Octagonal and A1 gold strike project consolidation deal

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THE BOURSE WHISPERER: A1 Consolidated Gold (ASX: AYC) and Octagonal Resources (ASX: ORS) have entered into a binding Heads of Agreement under which A1 Gold will purchase the Maldon gold operation from Octagonal.

According to the companies’ joint release to the ASX the deal will result in the creation of a substantial junior Australian gold business with over 330,000 ounces of underground and open pit resources and a 150,000 tonnes per annum CIL gold processing facility at Maldon which, as luck would have it, is just the right fit for planned production from the A1 gold mine.

In consideration for the sale of the Maldon operation, Octagonal will receive $5.1 million in A1 Gold shares at 3 cents per share, 1:3 listed A1 Gold options that will vest 3 months after completion of the transaction and have a 5 year life, and a board position on A1 Gold.

Octagonal indicated its intentions to distribute approximately 50 per cent of the A1 Gold shares and options received under this transaction to its shareholders through an in specie distribution on a pro rata basis.

All shares retained by Octagonal will be subject to a voluntary 6 month escrow period.

A1 Gold will complete due diligence on the Maldon gold operation with the agreement anticipated to be executed during December 2014.

The two companies consider the deal has a number of synergies, including providing certainty of ore processing for A1 Gold by removing the need to construct a mill onsite.

The Maldon gold operation has a 150,000tpa CIL gold processing plant. A1 Gold will install a gravity circuit into the plant to improve gold recovery and eventually increase throughput.

The combined company will hold in excess of 330,000 ounces of underground and open pit resources, with the option to expand to almost 600,000 ounces of resources if Octagonal’s option to acquire the Walhalla tenements is exercised.

The companies believe this resource base provides for a long term life of mine operation.

Elvis has left the building

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THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Managing Director Resigns

Robert Mencel has resigned his position as managing director of IronClad Mining (IFE: ASX).

Mencel was appointed in 2012 to develop the Wilcherry Hill iron ore project.

“During his time at the helm the iron ore industry has been plagued by decreasing prices, increasing costs and high exchange rates,” IronClad Mining said.

“The company acknowledges the contributions Mr. Mencel has made in trying to overcome these hurdles and is grateful for his efforts.”


Board and Management changes

Oro Verde Limited (ASX: OVL), following its decision to focus its activities in Nicaragua is to make a number of changes to its Board and Management.

Trevor Woolfe will be appointed as chief executive officer while serving executive chairman and managing director, Dr Wolf Martinick will relinquish his role as MD and move to non-executive chairman.

Executive technical director, Dr Brad Farrell will remain as a technical director but in a non-executive capacity.

Current directors Ross O’Dea and David Ward will both retire.

Well known industry executive Tony Rovira will be appointed to the Board as a non-executive director.


Chief Executive Officer appointment

Yellow Rock Resources (ASX: YRR) has appointed Vincent Algar to the position of chief executive officer (CEO) to lead the company through its next stages of growth and the advancement of the company’s high-grade Gabanintha vanadium project.

“The Board is extremely pleased to be in a strong position to advance the Gabanintha vanadium project and the addition of Mr Algar to the team will help the company achieve the next steps efficiently,” Yellow Rock Resources executive director Leslie Ingraham said.

“His prior experience in resource consulting, listed companies and with ferro-metals will be invaluable to help move the project towards feasibility.

The company also advised the resignation of Lorry Hughes as its current CEO.


Chairman takes Management Role

Spitfire Resources (ASX: SPI) announced that its chairman James Hamilton has agreed to take up full time management of the company.

Hamilton becomes Spitfire’s managing director after the passing of John Mackenzie.

Hamilton is one of the founders of Spitfire and the company’s second biggest shareholder.

He will lead a reduced board of three.

He brings to the role more than 20 years’ experience in the global resources sector and has held executive management positions for both Australian and UK public companies during the past decade.

Board Changes

Base Resources (ASX: BSE) announced that Mike Stirzaker has been appointed to, and Trevor Schultz has retired from, the role of non-executive director.

Schultz’s retirement comes as part of the ongoing evolution of the composition of the Board as the company moves into its next phase of development.

He has been a director of Base since 2011 and has been instrumental throughout the construction phase of its Kwale project.


Resignation of Executive Chairman and Executive Appointment

Fifth Element Resources (ASX: FTH) advised that its chairman Chi Ho William Lo has resigned from the Board to pursue other business opportunities, but will continue to act as a consultant to the company.

The company also announced the appointment of Yang Zhang as chairman and chief executive officer.

Zhang has over 20 years’ of experience in industrial investment and management.

He has previously been the chairman of companies listed on the Hong Kong Stock Exchange, including Inter-China Holdings Company Limited and Guo Xi Group Limited.

Bulletin assigns further project interest to Pacific Niugini

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THE BOURSE WHISPERER: Bulletin Resources (ASX: BNR) has assigned a 16 per cent interest in the Halls Creek Nicholson’s project in Western Australia to Pacific Niugini (ASX: PNR) upon completion of $1.2 million in expenditure on the project.

The ownership of the project is now: Pacific Niugini 65 per cent, Bulletin 35 per cent.

The two companies are progressing a project development plan at the Nicholson’s project designed to achieve the commencement of construction and refurbishment in early 2015, with commencement of production expected approximately six months after initiation of mining activities.

Results of a feasibility study conducted by Pacific Niugini, which were announced earlier this month, show the financial parameters of the project to be robust with potential to increase the known reserves and resources considered high.

“The progress that Pacific Niugini has made and particularly the results of the feasibility study are quite impressive,” Bulletin Resources said in its ASX announcement.

“The feasibility study highlights the value that Bulletin’s share of the project delivers to Bulletin and underpins strong future value potential for shareholders.”

Bulletin reinforced its intention to remain part of the project going forward adding it expects to benefit from the positive cash flow the project is capable of delivering as highlighted by the feasibility study.
 
Bulletin indicated it has commenced determining its options with regard to financing via possible debt facilities to fund its JV requirements.

Website: www.bulletinresources.com

Doray and Iluka strike Farm-in Agreement

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THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) has entered a strategic Farm-in Agreement with Iluka Resources (ASX: ILU).

The agreement allows Doray to explore Iluka’s Central and Western Gawler
Craton tenement portfolio in South Australia, which Doray says has been
virtually unexplored for precious metals.

Doray will have the right to earn up to 80 per cent of any ‘Gold
Resources’ (defined as a Resource where the economic value of the Gold
in the Resource is greater than 80 per cent of the total economic value
of the Resource) discovered within the project area with Iluka retaining
rights to discoveries of other commodities, unless it elects not to do
so.

The Farm-in Project area comprises approximately 21,000
square kilometres of exploration licences and applications overlying the
Central and Western Gawler Craton.

 

Location of Iluka Farm-In project area and existing Doray tenements in South Australia. Source: Company announcement

 

According to Doray the area encompasses one of the last underexplored
Archaean/Proterozoic boundaries in Australia, with similarities to the
Yilgarn Craton/Albany-Fraser Province juxtaposition on the western side
of the Eucla Basin in Western Australia.

Doray will explore the Farm-in project area for large-scale, granite and/or shear hosted gold mineralisation.

“The exploration Farm-in with Iluka represents a strategic first-mover
opportunity for Doray, given the size of the landholding and the highly
prospective and underexplored geology it covers,” Doray Minerals
managing director Allan Kelly said in the company’s announcement to the
Australian Securities Exchange.

“We are very pleased that Iluka has recognised the potential that a collaboration with Doray represents for them.

“Our enthusiastic and proven exploration approach will see the project
area explored efficiently and effectively and we now look forward to
commencing this exciting opportunity.”

Email: info@dorayminerals.com.au

Website: www.dorayminerals.com.au

Elvis has left the building

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THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Director Retirement

Potash West (ASX: PWN) announced George Sakalidis has notified the company of his intention not to stand for re-election as a non-executive director.

Accordingly he will retire as of the company’s Annual General Meeting on 26 November
2014.

“George was a founding director and was instrumental in listing PWN in 2011,” Potash West chairman Adrian Griffin said.

“He has been a staunch supporter of the company and his local experience, having operated in the
Perth Basin for many years, has been an invaluable management asset.

“I extend my personal thanks, and that of the PWN Board, to George for his efforts.

“All of the PWN management team would like to wish George well for the future, knowing that his support will remain long after his retirement from the board.”


Board shakeup

RNI NL (ASX: RNI) has appointed Royce McAuslane as managing director as part of a review of the Board’s executive structure.

McAuslane joined RNI as a consultant a year ago and was appointed development manager in July 2014 to oversee the delivery of the Grosvenor gold project and other project development activities.

As part of the Board review, executive chairman Miles Kennedy will become non-executive chairman and executive technical director Albert Thamm will become a non-executive director.

“In the 12 months he has worked for RNI, Royce has proven himself to be extremely professional and diligent,” Kennedy said.

“He has the right credentials to take RNI through the next phase as we look to transition to a mining company, generating the cash flows which will in turn enable RNI to fund our ongoing copper-gold exploration programs in WA’s Bryah Basin.”

Poseidon completes Lake Johnston acquisition

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THE BOURSE WHISPERER: Poseidon Nickel (ASX: POS) has completed the acquisition of the Lake Johnston nickel project from Norilsk.

The company said it is planning to return Lake Johnston and its Mt Windarra nickel project to production within six months of final financing and completion of a Definitive Feasibility Study for the Lake Johnston.

Poseidon agreed to acquire Lake Johnston from Norilsk Nickel for $1 million in September, having struck an agreement to purchase the Black Swan nickel project for $1.5 million in July.

The Lake Johnston and Black Swan projects include mine and concentrator plant infrastructure, and proven resources.

Poseidon has estimated the cost of bringing the initial two assets into production at around $24 million plus working capital with Black Swan, planned at this time to be funded from operational cashflow.

The company explained this initial capital figure for the first production of nickel concentrate for Poseidon has been revised down from a previous estimate of $300 million to restart operations at Mt Windarra on a standalone basis.

This much lower capital hit is partly a result of a recent offtake deal,the upshot of which means Poseidon has avoided the need to build a new concentrator plant and associated facilities.

Poseidon expects its overall nickel production capacity to be twice as high as original estimates, which were just for the Mt Windarra project.

Poseidon recently completed a $30 million placement to fund the initial capital investment for the recommencement of production at Mt Windarra and Lake Johnston.

A final decision of the recommencement of operations at Lake Johnston will follow completion of a DFS currently underway on the project.

“Poseidon now has three high quality nickel assets and substantial processing infrastructure in near working order,” Poseidon Nickel chief executive officer David Singleton said in the company’s announcement to the Australian Securities Exchange.

“We have a resource base that has more than doubled with the recent acquisitions of Lake Johnston and Black Swan.

“We can bring three projects into production within a relatively short timeframe, and within a manageable funding requirement.”

Poseidon indicated the acquisition of Lake Johnston and Black Swan has more than doubled its resource base to over 380,000 tonnes of nickel.

The Lake Johnston processing plant has capacity of 1.5 million tonnes per annum and the Black Swan nickel plant, which was upgraded in 2006, has proven throughput capacity of 2.15 million tonnes per annum.

The return to production of all three projects would give Poseidon the second largest nickel sulphide processing capacity in Australia.

“The Norilsk assets we are acquiring have had a substantial amount of capital spent on them and are in good operational condition and we currently have studies underway to finalise the exact costs and schedule to production,” Singleton continued.

“We now have a realistic and clear pathway to production, with profitable projects at current average nickel prices.

“It’s a very exciting time in the life of the company.”

Email: admin@poseidon-nickel.com.au

Website: www.poseidon-nickel.com.au

Ironbark takes 50% JV stake of Captains Flat

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THE BOURSE WHISPERER: Ironbark Zinc (ASX: IBG) has renegotiated the Joint Venture agreement covering the Captains Flat base metals project in New South Wales.

Ironbark is to take on equal joint title of the project and will continue exploration in an equal JV agreement with Glencore.

The project comprises one Exploration Licence, which was previously held by Rutila Resources (ASX: RTA), with Ironbark and NSW Base Metals earning up to 75 per cent of the project.

The new JV agreement replaces the Rutila-Ironbark-Glencore JV agreement and will result in Ironbark issuing one million Ironbark shares to Rutila and a minor cash adjustment.

Both JV partners will pay a proportional share of a 0.25 per cent trailing production royalty to Rutila.

The Captains Flat base metal project is located 45 kilometres south east of Canberra.

“The project covers a strike length of 49 kilometres of a highly-endowed Volcanic Massive Sulphide horizon that hosts numerous historic mineral occurrences and mines, including the Lake George mine that produced 4 million tonnes of high-grade ore until closure in 1962 and was at one time Australia’s second largest producer of copper,” Ironbark Zinc said in its ASX announcement.

“Within the project area prospects include the Jerangle, Lake George and Vanderbilt Hill prospects where previous explorers have returned high-grade copper and zinc drill intercepts.

“Drilling by Ironbark in 2013 also returned high-grade base metal results that will be followed-up.”

 

Prospect locations and significant diamond drill hole intercepts of the Captains Flat project. Source: Company announcement

 

The Jerangle Prospect is located at the southern end of the project area and drilling over a strike length of 1.5 kilometres has returned drill intercepts assaying up to 5.25 per cent copper.

Recent drilling has returned results including:

4.4 metres at 12.05 per cent zinc and 5m at 4.6 per cent zinc and lead, 0.13 per cent copper and 4.2 grams per tonne silver.

The Lake George mine produced approximately four million tonnes of ore at 10 per cent zinc, 6 per cent lead, 0.7 per cent copper, 1.8g/t gold and 55g/t silver.

Ironbark considers it to remain prospective for remnant ore at current base metal prices as well as at depth where results such as 1.22m at 12.4 per cent zinc, 5.4 per cent lead were returned beneath historical workings over a strike length of at least 300m from diamond drilling.

Mineralisation is open at depth and may represent possible repeats of the historically mined areas.

The Vanderbilt Hill prospect is located to the east of the Lake George mine and drilling has returned results such as 3.9m at 10 per cent zinc, 5.3 per cent lead.

Ironbark considers it to be highly prospective with open ended historic high-grade drill results yet to be followed up.

The Anembo prospect is located 12km north of the Jerangle prospect.

Historic drilling returned 3m at 6.9 per cent zinc, 5.5 per cent lead, 21g/t silver and 2g/t gold which has not been followed up.

Email: admin@ironbark.gl

Website: www.ironbark.gl

Cobre Montana secures 25 year lithium processing deal

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THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has struck new processing licence agreements it considers to have potential to cement Western Australia as a long-term major supplier of lithium into expanding global markets.

The agreements will combine Cobre’s mica-based lithium occurrences near Coolgardie, Ravensthorpe and Southern Cross in WA, with a proprietary technology developed and owned by Perth-based technology provider, Strategic Metallurgy.

Cobre claims this is the only known practical processing technology able to extract lithium from the sheet like mica.

Mica is an electrical and thermal insulator, which has recently enhanced its status as a key potential source of lithium for new-age heavy duty lithium and lithium-ion batteries for transport – including aviation purposes – and applications such as heat-resistant glass and ceramics, and high strength-to-weight alloys.

Western Australia already supplies around a third of total annual global lithium production.

The agreements, in the form of options over the use by Cobre Montana of the Strategic technology, will run for up to 26 years and are exclusive to Cobre in WA as well as two other Cobre lithium project areas of the company’s choosing in either Australia or overseas.

“The licencing deal follows our recent success in delivering proof-of-concept lithium carbonate production from micas, using the Strategic Metallurgy technology,” Cobre Montana managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“We were able during this proof-of-concept phase to produce battery-grade lithium carbonate suitable as a feed stock for these emergent high-tech batteries, from our lithium mica (lepidolite) deposits in WA.

“Lepidolite until now, has had very limited application in the production of lithium chemicals but we have achieved that breakthrough and have now backed it up with a long-term licence to process agreement that will position Cobre Montana as a potential future lithium supplier into these expanding and global high technology markets.”

Under the agreements, the licences will provide Cobre exclusivity within Western Australia for up to 25 years and exclusivity at two other locations anywhere in the world.

“The exclusive nature of the licences provides Cobre with an unprecedented advantage over competitors by providing, through Cobre, the only practical means of accessing the technology so that Cobre will be the key to implementing lithium projects based on mica plant feed,” Griffin said.

Under the terms, Cobre Montana will have:

Option will be free for 6 months;

Two subsequent option extensions of 6 months by payment of $5,000;

Option exercise $100,000;

A requirement to continue testing with Strategic Metallurgy;

Gross product royalty 2 per cent;

Licence exclusivity extending 5 years from exercise;

Exclusivity extended another 20 years if a plant is commissioned in WA during the initial 5 year exclusivity period; and

Two further licence options available anywhere in the world, with Cobre having the right to change nominations by agreement with Strategic.

“We have been exceptionally pleased with the test results using this technology and the option provides us with the ability to lock in our position, with no additional outlay as further testing progresses,” Griffin said.

“Furthermore, the arrangement effectively gives Cobre Montana exclusive first rights to utilise the technology anywhere in the world and potentially have front running in WA for over 25 years.”

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

Stonehenge completes Protean Wave Energy transaction

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THE BOURSE WHISPERER: Stonehenge Metals (ASX: SHE) has executed formal transaction documents and completed an option agreement with Protean Energy Ltd.

The option agreement grants Stonehenge an exclusive 24 month global licence and an option to acquire 100 per cent of the equity of Protean Energy Australia Pty Ltd, which holds the intellectual property titles, rights and licenses to the Protean Wave Energy Converter Technology (Protean WEC).

Stonehenge described the Protean WEC system to be a point-absorber wave energy converter buoy device which floats at the water surface and extracts energy from the waves by the extension and retraction of a tether to its anchoring weight on the sea bed.

 

Source: Company announcement

 

As a result of completion of the transaction, Sean Moore (the Protean WEC inventor) and Bruce Lane have now both commenced in the respective roles with Stonehenge of chief technology officer (Wave Energy) and managing director.

Stonehenge has also agreed to provide PEL with a working capital loan of up to $30,000, secured against the assets of PEL.

“We are delighted to be able to confirm the completion of the transaction with Protean and the formal appointment of both Sean Moore and Bruce Lane,” Stonehenge Metals chairman Richard Henning said in the company’s announcement to the Australian Securities Exchange.

“The finalisation of these matters puts Stonehenge in an excellent position to deliver progress on both the Protean wave energy project and our South Korean projects.”

Website: www.stonehengemetals.com.au

Elvis has left the building

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THE BOURSE WHISPERER: The regular game of musical chairs continues within the boardrooms across the resources industry.

Appointment of new Chairman and Director

Elemental Minerals (ASX: ELM) announced the appointments of Tom Borman as the new chairman of the Board and Mike Golding as a non-executive director.

Borman will replace Sam Middlemas who will remain on the Board as a non-executive director.

“We are extremely pleased that both Tom and Mike have agreed to join the Elemental Board,” Elemental Minerals CEO John Sanders said.

“It has been our stated intention to significantly strengthen the Board with a broad set of skills and experience that are integral to developing the world class Kola and Dougou assets in the Republic of Congo and to further augment the strategic direction of the company.

“The company would like to thank Sam Middlemas for the service he has provided as chairman of the Board and are delighted that he has agreed to stay on in a non-executive role.”


Board Changes

Alara Resources (ASX: AUQ) announced the resignation of His Royal Highness Prince Abdullah bin Mosaad bin Abdulaziz Al Saud as a non-executive director following his appointment by Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud to a government position as General President of Youth Welfare, effectively, the Kingdom of Saudi Arabia’s minister of sport.

In connection with this resignation HRH Prince Abdullah is obliged to resign all private sector directorships.

Alara has appointed James D Phipps, HRH’s principal advisor and, to date, alternate director on the Board of Alara, as a non-executive director.

Phipps represents the interests of HRH Prince Abdullah on the boards of various public and private companies, a number of which he chairs.

“Alara has been very fortunate to have HRH Prince Abdullah on its Board; to represent the company’s interests in Saudi Arabia and to advise the Board and management team as the company transitions to be a base metals producer in Saudi Arabia,” Alara Resources chairman Ian Williams said.

“Alara is pleased to have continuity for this influential Board position, with James Phipps transitioning to non-executive director and continuing to represent Alara’s interests in the Kingdom at Board level.”


Appointment of General Manager

Royal Resources (ASX: ROY) has appointed Nathanial Toll as interim general manager.

Royal said the appointment is in accordance with the company’s intention to relocate its executive and business office to South Australia to better control the development of the Razorback iron project.

Toll is a hydrogeologist with a Bachelors degree in geology and a Masters degree in Hydrogeology.

He has over 15 years’ experience in industry. During his career he has managed technical studies environmental approvals in the contaminated sites, mining and nuclear waste industries.

He has held technical and management positions at Rio Tinto and Sandia National Laboratories.


Board Changes

Marenica Energy (ASX: MEY) announced that Robert Pearce has retired as chairman and a director of the company.

Pearce has been chairman of Marenica since 2010.

The company has advised that non-executive director Doug Buerger has been appointed as its new chairman.

Buerger specialises in exploration, geochemistry and geology with over 40 years’ experience in the resources industry in base metals, gold and uranium.

Marenica has also appointed Hanlong nominee Lou Guo Qing as a non-executive director of the company.


Toro appoints Sentient representative to Board

Subsequent to The Sentient Group and Toro Energy (ASX: TOE) reaching agreement in regards to a $10 million cash injection by the former, Toro has agreed to grant Sentient the right to appoint one nominee to its Board for so long as Sentient maintains a minimum interest in Toro of 11 per cent.

Michel Marier has been invited to join the Board of Toro. Marier joined Sentient in 2009 as an investment manager.

Before joining Sentient, Mr Marier worked for eight years at the Private Equity division of la Caisse de dépôt et placement du Québec (CDPQ).

He is currently a Director of ASX-listed Geodynamics (ASX: GDY) and Samco Gold, a company listed on the TSX.V exchange.