Corazon to increase Canadian nickel footprint

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THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has finalised terms for the acquisition of the Victory nickel project in the Lynn Lake Nickel-Copper Field, in the central Canadian province of Manitoba.

Corazon is to acquire the Victory project from TSX-listed Victory Nickel.

The Victory project is located immediately adjacent to Corazon’s Lynn Lake nickel project.

 

Lynn Lake claim outline and prospect location. Source: Company announcement

 

Corazon said the acquisition will consolidate the Lynn Lake Nickel-Copper Field for the first time since its closure in 1976.

The Lynn Lake mining centre operated from 1953 until 1976, producing 22.2 million tonnes at one per cent nickel and 0.5 per cent copper at a rate of approximately one million tons per annum.

Lynn Lake is Canada’s third largest nickel mining region and, following completion of the Victory project acquisition, will be controlled entirely by Corazon.

“Corazon’s consolidation of the Lynn Lake field will provide a significant nickel-copper asset,” the company said in its ASX announcement.

“The company believes bringing the two nickel projects together will improve the economics of any potential mining operation and provide benefits in scale and possible mine life, enhancing the opportunity to take advantage of an appreciating nickel metal price.”

The Victory project has a Canadian (NI 43-101) Measured, Indicated and Inferred Resource totalling 17 million tonnes at 0.66 per cent nickel and 0.33 per cent copper, for the deposits closest to Corazon’s EL Deposit.

Corazon and Victory have executed a Binding Term Sheet and will seek any necessary approvals and finalise the formal agreement.

On completion of the acquisition, Corazon said it intends to generate a JORC 2012-compliant Resource at both the A Plug and EL Plug while mining Studies will also be progressed.

This work will predominantly involve desktop resource modelling and Corazon believes it can be completed within the next 12 months using the company’s existing funds.

Corazon’s key target within its Lynn Lake project area has always been the EL deposit, which was the highest grade mine at Lynn Lake, producing 1.9 million tonnes at 2.5 per cent nickel and 1.15 per cent copper.

In 2011, Corazon discovered a new high-grade sulphide breccia at depth below the EL Mine, which the company said had confirmed the prospectivity of the Lynn Lake field, despite its extensive past mine life.

Email: info@corazon.com.au

Website: www.corazon.com.au

New Cobre partnership expands Seabrook lithium target.

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THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has entered into a strategic partnership, the Seabrook Rare Metals Venture, with ASX-listed Tungsten Mining (ASX: TGN).

The companies will explore for lithium and other metals on the shores of Lake Seabrook, located approximately 60 kilometres north-east of Southern Cross in Western Australia.

According to Cobre the partnership will extend its interest to a 15km strike potential as well as providing the company immediate access to granted tenure.

In October, Cobre lodged an exploration licence application for prospective ground at Lake Seabrook, covering pegmatites, which it considers to contain lithium mica, beryl and tourmaline.

The initial target area was about 5km long and 2km wide.

“The mineralized zone trends north westerly from the Cobre Montana application area, beneath the lake bed and into ground held by TGN with surface expression over a further seven kilometres,” Cobre Montana said in its ASX announcement.

“The mineralisation appears to be associated with an extensive shear zone and consists of pegmatites and metasomatically altered country rock.

“On the ground held by TGN, the mineralisation is manifest as tungsten bearing skarns which also contain a number of other rare metals, typical of the genesis associated with the pegmatites.”

The Seabrook Rare Metals Venture provides Cobre with the right to earn an 80 per cent interest to all metals other than tungsten, the right of which remain or are vested in TGN.

The fundamental terms of the agreement are:

CXB to manage the joint land package and be responsible for maintaining the tenements in good standing;

An area of influence around the TGN tenements of 20km;

CXB is to sole fund to the commencement of definitive feasibility study;

On committing to a definitive feasibility study conversion to an 80/20 (CXB/TGN) contributing JV for development of non-tungsten minerals;

TGN retains 100 per cent interest in tungsten and retains right to continue operations for the discovery and development of tungsten within the area of interest; and

CXB to provide all exploration data to TGN.

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

Sumatra Copper & Gold completes Tembang hedging

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Sumatra Copper & Gold completes Tembang hedging

THE BOURSE WHISPERER: Sumatra Copper & Gold (ASX: SUM) has finalised a hedging program for the Tembang gold project in Indonesia.

In October 2014 Sumatra Copper & Gold announced its wholly-owned subsidiary, PT Dwinad Nusa Sejahtera, had signed a senior secured debt facility of up to US$45 million with Nomura Singapore Limited and Indonesia Eximbank for the purpose of developing the Tembang gold project.

The Facility required Sumatra Copper & Gold to enter into hedging equivalent to 50 per cent of gold and silver production during the first two years of operation.

The program has now been completed and was arranged using a capped forward structure as follows:

42,000 ounces of gold were hedged at a strike price of US$1,108.50 per ounce. Where the gold price at the time of delivery is below US$1,428.50 per ounce the company will receive a gold price of US$1,108.50 per ounce. Where the gold price is above US$1,428.50 per ounce it will receive a gold price equivalent to the prevailing gold price less US$320.00 per ounce.

343,200 ounces of silver were hedged at a strike price of US$14.47 per ounce. Where the silver price at the time of delivery is below US$21.77 per ounce Sumatra Copper & Gold will receive a silver price of US$14.47 per ounce. Where the silver price is a bove US$21.77 per ounce the company will receive a silver price equivalent to the prevailing price less US$7.30 per ounce.

The company anticipates deliveries under the hedge program will commence in November 2015 with equal monthly deliveries of gold and silver.

Sumatra Copper & Gold will pay a premium of US$300,000 for entering into the hedging program.

“The hedge program represents approximately 23 per cent and 16 per cent respectively of the company’s gold and silver Ore Reserves,” Sumatra Copper & Gold said in its ASX announcement.

“The Tembang gold project has low cash costs and considerable potential for expansion of mine life.

“The company expects that the remaining conditions precedent to drawdown of the Facility will be completed in the near term and drawdown of the initial US$40 million of financing will occur during the first half of November 2014.”

Email: info@scgplc.com

Website: www.sumatracoppergold.com

Toro Energy scores finance and asset acquisition

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THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has struck binding financing and asset acquisition agreements with Canada-based global resources investor, The Sentient Group.

Toro said the transactions deliver a committed $10 million cash injection and increase its asset base with an entry to the Canadian uranium sector through the acquisition of an interest in Strateco Resources Inc.

A key feature of the deal is that Sentient becomes a new key shareholder in Toro, which in turn will emerge with a strong four year cash base and interests in an expanded global uranium project portfolio.

Toro indicated negotiations for a further $10 million of project level funding are currently underway and are at an advanced stage.

Under the terms of a Subscription and Securities Sale Agreement (SSSA), Sentient has agreed to subscribe for 125 million new fully paid ordinary shares in Toro at 8 cents per share for $10 million.

Toro has acquired a 19.8 per cent interest in Strateco, a C$3 million senior secured loan receivable in Strateco, C$14.1 million of junior secured Convertible Notes in Strateco and certain other interests from Sentient in return for 236.5 million new fully paid ordinary shares in Toro.

In return for the funding, Toro will pay Sentient a Unitisation Fee equal to 2.5 per cent of gross proceeds derived from the company’s Wiluna uranium mine in Western Australia.

“Toro is pleased to have secured Sentient’s funding commitment and to have expanded our global uranium portfolio,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.

“The Transactions introduce a major new shareholder in Sentient.

“This should enable us to focus on bringing Wiluna into production into the expected emerging market supply gap and promoting the potential of the Wiluna uranium province, while building an initial global asset base that maximises for our shareholders the upside potential of an improving uranium price.

“We welcome Sentient as a new significant shareholder in Toro, and look forward to working with its management to both improve the Wiluna project as well as developing our global uranium portfolio aspirations.”

Toro said its two largest shareholders – Oz Minerals (ASX: OZL) and Mega Uranium – have said they both support the transactions to the extent that if any shareholder approvals are required for its implementation, they intend to vote in favour of the resolutions.

Email: info@toroenergy.com.au

Website: www.toroenergy.com.au

Elvis has left the building Issue

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

Board and Management Change

Hazelwood Resources (ASX: HAZ) has appointed Mark Warren to the position of executive chairman.
The Board of Hazelwood will now comprise:

Mark Warren – executive chairman; Frank Ashe – independent non-executive director; Pat Burke – independent non-executive director; John Chegwidden – director and joint company secretary.

Hazelwood’s current managing director Terry Butler-Blaxell will be retiring.

Butler-Blaxell founded Hazelwood in 2006 and led the company through the acquisition and assessment of its base metal and tungsten projects.


Appointment as Managing Director

Metals of Africa (ASX: MTA) advised that Cherie Leeden has changed roles within the company from executive director to managing director.

“Cherie’s record of discovery, her background with the major minerals houses, and strong commitment to on-the-ground exploration and in-country management will ensure Metals of Africa is well placed to quickly capitalise on exploration success in the future,” MTA chairman Gilbert George said.

“The Board is confident that Cherie in her new role is the right person to guide the company through this next exciting stage.”

Resignation of Director

Compass Resources (ASX: CMR) announced Philip Wood has resigned as director of the company, effective immediately.

Wood also gave notice of his resignation as chief executive officer, which is to take effect on 23 December 2014.

Thereafter he will continue for a further four months under a consulting agreement with the company, on similar terms to that upon which he was employed as CEO, in order to ensure a proper transition of the management of the company.

Compass Resources managing director Jim Carr will continue in that role and have responsibility for the ongoing management of the company.

One director out – two non-execs in

Foyson Resources (ASX: FOY) announced it has accepted the resignation of director John Halliday.

In a separate release the company announced the appointment of Bevan Dooley and Paul Dickson as non-executive directors.

Dooley brings to Foyson 15 years of experience in the energy, fuel and chemical processing industries having been integral in the design, construction, commissioning and ongoing management of many energy, fuel and chemical processing facilities in Australia and around the world.

Dickson has more than 20 years of experience in business management.

His role since 2008 has been as business founder and owner of Dickson & Dickson Healthcare Limited, a public company competing in the healthcare (medical products) sectors in Australia, New Zealand and South Africa.

“The Board welcomes Bevan and Paul to the company,” Foyson Resources chairman Doug Halley said.

“We believe that both Bevan and Paul’s corporate and technical experience will be instrumental in developing our portfolio of assets both here in Australia and Papua New Guinea.”

Australian Bauxite gets public nod for Bald Hill

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THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has concluded a 28 day public disclosure period for its Bald Hill Development Proposal and Environmental Management Plan (DPEMP) in Tasmania.

During this period, members of the public were able to review the DPEMP and one formal response was received, which ABX was pleased to point out was in fact, an expression of support for the project to proceed without delay.

The company said the final stages of project approval from the EPA and North Midlands Council can now continue on schedule.

If everything goes to plan, ABX anticipates the Bald Hill bauxite project should commence on schedule in December 2014.

“This is another positive outcome for shareholders, our partner Noble Group, current and future employees, the Campbell Town district and Tasmania in general,” Australian Bauxite CEO Ian Levy said in the company’s announcement to the Australian Securities Exchange.

“In the last few weeks, ABX has had its Mining Lease granted, concluded a funding and marketing agreement with Noble Group and we are very grateful for this latest support for the project from the public.”

ABX also announced that during October a total of 16 pre-qualified Tasmanian contractors participated in a tender and selection process for the Bald Hill bauxite project.

After an exhaustive selection process, three contractors have been selected, subject to satisfactory documentation and Board approvals thereof.

For Mining and Processing – Stornoway Group; Land transport pit to port – TasRail; and Port Services – QUBE Ports.

Email: corporate@australianbauxite.com.au

Website: www.australianbauxite.com.au

Goldphyre takes up Fraser Range residency

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THE BOURSE WHISPERER: Goldphyre Resources (ASX: GPH) has acquired a ground holding in the Albany Fraser Range Orogen.

Known as the Beretta project, the new ground consists of one 350 square kilometre exploration license application 210km east of Kalgoorlie in Western Australia.

 

Regional geology and Beretta project location. Source: Company announcement

 

According to Goldphyre open file WAMEX (Department of Mines and Petroleum) and Geological Survey of Western Australia (GSWA) data indicates limited reconnaissance drilling has been carried out on the Beretta project.

Although limited, the historic drilling has recorded elevated nickel, copper and zinc values.

Goldphyre said regional magnetic images have also indicated crosscutting magnetic lineament features and a circular magnetic high feature, which is referred to as Magnetic Image 6 – ‘MI6’.

“Acquiring a new, significantly large holding in this very tightly held province is an important step in our base metals development strategy,” Goldphyre Resources executive chairman Matt Shackleton said in the company’s announcement to the Australian Securities Exchange.

“The Beretta project is located approximately 80 kilometres from the Nova-Bollinger nickel/copper resource of Sirius Resources (ASX: SIR), and while it is located just west of the high magnetic relief terrain hosting that resource, we are very encouraged by the results of previous exploration on the ground.

“We are now collating as much data as is available in preparation for field-work to commence when the tenement is granted.”

Goldphyre lodged the tenement application with the DMP in September 2014 and anticipates grant of tenure in the March 2015 quarter.

Email: info@goldphyre.com.au

Website: www.goldphyreresources.com.au

Kibaran signs graphite LOI with ThyssenKrupp subsidiary

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THE BOURSE WHISPERER: Kibaran Resources (ASX: KNL) has executed a Letter of Intent (LOI) with German company ThyssenKrupp Metallurgical Products GmbH, a subsidiary of ThyssenKrupp.

Kibaran said the deal will result in the development of an exclusive, long-term commercial agreement for the sale of an initial and minimum 20,000 tonnes per annum of the company’s natural flake graphite products in Russia, Korea and the EU 27 (excluding Germany, but including Turkey).

The term of the planned agreement is for 10 years.

ThyssenKrupp Metallurgical Products has committed to assist Kibaran obtain debt or equity funding for development of the graphite projects.

“ThyssenKrupp Metallurgical Products has also agreed to work with Kibaran to pursue project funding which will be a key component of our overall project Financing plan following completion of the Epanko deposit Feasibility Study,” Kibaran executive director Andrew Spinks said in the company’s announcement to the Australian Securities Exchange.

“Given its scale and international business standing, ThyssenKrupp’s involvement with Kibaran is a significant vote of confidence in our company and our ability to deliver.”

Kibaran explained the deal will account for approximately 25 per cent of the planned 40,000 tonnes annual graphite production from the company’s Epanko project in Tanzania and support for the future development of Kibaran’s Merelani project.

This means 50 per cent of the planned graphite production at Epanko is now supported by offtake and sales agreements, which places Kibaran boasted places it in an enviable position as the company plans to fast-track the project through a feasibility study.

Both parties are now working to advance the LOI to a formal commercial binding agreement.

“The signing of Kibaran’s LOI involving the sale of Kibaran’s graphite products is a further major milestone in the development of the Epanko deposit,” Spinks said.

“This LOI is the second major sales agreement and discussions continue with other targeted customers worldwide.

“We are extremely pleased to announce the beginning of our relationship with ThyssenKrupp Metallurgical Products.

“The signing of this LOI is further evidence that Kibaran is committed to delivering on our stated objective to be a major producer of graphite from Tanzania, East Africa.”

Email: info@kibaranresources.com

Website: www.kibaranresources.com.au

Silver Lake to sell Lakewood for $5.5M

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THE BOURSE WHISPERER: Silver Lake Resources (ASX: SLR) is to boost its coffers with the sale of the Lakewood Mill.

Proving there are less shareholder dilutive ways to raise cash than rattling a tin outside the ASX, the company has entered into a binding heads of agreement with a private consortium for the outright sale of the Lakewood Mill and associated infrastructure located five kilometres south east of Kalgoorlie in Western Australia.

The going price for the Lakewood assets is $5.5 million in cash and a two percent gross revenue royalty on all minerals mined or recovered from mining leases 26/242 and 26/367.

The deal is subject to the completion of a six week final due diligence and financing period.

Silver Lake said it anticipates the deal to be finalised in the December
2014 quarter.

$500,000 has already been paid to Silver Lake as a deposit for the Lakewood assets.

Email: contact@silverlakeresources.com.au

Website: www.silverlakeresources.com.au

Browns Range given environmental thumbs-up

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THE BOURSE WHISPERER: Northern Minerals (ASX: NTU) has been granted environmental approval by the Western Australian Government for the proposed mine and ore processing facility at the company’s 100 per cent-owned Browns Range heavy rare earths project.

The company said the granting of environmental approval paves the way for the development of the project, which it considers to be ready to become the world’s next dysprosium producer.

“Receiving the primary environmental approval is a significant step forward in the project’s development and clears the path for Browns Range to become the first significant dysprosium producer outside of China,” Northern Minerals managing director George Bauk said in the company’s announcement to the Australian Securities Exchange.

“The focus is now on finalising the project’s Feasibility Study and securing offtake and financing to progress the project through construction in 2015 and commissioning in 2016.”

The company explained the Ministerial Statement facilitates the assessment and subsequent approval of the project’s secondary licences, which Northern Minerals has been working on concurrently during the primary environmental assessment process.

These approvals will now be considered by the relevant decision making authorities, and include:

Mining Proposal and Project Management Plan from the WA Department of Mines and Petroleum;

Works Approval and Licences from the WA Department of Environment Regulation; and

Licences to construct bores and take water from the WA Department of Water.

The company added that the Federal Government Department of Environment has assessed Browns Range to be a ‘Not Controlled Action’, which means the project does not require assessment and approval under the EPBC Act 1999.

The Browns Range project was referred to the WA Environmental Protection Authority (EPA) in May 2013.

In August 2014, the EPA recommended approval of the project to the WA Minister for Environment, stating it considers the project can be managed to meet the EPA’s environmental objectives subject to its recommended conditions being adopted.

During this process, no appeals were lodged against the EPA’s report, recommendations and conditions following a statutory appeal period.

“The Ministerial Statement is the culmination of two and a half years of comprehensive environmental and technical studies, extensive community and stakeholder engagement, and thorough assessment by government agencies,” Bauk said.

“We are very pleased with the way the process has been undertaken and the outcomes achieved.”

Website: www.northernminerals.com.au