Gladstone,” Senex Energy managing director Ian Davies said.

“Origin is a natural partner for Senex to accelerate the commercialisation of a potentially massive gas resource, especially given its long-standing position in the South Australian Cooper Basin Joint Venture.

“These agreements cover 40 per cent of the total area of PEL 514 and PEL 516, with Senex retaining its material interests to explore the remainder of these hydrocarbon rich permits.”

Termination of Yalanda Hill Joint Venture

Adelaide Resources (ASX: ADN) and Investigator Resources (ASX: IVR) have terminated the Yalanda Hill Joint Venture which was exploring three tenements on the eastern Eyre Peninsula of South Australia.
 
The Yalanda Hill Joint Venture was formed in 2009 and subsequent exploration included a systematic geochemical sampling program.

This program failed to identify anomalies of a size or quality that ranked favourably against targets that either company had elsewhere in their portfolios.

Consequently both parties agreed that their respective shareholders’ interests are best served by discontinuing funding of any further work on the Yalanda Hill Joint Venture.

At termination, Adelaide Resources’ equity in the Yalanda Hill Joint Venture was approximately 37 per cent and Investigator Resources’ equity approximately 63 per cent.
 
The three tenements that were subject to the Joint Venture are to be relinquished.

Joint Venture negotiations, Lumwana West, Zambia

Argonaut Resources (ASX: ARE) has agreed a non-binding term sheet with a financing partner for a proposed option and joint venture agreement for the exploration and development of the Lumwana West project in Zambia.

In the event negotiations are satisfactorily concluded and necessary approvals are gained, the proposed new joint venture will overlie the existing Lumwana West Joint Venture Agreement.

Shaw River increases Otjozondu manganese project shareholding

Shaw River Manganese (ASX: SRR) told the market that Otjozondu Holdings (Pty) Ltd, a wholly-owned subsidiary of Shaw River, has increased its shareholding in the Otjozondu manganese project from 84 per cent to 87.2 per cent.

Since early 2011, Oreport Holdings, the minority shareholder in the Otjo project, has elected not to fund its share of the project costs and Oreport has now again, elected not to exercise its right under the Shareholders Agreement to participate, pro-rata, in the issue of new ordinary no-par value shares in Otjozondu Mining, the holding company for the Otjo project.

As a result, Shaw River’s interest in the Otjo project has increased.

Shaw River through its subsidiary, Otjozondu Holdings, plans to fund all forward expenditure at the Otjo project by equity subscription via pro rata offers of equity by Otjozondu Mining (as has been done in this instance).

Should Oreport not participate in future pro rata offers of equity by Otjozondu Mining, Shaw River through its subsidiary, Otjozondu Holdings, will have the opportunity to further increase its interest in Otjozondu Mining and the Otjo project.