Ampella raises $47 million

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THE BOURSE WHISPERER: Ampella Mining has raised $47 million (before costs) by way of a Private Placement and a Share Purchase Plan (to be underwritten) of approximately 36.1 million ordinary shares in total at $1.30 per share.

The issue price of $1.30 represents a 0.38 per cent discount to the company’s last closing price of $1.305 before the placement.

“The completion of the capital raise will boost Ampella’s cash balance to over $60 million after payment of issue costs when added to existing cash reserves,” Ampella Mining said in its ASX announcement.

“The funds will be used for general working capital purposes including exploration activities and feasibility studies.”

Ampella said it currently has 11 drill rigs on site, where it is targeting additional ounces within close proximity to the existing 3.1 million ounces Konkera Resource (independent JORC Compliant Mineral Indicated Resource of 30 million tonnes at 1.6 grams per tonne gold for 1.5 million ounces gold and Inferred Resource of 31.8 million tonnes at 1.5 grams per tonne gold for 1.6 million ounces gold).

The drilling is also being undertaken to define new discoveries along the, now 150 kilometres long, Batie West shear zone.

According to Ampella its 100 per cent- owned 2,600 square kilometres Batie West project represents one of the largest contiguous landholdings in Burkina Faso.

The capital raising is to consist of 3 parts:

–    30.8 million shares in a placement to Australian, North American and European based institutions and sophisticated investors within the company’s 15 per cent share capacity raising approximately $40 million;

–    3.8 million shares in a placement to Taurus Funds Management raising approximately $5 million (subject to shareholder approval); and

–    $2 million Share Purchase Plan (to be underwritten) of 1.5 million shares to existing shareholders. The company has reserved the right to increase this to $5 million subject to shareholder demand at its sole discretion.

After completion of tranches 1 and 2, Taurus Funds Management will hold approximately 11.5 million shares representing approximately 4.7 per cent of the company’s issue capital.

Carrick upgrades Kurnalpi Resource

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THE BOURSE WHISPERER: Carrick Gold has announced a Resource upgrade at its Kurnalpi project.

Kurnalpi is one of three projects which make up the company’s LKK project, situated less than an hour’s drive from Kalgoorlie.

Carrick said it is on track to commence production in late 2012, with Kurnalpi being the first of two open pit mines it will bring into production.

In December 2011, Carrick completed drilling at Kurnalpi largely focussed on the project’s main feature; the Brilliant orebody.

 

Isometric view of the block model showing the Kurnalpi satellite
orebodies in relation to the Brilliant orebody. Source: Company
announcement

The drilling was designed to test the strike and depth extensions of defined mineralisation.

The data collected resulted in a significant increase in the Resource on the Brilliant orebody while other work conducted in conjunction with the drilling reassessed the density of different rock types at other orebodies at Kurnalpi.

The net result of all this activity has been an increase of 21 per cent to the overall Kurnalpi Resource taking it to:

–    6.17 million tonnes at 1.2 grams per tonne gold for 228,800 ounces of gold.

Carrick said Lindsay’s, the second of its open pit mines at the LKK project, is also on track to commence production, as soon as practical after Kurnalpi.

Including the recently announced Probable Reserve at Lindsay’s,
Carrick’s total Probable Reserve is:

–    1.75 million tonnes at 1.8 grams per tonne gold for 102,927 ounces of gold.

“The relatively quick delivery of an additional 41,700 ounces on the Brilliant orebody, at a cost of around $23 per ounce shows that in time the Kurnalpi project has the potential to grow appreciably,” arrick Gold managing director John McKinstry sadid in the company’s announcement to the Australian Securities Exchange.

“Subsequent to increasing the Resource we would expect to increase the ounces in the Reserve category, and that will be known in early March.

“With every round of drilling our confidence in the understanding of Kurnalpi’s mineralisation grows.

“Our focus to date has been on the ore that can be extracted quickly through open cut mining, to establish early cashflow, but we are eager to apply that learning to the nearby exploration prospects that may add further to the project’s economic potential.”

Atlas Iron appoints new MD

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THE BOURSE WHISPERER: When the music stopped in the Boardroom of Western Australian iron ore producer Atlas Iron, a few people found they were sitting in a different seat.
 

The company has appointed company figurehead David Flanagan to the position of executive chairman and has anointed Ken Brinsden to take up the managing director position to be vacated by Flanagan.

 

Source: Company web site

Atlas said the Boardroom changes are part of its preparations for exponential growth.

The company has forecast its iron ore production to increase from its current rate of six million tonnes per annum to 46 million tonnes per annum by 2017.

The restructure will initially result in Flanagan retaining a day-to-day role overseeing the company’s operations, assisting Brinsden with a particular emphasis on strategic planning and corporate issues.

Flanagan will remain as executive chairman until 31 August 2012 as part of the hand-over of managing director’s duties to Brinsden, after which he will become non-executive chairman.

There can be little wonder speculation abounds that such a move may be the catalyst for Flanagan to seek new adventures involving new projects.

“There is no new project, no new directorships or other,” Flanagan told The Roadhouse.

“This move was my idea and has the full support of the board.”

According to the company’s announcement to the ASX regarding the restructure, the changes reflect the evolving and maturing nature of Atlas’ business as it continues to grow from its share market float in 2004 to what is becoming a world class operation.

Brinsden is currently chief development officer at Atlas and has been part of the company’s operations and growth strategies since its inception.

He has overseen development of Atlas’ current operating mines at Wodgina and Pardoo and played a major role in the company’s strategy to secure port capacity at Port Hedland.

“Ken is an operations guy, knows all the projects led all our new mining ops and has been with Atlas since 2006,” Flanagan said.

“He is a great leader in the business and is highly respected and popular with staff and shareholders.”

Atlas has also appointed Kerry Sanderson as an independent non-executive director.

“Kerry is very smart, very experienced in infrastructure and a great person,” Flanagan continued.

“She has a terrific reputation from when she ran Fremantle port and as agent general for Western Australia in London.

“Our business is becoming more sophisticated and we need the right skills to manage it to deliver 46 million tonnes per annum by end of 2017.

“That’s our next big target.”

Disclaimer: The Roadhouse holds shares in Atlas Iron.

Segue raising to progress Emang project

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THE BOURSE WHISPERER: Segue Resources has raised $2.079 million (before costs) through the issue of 69.3 million shares at three cents per share to sophisticated and institutional investors.

The placement price is a 6.3 per cent discount to the last traded price of 3.2 cents per share and a 3.3 per cent discount to the five day volume weighted average price (VWAP) of 3.1 cent per share.

Segue said the funds raised, combined with its existing cash reserves, will be used to:

Finalise the maiden JORC-compliant resource at the company’s Emang manganese project in South Africa, which is due to be released by the end of first quarter 2012;

Complete the second tranche payment to Emang Mmogo Mining Resources – the company’s Black Economic Empowerment partner in the project;

Commence a scoping study on the development of the project and assess potential alternatives for early cashflow; and General working capital and corporate expenses.

“Segue is on the cusp of becoming a significant new entrant in the manganese sector, with a maiden JORC resource at the Emang manganese project due late next month,” Segue Resources managing director Steven Michael said in the company’s announcement to the Australian Securities Exchange.

“With the funds raised Segue can now make the necessary payments to the project vendors and commence the first stage of project evaluation.

“The support shown by existing shareholders and new investors to complete a raising at such a small discount to the last trade reflects the excellent drilling results achieved at Emang and the potential of the project to contain a resource of 10 to 15 million tonnes of manganese ore grading between 28 to 40 per cent manganese.”

Avanco dances samba with Xstrata

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THE BOURSE WHISPERER: Avanco Resources has agreed terms with global heavyweight Xstrata Copper for a 100 per cent interest holding in the Pedra Branca project, located in Carajas Brazil.

Pedra Branca is located south of Avanco’s existing Rio Verde copper project, a location the company identified to offer potential synergies and economies for future mine developments.

 

Project location. Source: Company announcement

Avanco has carried out due diligence, which it said had confirmed the Pedra Branca project to host a substantial copper-gold Mineral Resource.

On completion of the transaction with Xstrata, Avanco’s global Carajas Mineral Resource will double to:

–    32.54 million tonnes at 1.23 per cent copper and 0.37 grams per tonne gold for 401,000 tonnes of contained copper and 389,000 ounces of gold.

This figure includes a maiden JORC Mineral Resource for the Pedra Branca deposit of:

–    14.77 million tonnes at 1.30 per cent copper, 0.46g/t gold and 0.98g/t silver for 192,000 tonnes of contained copper, 218,000 ounces of gold and 465,000 ounces of silver.

Avanco claims potential exists to increase the size of Pedra Branca as it remains open in all directions.

The company said it intends commencing drilling at Pedra Branca immediately.

In consideration for the acquisition, Xstrata Copper will acquire a 15 per cent stake in Avanco and become the company’s largest shareholder and cornerstone investor.

Consideration for Pedra Branca, to Xstrata Copper, is an all script offer of 15 per cent of Avanco share capital as of the 1 May 2012.

This cashless nature of the transaction conserves Avanco’s funds, enabling it to continue with drilling and development studies at Rio Verde and Pedra Branca.

Avanco said entering a strategic relationship with the world’s fourth largest copper producer Xstrata Copper offers it a wealth of opportunities including access to Xstrata Copper’s technical and commercial expertise.

Discovery granted Kalahari PLs

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THE BOURSE WHISPERER: Discovery Metals has been granted four new prospecting licences in the Kalahari Copperbelt of North West Botswana.

According to Discovery Metals the licences which cover “all metals”, and are situated within the vicinity of the D’Kar and Ghanzi communities.

The company said it would be referring to the licences as the D’Kar prospecting licences.

 

Discovery Metals Botswana projects. Source: Company announcement

 

“Historical soil geochemical sampling identified a zone of anomalous copper more than 10 kilometres long located on the same prospective horizon that hosts the copper-silver mineralisation discovered to date in the Kalahari Copperbelt,” Discovery Metals managing director Brad Sampson said in the company’s announcement to the Australian Securities Exchange.

“This anomalous zone sits within one of the four new contiguous prospecting licences granted to Discovery Metals and provides an immediate exploration target in addition to the rest of the 250 kilometres of prospective horizon contained within these four PLs that remain largely unexplored.”

The D’kar licences increase Discovery’s total landholding in the Kalahari Copperbelt to 11,872 square kilometres, containing in excess of 1,500 kilometres of strike length of the prospective horizon.

The prospective horizon is located at the contact of the Ngwako Pan Formation and the D’kar Formation and is host to most of the known copper resources in the Kalahari Copperbelt in Botswana.

Discovery said that exploration work it has already completed has indicated sand cover across the majority of the D’Kar licences to be less than 25m and therefore standard soil geochemical methods are expected to be appropriate for the first phase of exploration.

The company is continuing its regional exploration program in the Kalahari Copperbelt with a goal to discover new zones of copper–silver mineralisation that will form the basis for a new standalone mine in the region.

Renaissance acquire gold project from Oz Minerals

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THE BOURSE WHISPERER: Renaissance Minerals has entered into a Share Sale Agreement with OZ Minerals to acquire the latter’s Cambodian gold assets.

The deal will be completed via Renaissance’s acquisition of OZ Minerals’ wholly owned subsidiary, OZ Minerals (Cambodia) Limited.

 

Cambodian gold project. Source: Company announcement

 

Upon completion of the acquisition, OZ Minerals (Cambodia) will become a wholly owned subsidiary of Renaissance.

Renaissance claims the Cambodian gold projects cover an area of approximately 1,100 square kilometres within the core of a prospective new Intrusive Related Gold (“IRG”) province in the eastern region of the country.

A JORC Indicated and Inferred Resource estimate of 12.6 million tonnes at 1.8 grams per tonne for 729,000 ounces of gold has recently been defined at the 100 per cent-owned Okvau gold deposit.

“This is a company making acquisition for Renaissance,” Renaissance Minerals managing director Justin Tremain said.

“It is a unique opportunity to be able to secure a project with a 729,000 ounce gold resource defined within a single deposit along with multiple drill ready prospects that offer exceptional exploration potential in an emerging new gold district.”

Tremain explained that Cambodia has significant potential to host large, world class gold deposits yet it remains largely unexplored.

“Globally, Intrusive Related Gold systems are known to host multi-million ounce gold deposits,” he continued.

“This newly discovered Intrusive Related Gold province in Cambodia is analogous with the Tintina Gold Belt in Alaska that hosts truly world class gold deposits such as Pogo (six million ounces), Donlin Creek (38 million ounces), Fort Knox (10 million ounces) and Livengood (20 million ounces).”

The deal will result in deal Renaissance gaining a major corporate cornerstone shareholder in OZ Minerals.

The company believes having such a well-known shareholder on its register will be beneficial in achieving its growth objectives.

Renaissance is also of the opinion that OZ Minerals maintaining a shareholding in the company demonstrates its belief in the potential of the Cambodian gold projects.

“We also look forward to welcoming to Renaissance the existing experienced in-country team that OZ Minerals has established over a number of years,” Tremain said.

“Their knowledge and experience in working in Cambodia combined with their strong understanding of the geology and mineralisation will be invaluable.”

Sheffield Resources announces McCalls Maiden

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THE BOURSE WHISPERER: Mineral sands exploration play Sheffield Resources has announced a maiden Inferred Resource of 4.4 billion tonnes at 1.2 per cent heavy minerals (HM) for 53 million tonnes of contained HM at the company’s McCalls heavy mineral sand (HMS) project.

The McCalls project is located 110 kilometres north of Perth near Gingin in Western Australia.

Location of McCalls project. Source: Company announcement

The company said the mineral resource had far exceeded its expectations in terms of size and the contained tonnages of zircon and ilmenite.

“The key feature of the deposit is that it contains over 40 million tonnes of chloride grade ilmenite,” Sheffield Resources managing director Bruce McQuitty said in the company’s announcement to the Australian Securities Exchange.

“As such it ranks as one of the largest accumulations of chloride grade ilmenite in the world.

“We regard McCalls as a strategic asset with potential to deliver a consistent long term supply of feedstock for chloride route or synthetic rutile processing.
 
“This sizable maiden Resource at McCalls, together with our large-scale zircon-rich Dampier project and a growing (HMS) resource base at Eneabba, firmly positions Sheffield as a fast-emerging and significant Australian mineral sands company.”

The announcement of the McCalls Inferred Mineral Resource follows the company’s recent placement of $10 million to institutional and sophisticated investors.

The company said the funds from that placement would underpin its exploration programs for 2012 and beyond.

The majority of these funds will be used to progress the Dampier Zircon project and the advanced Eneabba project.

The company said it will also undertake further drilling, mineral assemblage and scoping work at McCalls.

This work will focus on gaining a better understanding the distribution of the high value minerals zircon and rutile and definition of higher-grade zones.

IronClad continues to garner financial backing

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THE BOURSE WHISPERER: The self-funding policy employed by emerging iron ore play IronClad Mining for development of its Wilcherry Hill iron ore project in South Australia has continued its successful run.

The company has announced a further capital raising for the project to the tune of $3 million following the placement of 3.5 million shares at 85 cents per share to a number of sophisticated Australian investors.

IronClad said it will combine the proceeds from the latest raising with funds it already has at hand, to pay a $5.8 million environmental bond to the South Australian Government.

Payment of the bond is part of the process required for IronClad to begin mining under its Program for Environmental Protection and Rehabilitation (PEPR), approved by the SA Government late last year.

The $2.975 million share placement follows a $6 million placement in January.

IronClad believes a further $11 million may be raised by the end of March, with options in the company – due to expire at that time – likely to be exercised by increasingly strong support from investors.

“Growing national and international investor interest in our company and our Joint Venture partner in the Wilcherry Hill project, Trafford Resources, is providing substantial support for the companies and their shareholders,” IronClad Mining non-executive chairman Ian Finch said in the company’s announcement to the Australian Securities Exchange.

Project location. Source: Company

The Wilcherry Hill iron ore project is an 80:20 JV between IronClad Mining and Trafford Resources.

The company said the project is on schedule to commence shipments of Direct Shipping Ore (DSO) for sale to international steel mills in the second quarter of the 2012 calendar year.

The company expects to export about one million tonnes in its first full year of production, increasing to two million tonnes in its second year.

“Since a number of the ‘early works’ capital costs have already been spent – including construction of our $5 million accommodation village at nearby Kimba – most of the requirements for Stage One of the project have now been achieved,” Finch said.

“Debt financing through Australian and international financial institutions is expected to be in place over the next few months.

“This will allow us to fast track the next stage of our project – the designing and construction of the gravity circuit.

“It will also allow us to commence feasibility studies on our massive Hercules project, in close proximity to Wilcherry Hill, which is the long term future of the company.”

Blackgold secures Yangtze shipping deal

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THE BOURSE WHISPERER: Blackgold International Holdings has entered into a share sale agreement to acquire 100 per cent of the issued capital of Chongqing Gouping Shipping Transportation Company (GPST) from Chongqing Guoping Industrial Group.

The Vendor company, Chongqing Guoping is controlled by Yu Guo Peng, who is an executive director and controlling shareholder of Blackgold.

GPST operates a barge transport business along the Yangtze River that ships predominately coal, iron ore and sand.

 

Chongqing projects, location map, Source: Company announcement

 

The company fleet consists of nine hollow hull barges capable of carrying bulk commodities or containers, with a total transport capacity of 43,000 tons.

 GPST has 145 employees, 12 captains and 12 chief engineers.

As well as utilising its own fleet, GPST also subcontracts other vessels and arranges logistics for customers, providing a mine to customer logistics solution.

GPST’s audited profit before income tax for the year ending 31 December 2010 was 14 million Renminbi (RMB) and unaudited profit before income tax for the nine months ending 30 September 2011 was RMB 15 million.

According to Blackgold’s ASX announcement, independent expert, BDO Corporate Finance (WA), has concluded that GPST to have a normalised earnings before interest, taxes, depreciation, and amortization (EBITDA) of RMB 21 million for the 2010 calendar year, and forecast future maintainable EBITDA of RMB 31 million for the 2011 calendar year.

GPST is managed by Blackgold executive director Jun Ou.

Blackgold International Holdings executive chairman James Tong said the acquisition of GPST is complementary to Blackgold’s current operations.

As a result of the acquisition of GPST, Blackgold will have capabilities and dedicated internal resources covering each link of the value chain in its coal business – from production, transportation, storage to sales and marketing.

Tong said this integrated business model will allow Blackgold to reduce its cost of sales and enhance its profit margin, and also meet its customers’ demand in a timely and cost-efficient manner by providing a whole supply chain solution.