Resource Wrap: 09 April 2010 – GBG, KGL, SAR, WOR, MCC, GRR
April 9, 2010
Gindalbie Metals Limited (GBG) announced the signing of the Mandate Letter and Term Sheet for the US$1.2 billion Karara Project Loan facility. The company said the 12-year loan facility is being provided principally by China Development Bank and Bank of China. Gindalbie said the conditions of the facility agreement and security documentation for the loan are currently being negotiated to complete the project debt arrangements. The company expects this to occur within a timeframe to meet the first required debt drawdown by 30 June 2010. Gindalbie said it is now well on the way to being an iron ore producer next year and part of a joint venture that would generate annual revenue of about $1 billion at start up production levels.
Kentor Gold Limited (KGL) said there has been no impact on its activities in the Kyrgyz Republic after the company halted its shares yesterday due to reports that the Government had been over-thrown. The company said it is proposing to bring the Andash gold-copper mining project, which is located in the Kyrgyz Republic, into production next year. Kentor said it is continuing to commission the mobile fleet of construction and mining equipment and transfer the vehicles to Andash where site works are due to commence later this month. Today’s announcement followed comments by the head of the interim government, Ms Roza Otunbayeva, which indicated business as usual for the immediate future in the Kyrgyz Republic. Ms Otunbayeva said the plan is for the interim government to hold state power pending a new constitution, and for the existing structure of the government to be maintained for the time being. Ms Otunbayeva also expressed an intention to hold democratic elections within the next six months.
Saracen Mineral Holdings Limited (SAR) said that full scale production had started at the company’s Carosue Dam, near Laverton in Western Australia. The miner said 15,000 ounces of gold had been produced in February and March, and is expecting to process around 2.4 million tonnes of ore each year. The first full quarter of gold production will be the current quarter ended 30 June, 2010, the company noted.
WorleyParsons Limited (WOR) said it has been awarded a contract from Total E&P Joslyn Ltd for the Total Joslyn North Mine Mineable Oil Sands Plant Project in Canada. The company said the estimated revenue from the contract is in the range of $40 million CAD. WorleyParsons said its scope includes the basic engineering phase for ore preparation, extraction, tailings, froth treatment feasibilities, infrastructure, off-sites and utilities. The company said work has commenced at its office in Calgary, Alberta, and is scheduled for completion during March, 2011.
Macarthur Coal Limited (MCC) said its board unanimously determined not to recommend the proposal put forward by New Hope Corporation Limited (NHC), as the board has formed the view that the scrip ratio of 2.7 New Hope shares for every Macarthur share does not represent an adequate premium for control of the company. The company also said the proposal consists of a scrip offer with no cash alternative and requires the approval of 75% of votes cast at a scheme meeting. Macarthur recommended shareholders vote in favour of the resolution at the Macarthur shareholders’ meeting next Monday to approve the issue of Macarthur shares to Noble under the Gloucester and Middlemount transactions.
Grange Resources Limited (GRR) said it has secured an interim price increase of 69% for iron ore pellets. The magnetite producer said the agreement has been reached with primary customer and cornerstone shareholder Shagang. Grange said the interim agreement, which would add US$50/tonne of pellets to last year’s benchmark price of US$72/tonne, is effective from 1 April 2010. The company said it is finalising ongoing pricing arrangements with Shagang in order to reflect the significant changes to the iron ore pricing environment. Grange expects that the final average price it receives for its pellets in 2010 would be in the range of 80% - 120% over 2009 prices.
Kentor Gold Limited (KGL) said there has been no impact on its activities in the Kyrgyz Republic after the company halted its shares yesterday due to reports that the Government had been over-thrown. The company said it is proposing to bring the Andash gold-copper mining project, which is located in the Kyrgyz Republic, into production next year. Kentor said it is continuing to commission the mobile fleet of construction and mining equipment and transfer the vehicles to Andash where site works are due to commence later this month. Today’s announcement followed comments by the head of the interim government, Ms Roza Otunbayeva, which indicated business as usual for the immediate future in the Kyrgyz Republic. Ms Otunbayeva said the plan is for the interim government to hold state power pending a new constitution, and for the existing structure of the government to be maintained for the time being. Ms Otunbayeva also expressed an intention to hold democratic elections within the next six months.
Saracen Mineral Holdings Limited (SAR) said that full scale production had started at the company’s Carosue Dam, near Laverton in Western Australia. The miner said 15,000 ounces of gold had been produced in February and March, and is expecting to process around 2.4 million tonnes of ore each year. The first full quarter of gold production will be the current quarter ended 30 June, 2010, the company noted.
WorleyParsons Limited (WOR) said it has been awarded a contract from Total E&P Joslyn Ltd for the Total Joslyn North Mine Mineable Oil Sands Plant Project in Canada. The company said the estimated revenue from the contract is in the range of $40 million CAD. WorleyParsons said its scope includes the basic engineering phase for ore preparation, extraction, tailings, froth treatment feasibilities, infrastructure, off-sites and utilities. The company said work has commenced at its office in Calgary, Alberta, and is scheduled for completion during March, 2011.
Macarthur Coal Limited (MCC) said its board unanimously determined not to recommend the proposal put forward by New Hope Corporation Limited (NHC), as the board has formed the view that the scrip ratio of 2.7 New Hope shares for every Macarthur share does not represent an adequate premium for control of the company. The company also said the proposal consists of a scrip offer with no cash alternative and requires the approval of 75% of votes cast at a scheme meeting. Macarthur recommended shareholders vote in favour of the resolution at the Macarthur shareholders’ meeting next Monday to approve the issue of Macarthur shares to Noble under the Gloucester and Middlemount transactions.
Grange Resources Limited (GRR) said it has secured an interim price increase of 69% for iron ore pellets. The magnetite producer said the agreement has been reached with primary customer and cornerstone shareholder Shagang. Grange said the interim agreement, which would add US$50/tonne of pellets to last year’s benchmark price of US$72/tonne, is effective from 1 April 2010. The company said it is finalising ongoing pricing arrangements with Shagang in order to reflect the significant changes to the iron ore pricing environment. Grange expects that the final average price it receives for its pellets in 2010 would be in the range of 80% - 120% over 2009 prices.
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