Resource Wrap: 21 January 2010 – , CBH, MMS, IOH, RIO
January 21, 2010
CBH Resources Limited (CBH) said an offer it received from Toho is superior to the Nyrstar proposal. As a result, the zinc miner advised Nyrstar that it does not intend to have substantive discussions with Nyrstar, based on the existing proposal. CBH said the binding Heads of Agreement with its major shareholder Toho Zinc Co., Ltd includes the sale of its 50% interest in the Rasp Project at Broken Hill to Toho for $57.5 million and to establish a 50/50 joint-venture for the ownership and development of Rasp. The company said it would also be required to raise $10 million by placing 50 million CBH shares to Toho at 20c each. Following this CBH intends to make an offer of $500 in cash and 1,800 CBH shares per convertible note for all of its outstanding convertible notes, before which Toho would tender all of its Notes into the proposed Note offer. If all are accepts CBH said its interest bearing debt position would be reduced by $98.8 million.
Medusa Mining Limited (MMS) reported record gold production of 21,108 ounces at an average grade of 18.68 g/t gold and average cash cost of US$184 per oz. In the previous quarter the company produced 18,054 ozs of gold. Medusa said it received an average gold price of US$1,111 per ounce for the quarter. The company said Phase II of its expansion programme is on schedule and is set to raise production to 100,000 ozs per annum in early 2010. Medusa also revised gold production for FY10 upwards from 86,000 ounces to 89,000 ounces at an anticipated average cash cost of US$190 per ounce.
Iron Ore Holdings Limited (IOH) said two mining leases covering the Phil’s Creek Project have been granted by the Department of Mines and Petroleum. The company said the announcement marks further progress towards its planned production at Phil’s Creek, which is expected by end 2010. IOH said a conventional open pit mining operation at Phil’s Creek would supply up to 1.5Mtpa of iron ore over a project life of five years to Rio Tinto Limited (RIO) under a mine gate sale arrangement.
Medusa Mining Limited (MMS) reported record gold production of 21,108 ounces at an average grade of 18.68 g/t gold and average cash cost of US$184 per oz. In the previous quarter the company produced 18,054 ozs of gold. Medusa said it received an average gold price of US$1,111 per ounce for the quarter. The company said Phase II of its expansion programme is on schedule and is set to raise production to 100,000 ozs per annum in early 2010. Medusa also revised gold production for FY10 upwards from 86,000 ounces to 89,000 ounces at an anticipated average cash cost of US$190 per ounce.
Iron Ore Holdings Limited (IOH) said two mining leases covering the Phil’s Creek Project have been granted by the Department of Mines and Petroleum. The company said the announcement marks further progress towards its planned production at Phil’s Creek, which is expected by end 2010. IOH said a conventional open pit mining operation at Phil’s Creek would supply up to 1.5Mtpa of iron ore over a project life of five years to Rio Tinto Limited (RIO) under a mine gate sale arrangement.
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