Australian Mines Pumped by Independent Study Results

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THE BOURSE WHISPERER: Australian Mines (ASX: AUZ) released the findings of an independent study of the company’s Sconi cobalt-nickel-scandium project in North Queensland.

Australian Mines commissioned the independent nickel and cobalt sulphate Market Study that was undertaken by commodity research specialist CRU International.

CRU forecasts that the 2025 value-adjusted business costs of the Sconi project would place it in the 1st quartile compared to other existing and proposed analogous operations globally, based on the outcomes of financial modelling Australian Mines released in its base case Bankable Feasibility Study (BFS)

Australian Mines described Sconi as a late-stage, laterite-hosted cobalt-nickel-scandium project with payable metals expected to be produced annually, on average (based on an 18-year mine life), of 8,500 tonnes of cobalt sulphate and 53,300 tonnes of nickel sulphate.

The company completed a Mineral Resource extension drilling program in late 2018 and expects to be able to release an updated Mineral Resource Estimate for Sconi in the March quarter, which will feed into an optimised BFS on the project.

“We felt it was prudent to get an updated expert view of the medium and long-term market forecasts for nickel and cobalt, and confirm our BFS modelling that pointed to Sconi being a 1st quartile low-cost producer, hence giving Australian Mines a competitive advantage if commodity prices do fluctuate in the medium term,” Australian Mines managing director Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“CRU International is a respected commodity research firm when it comes to detailed analysis of battery and technology metals in particular, and provided deep insight into the forecast supply, demand and pricing dynamics for cobalt and nickel sulphate products.

“The Market Study serves to demonstrate that there will be a very significant opportunity for new nickel sulphate and cobalt sulphate market entrants, including Australian Mines, and the price environment is expected to be very favourable for low-cost producers.

“Sconi is on track for first production in 2021 and CRU International’s modelling of our operating expenditure versus likely competitors based on the base case BFS for Sconi is highly encouraging at a critical time for the project as we work to progress project financing arrangements.

“The characteristics of the Sconi Resources, being able to produce a high-value cobalt sulphate product alongside the larger scale nickel sulphate production, places our project firmly at the bottom of the cost curve, which of course translates to greater future profitability and insulates us from potential nickel sulphate price shocks.”

 

Email: info@australianmines.com.au

Website: www.australianmines.com.au

 

Australian Potash Raising $5M to Advance Lake Wells

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THE BOURSE WHISPERER: Australian Potash (ASX: APC) is to undertake a renounceable rights issue, aiming to raise up to approximately $5.23 million.

Australian Potash declared its intentions to undertake a pro rata renounceable rights (or entitlements) issue to eligible shareholders to raise up to $5,229,824, comprising an offer on the basis of three rights shares for every fourteen existing shares held at an issue price of eight cents per Rights Share, together with one free attaching listed option exercisable at 12 cents on or before 8 August 2021 for every four Rights Shares subscribed.

Shareholders in Australian Potash will be given the opportunity to subscribe for Rights Shares in excess of their entitlement if there is a shortfall.

The Rights Issue is intended to be underwritten to $4.2 million by Patersons Securities, who are also acting as Lead Manager to the Rights Issue.

“The company’s directors intend to participate in the Rights Issue,” Australian Potash said in its ASX announcement.

“The funds raised from the Rights Issue will be used to complete the definitive feasibility study for the company’s high-grade, low cost Lake Wells Potash Project (LWPP), and for general working capital.

“Further details will be provided in a prospectus which is intended to be lodged with ASX on 13 February 2019.”

Australian Potash holds a 100 per cent-interest in the LWPP located approximately 500 kilometres northeast of Kalgoorlie, in Western Australia’s Eastern Goldfields.

The LWPP is a palaeochannel brine hosted sulphate of potash project.

Palaeochannel bore fields supply large volumes of brine to many existing mining operations throughout WA, and this technique is a well understood and proven method for extracting brine.

Australian Potash completed a Scoping Study on the LWPP in 2017 that exceeded company expectations by confirming the project’s economic and technical aspects are all exceptionally strong.

The company said the study highlighted its potential to become a major long-life, low capital and high margin sulphate of potash producer.

 

Website: www.australianpotash.com.au

 

 

Northern Minerals Receives Final $1M From Placement

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THE BOURSE WHISPERER: Heavy rare earths producer Northern Minerals (ASX: NTU) has received the final $1 million in relation to a subscription agreement with Chinese company Liu Xiaohua.

Northern Minerals announced the deal in February 2019.

The company explained the full placement is for 50 million fully paid ordinary shares in Northern Minerals at an issue price of six cents per share to raise $3 million.

The shares will be issued to Liu Xiaohua out of the company’s existing placement capacity under ASX listing rules.

“These funds from the issue of the shares will be utilised for ongoing working capital purposes,” Northern Minerals said in its ASX announcement.

Northern Minerals has completed practical completion of its Browns Range Heavy Rare Earth Pilot Plant Project in northern Western Australia where it has commenced production of heavy rare earth carbonate.

The three-year Pilot Plant project will continue to assist the company evaluate the economic and technical feasibility of mining at Browns Range and will provide the opportunity to gain production experience and surety of supply for our offtake partner.

Through the development of the Browns Range project, Northern Minerals aims to build the WA operation into the first large world producer of dysprosium outside of China.

The project is 100 per cent-owned by Northern Minerals and has several deposits and prospects containing high-value dysprosium and other HREs, hosted in xenotime mineralisation.

Dysprosium is an essential ingredient in the production of DyNdFeB (dysprosium-neodymium-iron-boron) magnets used in clean energy and high technology solutions.

 

 

Website: www.northernminerals.com.au

 

Rox Resources Anoints Ian Mulholland Successor

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THE BOURSE WHISPERER: Rox Resources (ASX: RXL) has appointed Alex Passmore to the position of Chief Executive Officer, commencing immediately.

Passmore is a qualified geologist with extensive corporate experience and is a well-known identity in the resources sector having been spent over ten years at Patersons Securities in roles such as Director – Corporate Finance, Head of Research, Resources Analyst, and Institutional dealer.

He was also Executive Director – Natural Resources & Institutional Banking for Commonwealth Bank of Australia for two years.

Rox Resources espoused Passmore’s qualifications as an experienced corporate executive and company director with recent appointments including Managing Director of Cookatoo Iron, Non-Executive Director of Aspire Mining, Non-Executive (and Executive) Director of Equator Resources Ltd/Cobalt One (which merged with TSX-listed First Cobalt Corp), and CEO of Draig Resources (now Bellevue Gold).

In these positions, Passmore played a role in acquiring assets of the companies, reorganising their capital and funding, and setting them on a path to success.

Passmore has also Mr Passmore’s appointment follows the announced retirement of Ian Mulholland from the Rox Board effective 30 April 2019.

“We are extremely pleased to have been able to secure the services of such a high calibre executive as Alex Passmore,” Rox Resources chairman Stephen Dennis said in the company’s announcement to the Australian Securities Exchange.

“His track record is very strong, and we look forward to a new chapter at Rox under Alex’s stewardship.”

Passmore said he was delighted to be joining Rox.

“It is very well placed, with a strong cash position, advanced projects at Mt Fisher, Fisher East and Collurabbie where existing resources are set to grow and drill ready targets are being followed up,” he said.

“The company continues to evaluate other growth opportunities which are complementary to the company’s strategic plan and expertise.”

 

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

 

Indiana Resources Inks Mali Gold JV Deal

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THE BOURSE WHISPERER: Indiana Resources (ASX: IDA) has entered into a non-binding term sheet for a Joint Venture (JV) covering the Lakanfla and Tabakarole gold projects, located in western and southern Mali respectively.

Indiana Resources struck the deal with London AIM and Toronto-listed Altus Strategies Plc, that is subject to entering into a definitive agreement, under which Indiana will have the option to earn up to an 85 per cent interest in Legend Mali Inc., a wholly-owned subsidiary of Altus, which holds a 100 per cent interest in the Lakanfla and Tabakarole gold projects.

“Lakanfla is strategically located adjacent to the world renowned Sadiola gold mine in western Mali,” Indiana Resources CEO Chris van Wijk said in the company’s announcement to the Australian Securities Exchange.

“Based on our review of historical data, we believe that Lakanfla hosts a potentially substantial karst-style gold target, analogous to the adjacent FE3 and FE4 pits of the Sadiola mine.

“Separately the Tabakarole project, which is located in southern Mali, targets a shear zone which has been mapped for 2.7 kilometres long and up to 200 metres wide.

“This arrangement with Altus follows a joint venture agreed with Cradle Arc Plc last year and is consistent with the company’s stated strategy to increase our interests in Mali, allowing us to methodically continue exploration in the area.

“Coupled with the announcement on non-binding funding proposals released today, and subject to completion of definitive agreements, the company will be well positioned to identify and test high priority targets on our highly attractive land package in Mali.”

 

Email: info@indianaresources.com.au

Website: www.indianaresources.com.au

 

Materials Sector Continues to Lead IPO Listings

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THE BOURSE WHISPERER: One the annual highlights of February is the release of the IPO Watch Report from accounting firm HLB Mann Judd.

The report outlines the IPO activity for the previous year and is always informative reading, with this year being no exception.

According to the report there were 93 new listing to the boards of the Australian Securities Exchange in 2018.

As numbers people always on the look out for a positive, HLB noted that although this was less than the 110 IPOs in 2017, it was above the five-year average of 88.

The consistency of the materials sector was again reflected in the numbers with 35 listings (compared to 29 in 2017) representing 38 per cent of all new IPOs (increased from 26 per cent in 2017).

It is something of an anachronism that although the materials sector is always a major contributor to market growth the weight it carries in Western Australia is not felt in many eastern-state based, therefore focused, money factories making it difficult for what is the country’s major industry.

Anyway, back on track…

The report noted IPO activity for 2018 was fairly consistent throughout the year compared to 2017 when a pre-Christmas rush resulted in many of the companies listing in the final quarter.

The March quarter always seems to be the time companies choose to list and 2018 continued that trend with 20 companies listing, compared with the five-year average of 15 companies listing at this time.

Interestingly, all the new market entrants in the first quarter 2018, except one, were small caps.

This may be due to people not having enough spare change to throw around after the holidays, but it did mean we had a slow start to the year in terms of funds raised, with the first quarter raising just 2.5 per cent of the total for the year.

The June quarter was sluggish numbers wise with only 20 companies listing compared to 31 in 2017, but the larger nature of these listing meant more money was raised contributing 29.8 per cent to the annual IPO pot.

The September quarter stepped up a gear welcoming 26 new listings comprising 45 per cent of the funds raised for the year taking the prize for the highest average raising by quarter of $146.05 million.

In terms of year end share price performance, the June quarter was the worst performing quarter with an average year end share price decrease of 27 per cent for companies listing in this quarter.

The December quarter saw 27 new companies listing, well down on the five year average of 33 companies.

Adding to the poorer performance was new market entrants in this quarter recording an average first day share price loss of one per cent, going against the grain of typical day one gains. By year end, on average, there was a loss of 8 per cent for these listings.

“The year-end losses made by a significant number of IPOs in 2018 and general market conditions suggests that there is likely to be a reduction in IPO activity in the coming six months,” HLB Mann Judd said in the report.

This foreboding seems to be ringing true with only 17 companies applied to list on the ASX at the end of 2018, well down on the 37 that had applied at the same time in 2017.

Not only is the number of companies down, but so are the figures in terms of funds being sought at $179 million, which is a 70 per cent reduction on the $603 million sought at the end of 2017.

Once again it is the materials sector stocks leading the way of the proposed listings with seven listings in this sector (2017: nine), showing market sentiment remains for this sector.

“The Materials sector continued to grow in size in terms of new listings, with 35 in total,” HLB Mann Judd said.

“The total amounts raised by the sector contributed $1.42 billion or 17 per cent of the total raised by all companies.

“This was a sharp increase on the previous year which had been considered a strong year for the sector.

“In relation to small caps, the sector made up 43 per cent of small cap listings and 27 per cent of small cap fundraising.

“On average these small cap Materials listings performed poorly, with an average year end loss of 24 per cent.

“It will therefore be interesting to see if this affects investor sentiment going forward.”

 

Email: mailbox@hlbwa.com.au

 

Web: www.hlb.com.au

 

VRX Silica Acquires Boyatup Silica Sand Project

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THE BOURSE WHISPERER: VRX Silica (ASX: VRX) completed an agreement with Silatec Pty Ltd for the acquisition of the Boyatup silica sand project, located 100 kilometres east of the Western Australian port town of Esperance.

VRX Silica will issue two million of the Company’s ordinary fully paid shares plus $10,000 in full consideration for the acquisition of Boyatup, located on E69/3560 which has a total area of 105.7 square kilometres.

The project is connected to the Esperance Bulk Port via a sealed road which by-passes the city of Esperance.

The tenement is almost totally covered by vacant crown land (VCL), only a very small section is over farming freehold land which is of no interest.

The Esperance Deep Water Bulk Port has been the exit port for bulk nickel and iron ore commodities and can load ships of up to 200,000 tonnes.

“The Boyatup deposit is subtlety different to the company’s Arrowsmith and Muchea silica sand projects and can provide yet another option in the product range that the company can market in Asia,” VRX Silica managing director Bruce Maluish said in the company’s announcement to the Australian Securities Exchange.

“The company will conduct a first pass drill program following an Aboriginal Heritage study on the granted PoW drill sites.

“The drill program will also provide adequate sample for a preliminary testwork program to determine the final sand quality, a preferred process circuit design and supply potential product samples to be forwarded to interested buyers

“The company, and its International Marketing Manager have now compiled a significant number of potential buyers for glass making and foundry industry raw materials.”

 

Email: info@vrxsilica.com.au

Website: www.vrxsilica.com.au

 

Image Resources Generates First Revenue from Boonanarring

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THE BOURSE WHISPERER: Image Resources (ASX: IMA) has loaded the first bulk shipment of nominally 10,000 wet metric tonnes of heavy mineral concentrate (HMC) from the company’s 100 per cent-owned Boonanarring mineral sands project, located north of Perth in Western Australia.

Image Resources secured payment for the shipment by way of a letter of credit (LC) under a life-of-mine off-take agreement with Shantou Natfort Zirconium and Titanium Co., Ltd.

The company expects to cash the LC once the ship departs from Bunbury Port.

“The Operating group…has delivered on another very significant milestone for the company, being completion of the first bulk shipment of HMC and receipt of first revenue,” Image Resources managing director Patrick Mutz said in the company’s announcement to the Australian Securities Exchange.

“We look forward to developing a routine nominal monthly shipping schedule to support our aggressive mining and processing schedule.”

Website: www.imageres.com.au

Australian Mines Picks-up Healthy R&D Rebate

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THE BOURSE WHISPERER: Australian Mines Limited (ASX: AUZ) received a rebate from the Australian Taxation Office of $1,911,075 in relation to the company’s research and development (R&D) expenditure during the 2017-18 financial year.

Australian Mines picked up the cheque in addition to a $295,765 R&D tax rebate it received in October 2018 and relates to continued development work completed at the company’s demonstration-size High-Pressure Acid Leach (HPAL) and solvent extraction (SX) plant located in Perth, Western Australia.

“The operation of the demonstration plant has continued to play an instrumental role for Australian Mines in our strategy to maximise economic returns from our assets, especially our flagship Sconi cobalt-nickel-scandium project in North Queensland,” Australian Mines managing director Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“Not only has operation of the plant allowed optimisation of the proposed flowsheet for Sconi, the R&D work conducted has also allowed us to explore potential future commercial opportunities for scandium oxide expected to be produced at Sconi.”

Email: info@australianmines.com.au

Website: www.australianmines.com.au

Rox Resources MD Calls Time

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THE BOURSE WHISPERER: Rox Resources (ASX: RXL) announced that managing director Ian Mulholland has advised the Board of Directors of his intention to retire and step down from the position effective 30 April 2019.

Rox Resources is now on the hunt for a suitable replacement with Mulholland working on a reduced salary until his departure and being available to work with the Board and the new appointee to ensure a smooth transition.

“Ian was a co-founder of the company and has been with it since its inception in late 2003, leading to a successful IPO and ASX listing in April 2004,” Rox Resources chairman Stephen Dennis said in the company’s announcement to the Australian Securities Exchange.

“Along the way, Ian has made a significant contribution, including negotiation of a number of project acquisitions, including the Laos zinc project; the Reward zinc project, its subsequent Joint Venture with Teck, and the resulting sale of our interest for approximately $20 million; and the Mt Fisher gold and Fisher East and Collurabbie nickel projects that have led to JORC mineral resources being established and a Scoping Study completed on the Fisher East nickel project.

“The Fisher East nickel discovery led to Rox being awarded the Explorer of the Year in 2015 by Australian Mining, and the Teena zinc discovery resulted in Ian and two members of the Teck team sharing the prestigious AMEC Prospector Award in 2016.

“On behalf of the Rox Board of Directors, I want to thank Ian for his commitment and contribution to Rox over the past 15 years.

“We wish Ian well in his retirement, however I am certain he will continue to make a valuable contribution to the resources industry.”

In response Mulholland said he was proud of the achievements of Rox under his watch.

“It has been an honour and privilege to lead the company over the last 15 years,” <ulholland said.

“I wish to thank all of our staff, past and present, who have also contributed to our successes and supported me as managing director.

“I also wish to thank the three chairmen I have had the pleasure of working with, Dr Alistair Cowden, Mr Jeff Gresham, and Mr Stephen Dennis.

“I have benefitted greatly from their guidance and encouragement over the last 15 years.”

 

Email: admin@roxresources.com.au

Website: www.roxresources.com.au