Segue Resources executes big Fraser Range tenement acquisition

/in /by

THE BOURSE WHISPERER: Segue Resources (ASX: SEG) has entered into agreements with three unlisted companies to acquire 12 exploration licences totalling 3,538 square kilometres in the Albany-Fraser Range Province of Western Australia.

Segue said the deal will result in the company becoming one of the largest tenement holders in the Fraser Range Province.

The tenements contain the Plumridge nickel and gold projects in the northern portion of the Fraser Range and the Deralinya project in the southern Fraser Range.

 

Fraser Range Exploration Tenements Source: Company announcement

 

The Plumridge project is set to become Segue’s immediate exploration focus as the company considers it to be prospective for Nova-style nickel-copper deposits.

“Through these three acquisitions, Segue has the opportunity to acquire a very large, contiguous tenement holding in the exciting Fraser Range Province, which hosts the Nova-Bollinger nickel-copper deposits,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.

“Segue’s review of existing aeromagnetic data has identified several targets which display a similar magnetic signature to that of the Nova “Eye” and will form the basis of our exploration program.”

Total consideration for the deal is $1.3 million with only $0.2 million being paid in cash, as a non-refundable deposit.

Segue will issue the Vendors with 550 million shares, which are being issued at the company’s 20-day VWAP of 0.2 cents per share.

The majority of the tenements are owed 100 per cent by the respective companies, except for four tenements in the Plumridge nickel and gold project area which are subject to a farm-in Joint Venture with International Goldfields (ASX: IGS).

Segue explained that under the JV agreement, it can earn a 60 per cent interest in the Plumridge Joint Venture by spending $1 million by January 2015.

Atlantic Gold ready to advance Touquoy gold project

/in /by

THE BOURSE WHISPERER: Atlantic Gold (ASX: ATV) has had a further Canadian courtroom victory in regard to the company’s Touquoy gold project.

A Stay Motion brought by a former landowner against a Vesting Order issued for the final remaining private property required to develop the Touquoy gold project in Canada has been dismissed by the Nova Scotia Court of Appeal.

The company said the decision allows it to now move to conclude the project’s financing and development.

The Stay Motion was brought by the former landowner of the last remaining property required for development of the mine in an effort to halt any development, pending his application to seek leave to appeal the previous judgment of the Nova Scotia Court of Appeal to the Supreme Court of Canada.

The decision follows a previously announced ruling by the Nova Scotia Court of Appeal, which had dismissed the former landowner’s appeal of an earlier decision of the Nova Scotia Supreme Court in April that had also dismissed the appeal of the Vesting Order.

The Court of Appeal concluded, among other things, that the former landowner failed to establish an arguable case for consideration by the Supreme Court of Canada.

He now has 30 calendar days to remove all personal goods and chattels from the property.

“The dismissal of the Stay Motion vindicates the Minister’s considered decision, and forcefully confirms the company’s legal right of access to this last of 63 private properties required to advance project financing and move ahead with development of the project,” Atlantic Gold said in its ASX announcement.

The Touquoy gold project is Altlantic Gold’s most advanced asset and is a near-term development project.

The company plans to develop Touquoy in conjunction with its nearby Cochrane Hill gold project into a substantial gold mining operation in Nova Scotia.

Rehabilitation Bonds Refunded

/in /by

THE BOURSE WHISPERER: Two more companies have taken advantage of the Western Australian Government’s Mining Rehabilitation Fund.

Blackham Resources’ (ASX: BLK) 100 per cent-owned subsidiary Kimba Resources has applied for early entry into the Western Australia Mining Rehabilitation Fund and as a result the Department of Mines and Petroleum has agreed to refund the $2.239 million in bonds on Blackham’s Matilda gold project.

Under Blackham’s agreement to purchase 100 per cent of Kimba, the Blackham Group was required to replace the bonds and take on the rehabilitation liability for the Matilda gold project.

Kimba was required to pay $2.239 million in environmental bonds on the transfer of the mining leases from the previous owner, Wiluna Exploration to Kimba.

The mining lease transfers are still being processed but the bonds have now been refunded to Wiluna Exploration further strengthening the Blackham Group’s working capital position.

Norton Gold Fields (ASX: NGF) announced it has opted in to the Western Australian Department of Mines and Petroleum’s Mining Rehabilitation Fund, allowing the return of $21.8 million in environmental bonds to date.

Norton said the returned funds have further strengthened its cash position and will enable it to fund future growth opportunities to support the company’s Vision of becoming a leading long-term gold producer.

Norton has taken the opportunity to be an early contributor to the MRF and has so far paid approximately $700,000 as the annual premium for the company’s participation in the scheme.

A further $1.5 million in bonds is still to be retired.

“We continually seek opportunities to reduce our environmental footprint and make our business sustainable for the long term,” Norton Gold Fields CEO Dianmin Chen said.

“The retirement of these bonds is testament to Norton’s work in this area.”

Howdy Partner!

/in /by

THE BOURSE WHISPERER: There are plenty of companies out there at the moment with projects screaming to be developed.

Needless to say the current equity climate isn’t as sunny as these companies would like.

That said, there does seem to be a fair bit of activity in the marketplace in regards to merger and partnership buy-ins.

This makes perfect sense as many junior miners are struggling to cover corporate overheads, directors’ fees and compliance costs on limited budgets.

Teaming up with a perceived equal or merciful benefactor boosts their scale and – hopefully – their returns on exploration.

Augur Resources (ASX: AUK) has entered into a binding Subscription Agreement with the Rajawali Group, one of Indonesia’s largest privately-owned conglomerates.

The Agreement is subject to a number of conditions precedent, including approval of Augur shareholders and provides for Rajawali to initially subscribe for 60 million Augur shares, equivalent to 22.6 per cent of the company’s issued shares for cash consideration of $3 million.

Additionally, Rajawali has an option to subscribe for an additional 50.36 million Augur shares for $3.75 million.

The opportunity to team up with well-respected Indonesian company, with significant Indonesian mining experience, such as Rajawali is an exciting and important step for Augur and bodes well for the ongoing development of the Wongiri project and for Augur itself,” Augur Resources managing director Grant Kensington said.

Northern Minerals (ASX: NTU) has finally disclosed the identity of its MOU partner for the HRE off-take agreement from the company’s Browns Range project it announced in December last year.

Northern minerals has removed the mask and cowl to reveal Sumitomo Corporation of Japan as its caped crusader.

The company explained it did not disclose the identity of its MOU partner at the time, due to ongoing commercial negotiations.

However, since then Northern Minerals and Sumitomo Corporation have completed discussions in regards to product specifications, transport and pricing, and developed their commercial relationship.

The original terms of the MOU still apply in which both parties will form a binding agreement for the supply of 1500 tonnes per annum of TREO heavy rare earths (HRE) concentrate product from the Browns Range project to Sumitomo Corporation.

 Northern Minerals anticipates the MOU to be converted to a binding agreement once it has made substantial progress toward the completion of its feasibility study in mid-2014.

Northern Minerals is working towards commencing HRE production in 2016.

“For a company of the standing of Sumitomo Corporation to partner with Northern Minerals it is a great vote of confidence in the Browns Range project, and indicates the significant opportunity that the project presents,” Northern Minerals managing director and CEO George Bauk said.

“It also reinforces the confidence in the REE industry and the fundamental demand for heavy rare earths such as dysprosium which dominate the HRE mix at Browns Range.

“We intend to leverage the success of this commercial arrangement to establish similar arrangements with other global companies for the exploration and development of the greater Browns Range area.”

Nkwe Platinum (ASX: NKP) has formed a strategic partnership with Zijin Mining Group. The main objective of the partnership is to develop Nkwe’s South African PGM assets, in particular the company’s Garatau mining project.

“This is more than a strategic relationship – definitely a partnership Joint Venture,” Nkwe executive director Peter Landau said in a video on the company’s web site.

“They ultimately will operate the Garatau project, and obviously provide all the necessary capital.”

Under the terms of the deal, Zijin, through its wholly-owned subsidiary Jin Jiang Mining, will invest $20 million in Nkwe by a placement of three-year convertible bonds.

Nkwe recently obtained shareholder approval for the transaction.

The completion of the transaction is to be conducted over two tranches:

the first tranche of $7 million convertible bonds will be issued on or before 23 October 2013; and

the second tranche of $13 million convertible bonds will be issued on or before 31 December 2013. To complete funding under the Final Tranche, Zijin and Nkwe are working together to complete additional security arrangements (including registration of such security interests) to satisfy one of the final conditions of the original Convertible Bond Subscription Agreement.

Australian gold company Chalice Gold Mines (ASX: CHN, TSX: CXN) and Canadian gold developer Coventry Resources Inc. (TSX-V: CYY, ASX: CYY) have agreed to merge.

The company’s consider the move will combine Chalice’s strong cash position of $55 million with Coventry’s 100 per cent interest in the Cameron Gold Camp in Ontario, Canada.

Under the proposed Merger, Coventry shareholders will receive one Chalice Share for every 1.78 Coventry Shares and will hold approximately 17 per cent of the merged company.

The proposed Merger has the full support of the Board of Directors of both Chalice and Coventry with the Board of Coventry telling Chalice that, in the absence of an unfavourable fairness opinion or a superior offer, it will unanimously recommend its shareholders vote in favour of the proposed Merger.

The Cameron Gold Deposit currently comprises an NI 43-101/JORC (2004) (1g/t cut-off) compliant Measured and Indicated Mineral Resource of 567,100 ounces of gold at 2.45 grams per tonne and an Inferred Mineral Resource of 830,100 ounces of gold at 2.11g/t.

In addition, at two satellite deposits, there are NI 43-101/JORC (2004) (1g/t cut-off) compliant Mineral Resources at Dubenski of 59,000 ounces Indicated at 2.28g/t and 18,200 ounces at 1.44g/t Inferred; and NI 43-101/JORC(2012) (1g/t cut-off) compliant Mineral Resources at Dogpaw of 24,000 ounces indicated at 3.02g/t and 4,600 ounces at 2.27g/t inferred.

“The Cameron gold project is a quality asset in a low-risk, favourable mining jurisdiction.

“The transaction preserves our strong cash balance while the low holding costs of the Cameron project provide us with plenty of flexibility in our future development strategy as we continue to look at further complementary transactions targeting high quality projects capable of generating strong cash flow,” Chalice Gold Mines managing director Bill Bent said,.

President of Coventry, Steven Chadwick said the proposed merger with Chalice represents an excellent opportunity to fund the ongoing exploration and potential ultimate development of the Cameron gold project in an extremely difficult economic climate.

Metal Bank to acquire Roar Resources

/in /by

THE BOURSE WHISPERER: Metal Bank (ASX: MBK) has entered into an agreement with the shareholders of unlisted company Roar Resources to acquire 100 per cent of the total issued capital of Roar in exchange for the issue of 106.94 million shares.
 
Metal Bank said the acquisition of Roar will provide it with ownership of two prospective gold exploration projects – the Triumph and Eidsvold projects – in the northern New England Fold Belt of south-east Queensland.

Roar director, Tony Schreck, will join the Metal Bank Board as an executive director to head up exploration.

Metal Bank said the transaction is in line with the company’s core strategy to build a valuable inventory of quality mining assets.

The region has has hosted several gold mines including the nearby Cracow and Mt Rawdon gold mines of Evolution Mining (ASX: EVN).

“The acquisition of Roar represents a significant opportunity for the company to expand its project base by including two gold exploration projects in the vicinity of historical and current gold mining in south-east Queensland,” Metal Bank chair Inés Scotland said in the company’s announcement to the Australian Securities Exchange.

“It provides Metal Bank with access to Roar’s exploration experience, proven track record of discovery success and will expand the MBK Board’s skill set with the addition of Tony Schreck.”

Independence Group and AngloGold pour first gold at Tropicana

/in /by

THE BOURSE WHISPERER: Independence Group (ASX: IGO) announced the milestone of the first gold pour at the Tropicana gold project Joint Venture with AngloGold Ashanti (ASX: AGG).

“This is a significant milestone for the Tropicana gold project and the culmination of a tremendous amount of hard work by the joint venture manager, AngloGold Ashanti, the contractors who assisted with building the project and those who are now operating the mine,” Independence Group managing director Chris Bonwick said in the company’s announcement to the Australian Securities Exchange.

 

Source: Independence Group company announcement

 

Independence Group said development and construction at the Tropicana gold project is now all but complete and ahead of schedule.

Targeted production from Tropicana is in the range of 120,000 to 160,000 ounces in the period ending 31 December 2013.

Average annual production during the first three years also remains in line with previous guidance of 470,000 to 490,000 ounces of gold per annum.

“We’ve taken Tropicana all the way from discovery through development and now into production,” AngloGold Ashanti executive vice president: Australia, group planning & technical Graham Ehm said in his company’s ASX announcement.

“To pour gold ahead of schedule and within budget is a rare feat in this industry and it’s a significant milestone for us and Independence Group, our partner.

“We’ve been able to incorporate innovation into our approach to everything from environmental management to the design of our mining systems and the processing plant.

“We have also engaged with the local community to provide employment as well as opportunities for local businesses, with contracts worth more than $30 million per annum awarded to Aboriginal businesses.”

Chalice Gold Mines secures exposure to two prospective ELs

/in /by

THE BOURSE WHISPERER: Chalice Gold Mines (ASX: CHN) has made two transactions as part of the execution of a second leg of the company’s corporate strategy of targeting high-quality, drill ready targets in prospective low risk mineral provinces.

Chalice said the first deal provides the company exposure to GeoCrsytal’s Webb diamond project in Western Australia, which it considers to have potential to be a large kimberlite field, via a 10.1 per cent placement plus options to earn up to 19.9 per cent.

The second deal gives Chalice the right to earn up to 70 per cent of both the Oodnadatta and Marla projects in South Australia, in an iron oxide-copper-gold-uranium (IOCGU) province, by funding $5.5 million.

 

Marla and Oodnadatta location map. Source: Company announcement

Both deals have drill ready targets, with drilling expected to commence at the Webb diamond project shortly, and on high priority IOCG targets at the Marla Project in the October quarter 2013.

Chalice explained it is targeting high-quality mining projects with strong cash flow generation potential with its primary focus on securing a cornerstone asset, leveraging off its cash position of approximately $57 million following the sale of the Zara gold project in Eritrea late last year.

The company said it has made good progress in reviewing and prioritising robust, lower risk projects for further evaluation.

“Whilst our search for a cornerstone asset is progressing well, where we have definitely seen the quality of opportunities available improving significantly over the last six months, the Board has approved a second leg to Chalice’s strategy in order to take advantage of the ongoing tightness in the equity markets and the decline in drilling costs, by targeting a limited number of high-quality, ‘drill ready’ exploration opportunities on a deal by deal basis,” Chalice Gold Mines managing director Bill Bent said in the company’s announcement to the Australian Securities Exchange.

“There is a unique opportunity in the market at the moment to gain exposure to some of the best and most prolific mineral provinces in Australia and other low risk jurisdictions, with a clear pathway to a controlling position, without significantly impacting our cash position or limiting our ability to execute on our primary strategy of acquiring a cornerstone asset.

“The transactions we are announcing today provide Chalice shareholders exposure to two high-quality exploration plays, both with potential to host world class deposits, for an initial funding commitment of $500,000 via a placement in GeoCrystal Limited to explore the Webb diamond project, and a non-binding commitment of $800,000 with Uranium Equities Limited to undertake the first phase of exploration on the Oodnadatta and Marla IOCGU projects.”

Venture Minerals moves to production at Riley DSO project

/in /by

THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) has moved up to production at the company’s Riley Direct Shipping Ore project in Tasmania following the dismissal of an appeal against the recently-awarded State Approvals.

The Resource Management and Planning Appeals Tribunal dismissed the appeal against the development approval for Riley.

Venture said the decision had delivered the company unencumbered approvals to commence mining.

“The Tribunal’s decision follows the recent Commonwealth approvals for the Riley project as well the appointment of mining contractors, security of bank finance and the conclusion of negotiations with TasRail for ore transport, port storage and shiploading services,” Venture Minerals said in its ASX announcement.

The company said its focus for the coming weeks will be the commencement of site works and pre-production ramp up at Riley as well as advancing negotiations on off take for the sale of ore.

Venture is currently in a good financial position with the company holding a cash position of approximately $12 million and an undrawn debt facility of $15 million.

The company claims to be fully-funded to commence production at its Riley DSO project, which has a life of mine cash cost estimate of $49 per tonne FOB.

Gindalbie Metals gets support for Karara project from Ansteel

/in /by

THE BOURSE WHISPERER: Gindalbie Metals (ASX: GBG) has reached agreement in principle, subject to the conclusion of a Binding Memorandum of Understanding, with its Joint Venture partner Ansteel.

The deal entails the implementation of a funding solution to meet the additional working capital requirements for the Karara project that have come into play following recently-announced delays in ramping up production.
 
The US$230 million funding package will be provided in two stages: first, through a concentrate pre-sale agreement; and secondly, through a loan facility to be provided by Bank of China – and guaranteed by Ansteel.
 
Subject to various regulatory approvals, Ansteel will be granted the option to subscribe for new equity in Karara Mining Limited (KML) to provide KML with sufficient funds to repay these loans.
 
“If Ansteel elects to convert the entire amount into equity, based on current exchange rates, it would increase its stake in KML to approximately 62 per cent, with Gindalbie retaining approximately 38 per cent ownership,” Gindalbie Metals said in its ASX announcement.
 
“After assessing the alternative of Gindalbie raising new equity to maintain its ownership interest in KML, the Board of Gindalbie has decided that the Ansteel funding solution represents by far the best option for shareholders, as the dilutionary effect of the issue of new GBG shares under an entitlement offer at the current market price would be far greater than the impact on Gindalbie shareholders of issuing new KML shares to Ansteel.”
 
Gindalbie said the Ansteel funding solution will result in the company being cashed up, debt-free and well placed to take advantage of future opportunities while still retaining a significant stake in the Karara project.

Metals of Africa spots new targets on Rio Mazoe project

/in /by

THE BOURSE WHISPERER: Metals of Africa (ASX: MTA) has identified a multi-element geochemical anomaly at the Rulio prospect, part of the company’s 100 per cent-owned Rio Mazoe base metal project, located in the Tete Province of Mozambique.

MTA described the anomaly to be associated with a coincident airborne magnetic geophysical anomaly and has elevated zinc, lead and copper in soil geochemistry, plus manganese, phosphorus among other elements.

The company indicated the se to be in-line with the Broken Hill-type (BHT) mineralisation it is targeting at the project.

The geochemical anomaly measures 2.5 kilometres long by 750 metres wide and was identified from a soil sampling program at the recently-discovered Rulio high-grade lead prospect.

MTA has a 1500m diamond drilling program to test priority targets scheduled to commence late next month.

The company is conducting a soil sampling program at the Rio Mazoe project, which is currently ongoing.

Results MTA has received from the program to date have defined three compelling multi-element anomalies hosting elevated base metals, including zinc, lead and copper, at the Rulio, Cocodeza and Cocodeza East prospects.

 

Image of zinc pXRF soil assays with polygons outlining anomalies:
lead (black), zinc (blue), phosphorous (red), manganese (purple),
Mercury (grey), iron (brown), copper (green) and arsenic (khaki). Mapped
faults and geological boundaries are shown for reference. Source:
Company announcement

 

“The elevated zinc, lead and copper mineralisation identified is an indicator for BHT deposits, the geochemical assemblages identified at the three prospects via the soil sampling program is indicative of a geological system enriched in base metals,” Metals of Africa said inn its ASX announcement.

The company indicated a fourth prospect, Cocodeza South, has also been discovered 2.5km south of the main Cocodeza prospect.

Detailed geological mapping is currently underway at all four prospects, with the high-priority targets proposed to be drill tested in the upcoming drill program.