Resource Wrap: 12 January 2010 – MIN, POL, DMM, BTR, KAZ, RMS, DIO, AVO, ADE, MGX
January 11, 2010
Mineral Resources Limited (MIN) announced that Lion Diversified Holdings Berhad has accepted MRL’s share offer for Polaris Metals NL (POL). The company said it has now obtained acceptances totalling 95.89% of Polaris shares. Mineral Resources said as a consequence of achieving an interest in Polaris of greater than 90%, the consideration under its share offer is increased by 0.1c per Polaris share to one MIN share for every 10 Polaris shares held plus 10.1c cash for every one Polaris share held as previously announced. The company added that it does not intend to increase the consideration of the share offer any further.
DMC Mining Limited (DMM) said it has an increased exploration target size at its 80% owned Mayoko Iron Ore Project in the Republic of Congo of 0.9 to 1.3 billion tonnes of dominantly itabirite iron mineralisation. The company said it recently completed reconnaissance geological mapping and rock chip geochemical sampling, which confirmed the occurrence of iron mineralisation at three new targets that were initially identified by a high resolution, airborne magnetic survey completed in 2009. DMC said these targets were not included in the exploration target size previously announced of 0.7 to 1.0 billion tonnes.
Blackthorn Resources Limited (BTR) said it had signed a heads of agreement with Swiss miner Glencore International AG, to develop the Perkoa Zinc Mine Project in West Africa. Under the terms of the preliminary agreement, Glencore said it would provide or procure funding, estimated at US$72 million, to complete the mine. When completed, Blackthrorn said it would hold a 39.9% interest in the mine, with Glencore holding 50.1% and the government holding the remaining 10%.
Cazaly Resources Limited (CAZ) has entered a trading halt. The junior iron ore producer said the request was made pending an announcement on the feasibility study of its 100% owned Parker Range Iron Ore project in Western Australia.
Ramelius Resources Limited (RMS) said it increased its offer for Dioro Exploration NL (DIO) to 2.1 Ramelius shares for each Dioro share and also declared the offer as final. Ramelius said that while the ratio of shares is fixed, the dollar value of the Ramelius shares on offer had increased due to a rise in price. The offered countered that of Avoca Resources Limited (AVO), who recently announced a new offer for Dioro shares at the equivalent of $1.25 per share, containing a cash component of 65c with the balance in AVO shares. Ramelius said the market value of its offer is equivalent to the Avoca bid but believed that receiving Ramelius shares would be more likely to result in the value of shareholders investment growing in the future.
Adelaide Energy Limited (ADE) said it has agreed to acquire three petroleum exploration permits in the Maryborough Basin in Queensland from US company Magellan Petroleum Corporation for $450,000. The company said it considers the area to be prospective for gas in multiple unconventional reservoir types: coal seams, shales and tight sandstones. Adelaide Energy said the permits are the subject of a Farmin Agreement with Blue Energy Limited (BUL), under which Blue Energy may earn a 75% interest in the permits by completing a coal seam gas related work program. The company expects the transaction to be closed this quarter following third party approvals.
Mount Gibson Iron Limited (MGX) said it had recommenced the construction and development of its Extension Hill Direct Ship Ore Project. Construction and development was scheduled to be completed within 15 months at a cost of $80 million the company said, with a commitment from a Chinese miner to buy the ore from Extension Hill. The Aussie miner said a $90 million upgrade to the rail line between Geraldton and Perenjori was expected to be completed by June 2011.
DMC Mining Limited (DMM) said it has an increased exploration target size at its 80% owned Mayoko Iron Ore Project in the Republic of Congo of 0.9 to 1.3 billion tonnes of dominantly itabirite iron mineralisation. The company said it recently completed reconnaissance geological mapping and rock chip geochemical sampling, which confirmed the occurrence of iron mineralisation at three new targets that were initially identified by a high resolution, airborne magnetic survey completed in 2009. DMC said these targets were not included in the exploration target size previously announced of 0.7 to 1.0 billion tonnes.
Blackthorn Resources Limited (BTR) said it had signed a heads of agreement with Swiss miner Glencore International AG, to develop the Perkoa Zinc Mine Project in West Africa. Under the terms of the preliminary agreement, Glencore said it would provide or procure funding, estimated at US$72 million, to complete the mine. When completed, Blackthrorn said it would hold a 39.9% interest in the mine, with Glencore holding 50.1% and the government holding the remaining 10%.
Cazaly Resources Limited (CAZ) has entered a trading halt. The junior iron ore producer said the request was made pending an announcement on the feasibility study of its 100% owned Parker Range Iron Ore project in Western Australia.
Ramelius Resources Limited (RMS) said it increased its offer for Dioro Exploration NL (DIO) to 2.1 Ramelius shares for each Dioro share and also declared the offer as final. Ramelius said that while the ratio of shares is fixed, the dollar value of the Ramelius shares on offer had increased due to a rise in price. The offered countered that of Avoca Resources Limited (AVO), who recently announced a new offer for Dioro shares at the equivalent of $1.25 per share, containing a cash component of 65c with the balance in AVO shares. Ramelius said the market value of its offer is equivalent to the Avoca bid but believed that receiving Ramelius shares would be more likely to result in the value of shareholders investment growing in the future.
Adelaide Energy Limited (ADE) said it has agreed to acquire three petroleum exploration permits in the Maryborough Basin in Queensland from US company Magellan Petroleum Corporation for $450,000. The company said it considers the area to be prospective for gas in multiple unconventional reservoir types: coal seams, shales and tight sandstones. Adelaide Energy said the permits are the subject of a Farmin Agreement with Blue Energy Limited (BUL), under which Blue Energy may earn a 75% interest in the permits by completing a coal seam gas related work program. The company expects the transaction to be closed this quarter following third party approvals.
Mount Gibson Iron Limited (MGX) said it had recommenced the construction and development of its Extension Hill Direct Ship Ore Project. Construction and development was scheduled to be completed within 15 months at a cost of $80 million the company said, with a commitment from a Chinese miner to buy the ore from Extension Hill. The Aussie miner said a $90 million upgrade to the rail line between Geraldton and Perenjori was expected to be completed by June 2011.
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