Musgrave Minerals closes SPP over target at $1.98M

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THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) declared its recent Share Purchase Plan (SPP) closed and heavily oversubscribed.

Musgrave said the SPP, originally looking to raise $1.2 million, was strongly supported by shareholders to the point where the company received applications totalling $1.984 million.

Never being ones to look a gift horse in the mouth, the Musgrave Board elected to increase the original target and accept all valid applications received to allow all eligible shareholders who submitted valid applications to fully participate in the offer.

The funds raised from the SPP have already been designated to accelerate drilling and exploration activities already underway at the company’s Break of Day gold project, Mt Eelya copper‐gold massive sulphide discovery, and other targets and for additional working capital.

Musgrave said the additional funding will enable the company to progress the drilling of the high-grade gold mineralisation at Break of Day through to resource status and enable the company to meet its expenditure requirements under the Stage 1 Earn‐In to acquire 60 per cent of the Cue project.

“We are delighted with the strong support from our long term shareholders,” Musgrave Minerals managing director Robert Waugh said in the company’s announcement to the Australian Securities Exchange.

“The funds raised have strengthened the company’s cash position ahead of further drilling and exploration activities at the Cue project.

“We are very encouraged by the high-grade gold results at Break of Day and look forward to continuing to update shareholders with further results as drilling continues.”

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

Rox Resources receives new bid for Reward

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THE BOURSE WHISPERER: Rox Resources (ASX: RXL) announced it had received another offer in regards to the company’s interest in the Reward zinc-lead project in the Northern Territory.

Rox recived an opening bid for the Reward project in July 2016 from IMI Zinc Exploration Pty Ltd (IZE), a wholly owned subsidiary of IM Medical Limited (ASX: IMI) (IMI), to acquire Rox’s interest in the project $14.8 million..

The IMI offer comprised $2 million payable in cash and the issue of IMI shares valued at $12.8 million and was subject to a 30 day exclusivity period to allow Rox to complete due diligence.

This offer remains open for acceptance by Rox until 17 August 2016.

Just before heading home from work last Friday, Rox received an unsolicited offer from Marindi Metals Ltd (ASX: MZN) for its Reward project interest.

The new offer comes in the form of a binding Heads of Agreement for a purported value of $16 million, comprising cash of $6 million, and Marindi securities to a purported value of $10 million issuable in two tranches – $4 million at completion, and 240 million Marindi redeemable convertible preference shares with a three year term converting at $0.025, or redeemable by Marindi at its election by paying Rox $6 million plus 10 per cent per annum accrued interest.

Of course, the new offer has some strings attached and is conditional upon a number of matters, including completion of a fundraising by Marindi, and unless accepted or extended, was due to expire at the close of business of the day of the announcement.

“The company has appointed legal and financial advisors to properly assess the New Offer and determine the most appropriate path forward to maximise value for Rox shareholders,” Rox Resources said in its ASX announcement.

“Rox will keep the market informed as developments arise.”

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

Northern Star Resources to sell off Plutonic gold mine

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THE BOURSE WHISPERER: A crowd gathered around the Diggers and Dealers booth of Northern Star Resources (ASX: NST) after the announcement the company has struck an agreement-in-principle to sell its Plutonic gold mine in Western Australia.

The transaction is subject to the execution of a legally-binding conditional Sale and Purchase Agreement (SPA), which is expected to be signed shortly with Billabong Gold Pty Ltd, a wholly owned Australian subsidiary of Canadian parent company – 2525908 Ontario Inc.

As a result of the proposed sale, Northern Star said its production guidance for the current financial year would be 485,000 to 515,000 ounces at an all-in sustaining cost of $1,000 to $1,050 per ounce (US$728-765/oz).

In FY16, Northern Star produced 561,153 ounces at an all-in sustaining cost of $1,041 per ounce (US$758/oz).

Northern Star indicated its future production will now come from the three concentrated centres of Jundee, Kalgoorlie and Paulsens with the company looking to achieve an annual production rate of approximately 600,000 ounces for calendar year 2018 compared with its previous target of around 700,000 ounces, of which Plutonic was expected to contribute 100,000 ounces.

For now the company intends to increase exploration activity at each of these centres as part of its ongoing strategy to drive organic growth with the plan to spend $60 million on exploration and a further $70 million on expansionary capital for future production growth this financial year.

Northern Star Resources managing director Bill Beament said the sale would re-shape Northern Star’s asset base around the three key production centres of Jundee, Kalgoorlie and Paulsens with the Central Tanami being the potential fourth centre.

“Our focus is shifting to concentrated centres of production with each meeting the criteria of significant production scale and substantial exploration upside,” he said in the company’s announcement to the Australian Securities Exchange.

“We believe this structure and strategy will meet the evolving demands of global investment institutions.”

Email: info@nsrltd.com

Website: www.nsrltd.com

Lithium Australia adds QLD to domestic portfolio

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has dipped its toes into Queensland’s potential lithium exploration and development sector.

Lithium Australia has lodged applications for ground it considers to be prospective for lithium on Cape York.

The company explained the applications are the result of an enlarged strategy, under which it intends to now look Australia-wide to add to its domestic lithium holdings throughout Western Australia and the Northern Territory.

This national focus resulted in the company identifying a prospective geological environment in Far North Queensland, which in turn led to the application for exploration permits covering most of the available vacant ground.

The permit areas are located about 80 kilometres southwest of Princess Charlotte Bay and about 350km northwest of Cairns covering an area of 1,380 square kilometres.

“Our broadened nationwide search is designed to derisk the company’s lithium exploration portfolio by providing exposure to multiple lithium opportunities across multiple state jurisdictions,” Lithium Australia managing dire4ctor Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The area we have identified in Far North Queensland shows the hallmarks we are looking for.

“It is the right geological environment, has past identification of the lithium mineral suite and has some historic pegmatite mining.

“Like so many other areas across Australia, lithium has never been an exploration or production target on Cape York.

“Exploration diversity strengthens our portfolio and provides the opportunity to match the best available processing technology with the mineralisation types encountered.

“The Queensland campaign adds to Lithium Australia’s strong and expanding project suite and technological alliances over 2016 with private and government stakeholders alike as well as its 100 per cent-ownership of the versatile Sileach processing technology and access to a number of other leading technologies.”

Lithium Australia’s project portfolio now includes:

Western Australia:
The Gascoyne; Pilgangoora; Ravensthorpe; Seabrook; Lepidolite Hill; Greenbushes; Lake Johnston; and Widgiemooltha projects;

Northern Territory:
Bynoe;

Queensland:
Cape York; and

Mexico:
A 25 per cent interest in the Electra lithium project.

Email: info@lithium-au.com

Website: www.lithium-au.com

S2 Resources completes $9.1M raising

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THE BOURSE WHISPERER: S2 Resources (ASX: S2R) announced the completion of the bookbuild for a placement to domestic and international institutional and sophisticated investors raising $9.1 million.

S2 said the placement was heavily oversubscribed with a lot of interest from a variety of existing and new investors, which the company put down to recent exploration news from its Polar Bear project in Western Australia.

The placement of 22.7 million ordinary shares was at an issue price of 40 cents per share.

S2 Resources indicated its intention to undertake a Share Purchase Plan (SSP) to raise up to $3 million at the same issue price as the placement, in order to ensure retail shareholders are able to participate.

Post-completion of the placement and the SPP, S2 will be very well funded with a cash balance sitting around $27.5 million after transaction costs.

The company has earmarked the net proceeds from the Placement and SPP to accelerate ongoing exploration activities and for general corporate purposes.

“It is pleasing to see such strong demand, which reflects the level of interest in the company’s assets,” S2 Resources managing director Mark Bennett said in the company’s announcement to the Australian Securities Exchange.

“The placement enables us to further strengthen our share register with selected institutional investors whilst the SPP enables our smaller retail shareholders to participate at the same pricing.

“Having such a strong balance sheet positions S2 to vigorously pursue its various opportunities unfettered by cash constraints, which puts us in a very advantageous position when compared to many others in the junior exploration sector.”

Email: admin@s2reources.com.au

Website: www.s2resources.com.au

Lithium Australia expands WA tenement portfolio

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THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced the expansion of the company’s lithium holdings throughout Western Australia with the acquisition of additional acreage in the prospective Gascoyne region.

The company has acquired three new prospects via the 100 per cent takeover of private company, Lithophile Pty Ltd.

Lithium Australia declared the prospects to all be located within a recognised area of high lithium potential in the Gascoyne Complex located 750 kilometres north of Perth.

The new holdings are in close proximity to Lithium Australia’s existing exploration licence application in the Gascoyne.

The acquisition of Lithophile gives Lithium Australia access to four prospects within the Gascoyne Complex with its consolidated project area in the Gascoyne now consisting of four prospects:

Mt James 1:
E09/2200 – Lithophile exploration licence application;

Mt James 2:
E09/2201 – Lithophile exploration licence application;

Thomas River:
E09/2191 – Lithophile exploration licence application; and

Yinnietharra:
E09/2168 – LIT exploration licence application.

The company explained the Mt James and Thomas River prospects target the volatile-rich leucogranite source rocks.

The Yinnietharra prospect is based on known occurrences of tin, tantalum, beryl and tungsten hosted by pegmatites that are distal from the magma source.

Lithium Australia said the association of rare metals, together with pegmatite and leucogranite source rocks, is a very promising indicator for lithium mineralisation.

“The Gascoyne has many of the attributes of Western Australia’s other emerging lithium centres,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The area has been a focus of past rare metal exploration but its lithium potential has been ignored.

“This acquisition continues LIT’s long-term strategy to procure alternative lithium sources to feed a Western Australian based lithium chemical industry.

“We recognise the variability in ore types and chemistry present an immense challenge but the company’s research will create the most effective union of processing technology and ore types.”

Email: info@lithium-au.com

Website: www.lithium-au.com

Pioneer Resources completes $4.8M raisings

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THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) announced the completion of its current capital strategies, raising approximately $4.8 million, which it intends spending on drilling program at the company’s most advanced lithium projects.

This drilling will further test known spodumene-bearing pegmatites at the Mavis Lake and recently acquired Raleigh Projects in Ontario, Canada.

It will also scratch any additional new pegmatite targets that may result from the lithium-focussed geochemistry surveys Pioneer has in progress at its 100 per cent-owned Pioneer Dome project.

In total, Pioneer has raised $4,788,700 (before issue costs), comprising:

$3,270,400 from a Placement to professional and sophisticated investors of Sanlam Private Wealth (before issue costs).

This Placement resulted in the issuing of approximately 90.8 million fully paid ordinary shares at an issue price of 3.6 cents per share, and approximately 30.3 million free attaching options to acquire a fully paid ordinary share in the company at an exercise price of 6 cents each on or before 31 July 2018.

$1,518,300 from the Share Purchase Plan (SPP), (before issue costs), under which the company issued approximately 42.2 million fully paid ordinary shares at an issue price of 3.6 cents per share.

Subject to shareholder approval, approximately 14.1 million free attaching options, each to acquire a fully paid ordinary share in the company, will be issued on a one option for every three shares subscribed for and issued basis.

Options may be exercised at a price of 6 cents each on or before 31 July 2018.

The new funds enhance the company’s cash balance which, at 31 March 2016, was $2.05 million.

“On behalf of the Board I extend our thanks and appreciation to new and existing shareholders who participated in either the placement or the SPP, and for their on-going support,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“The company is at a very exciting stage and once statutory approvals are received, we will commence the first lithium-focussed drilling on our recently acquired Canadian and Western Australian exploration assets, from a well-funded base.”

Website: www.pioresources.com.au

Havilah Resources goes gold-pour crazy at Portia

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THE BOURSE WHISPERER: Havilah Resources (ASX-HAV) has been busy pouring gold at the company’s Portia gold mine, northwest of Broken Hill.

The company reported the pouring of four gold bars totalling approximately 40 kilograms earlier this week, claiming on-site analysis indicating the bars to have a purity in excess of 90 pwer cent, making them worth more than approximately $2 million at current gold prices.

“A few weeks ago we reported our first million dollars of gold income, now we have achieved double that in just one day,” Havilah Resources managing director Dr Chris Giles said in the company’s announcement to the Australian Securities Exchange.

“Portia is living up to our expectations both in terms of gold grade reconciliation and grade distribution.”

Havilah indicated it has now progressed mining in the open pit to the high-grade portion of the deposit, which has been reflected in the increased daily gold production currently being achieved.

Over the last week Havilah’s mining partner, Consolidated Mining and Civil, has delivered more than 14,000 tonnes of high-grade ore and 20,000 tonnes of medium grade ore to the processing plant stockpile.

Havilah said it expects this will enable it to maintain its current processing plant production rates, adding steady progress has been made on increasing the ore throughput rates with 24 hour operation and improved availability of the processing plant.

The plant has recovered gold in accordance with design expectations with daily testing of the tails stream demonstrating negligible loss of gravity recoverable gold.

Email: info@havilah-resources.com.au

Website: www.havilah-resources.com.au

Blackham Resources commences mining at Matilda

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THE BOURSE WHISPERER: Blackham Resources (ASX: BLK) announced commencement of open pit mining and underground development work at the company’s Matilda gold project near Wiluna in Western Australia.

Blackham’s open pit contractor, MACA (ASX: MLD) has mobilised the initial mining fleet and commenced mining operations at the Matilda M10 open pit while Pybar Mining Services has commenced underground development at the high-grade Golden Age orebody.

“The commencement of mining represents another significant milestone in the company’s transition from gold explorer to producer at a time of record Australian gold prices,” Blackham Resources managing director Bryan Dixon said in the company’s announcement to the Australian Securities Exchange.

The 5.1 million ounce Matilda gold project has an initial mine life of eight years and growing.

The company said the commencement of wet commissioning of the Wiluna processing plant is on track to begin in August 2016.

The Matilda gold project has an updated Mineral Resource of 48 million tonnes at 3.3 grams per tonne gold 5.1 million ounces, all of which are within a 20 kilometre radius of the company’s 100 per cent-owned Wiluna gold plant that is capable of processing up to 1.7 million tonnes per annum for over 100,000 ounces of gold per annum gold production.

Measured and Indicated resources now total 22 million tonnes at 3.4g/t gold for 2.4 million ounces.

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

Altona Mining earns amended Environmental Authority

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THE BOURSE WHISPERER: Altona Mining (ASX: AOH) has received an Amended Environmental Authority from the Queensland Department of Environment and Heritage Protection for the company’s Cloncurry copper project near Mt Isa in Queensland.

The grant of the amendment is a key condition precedent of a US$238.5 million proposed Joint Venture with Sichuan Railway Investment Group (SRIG).

The planned Little Eva mining project sits within the Cloncurry project, for which a revised mine plan layout has been approved.

“The key amendments largely flow from the discovery of the Turkey Creek deposit adjacent to planned infrastructure and incorporating that deposit into the mine plan,” Altona Mining said in its ASX announcement.

The company outlined these changes to be:

A new open pit mine at Turkey Creek;

Waste rock storage from the Turkey Creek mine;

Increase to mine life and total tonnage treated;

Re-location and increased capacity of the Tailings Storage Facility; and

A larger flood protection bund and diversion channel around the Little Eva pit to permit a larger pit.

Altona explained the technical work required was undertaken as part of an agreed budget with SRIG and that this expenditure may be offset against Altona’s cash contribution to the JV.

Email: altona@altonamining.com.au

Website: www.altonamining.com.au