Middle Island Resources Launches Takeover Bid on Alto Metals

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THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder over the weekend by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The all scrip off-market takeover offer will give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said values its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

As The Roadhouse was going to print there had been no on-market response from Alto Metals, but we will keep an eye out for further developments.

 

Website: www.middleisland.com.au

 

Ausgold Raises $1.8M to Advance KGP

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THE BOURSE WHISPERER: Ausgold Limited (ASX: AUC) has received binding commitments for a share placement to raise $1.8 million by will issuing 90 million shares at an issue price of two cents each.

Ausgold indicated the fuds raised will be used to advance exploration at the company’s Katanning gold project, with work to include drilling targeting extensions to current Resources, newly identified near Resource targets and regional targets within the broader Katanning landholding and to provide additional working capital.

“We are pleased to have completed this placement which provides funds to commence a significant exploration program at the Katanning gold project,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“An RC and EIS co-funded diamond drill program targeting high-grade gold mineralisation north and south of the Jinkas Resource is set to commence in the first week of March.

“This will be followed by a regional aircore drilling program to test gold-in-soil anomalies along the newly identified Western trends located within five kilometres of the Jinkas Resource.

“Both target areas have significant potential to further contribute to the 1.04 million ounce gold Resource within the KGP.

“We look forward to delivering further growth through exploration success as 2019 is shaping up to be an exciting year for Ausgold and its shareholders.”

 

Email: info@ausgoldlimited.com

Website: www.ausgoldlimited.com

 

Matsa Resources Commences Mining at Red October

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THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has commenced underground mining operations at the company’s 100 per cent-owned Red October gold project in Western Australia’s Eastern Goldfields.

Matsa Resources said that mining activities, including decline preparation and other site preparation are underway with first ore scheduled to be produced and ready for delivery in April.

The company explained that the commencement of mining operations at Red October is the culmination of two mine studies, which have delivered a comprehensive mine plan, that proposes a highly profitable, low cost targeted mining operation over an initial seven month period – with strong potential to extend mining in-line with the company’s goal of delivering a substantial long term mining operation at Red October.

Matsa anticipates the mining operation to generate revenue of $16.09 million and deliver a net cash surplus $4.075 million.

All necessary approvals for mining at Red October are in place, and toll milling/ore purchase agreements are currently being negotiated.

“I am delighted with the work done in getting the Red October gold mine to the point where we can announce mining and production in early 2019, subject to a suitable toll milling/ore purchase agreement being finalised,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Although planning indicates initial production over a seven-month period, I am very confident ongoing exploration and increased knowledge will see production go beyond that timeframe.”

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Kalium Lakes has Mining Tenure Granted

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THE BOURSE WHISPERER: Kalium Lakes (ASX: KLL) has had all of the required Mining Tenure for the company’s 100 per cent-owned Beyondie sulphate of potash project granted by the Department of Mines, Industry Regulation and Safety (DMIRS).

Kalium Lakes’ tenure includes two Mining Leases, 15 Miscellaneous Licences and a gas pipeline licence, in addition to 15 granted Exploration Licences.

The company explained all Mining Tenure has been granted with the consent of the Determined Native Title holders, the Gingirana People and the Birriliburu People, in accordance with the signed Mining Land Access Agreements.

All of the Exploration Licences have also been granted in accordance with the Land Access and Mineral Exploration Agreements.

“The grant of all of our Mining Tenure requirements allows the full value chain to be accomplished including, extraction of the brine, evaporation to form salts, SOP purification and haulage to the Australian agricultural industry or an export port,” Kalium Lakes managing director Brett Hazelden said in the company’s announcement to the Australian Securities Exchange.

“Kalium Lakes is the only company to have all the tenure requirements granted to develop what we expect will be the first commercial SOP production facility in Australia.

“We would like to thank the Gingirana People and the Birriliburu People traditional owners for their consent and ongoing support of the project.”

 

Email: info@kaliumlakes.com.au

Website: www.kaliumlakes.com.au

 

Venture Minerals Reviews Riley Revisitation

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THE BOURSE WHISPERER: Venture Minerals (ASX: VMS) informed the market it is reviewing the economics of the company’s Riley DSO iron ore mine in Tasmania.

Venture Minerals said it carried out the review on the back of a recovery in the iron ore price and expressions of interest by several third parties in the Riley ore.

The company will undertake the review of the Riley project in conjunction with an updated scoping study on its neighbouring Mount Lindsay tin-tungsten project, which is due to be completed in the coming weeks.

Venture has had the Riley iron ore mine on care and maintenance since August 2014 having suspended clearing of the plant site.

Venture Minerals believes the current market trend demands a review of its iron ore operation with the price for 62 per cent iron, which is like what will be produced at Riley, having risen by almost forty per cent.

The company believes recent events in the global iron ore community, namely at Vales’ mines in Brazil, could sustain the current price levels at least the near term, which may suit the production ready nature of the Riley project.

Venture has already completed extensive pre-production work at Riley putting in place all the necessary requirements to commence mining, making it a ‘quick to market’ opportunity for the company.

Highlights at the Riley DSO hematite project are:

Riley is a fully permitted iron ore mine that is positioned to recommence operations within a very short period;

Approximately 90 per cent of the equipment that was previously purchased is still on hand;

Riley has Reserves of 1.8 million tonnes at 57 per cent iron with low impurities;

The Riley DSO deposit is all at surface, located less than two kilometres from a sealed road that accesses existing rail and port facilities.

“The previous work at the Riley iron ore mine has placed Venture in a strong position and with the iron ore price improving it affords the company the opportunity to commence production with relatively short notice,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

 

Email: info@ventureminerals.com.au

Website: www.ventureminerals.com.au

 

Gold Road Resources Outlines Gruyere Production Guidance

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THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) provided the market with an update on 2019 production guidance for the Gruyere gold project Joint Venture with Gruyere Mining Company, a member of the Gold Fields Limited group.

Gold road Resources intimated that with first gold on target for the June 2019 quarter, the Gruyere Project is anticipated to achieve commercial production during the second half of this calendar year.

Ramp‐up to full nameplate capacity is expected to be completed within six to seven months of first gold.

Gold production for year 2019 is estimated between 100,000 and 120,000 ounces with Gold Road’s share of guided production estimated to be 50,000 to 60,000 ounces.

Once commercial production is declared, all‐in sustaining costs for the remainder of 2019 are expected to be between $1,050 and $1,150, which the company said was slightly higher than the forecast life‐of‐ mine average of $1,025 per ounce, as production ramps up to full nameplate capacity.

Prior to commercial production being declared, production costs (net of revenue from any gold sold) will be capitalised.

The final forecast capital (FFC) cost estimate remains at $621 million and Gold Road anticipates funding a total share of the FFC cost of $284 million.

As of 31 December 2018, Gold Road’s remaining share of capital development costs is approximately $40 million.

Gold Road’s remaining share of JV management costs is approximately $10 million.

As at 14 February 2019 the Gruyere JV had mined 185,000 tonnes of ore, from which a substantial stockpile of ore is being amassed in preparation for initial production to facilitate a smooth ramp up during 2019.

“It is good to see the Gruyere project develop from conceptual plans through Feasibility Study to a well‐designed large scale, long‐life, low‐cost operation that is on the threshold of delivering substantial value for our shareholders,” Gold Road Resources chairman Tim Netscher said in the company’s announcement to the Australian Securities Exchange.

“We look forward to pouring first gold in the June 2019 quarter.”

 

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

 

Comet Resources Welcomes New Non-Exec

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THE BOURSE WHISPERER: Comet Resources (ASX: CRL) has appointed Alex Molyneux as a non-executive director of the Company.

Comet Resources said it was pleased to welcome Molyneux and his skills and experience, particularly with respect to strategic partnerships and project financing within the mining and metals sector, as it transitions to the next phase of development of the company’s 100 per cent-owned Springdale graphite project, located east of Hopetoun in Western Australia.

Molyneux has plenty of runs on the board as a metals and mining industry executive and financier.

He is currently CEO of Galena Mining (ASX: G1A), which just over two weeks ago announced a $90 million project equity investment from Toho Zinc of Japan, for a 40 per cent ownership interest it’s Abra base metals project.

Prior to Galena, Molyneux spent three-years as CEO of Paladin Energy (ASX: PDN), where he completed a US$700 million recapitalisation including raising US$115 million in new capital and a re-listing of the company on the ASX.

This was after a five-year stint with Ivanhoe Mines Group and Ivanhoe Energy in various leadership capacities.

“I believe strongly in high-quality mineral projects where the relevant commodities are in shortage or are likely to benefit from technological change,” Molyneux said in Comet Resources’ announcement to the Australian Securities Exchange.

“In the case of Comet, I believe its Springdale graphite project is a high-quality graphite project but with the unique benefit that it supports electrochemical exfoliation of graphene.

“In my view, graphene is something we will hear a lot more about in the coming years because of its ideal properties for next-generation electronics.”

 

Email: comet@cometres.com.au

Website: www.cometres.com.au

 

Panoramic Resources Moves First Shipment from Recommissioned Savannah

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THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) completed the first shipment of bulk nickel/copper/cobalt concentrate from the company’s recently recommissioned Savannah project in the Kimberley region of Western Australia.

Panoramic Resources loaded the shipment aboard the MV Heemskerkgracht, which departed the port of Wyndham bound for Lianyungang, China with 7,735 wet metric tonnes (wmt) of nickel/copper/cobalt concentrate onboard.

The load represents a preliminary invoice value of approximately $8.6 million.

“It is wonderful to see Savannah concentrate being shipped again from Wyndham,” Panoramic Resources managing director Peter Harold said in the company’s announcement to the Australian Securities Exchange.

“This is a significant milestone in the recommissioning of the mine and processing plant at Savannah and I would like to thank the team at Savannah for their efforts to get the project going again.”

 

Website: www.panoramicresources.com.au

 

Ramelius Resources Completes Marda Acquisition

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) finalised the acquisition of the Marda gold project in Western Australia.

Ramelius Resources explained the completion of the acquisition came after the receipt of Federal Court approval to transfer the shares of Black Oak Minerals Limited to Ramelius on 31 January 2019.

Ramelius subsequently paid the final consideration of $11 million, marking completion of the transaction.

The Marda gold project is located 191 kilometres north-northeast of Ramelius’ Edna May operations.

The company considers it to represent a shear-controlled gold system within trucking distance of Edna May.

Ramelius indicated that work on development studies will now be finalised, with results to date demonstrating that utilising Marda as a satellite ore source to supply high-grade feed will extend mine life and maximise the value of existing infrastructure at Edna May.

“The successful acquisition of the Marda gold project secures additional high-grade ore within trucking distance of the Edna May processing facility, reinforcing Ramelius’ commitment to growth, and well and truly establishing Edna May as a new production hub,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

 

Email: ramelius@rameliusresources.com.au

Website: www.rameliusresources.com.au

 

Neometals Commences Lithium Battery Recycling Pilot

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THE BOURSE WHISPERER: Neometals (ASX: NMT) completed commissioning of stage 1 of the company’s lithium‐ion battery (LIB) recycling pilot plant in Canada.

Neometals engaged SGS Canada Inc. (SGS) to construct and operate the pilot in that company’s fully accredited Lakefield facility, which is recognised worldwide for housing pre‐eminent expertise in the development, optimisation and piloting of mineral processing and chemical extraction processes.

SGS will undertake Pilot front‐end feed preparation (shredding, removal of metal casings and plastics) as part of the Stage 1, as well as the subsequent hydrometallurgical processing and refining stage to deliver high‐purity battery materials for market qualification (Stage 2).

Neometals explained the Pilot is intended to demonstrate and showcase its mixed feed flowsheet which can accommodate a variety of LIB types from multiple sources including consumer electronics, electric vehicle batteries and the emerging stationary storage sector.

The Pilot aims to verify assumptions Neometals made at bench scale, it will generate marketing samples of products and will also provide essential data required for a front‐end engineering design study (FEED).

The proposed FEED study will support a subsequent feasibility study and enable consideration of an investment decision on a commercial plant (FID).

“We are delighted to see our battery recycling project back on track,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“The commissioning of the Pilot represents a significant milestone and marks the culmination of extensive research and development into a flowsheet to process multiple battery chemistries, from consumer electronics to electric vehicle applications.

“With ever increasing volumes of commercial LIBs reaching their end of life, we are focussed on proving at scale, then qualifying our scale‐able and modular recycling solution with industry as early as possible.

“The Pilot will serve as a showcase facility for potential partners as well as provide strong independent data for future engineering and financial studies.”

Despite regions like the European Union (EU) being heavily regulated under battery recycling compliance schemes, it is estimated that only approximately five per cent of LIBs are currently recycled globally.

Worldwide regulation tightening coupled with corporate requirements for ethical sourcing and disposal of LIBs, thus creating an opportunity for Neometals to recover critical / non‐renewable resources while reducing environmental impacts associated with battery disposal.

Neometals has developed a process flowsheet to recover greater than 90 per cent of all battery materials (plus recycle water and minimise plastic and graphite waste) from targeted end of life LIBs that could otherwise find their way to land fill or inefficient base metal recovery circuits.

Neometals’ process flowsheet targets the recovery of cobalt from consumer electronic batteries (devices with lithium cobalt oxide cathodes (“LCO”) as well as nickel‐rich EV and stationary storage battery chemistries (lithium‐nickel‐ manganese‐cobalt (NMC) cathodes).

This mixed feed flowsheet is the subject of the Pilot.

 

Email: info@neometals.com.au

Website: www.neometals.com.au