Regal Petroleum PLC (AIM: RPT) said it was notified yesterday by Trafelet & Co UK LLP that, following the sale of Regal shares last week, it no longer has a notifiable interest in the company.
www.proactiveinvestors.co.uk
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Tuesday, 30 June 2009
China Energy Recovery appoints forth independent director
China Energy Recovery Inc (OTCBB: CGYV) (CER) said it has appointed Mr Ye Tian to the board as the fourth independent director.
The appointment is aimed at further strengthening its corporate governance and prepares it for the possible listing on a national exchange such as NYSE Alternext or Nasdaq, the company added.
Tian will serve as the chairman of the company's governance and nominating committee as well as a member of the audit committee and the compensation committee.www.proactiveinvestors.co.uk
Petro Matad biggest shareholder Petrovis raises stake in company
Mongolia-focused oil explorer Petro Matad Ltd (AIM: MATD) said it was notified on June 26 that its biggest shareholder Petrovis LLC bought a further 7,250,000 Petro Matad shares through the market, and now has an interest in 39,755,002 shares, a 39.1 percent stake.
Petro Matad announced on June 24 that Petrovis was investing a further £1.35 million in the company via a subscription to 10 million new shares in the group. At the time of the June 24 statement, the company said Petrovis held 27,505,002 shares, or a 28.44 percent stake in Petro Matad.
The 10 million new shares would be issued in two tranches, 5 million at the end of the month and the other 5 million, subject to shareholder approval, in mid-July, the group had said. It also granted Petrovis the right to subscribe for up to a further 5 million new shares at a price of £0.14 per share up to six weeks after the second tranche has been issued.www.proactiveinvestors.co.uk
Kenmare Resources raises £10.3 mln via placing
Kenmare Resources PLC (LSE: KMR) said it raised £10.3 million before expenses in a placing of 54 million new ordinary shares priced at €0.06 each in a move to retain sufficient liquidity to meet its obligations and provide further financial resources to accelerate production expansion plans.
Kenmare owns and operates the Moma titanium minerals mine in Mozambique.
www.proactiveinvestors.co.uk
Kenmare owns and operates the Moma titanium minerals mine in Mozambique.
www.proactiveinvestors.co.uk
Conroy Diamonds and Gold further sampling confirms gold at Clay Lake target in Ireland
Conroy Diamonds and Gold PLC (AIM: CDG) said follow-up rock chip sampling has confirmed the presence of gold values in bedrock at its new Clay Lake target in County Armagh in Ireland where the company has previously identified an extensive gold-in-soil anomaly.
The four samples were collected along a 100 metre section of a stream bed in the north-west part of the target, and all four samples contain gold. The highest value was 1.31 grams per tonne of gold, and the other three samples returned gold values of 0.28 g/t , 0.12 g/t and 0.05 g/t.
The Clay Lake target find is located some 7 kilometres north-east of Conroy’s Clontibret gold discovery in County Monaghan where a JORC-compliant resource of over one million ounces of gold has thus far been identified on only 20 percent of the target anomaly.
The gold-in-soil anomaly at Clay Lake, which measures approximately 2 by 1 kilometres, is larger than that at Clontibret and includes the highest gold-in-soil values ever recorded by the company - up to 1.53g/t gold-in-soil.
In addition, the average gold-in-soil values are twice the average of those recorded at Clontibret.
Chairman Richard Conroy said: “These results enhance the significance of the Clay Lake area and increase its standing as a discovery ranking alongside our Clontibret property.
"Looking at the broader Clay Lake-Clontibret picture shareholders will have noted the Company's recent discovery of a series of extensive zinc-in-soil anomalies in the vicinity of the two gold finds. Overall, this confirms and enhances our long-held belief of the huge potential of this area," he added.
www.proactiveinvestors.co.uk
The four samples were collected along a 100 metre section of a stream bed in the north-west part of the target, and all four samples contain gold. The highest value was 1.31 grams per tonne of gold, and the other three samples returned gold values of 0.28 g/t , 0.12 g/t and 0.05 g/t.
The Clay Lake target find is located some 7 kilometres north-east of Conroy’s Clontibret gold discovery in County Monaghan where a JORC-compliant resource of over one million ounces of gold has thus far been identified on only 20 percent of the target anomaly.
The gold-in-soil anomaly at Clay Lake, which measures approximately 2 by 1 kilometres, is larger than that at Clontibret and includes the highest gold-in-soil values ever recorded by the company - up to 1.53g/t gold-in-soil.
In addition, the average gold-in-soil values are twice the average of those recorded at Clontibret.
Chairman Richard Conroy said: “These results enhance the significance of the Clay Lake area and increase its standing as a discovery ranking alongside our Clontibret property.
"Looking at the broader Clay Lake-Clontibret picture shareholders will have noted the Company's recent discovery of a series of extensive zinc-in-soil anomalies in the vicinity of the two gold finds. Overall, this confirms and enhances our long-held belief of the huge potential of this area," he added.
www.proactiveinvestors.co.uk
IPSA says CEO-linked company sells 312,500 IPSA shares
IPSA Group PLC (AIM: IPSA) said it was notified by Independent Power Corp PLC ('IPC'), a company controlled by IPSA CEO Peter Earl, that it disposed of IPSA shares at 16 pence each.
IPC now holds 3.125 million IPSA shares and, accordingly, Earl's beneficial holding in the company is now 13.135 million shares, or 13.8 percent of IPSA’s capital.www.proactiveinvestors.co.uk
Plastics Capital full-year sales rise, market still difficult but company confident
Niche products manufacturer Plastics Capital PLC (AIM: PLA) reported a 40 percent sales rise for the full year while EBITDA was up 29 percent year-on-year, with the comparatives restated to adjust for discontinued operations.
Revenue in the year to March 31 2009 rose to £28.1 million from a restated 20.1 million, and EBITDA rose to £5.1 million from a restated 4 million. Pretax profit, taking into account exceptional items and amortisation, dipped to £2 million from a restated £2.6 million.
Executive chairman Faisal Rahmatallah said: “These results demonstrate the resilience and competiveness of our businesses in the face of extremely difficult global market conditions over the last twelve months.”
“Whilst we see little convincing evidence that demand conditions are improving, we do believe that they have reached a floor. We are winning new business and this is our focus for growth in the near term,” he added.
Its acquisitions strategy has been very successful and as conditions improve, the group is confident that good opportunities will become available once again. It is expecting another year of progress.www.proactiveinvestors.co.uk
Sinosoft lifted by positive trading update, confident business will pick up
Shares in China-based Sinosoft Technology PLC (AIM: SFT) were lifted in London trade today after the group announced that the pipeline for the second half is strong.
In a trading update ahead of reporting first-half results, it said revenue continues to be weighted to the second half. Management is confident that many of the government contracts deferred from the first half to June 30 2009 will commence in the second half and that trading for the full year will be broadly in line with 2008.
The stock rose in early London trade on the news and was still trading up nearly 19 percent by midday.
Sinosoft said it continues to grow beyond Jiangsu province and announced it has recently won a new contract worth approximately US$200,000 to supply its e-government software to Nan An, one of the 12 major cities in Chongqing, the largest and most populated municipality in China.
“We are currently in advanced discussions with a top PRC software company, for the provision of our Skytech Reports Software, which was developed in 2008 as an e-government product. There is further potential for this product to be supplied to corporate sector clients,” Sinosoft added.
The group develops and provides software and IT products to Chinese regional and national government agencies and export enterprises.www.proactiveinvestors.co.uk
Nighthawk Energy sells 50 pct stake in Centurion project for US$5 mln
Nighthawk Energy PLC (AIM: HAWK) said it sold its 50 percent interest in the Centurion project to Osceola Hydrocarbons Ltd for US$5 million in cash and will receive an annual royalty equal to 5 percent of the gross oil and gas revenues from the Centurion project received by Osceola.
Running Foxes Petroleum Inc is the operator of Centurion and holds the remaining 50 percent.
The Centurion project is located in Sumner County, Kansas, and covers approximately 15,000 acres.
Development at Centurion has been relatively restrained due to Nighthawk's focus being directed at Jolly Ranch and the Waterflood projects.
Nighthawk managing director David Bramhill said: “We are pleased to have executed the sale of our interest in Centurion, a non-core project. As the evaluation and development of Jolly Ranch and the Waterflood projects continue, we are confident that these core projects will enable the company to achieve the internal goals that have been set in terms of reserves and production potential.”
“Independent reviews in respect of Jolly Ranch and the Waterflood projects are ongoing and will be completed during Q3 2009,” he added.
BG Group in alliance with EXCO Resources Inc to develop US shale gas
BG Group in alliance with EXCO Resources Inc to develop US shale gas
BG Group PLC (LSE: BG) announced an alliance with EXCO Resources Inc. (NYSE: XCO), under which BG will pay the US oil and natural gas exploration and production company US$1.05 billion in return for a 50 percent interest in 120 000 net acres in east Texas and north Lousiana, and the groups will jointly develop gas shale in the region.
Of the acreage affected by the deal, 84 000 net acres cover the Haynesville shale gas formation, a substantial proportion of which lies within the prolific Harrison County, Texas and DeSoto and Caddo Parishes, Louisiana. EXCO has completed eight horizontal wells in DeSoto Parish with an average initial production rate in excess of 23 million standard cubic feet per day (mmscfd).
The acquisition adds 2.6 trillion standard cubic feet (tcf) to BG Group’s resources, with current net production of 78 mmscfd, anticipated to increase to some 250 mmscfd in 2012, net to BG Group.
The payment comprises US$655 million on completion plus US$400 million to be paid as a carry of 75 percent of EXCO's future costs to develop the Haynesville shale gas.
BG and EXCO will enter into a joint development agreement to co-operate in the further development and production of shale gas in east Texas and north Louisiana.
The alliance also envisages BG acquiring a 50 percent interest in related and complementary EXCO gas-gathering and transportation assets for US$249 million. The assets include the EXCO-owned TALCO and TGG gas-gathering and intrastate pipeline systems which deliver EXCO's and other companies' production to markets in Lousiana and Texas and are connected to major intrastate and interstate gas transmission pipelines serving markets across the Midwest and Eastern US.
BG Group Chief Executive Frank Chapman said: “This alliance brings material new resources and supply to our existing US business at a competitive price and in a prime location at the heart of the world's largest gas market. These domestic exploration and production activities yield strong synergies with the Group's established LNG import and 3.5 billion standard cubic feet per day US gas marketing business.”www.proactiveinvestors.co.uk
Mediterranean Oil & Gas names Christopher Kelsall new finance director
Mediterranean Oil & Gas PLC (AIM: MOG) said it has appointed Christopher David Kelsall, aged 42, as finance director with effect from July 1 2009.
Kelsall holds degrees in law and economics from the University of Western Australia and a Diploma in Applied Finance and Investment from the Securities Institute of Australia. He has spent the last 14 years involved in the investment banking sector. Prior to becoming an investment banker he practised as a solicitor with an Australian commercial law firm.
Kelsall's was previously a director, Equity Capital Markets with Deutsche Bank in Hong Kong and prior to that was an associate director with ABN Amro Rothschild based in London, the company added.www.proactiveinvestor.co.uk
Green Dragon Gas marks 1st full year with revenue, to decide on main board listing this year
Hong Kong headquartered Green Dragon Gas Ltd (AIM: GDG) reported the first full year of revenues since listing on AIM in August 2006, and said it will make a final decision on listing on a main board before the end of the current year.
The Chinese coal bed methane business had revenues of US$24.65 million in the 12 months to December 31 2008, compared with nil a year earlier, while the pretax loss widened to US$ 27.9 million from a US$8.8 million loss previously - mainly due to higher administrative expenses and financing costs.
In a statement, Green Dragon said its plan for a main board listing either in Hong Kong or London was deferred by the global market collapse, but it still on the cards and it will make a decision later this year.
The company has appointed Goldman Sachs to assist the board in evaluating strategic alternatives to the funding of its development plans and Green Dragon continues to evaluate all options to finance its future growth strategy.
Chairman Randeep Grewal commented: “Progressing into 2009, our growth will be organic as all the components necessary for robust growth into gas production and market value sales have been put in place in 2008.”
The midstream and downstream businesses are profitable and contributed the majority of the revenue in the reported period. Over the next three years these divisions are expected to provide most of the company's revenue and thereafter upstream will grow at a materially faster pace becoming the main contributor of revenue.
Evolution Securities said in a note on the back of the results that Green Dragon remains the dominant international player in Chinese CBM with a huge resource base.
“The challenge remains to monetise this resource. We increase our target price to US$13 from US$12.4,” the broker added.
Volta Resources intersects 41 Metres @ 3.23 Grams per tonne of Gold at its Kampti Gold Project
It is always interesting to see companies engaged in the development of gold assets in West Africa and the progress they make. Unlike Central African countries West Africa has stable political environments, offers mining friendly regulatory framework and have world class deposits.
West Africa is the home for several well known mining companies such as AngloGoldAshanti (NYSE: AU), Newmont Mining (NYSE: NEM) and Randgold Resources Ltd (NASDAQ: GOLD).It is against this backdrop that we continue to follow Canadian Venture listed Volta Resources Inc. (TSX: VTR). Volta Resources is actively exploring 4,125 square kilometres of highly prospective greenstone belt in 20 properties in both Burkina Faso and Ghana. The properties are generally located on the margins of mature to emerging gold belts, the geological setting for numerous world-class gold mines in the region. VTR has continued its development endeavours in its prospect portfolio.
The company’s current focus however is Kampti III and Gaoua properties both in Burkina Faso. Results from its recently completed reverse circulation ("RC") drilling program on the Maména-Fofora prospect at its 100% owned Kampti III property include intersections of 41m @ 3.23g/t gold ("Au"), 5m @ 6.84g/t Au, 6m @ 4.28g/t Au, 8m @ 4.15g/t Au and 5m @ 2.06g/t Au. Drilling confirms the presence of gold mineralization in all three target areas, with most holes intersecting anomalous gold values (>0.25g/t Au) over multiple zones.
The Kampti property is located in southernmost Burkina Faso, close to the border with Ivory Coast. The project consists of one single permit (Kampti III), covering about 250km² and wholly-owned by Volta Resources. The project is characterized by a 22km-long and 4km-wide corridor, defined by several geochemical (BLEG and soil) anomalies and by geological mapping, trending NNW through the centre of the entire permit.
According to Kevin Bullock, President and CEO, results have exceed their expectations and the company will follow up with more drilling that will further define the growing potential at Kampti. The next step is to undertake another auger drilling programme to infill, refine and further extend the Kampti targets in order to prepare for the next round of RC and diamond drilling.
VTR is well financed and is in a position to undertake its development endeavours. Kevin Bullock intends to spend $1 million at Kampti and Gaoua properties over the next six months to December. The company has approximately $6 million in the treasury. We have brought VTR progress to our readers’ notice and will continue to follow the company.
About Volta Resources
Volta Resources was formed through a 50/50 merger of two experienced West African explorers, Birim Goldfields Inc. and Goldcrest Resources Ltd and has a portfolio of properties in Ghana and Burkina Faso. Volta's primary focus is to become the leader in the identification, acquisition and exploration of gold properties in West Africa
www.proactiveinvestors.com
ATW Gold’s Burnakura Gold Mine Surpasses 5,000 Ounces Gold Production
On the heels of the recently closed US$10 million loan and Production Marketing agreement with Red Kite Exploration Fund Limited, Canadian Venture listed ATW Gold Corp (TSX.V: ATW) has completed the commissioning phase and achieved commercial production at its wholly owned Burnakura Gold Mine in Western Australia. By the end of last week, the total recovered gold ounces from Burnakura have surpassed the 5,000 ounce mark. Accordingly, effective June 1, 2009, the Company will begin reporting quarterly financial results of operations from the Burnakura Mine.
Located in the West Yilgarn goldfields of Western Australia, the Burnakura Gold Mine consists of 58.8 square km of mining leases and prospecting licenses, a fully permitted 160,000 tonne per annum (440 tpd) CIL gold plant, rolling stock, underground equipment, workshops, office space and a 90 man camp. The project covers 12km of prospective strike length along a major auriferous shear zone and mesothermal gold system.
Better things are in store of ATW. Burnakara is well on its way to reach the first targeted commercial level of 36,000 ounces annually and plans are underway to expand the output to 50,000 ounces of gold per annum. ATW has already contracted Simulus Consultants of Perth, Australia, to complete a plant optimization, which began on June 10, 2009. Simulus is a specialist process engineering consultancy with particular expertise in mine process simulation. With a portfolio of some 70 clients in 21 countries, Simulus is listed as a Fast100 Business in the 2007 Australia's top 100 growing businesses list and was awarded Australian Best Small Business of the Year in 2006.
In addition to Burnakura, ATW has Gullewa goldmine 300km south west Burnakura Gold Mine. The Project includes a total of 756 km2 of mineral tenements that cover the prospective central and southern portions of the Gullewa Greenstone Belt and include the Gullewa Mining Centre, the Deflector Deposit, the Prince George Mine, the Michaelangelo and Monarch Prospects. Mining infrastructure assets of Gullewa include a turn-key gold operation with a Carbon-In-Leach plant capable of up to 300,000 tpa (tonne per annum) gold production, a licensed tailings disposal facility, a 50-person camp, offices, workshops, bore fields and haulage roads. The site is currently on care and maintenance.
Brent Butler, President and CEO, expressed his satisfaction with the speed at which the ramp-up to commercial production at Burnakura was achieved. Butler also confirmed their efforts to maximize recoveries, output and throughput, in an attempt to achieve the increased rate of 50,000 gold ounces per annum this year. With some $10 million available after the recent financing ATW is well poised to finance this programme.
www.proactiveinvestors.com
Located in the West Yilgarn goldfields of Western Australia, the Burnakura Gold Mine consists of 58.8 square km of mining leases and prospecting licenses, a fully permitted 160,000 tonne per annum (440 tpd) CIL gold plant, rolling stock, underground equipment, workshops, office space and a 90 man camp. The project covers 12km of prospective strike length along a major auriferous shear zone and mesothermal gold system.
Better things are in store of ATW. Burnakara is well on its way to reach the first targeted commercial level of 36,000 ounces annually and plans are underway to expand the output to 50,000 ounces of gold per annum. ATW has already contracted Simulus Consultants of Perth, Australia, to complete a plant optimization, which began on June 10, 2009. Simulus is a specialist process engineering consultancy with particular expertise in mine process simulation. With a portfolio of some 70 clients in 21 countries, Simulus is listed as a Fast100 Business in the 2007 Australia's top 100 growing businesses list and was awarded Australian Best Small Business of the Year in 2006.
In addition to Burnakura, ATW has Gullewa goldmine 300km south west Burnakura Gold Mine. The Project includes a total of 756 km2 of mineral tenements that cover the prospective central and southern portions of the Gullewa Greenstone Belt and include the Gullewa Mining Centre, the Deflector Deposit, the Prince George Mine, the Michaelangelo and Monarch Prospects. Mining infrastructure assets of Gullewa include a turn-key gold operation with a Carbon-In-Leach plant capable of up to 300,000 tpa (tonne per annum) gold production, a licensed tailings disposal facility, a 50-person camp, offices, workshops, bore fields and haulage roads. The site is currently on care and maintenance.
Brent Butler, President and CEO, expressed his satisfaction with the speed at which the ramp-up to commercial production at Burnakura was achieved. Butler also confirmed their efforts to maximize recoveries, output and throughput, in an attempt to achieve the increased rate of 50,000 gold ounces per annum this year. With some $10 million available after the recent financing ATW is well poised to finance this programme.
www.proactiveinvestors.com
Prize Mining and Eagle Plains Complete Ramp-Up to Commercial Production Yellowjacket Gold Project
In a market fraught with uncertainties it is always encouraging to see companies that are marching towards commercial production. In what could be a similar situation, Canadian Venture listed Eagle Plains Resources Ltd. (TSX-V: EPL) together with Prize Mining Corp. (TSX.V: PRZ) has now completed commissioning and test work at on its mill facility at the Yellowjacket Gold Project located near Atlin, BC. This marks a considerable improvement in the company and its investment case as investors have shown considerable preference towards producing companies. EPL currently owns 40% of the project and with the option to increase to 60%.
A variety of material stockpiled by PRZ in 2008 has now passed through the mill and represents a spectrum of hardness, mineralogy and grade in order to properly tune the facility. Production rates have confirmed a mill capacity of 350 tonnes per day. Processing of this material was completed under an existing Bulk Sampling Exploration Permit. Full-scale bedrock mining and milling operations will commence upon receipt of a Provincial Mines Act Permit, which is expected shortly.
Meanwhile, gold assay results for three selected high-grade blocks appear to be encouraging. Conveyor cut assays returned grades as high as 466g/t (Block A27), 313.7g/t (Block B27) and 431.4g/t (Block C21). Average grades from Block A27, Block B27 and Block C21 are 30.46g/t, 45.5g/t and 14.01g/t respectively. Tailing assays yielded average gold grades of 1.1g/t (Block A27), 3.44g/t (Block B27) and 1.21g/t (Block C21).
Metallurgical test work and plant engineering designs show that expected gravity concentration gold recoveries will be between 73% and 80%. Using ratios of average gold in tailings compared to average total gold values in conveyor cut assays, it appears that the gold loss to tailings is well within the targeted acceptable recovery range. On-going studies will be conducted to improve recoveries.
From the assay results the extreme "nugget effect" of the deposit is immediately apparent as seen by the very high grade assay values obtained in individual samples collected from these selected high grade blocks - as compared to the lowest and average values. Additional assay results for other elements and concentrate recoveries are still pending.
As EPL continues to make strides towards production, the company is expected a re-rating by the market. In addition to the Yellowjacket project EPL has a diverse prospect portfolio which provides exposure to several different minerals from gold to molybdenum. EPL appears to be an interesting story to follow.
China Energy Recovery appoints forth independent director
China Energy Recovery Inc (OTCBB: CGYV) (CER) said it has appointed Mr Ye Tian to the board as the fourth independent director.
The appointment is aimed at further strengthening its corporate governance and prepares it for the possible listing on a national exchange such as NYSE Alternext or Nasdaq, the company added.
Tian will serve as the chairman of the company's governance and nominating committee as well as a member of the audit committee and the compensation committee.www.proactiveinvestors.com
Nighthawk Energy sells 50 pct stake in Centurion project for US$5 mln
Nighthawk Energy PLC (AIM: HAWK) said it sold its 50 percent interest in the Centurion project to Osceola Hydrocarbons Ltd for US$5 million in cash and will receive an annual royalty equal to 5 percent of the gross oil and gas revenues from the Centurion project received by Osceola.
Running Foxes Petroleum Inc is the operator of Centurion and holds the remaining 50 percent.
The Centurion project is located in Sumner County, Kansas, and covers approximately 15,000 acres.
Development at Centurion has been relatively restrained due to Nighthawk's focus being directed at Jolly Ranch and the Waterflood projects.
Nighthawk managing director David Bramhill said: “We are pleased to have executed the sale of our interest in Centurion, a non-core project. As the evaluation and development of Jolly Ranch and the Waterflood projects continue, we are confident that these core projects will enable the company to achieve the internal goals that have been set in terms of reserves and production potential.”
“Independent reviews in respect of Jolly Ranch and the Waterflood projects are ongoing and will be completed during Q3 2009,” he added.
BG Group in alliance with EXCO Resources Inc to develop US shale gas
BG Group PLC (LSE: BG) announced an alliance with EXCO Resources Inc. (NYSE: XCO), under which BG will pay the US oil and natural gas exploration and production company US$1.05 billion in return for a 50 percent interest in 120 000 net acres in east Texas and north Lousiana, and the groups will jointly develop gas shale in the region.
Of the acreage affected by the deal, 84 000 net acres cover the Haynesville shale gas formation, a substantial proportion of which lies within the prolific Harrison County, Texas and DeSoto and Caddo Parishes, Louisiana. EXCO has completed eight horizontal wells in DeSoto Parish with an average initial production rate in excess of 23 million standard cubic feet per day (mmscfd).
The acquisition adds 2.6 trillion standard cubic feet (tcf) to BG Group’s resources, with current net production of 78 mmscfd, anticipated to increase to some 250 mmscfd in 2012, net to BG Group.
The payment comprises US$655 million on completion plus US$400 million to be paid as a carry of 75 percent of EXCO's future costs to develop the Haynesville shale gas.
BG and EXCO will enter into a joint development agreement to co-operate in the further development and production of shale gas in east Texas and north Louisiana.
The alliance also envisages BG acquiring a 50 percent interest in related and complementary EXCO gas-gathering and transportation assets for US$249 million. The assets include the EXCO-owned TALCO and TGG gas-gathering and intrastate pipeline systems which deliver EXCO's and other companies' production to markets in Lousiana and Texas and are connected to major intrastate and interstate gas transmission pipelines serving markets across the Midwest and Eastern US.
BG Group Chief Executive Frank Chapman said: “This alliance brings material new resources and supply to our existing US business at a competitive price and in a prime location at the heart of the world's largest gas market. These domestic exploration and production activities yield strong synergies with the Group's established LNG import and 3.5 billion standard cubic feet per day US gas marketing business.”www.proactiveinvestors.com
Finland’s Ruukki to buy Sylvania Resources for €268 mln
Sylvania Resources Ltd (ASX: SLV) said it has entered into a merger agreement with Finland’s Ruukki Group PLC under which Ruukki will acquire Sylvania’s capital by paying 1 of its shares in return for 1.81 Sylvania shares, valuing the company at €268 million.
The offer represents a 28 percent premium to Sylvania’s ASX closing price on June 29, based on Rukki’s closing price on the same day on the NASDAQ OMX Helsinki exchange.
www.proactiveinvestors.com.au
China markets fall on petrol price rise
Mainland markets fell today, led by auto and steel shares, after the government raised the price of petrol and diesel for a third time this year, and iron-ore price negotiations ended without agreement.
The Shanghai Comprehensive Index dropped 0.54 percent to 2959.36, paring the monthly gain to 12.40 percent and quarterly gain to 24.70 percent. The small and medium enterprises SME Comprehensive Index slid 0.19 percent to 4325.64.
Hong Kong’s property stocks fell the most, dragging benchmark indices. The Hang Seng Index lost 0.81 percent to 18378.73, but ending the second quarter with a gain of 35.38 percent, the best in almost 10 years. The Hang Seng Growth Enterprises Index plunged 2.59 percent to 575.20. The Hang Seng China Enterprises Index lost 0.23 percent to 10962.61.
Taiwan's TAIEX Index advanced 0.64 perent to 6432.16.
Steel makers lost 2.42 percent on average after China’s iron ore price talk with the three largest producers ended today without any agreement. Rio Tinto, the world’s second biggest iron-ore producer, said some contracts may revert to spot market pricing tomorrow.
Bao Steel (SH:600019) China’s largest steel steelmaker by market value, dropped 2.76 percent. Angang Steel Co. (SZ:000898;HK:347), the second-largest, declined 3.01 percent on Shenzhen and 2.58 percent on Hong Kong. Maanshan Steel (SH:600808;HK:0323) lost 2.81 percent on Shanghai and 3.37 percent on Hong Kong.
Gold producers climbed as the price of bullion rose. Zijin Mining Group Co.(SH:601899; HK:2899), the country’s largest gold producer, added 2.6 percent on Shanghai and 2.04 percent on Hong Kong. Zhongjin Gold Corp. (SH:600489), the second largest, climbed 7.26 percent. Shandong Gold (SH:600547), the third, surged to the 10 percent trading cap. Chenzhou Mining Group (SZ:002155), the eighth, climbed 9.76 percent. Sino Gold Mining (HK:1862) advanced 3.54 percent.
Prosperity International Holdings Ltd. (HK:0803), a building materials supplier, dropped 4.76 percent after announcing less than expected profit increase of 1 percent.
It has transpired that several local officials appear to be shareholders in the company building the nearly-finished 13-story apartment in Shanghai that toppled over Saturday, killing one worker.
It is illegal for government officials to be direct investors in such projects. Shanghai Meidu Real Estate Company, the developer, had been operating illegally since its licence expired in 2004.
The Hang Seng Property Index declined 3.22 percent. The mainland-listed property shares dropped 0.77 percent on average. China Vanke Co. (SZ:000002), China’s largest listed developer, dropped 1.09 percent. Beijing North Star co. (HK:0588) plunged 7.17 percent. Hopson Development (HK:0754) lost 6.83 percent. Guangdong Shirongzhaoye Co.(SZ:002016) declined 4.13 percent.
China raises fuel prices
The Chinese government raised fuel prices starting today to help state-owned refiners avoid losses amid higher crude oil costs. Prices for gasoline and diesel were increased by RMB 600 a ton, the National Development and Reform Commission said yesterday. Automoblie and airline shares dropped on the news.
Sinopec (SH:600028, HK:0386) added 0.66 percent on Shanghai trading and 3.32 percent on Hong Kong trading.
SAIC Motor Co. (SH:600104), China’s biggest carmaker, slid 4.11 percent, the biggest one-day decline since April 27th. Beiqi Foton Motor Co. (SH:600166) lost 3.92 percent. Chongqing Changan Automobile Co. (SZ:000625) fell 2.63 percent. Tianjin FAW Xiali Automobile Co. (SZ:000927) declined 2.24 percent.
Brilliance China Automotive Holdings (HK:1114) dropped 4.26 percent. Geely Automobile Holdings (HK:0175) lost 1.41 percent.
Air China Ltd. (SH:601111; HK:0753), the nation’s largest international carrier, dropped 1.4 percent on Shanghai trading and 1.3 percent on Hong Kong trading. China Southern Airlines (SH:601055; HK:1055) dropped 2.71 percent on Hong Kong trading.
Stratex International's first projects leave the pipeline on the path to production
Stratex International (AIM:STI) is an exploration company, pure and simple. They are not mining engineers - they are exploration geologists. And you only have to listen to the passion with which chairman David Hall and CEO Bob Foster talk about the importance of exploration and development to realise that they are dedicated to their task. Without explorers there will be no discoveries. Without discoveries there will be no new mines. And without new mines there will be no resource replacement and insufficient new supply to meet the continued demand, right across the board, for both base and precious metals.
That's the context into which Stratex firmly placed themselves when they moved into Turkey some four years ago. Working in a strategic alliance with Teck Cominco, they had jointly identified a number of volcanic provinces throughout Turkey which - after initial reconnaissance by their team of experienced consulting geologists - they believed had the potential to host multi-million ounce gold deposits and significant base metals. The concept was simple: find it, prove it up, and move it on to a developer, either selling outright or retaining an interest in project upside in the form of joint venture or royalty. If the project was big enough, it would be offered to Teck Cominco or another major developer - and for a while, Teck Cominco and Stratex did work in partnership, with Teck's local subsidiary funding exploration of the Konya volcanic province, where Stratex had made their maiden discovery at Inlice. Teck have now relinquished their Konya earn-in option, due to a change in their corporate focus, and 100% ownership has reverted to Stratex.
At the recent AGM, Stratex outlined a formalisation of their very specific exploration and development strategy, whereby a joint venture vehicle would be formed - initially wholly owned - into which Stratex would vend its projects at Inlice and Altintepe, where 576,000 ounces of gold oxide resource is now ready for further development. The chosen development partner would be well-funded and technically capable and would earn into the JV by committing development finance.
That partner has now been found. Last month, Stratex announced a Memorandum of Understanding with a major Turkish construction and mining company, NTF Insaat Ticaret Ltd Sti (NTF), which is expected to complete within 90 days. The joint venture company will be established in a 45/55 ownership ratio between Stratex and NTF, with NTF providing development funding and Stratex vending in Inlice and Altintepe, plus future sub-1 million ounce (or equivalent) discoveries, thus creating a significant jointly owned gold production company. Both Inlice and Altintepe will now be put on the fast track, with the aim of bringing Inlice into production within 18 months, with Altintepe following within three years from now. Subject to satisfactory feasibility studies, combined gold output could be as high as 50,000 ounces in the 1-2-year-overlap period before Inlice closes down and the focus turns entirely to Altintepe, where a mine life of as much as 8-9 years at between 30,000 and 50,000 oz is a real possibility.
So - two down and several to go! Stratex's pipeline of exploration targets is under continual development, and the company have been very busy over the last six months. Next off the blocks after Inlice and Altintepe - and now at the top of the pipeline - is Öksüt. Situated in the middle of a string of volcanic prospects, running almost east west through the Turkish mainland, Öksüt contains several discrete - but possibly linked - silica zones. The initial focus has been on the Ortaçam Zone, an area of 200 metres x 300 metres, where mineralisation is hosted in steeply-dipping breccia zones many of which appear at the surface as silica outcrops. The deposit is open-pittable, and drilling so far shows that complete oxidation extends to a depth of at least 100 metres, implying good potential for low cost mining and processing. The zone has turned up some excellent drilling results, including intersections of 270.20 m grading 1.22 g/t Au; 15.70 m at 1.82 g/t Au; and, most recently, an exceptional from-surface intersection in ODD-12 of 93.60 m at 5.61 g/t Au. The upper part of this core included grades of 30.2 g/t and 26.9 g/t in a near-surface high-grade zone that yielded an intersection some 12 metres long in which the lowest assay was 8.83 g/t. Even more exciting is the recognition that one major intersection (38.20 m @ 2.94 g/t Au – in ODD-8) actually has no surface expression at all!
Following completion of a soil geochemistry survey some 2,000 metres to the west of the Ortaçam Zone, a new area of mineralisation has been defined, running for approximately 1,300 metres north-south, and underlain by a previously unrecognised zone of quartz-alunite alteration and pockets of vuggy silica. Stratex now believe that the intervening low-lying ground has become a high priority, to establish whether the two zones are linked, and permitting is presently being sought for trenching and drilling in the area.
Next in the pipeline is the further development of the Konya volcanic province, which is currently focused on three proven gold-bearing porphyry targets, at Karacaören, Doğanbey and Gölcük, and a fourth target at Kozlu, which shows evidence of also being a porphyry structure. Drilling has been carried out at all of the first three targets, and long intersections of anomalous gold were encountered, the most interesting of which was at Karacaoren, which returned 170 metres grading 0.12 g/t gold from surface, including 66 metres at 0.18 g/t. Grades encountered in the handful of exploration holes so far drilled are not economic, but the limited drilling has revealed the existence of potentially large tonnages in all three mineralised systems, as well as the prevalence of porphyry structures in the district. Following the relinquishing by Teck Cominco of their option over the Konya project, Stratex are now seeking exploration partners to assist in the further development and exploration of this important region.
Hasançelebi, which lies about 250 km east of Oksut, features the outcropping silica ledges now familiar from Inlice. These run in two - or perhaps three - almost parallel lines or zones, over a strike length of at least 7 km east-west, and. The individual zones range from 5 m to 20 m in width, with volcanic rocks lying between them, and the mineralisation dips to the north, with the dip varying between 20 and 50 degrees. Continuous chip sampling along one of the zones has revealed 0.69 g/t Au over an average width of 7.4 m along a strike distance of 858 m, with a higher grade section averaging 0.99 g/t. The next step is channel sampling, trenching and - finally - drilling to test the extension of the mineralisation to depth and to determine whether the three individual zones are actually discontinuous surface outcrops of a zone that might be as much as 100 m in true thickness.
Stratex will also drill- test the potential for continuation of the gold-bearing silica at a prominent break along the strike of the multi-zone prospect. As was found in the Inlice Gap Zone, the easily weathered silica outcrops can erode away above surface, leaving a "blind" deposit only discoverable by drilling. The geological evidence so far at Hasançelebi points to the silica and contained gold being stratigraphically controlled, i.e. confined to discrete volcanic beds, which signifies potential for high tonnages. Giant examples of such bed-replacement deposits include the multi-millon tonne Yanacocha and Pierina mines in Peru.
Work has also continued at Altunhisar, where surface work has shown potential for a porphyry system underlying a typical "lithocap" at Karanlikdere, and the now familiar outcropping silica at Balci which has shown elevated values of gold and molybdenum. At Murat Dagi, which includes the Karaagac gold deposit with an inferred resource of approximately 157,000 oz Au, Stratex have transferred those areas which offer no prospectivity for economic gold to Kucuk-Kral-Antimon Kursun Maden, a private Turkish mining company focused on the production of antimony, in return for a 2.5 % Net Smelter Return royalty on all future mineral production from the licences. Partners are being sought to take on the further development of the retained Karaagac gold deposit to extend the existing resource.
And as Inlice - the maiden discovery - and Altintepe leave the pipeline, in at the bottom comes a clutch of new licences at Sehitler. Situated in north west Turkey, close to the Greek border, Sehitler lies on an extension of the known mineralised belt which hosts Eldorado Gold's Perama Hill and the Sappes high-sulphidation gold deposit. The area is underlain by volcanic rocks that have been extensively altered to silica and quartz-kaolinite and also contain hydrothermal breccias. Gold pathfinder minerals have been discovered in initial prospecting, and a programme of mapping and sampling will now be undertaken to establish potential.
Find it, prove it up, and move it on. It's a concept that the market finds hard to grasp. The market likes to see ever-growing resources and progress towards production. The market likes to see high in-situ values and good potential revenue. The market likes to see gold being poured and profits rolling in. Operating outside the risk-fraught, high cost production space, Stratex's virtually risk-free future profits from outright sales, production JVs with the right partner, and retained royalties don't seem to cut the mustard with the market.
Perhaps the market should look again.
www.proactiveinvestors.co.uk
That's the context into which Stratex firmly placed themselves when they moved into Turkey some four years ago. Working in a strategic alliance with Teck Cominco, they had jointly identified a number of volcanic provinces throughout Turkey which - after initial reconnaissance by their team of experienced consulting geologists - they believed had the potential to host multi-million ounce gold deposits and significant base metals. The concept was simple: find it, prove it up, and move it on to a developer, either selling outright or retaining an interest in project upside in the form of joint venture or royalty. If the project was big enough, it would be offered to Teck Cominco or another major developer - and for a while, Teck Cominco and Stratex did work in partnership, with Teck's local subsidiary funding exploration of the Konya volcanic province, where Stratex had made their maiden discovery at Inlice. Teck have now relinquished their Konya earn-in option, due to a change in their corporate focus, and 100% ownership has reverted to Stratex.
At the recent AGM, Stratex outlined a formalisation of their very specific exploration and development strategy, whereby a joint venture vehicle would be formed - initially wholly owned - into which Stratex would vend its projects at Inlice and Altintepe, where 576,000 ounces of gold oxide resource is now ready for further development. The chosen development partner would be well-funded and technically capable and would earn into the JV by committing development finance.
That partner has now been found. Last month, Stratex announced a Memorandum of Understanding with a major Turkish construction and mining company, NTF Insaat Ticaret Ltd Sti (NTF), which is expected to complete within 90 days. The joint venture company will be established in a 45/55 ownership ratio between Stratex and NTF, with NTF providing development funding and Stratex vending in Inlice and Altintepe, plus future sub-1 million ounce (or equivalent) discoveries, thus creating a significant jointly owned gold production company. Both Inlice and Altintepe will now be put on the fast track, with the aim of bringing Inlice into production within 18 months, with Altintepe following within three years from now. Subject to satisfactory feasibility studies, combined gold output could be as high as 50,000 ounces in the 1-2-year-overlap period before Inlice closes down and the focus turns entirely to Altintepe, where a mine life of as much as 8-9 years at between 30,000 and 50,000 oz is a real possibility.
So - two down and several to go! Stratex's pipeline of exploration targets is under continual development, and the company have been very busy over the last six months. Next off the blocks after Inlice and Altintepe - and now at the top of the pipeline - is Öksüt. Situated in the middle of a string of volcanic prospects, running almost east west through the Turkish mainland, Öksüt contains several discrete - but possibly linked - silica zones. The initial focus has been on the Ortaçam Zone, an area of 200 metres x 300 metres, where mineralisation is hosted in steeply-dipping breccia zones many of which appear at the surface as silica outcrops. The deposit is open-pittable, and drilling so far shows that complete oxidation extends to a depth of at least 100 metres, implying good potential for low cost mining and processing. The zone has turned up some excellent drilling results, including intersections of 270.20 m grading 1.22 g/t Au; 15.70 m at 1.82 g/t Au; and, most recently, an exceptional from-surface intersection in ODD-12 of 93.60 m at 5.61 g/t Au. The upper part of this core included grades of 30.2 g/t and 26.9 g/t in a near-surface high-grade zone that yielded an intersection some 12 metres long in which the lowest assay was 8.83 g/t. Even more exciting is the recognition that one major intersection (38.20 m @ 2.94 g/t Au – in ODD-8) actually has no surface expression at all!
Following completion of a soil geochemistry survey some 2,000 metres to the west of the Ortaçam Zone, a new area of mineralisation has been defined, running for approximately 1,300 metres north-south, and underlain by a previously unrecognised zone of quartz-alunite alteration and pockets of vuggy silica. Stratex now believe that the intervening low-lying ground has become a high priority, to establish whether the two zones are linked, and permitting is presently being sought for trenching and drilling in the area.
Next in the pipeline is the further development of the Konya volcanic province, which is currently focused on three proven gold-bearing porphyry targets, at Karacaören, Doğanbey and Gölcük, and a fourth target at Kozlu, which shows evidence of also being a porphyry structure. Drilling has been carried out at all of the first three targets, and long intersections of anomalous gold were encountered, the most interesting of which was at Karacaoren, which returned 170 metres grading 0.12 g/t gold from surface, including 66 metres at 0.18 g/t. Grades encountered in the handful of exploration holes so far drilled are not economic, but the limited drilling has revealed the existence of potentially large tonnages in all three mineralised systems, as well as the prevalence of porphyry structures in the district. Following the relinquishing by Teck Cominco of their option over the Konya project, Stratex are now seeking exploration partners to assist in the further development and exploration of this important region.
Hasançelebi, which lies about 250 km east of Oksut, features the outcropping silica ledges now familiar from Inlice. These run in two - or perhaps three - almost parallel lines or zones, over a strike length of at least 7 km east-west, and. The individual zones range from 5 m to 20 m in width, with volcanic rocks lying between them, and the mineralisation dips to the north, with the dip varying between 20 and 50 degrees. Continuous chip sampling along one of the zones has revealed 0.69 g/t Au over an average width of 7.4 m along a strike distance of 858 m, with a higher grade section averaging 0.99 g/t. The next step is channel sampling, trenching and - finally - drilling to test the extension of the mineralisation to depth and to determine whether the three individual zones are actually discontinuous surface outcrops of a zone that might be as much as 100 m in true thickness.
Stratex will also drill- test the potential for continuation of the gold-bearing silica at a prominent break along the strike of the multi-zone prospect. As was found in the Inlice Gap Zone, the easily weathered silica outcrops can erode away above surface, leaving a "blind" deposit only discoverable by drilling. The geological evidence so far at Hasançelebi points to the silica and contained gold being stratigraphically controlled, i.e. confined to discrete volcanic beds, which signifies potential for high tonnages. Giant examples of such bed-replacement deposits include the multi-millon tonne Yanacocha and Pierina mines in Peru.
Work has also continued at Altunhisar, where surface work has shown potential for a porphyry system underlying a typical "lithocap" at Karanlikdere, and the now familiar outcropping silica at Balci which has shown elevated values of gold and molybdenum. At Murat Dagi, which includes the Karaagac gold deposit with an inferred resource of approximately 157,000 oz Au, Stratex have transferred those areas which offer no prospectivity for economic gold to Kucuk-Kral-Antimon Kursun Maden, a private Turkish mining company focused on the production of antimony, in return for a 2.5 % Net Smelter Return royalty on all future mineral production from the licences. Partners are being sought to take on the further development of the retained Karaagac gold deposit to extend the existing resource.
And as Inlice - the maiden discovery - and Altintepe leave the pipeline, in at the bottom comes a clutch of new licences at Sehitler. Situated in north west Turkey, close to the Greek border, Sehitler lies on an extension of the known mineralised belt which hosts Eldorado Gold's Perama Hill and the Sappes high-sulphidation gold deposit. The area is underlain by volcanic rocks that have been extensively altered to silica and quartz-kaolinite and also contain hydrothermal breccias. Gold pathfinder minerals have been discovered in initial prospecting, and a programme of mapping and sampling will now be undertaken to establish potential.
Find it, prove it up, and move it on. It's a concept that the market finds hard to grasp. The market likes to see ever-growing resources and progress towards production. The market likes to see high in-situ values and good potential revenue. The market likes to see gold being poured and profits rolling in. Operating outside the risk-fraught, high cost production space, Stratex's virtually risk-free future profits from outright sales, production JVs with the right partner, and retained royalties don't seem to cut the mustard with the market.
Perhaps the market should look again.
www.proactiveinvestors.co.uk
Shieldtech unit wins ‘significant’ part of UK MoD £16 mln body armour deal
Shieldtech PLC (AIM: STEC), designer, manufacturer and distributor of detection and protection equipment for the Homeland Security market, said its unit Aegis Engineering Ltd won a deal to provide protective panels for the 'Osprey' body armour used by the UK Ministry of Defence.
It did not provide details of the contract value to Shieldtech, other than it is a “significant” deal which forms part of the UK MoD's Defence Clothing project valued at a total of £16 million to supply soft armour protective ballistic panel inserts for the Osprey body armour.www.proactiveinvestors.co.uk
Pantheon Resources soars on news of commercial production from Bullseye well
Shares in Pantheon Resources PLC (AIM: PANR) soared in early trade after the oil and gas explorer announced the start of commercial production from the Jumonville#2 well on the Bullseye prospect in Lousiana, US.
The stock climbed 26 percent in early deals after the news broke.
The main target interval, the Miogyp sandstone, has been perforated and tested successfully. Jumonville#2 has been brought into commercial production at an initial gross rate of 750 barrels of oil per day and 250,000 cubic feet of gas.
Oil from the Miogyp at Jumonville is high quality 40 API oil. Under the current sales contract this oil receives a US$2 per barrel premium to West Texas Intermediate light crude.
Incorporating the initial flows from Jumonville#2, gross oil and natural gas sales at Bullseye will treble and double respectively. This should provide an immediate increase to cash flow.
Three zones were tested in Jumonville#2. A shallower zone, the Camerina, was not tested in this well. The Camerina provides potential for further upside across the Bullseye prospect.
Jay Cheatham, CEO of Pantheon Resources, stated: "After a challenging well I am extremely pleased with the commercial success in the Miogyp zone, the prime objective of the Jumonville#2 well.”
Apart from the Bullseye and Lousiana South exploration projects, South Pantheon’s main focus is the development of La Playa Deep and Wilson on the Padre island field offshore Corpus Christi in Texas. It has also farmed-in several prospects at Project Wharton and Tyler County, both onshore fields in Texas.
www.proactiveinvestors.co.uk
The stock climbed 26 percent in early deals after the news broke.
The main target interval, the Miogyp sandstone, has been perforated and tested successfully. Jumonville#2 has been brought into commercial production at an initial gross rate of 750 barrels of oil per day and 250,000 cubic feet of gas.
Oil from the Miogyp at Jumonville is high quality 40 API oil. Under the current sales contract this oil receives a US$2 per barrel premium to West Texas Intermediate light crude.
Incorporating the initial flows from Jumonville#2, gross oil and natural gas sales at Bullseye will treble and double respectively. This should provide an immediate increase to cash flow.
Three zones were tested in Jumonville#2. A shallower zone, the Camerina, was not tested in this well. The Camerina provides potential for further upside across the Bullseye prospect.
Jay Cheatham, CEO of Pantheon Resources, stated: "After a challenging well I am extremely pleased with the commercial success in the Miogyp zone, the prime objective of the Jumonville#2 well.”
Apart from the Bullseye and Lousiana South exploration projects, South Pantheon’s main focus is the development of La Playa Deep and Wilson on the Padre island field offshore Corpus Christi in Texas. It has also farmed-in several prospects at Project Wharton and Tyler County, both onshore fields in Texas.
www.proactiveinvestors.co.uk
John Teeling of Connemara Mining talks to Proactiveinvestors
John Teeling, Chairman of Connemara Mining, talks about two zinc discoveries in Ireland - one of the world’s major zinc producing countries, Connemara’s joint venture with Teck Cominco, the possibility of a commercially viable zinc mine, 38 licence blocks, very high grades at an old lead mine, and a possible acquisition.
www.proactiveinvestors.co.uk
Petrofac confident of further strong growth in current year
Oil & gas facilities service provider Petrofac Ltd (LSE: PFC) said it has had a good start to the year and is increasingly confident that 2009 will be another year of strong growth.
In a pre-close trading update ahead of announcing results for the first half to June 30 2009, it said that, with year to date order intake across the group of US$5.4 billion, including US$5.0 billion of new Engineering & Construction project awards, total backlog is expected to be approximately US$8.0 billion at the end of June, double the figure as at December 31 2009.
In Engineering & Construction, the group has made good progress on the US$5.0 billion of new contract awards secured in the first quarter of the year. The majority of construction subcontracts have been agreed and a significant proportion of activities in relation to the procurement of materials and equipment have been completed, which gives the group a high level of confidence that these projects will be delivered in line with initial expectations.
The Offshore Engineering & Operations, Engineering Services, Training and Production Solutions' business units continue to perform broadly in line with expectations. Tender activity, particularly for brownfield engineering prospects has increased in recent weeks, leading to new business opportunities.
In Energy Developments, the first tanker shipment of approximately 472,000 barrels of oil from the Don field has been delivered to a terminal in Rotterdam. Following commencement of production from the West Don field in late April, we expect commencement of production from two wells on the Don Southwest field in the next few days. Plateau production on the Don fields is expected to be achieved in early 2010 after commissioning of the permanent export route over the Thistle platform.
The group has continued its strong cash generation and, notwithstanding that an advance payment on a recent contract award of around US$300 million is expected to be received early in the second half of the year, expects its gross cash balances to be around US$850 million at June 30 2009.www.proactiveinvestors.co.uk
WildHorse Energy raises funds to progress Hungarian uranium project
Development prospects of WildHorse Energy's (ASX: WHE) Pecs uranium project in Hungary have improved.
WildHorse Energy has raised $2.9 million via a one for four entitlement issue at 10 cents per share.
Funds will be used to develop the Mecsek Hills (Pécs) project in Hungary - specifically in progressing the cooperative agreements with Mecsek‐Öko and Mecsekerc. Mecsekérc is the state owned privatised company in Hungary.
Europe is the world’s largest uranium market.
This has resulted in a technical and economic evaluation of the project area. A preliminary scoping study of the Mecsek Hills project has suggested development potential of the project. An environmental license has been granted for drilling program at Pécs to increase the resource base.
Investors may recall that current JORC inferred resource at Mecsek Hills is 30mlbs at a grade of 0.08% U3O8 for the project. Exploration target for the Mecsek Hills project area is 90 to 120 mlbs of U3O8 with a grade range of 0.08‐0.12%.
WildHorse will commence drilling and continue resource definition and the start of a Pre-feasibility study.
Fox-Davies Capital Tuesday Energy and Mining News Wrap
Aminex (AEX) intends to place 116.3m new shares at 6p a share, raising about £7m before expenses. The company is also offering up to 30m share 1 for 8 rights issue to existing qualifying shareholders, to raise another £1.8m. Astaire Securities has been appointed as the company’s London broker.
Pantheon Resources (PANR) has brought into production the Jumonville-2 well in Louisiana after successful testing. Initial rates are 750b/d of oil and 250,000 cf/d of gas; additional objectives will be targeted in further appraisal wells across the prospect and should add to production levels at some point in the future. Permanent production facilities and infrastructure are in place to support the increase.
Bezant Resources (BZT) announces metallurgical testwork results on samples from its Mankayan copper/gold Project, located 260km north of Manila in the Philippines. Independent laboratory testwork indicates 94% copper recovery and 74% gold recovery with all impurities below penalty levels.
Sylvania Resources Ltd (SLV) and Ruukki Group plc, a company incorporated in Finland today announce that they have entered into a merger implementation agreement pursuant to which Ruukki will acquire, subject to satisfaction of certain conditions, all of the issued and to be issued share capital of Sylvania under an Australian law governed scheme of arrangement between Sylvania and its shareholders. Under the Scheme each Sylvania Shareholder will receive 1 Ruukki share for every 1.81 Sylvania shares held on the Sylvania Scheme record date.
Norseman Gold (NGL) Norseman Gold, releases its updated Resource Statement as at 31 March 2009 for its Norseman Gold Project, located in the Eastern Goldfields of Western Australia. Proven and Probable Reserves increased to 0.4 million ounces of gold (1.4 million tonnes at a grade of 8.9 g/t), an increase of 29% to the reserve ounces compared to the reserve as at 31 March 2008. Measured, Indicated and Inferred Resources increased to 3.7 million ounces of gold (20.0 million tonnes at a grade of 5.5 g/t), an increase of 95% compared to the resource as at 31 March 2008.
Aurum Mining (AUR) announces that it has granted options to facilitate the disposal of both its 80% interest in the Andash gold-copper mining project and its ancillary assets, consisting mainly of a mining and construction fleet. The options have been granted to ASX listed gold mining company, Kentor Gold Limited. If the options are exercised, Aurum will realise US$10m from its 80% stake in the Andash project and a further US$5m for its share of the ancillary assets.
Conroy Diamonds & Gold (CDG) announces that rock chip sampling has confirmed the presence of gold values in bedrock at its new Clay Lake target in Co.Armagh, Ireland where the Company has previously identified a gold-in-soil anomaly. The samples were collected along a 100 metre section of a stream bed in the north-west part of the target, and all four samples contain gold. The highest value, 1.31g/t gold, was reported from sample CLR 3, and the other three returned gold values of 0.28g/t (CLR 2), 0.12g/t (CLR 4) and 0.05g/t (CLR 1).
www.proactiveinvestors.co.uk
Pantheon Resources (PANR) has brought into production the Jumonville-2 well in Louisiana after successful testing. Initial rates are 750b/d of oil and 250,000 cf/d of gas; additional objectives will be targeted in further appraisal wells across the prospect and should add to production levels at some point in the future. Permanent production facilities and infrastructure are in place to support the increase.
Bezant Resources (BZT) announces metallurgical testwork results on samples from its Mankayan copper/gold Project, located 260km north of Manila in the Philippines. Independent laboratory testwork indicates 94% copper recovery and 74% gold recovery with all impurities below penalty levels.
Sylvania Resources Ltd (SLV) and Ruukki Group plc, a company incorporated in Finland today announce that they have entered into a merger implementation agreement pursuant to which Ruukki will acquire, subject to satisfaction of certain conditions, all of the issued and to be issued share capital of Sylvania under an Australian law governed scheme of arrangement between Sylvania and its shareholders. Under the Scheme each Sylvania Shareholder will receive 1 Ruukki share for every 1.81 Sylvania shares held on the Sylvania Scheme record date.
Norseman Gold (NGL) Norseman Gold, releases its updated Resource Statement as at 31 March 2009 for its Norseman Gold Project, located in the Eastern Goldfields of Western Australia. Proven and Probable Reserves increased to 0.4 million ounces of gold (1.4 million tonnes at a grade of 8.9 g/t), an increase of 29% to the reserve ounces compared to the reserve as at 31 March 2008. Measured, Indicated and Inferred Resources increased to 3.7 million ounces of gold (20.0 million tonnes at a grade of 5.5 g/t), an increase of 95% compared to the resource as at 31 March 2008.
Aurum Mining (AUR) announces that it has granted options to facilitate the disposal of both its 80% interest in the Andash gold-copper mining project and its ancillary assets, consisting mainly of a mining and construction fleet. The options have been granted to ASX listed gold mining company, Kentor Gold Limited. If the options are exercised, Aurum will realise US$10m from its 80% stake in the Andash project and a further US$5m for its share of the ancillary assets.
Conroy Diamonds & Gold (CDG) announces that rock chip sampling has confirmed the presence of gold values in bedrock at its new Clay Lake target in Co.Armagh, Ireland where the Company has previously identified a gold-in-soil anomaly. The samples were collected along a 100 metre section of a stream bed in the north-west part of the target, and all four samples contain gold. The highest value, 1.31g/t gold, was reported from sample CLR 3, and the other three returned gold values of 0.28g/t (CLR 2), 0.12g/t (CLR 4) and 0.05g/t (CLR 1).
www.proactiveinvestors.co.uk
Wolseley CEO Hornsby steps down, Ian Meakins named successor
Wolseley PLC (LSE: WOS) said Chip Hornsby has stepped down as group chief executive with immediate effect, and it has appointed former Travelex Holdings Ltd CEO Ian Meakins as successor with effect from July 13 2009.
The distributor of plumbing and heating products to professional contractors and building materials supplier said Hornsby is leaving following the completion of the £1 billion capital raising in April 2009 and the recent disposal of Stock Building Supply which have significantly strengthened the group's financial position.
Meakins was previously CEO of Alliance UniChem PLC until its merger with Boots in July 2006.www.proactiveinvestors.co.uk
Emmerson Resources and Ivanhoe Australia up the ante on gold-copper exploration
A quest for copper and gold in the Tennant Creek of Australia's Northern Territory will start with a $A7 million ($US5.6 M) programme for the balance of this year.
Emmerson Resources Ltd (ASX: ERM) said today that a substantial search quest would take place, using part of the funds provided by Ivanhoe Australia Ltd (ASX: IVA) - the well funded explorer now holding the Australian assets of Ivanhoe Mines Ltd, the North American-based company run by Robert Friedland.
Ivanhoe Australia will provide the first $A18 M ($US14.4 M) in the joint venture.
Emmerson's managing director Rob Bills said the joint venture's first activity has begun with reverse circulation drilling on the Troika prospect and drilling will then advance to targets in the Trinity area.
Emmerson, will manage the exploration on a series of greenfield projects where targets are perceived to be iron oxide gold-copper deposits.
About the time of the Ivanhoe farm-in, Emmerson in June provided more positive drilling results on its large holdings in the Tennant Creek field, where there are historic high grade gold-copper mines and recent positive results for Westgold Resources Ltd (ASX: WGR) in the Rover field.
The June drilling was on the Analytic One target for Emmerson, just west of Tennant Creek where there was a return of 24 metres grading 6.27 grams/tonne gold from 246 metres depth, including 3m @ 48.8 g/t gold. This hole was 30 metres west of the company's original intercept in that area of 3m @ 7.76 g/t gold from 225m.
At a recent shareholders meeting Rob Bills said that Ivanhoe would provide $A28 M ($US22.4 M) to earn a 51% stake in the majority of Emmerson's properties in the Tennant Creek field. This would be on "Tier One" properties and Emmerson would retain 100% ownership of Tier Two properties.
Bills said the Tennant Creek field was historically one of the highest grade gold fields in Australia, averaging 15-20 g/t gold and 2 to 4% copper.
Emmerson owns the only gold plant within 500 kilometres and its replacement value was put at $A20 M ($US16 M).
"Emmerson is utilising new technologies and exploration concepts to unlock the next generation of ore bodies, at depth," he said.
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Republic Gold commences drilling at Tregoora in FNQ, where near term cash flows beckon
Bolivian and Australian focussed gold developer Republic Gold (ASX: RAU) has today commenced drilling at its 100% owned Tregoora Gold Project in Far North Queensland.
While many eyes have been on RAU's Amayapampa Gold Project in Boliva given its size, the company's Far North Queensland (FNQ) projects are capable of providing near term cash flow.
Bankable Feasibility Studies have commenced and gold production could commence in FNQ as early as 2010 with planned 35,000 ounces of production per annum.
Drilling will have two objectives at Tregoora in FNQ: to provide samples for an an expanded metallurgical testwork programme and also to upgrade the mineral resources at Tregoora.
There have been some very high grade intercepts in past 2 years at Tregoora and Far North Tregoora of: 24m @ 8.3 g/t 24m @ 4.78 g/t in X-holes on the same drill section.
The Tregoora Project is planned for development in conjunction with the Northcote project but has the potential to outstrip Northcote and become the Company’s main project area. The bulk of the combined resources of 2,847,000 t at 1.7 Au g/t containing 156,000 Au ounces is contained within the Sleeping Giant deposit to broadly open pittable depth Northcote, after a recent upgrade has total resources of 9,420,000 tonnes at 1.7 g Au/t containing 573,000 ounces gold.
A number of studies that form part of the Bankable Feasibility Study at have already been completed, with the Company in discussions with engineering firms to provide the final input required for the completion of a Bankable Feasibility Study.
Republic’s Managing Director John Kelly said the Company is moving ahead with its production plans for Far North Queensland. This year’s drilling at Tregoora "will enable the completion of metallurgical testwork necessary for the Bankable Feasibility Study and if successful will see an initial mineral resource at the high grade Terrace Creek Prospect."
Western Desert Resources starts drilling at Roper Bar Iron Ore project with Itochu
Investors will be watching keenly for news from Western Desert Resources (ASX: WDR) as drilling has kicked off at the Roper Bar Iron Ore Project in the Northern Territory.
Investors may recall the project is a joint venture with ITOCHU subsidiary, IMEA Exploration and Development of Australia Pty Ltd (IEDA).
Itochu liked the potential of the project, it agreed to farm-in to the project and for IEDA to spend up to A$15.0 million over the next six years to earn up to a maximum 51% equity in the project, in addition to the initial A$2.0 million acquisition.
As an important cue for investors, the reverse circulation drilling program of up to 16,000 metres has been fast tracked with Itochu (IEDA) electing to proceed with the next phase of the farmin, months before a formal decision was due.
Drilling will be devoted to previously mapped high grade outcropping targets with the objective of evolving an initial resource estimate within coming months.
These high grade drill targets are in Area D, Area E, and Area F and were identified from a recently completed geological mapping program conducted during March 2009 extending the known area of outcropping iron mineralisation to 55km², some of which yielded surface samples assaying over 60% Fe.
Managing Director of Western Desert, Mr Norm Gardner, said he was delighted that Itochu continues to demonstrate its confidence in the Roper Bar project and "we look forward to a successful drilling program in this exciting emerging iron ore project.”
The Roper Bar project is only 30 kilometres west of the Gulf of Carpentaria and just 240 kilometres east of the Alice Springs to Darwin rail corridor.
Phase 1 Drilling program completed in 2008 recorded assay results of up to 60% Fe and an average thickness of 5.7m under light cover. Also recent beneficiation test work successfully upgraded lower grade material to in excess of 60% Fe using a low cost gravity separation technique supporting the business model of the Roper Bar Iron Ore Project.
Norseman Gold 2P resources up 29 percent at 0.4 mln ounces
Norseman Gold PLC (AIM, ASX: NGL) said after a recent review, it has increased its proven and probable reserves estimate as of end-March 2009 by 29 percent from the same date a year earlier to 0.4 million ounces of gold, that is 1.4 million tonnes at a grade of 8.9 grams per ton.
Measured, indicated and inferred resources at the Norseman project in Western Australia rose 95 percent from the March 31 2008 estimateto 3.7 million ounces of gold, or 20.0 million tonnes grading 5.5 g/t.
Of the total reserves 310,000 ounces of gold or 78 percent are located within the Bullen and Harlequin declines. The remainder are located in other underground areas, open pits and stockpiles. A gold price of A$1,200 per ounce has been utilised in assessing the economic viability of the Company's reserve and resource.
The new reserve equates to a minimum five year mine life at the current annual production rate with no allowance for the fact that Norseman has historically produced a portion of its annual ounces of gold from outside the stated reserve envelope.
Since March 312009, the company has continued with its exploration drilling programmes both within the Bullen and Harlequin declines and regionally. Norseman expects that positive results from these drilling programmes will see the mine life extended further.www.proactiveinvestors.com.au
Venture Minerals receives positive scoping study for tin/tungsten/magnetite at Mt Lindsay
Tasmanian poly-metallic deposit company Venture Minerals (ASX: VMS) has released an independent Scoping Study on the Mt Lindsay deposit with positive project results.
The study indicated a starting mine life of 7 years and generating $700 million in net cash from developing the Tin/Tungsten/Magnetite deposit.
One of the economic advantages of Mt Lindsay is that mining and processing costs can be amortised over the three commodities - delivering a higher profit margin per tonne mined.
Main parameters of the Scoping Study included:
- Annual Production - 4.4Mt
- Greater than 7 years of mine life
- Net Cash LOM (“Life Of Mine”) - $702 million
- Average Annual Operating Revenue - $241 million (at full production)
- Average Annual Operating Cost - $132 million (at full production)
- Average Annual Net Revenue - $109 million (at full production)
- Estimated Capital Expenditure - $255 million
- Internal Rate of Return - 30% (assuming 75% Equity 25% Debt)
However, the caveats to the Study are as important and provide potential for greater upside:
Less than 10% of exploration targets have been drill tested at Mt Lindsay. There is scope for a 10 - 15 year mine life for the Mt Lindsay Deposit. Importantly, the Stanley River DSO Project is not included in the scoping study.
Both the Mt Lindsay and Stanley River projects have exceptional access to existing infrastructure - Power, Road, Rail and Port - and the envy of many emerging producers. With three commodities, there is some partial protection versus one commodity price volatility.
Perhaps forgotten, with focus on three commodities is that Venture owns the third largest JORC compliant tin resource in Australia.
Venture will now complete a major drilling campaign over the coming months focussed on expanding the Mt Lindsay resource base and extending the potential mine life of the project. A full feasibility study will commence as soon as additional resource tonnes are defined.
Robust Resources finds copper/gold anomalies near Orange, NSW
Robust Resources (ASX: ROL) has been turning investor heads recently with drilling results from Romang Island.
ROL has also been active on its Cumnock tenement (EL 6417) near Orange in NSW. Broad spaced soil sampling has located new gold and base metal anomalies at Gumble and Mount Catombal as part of the tenement ground.
Copper and gold anomalies were encountered in the northern grid. These will require follow-up by prospecting/ rock chip sampling, and/or closer spaced soil sampling.
ROL is manager of the Joint Venture with Ausmon Resources Limited (ASX: AOA). Robust farmed out an 85% interest its NSW tenements including EL 6417 (Cumnock), near Orange. The deal excluded Bauloora (EL 6414) near Cootamundra, which is 100% owned by Robust. Under the agreement Ausmon will spend $250,000 p.a. on the tenements as a whole for 3 tenement years ending May 2011, with a right to withdraw after 2 years. ROL will retain a 15% free carried interest.
A total of 15 to 20 new copper and/or gold anomalies have been discovered. These anomalies are significant in that they most likely represent the surface expressions of base and precious mineralisation at depth.
Gumble is prospective for skarn type deposits, and the Mt Catombal area for disseminated copper sulphides with epithermal gold.
Further exploration will focus on sampling of the most northerly anomaly, extending northwards. Broadly spaced soil sampling will be undertaken in areas where rock chip sampling has yielded anomalous results. The work will hone targets for further probing using air core and/or RC percussion drilling.
Quest Petroleum's purchase of interest in Bullseye Prospect oil well pays off
Quest Petroleum (ASX: QPN) will benefit from oil production from the Jumonville #2 well at the Bullseye Prospect in Iberville Parish, Louisiana.
Quest Petroleum recently acquired a 5% working interest (paying 6.667%) in the Bullseye prospect (an area of 1,700 acres) located in South Louisiana.
the main target interval at Jumonville #2, the Miogyp sandstone, was perforated and has begun producing oil and gas at an initial rate of 750 barrels of oil per day and 250,000 cubic feet of gas.
Initial production rates are at the upper end of expectations.
The Jumonville #2 well has been brought into immediate commercial production with sales already being recorded and providing an immediate and substantial increase to cash flow. Jumonville oil is high quality 40 gravity oil which under the current sales contract yields a $2 per barrel premium to West Texas Intermediate (WTI).
At the initial Jumonville #2 production rate, Quest says oil sales from the Bullseye prospect will treble and gas sales will double. The permanent production facilities and infrastructure to support the increased production are already in place. All of the objective formations were penetrated and the Jumonville #2 well has delivered an excellent commercial result in its prime objective.
The Jumonville #2 well still has another oil zone yet to be tested in the Camerina section which providing investors with further upside across the Bullseye prospect.
WildHorse Energy raises funds to progress Hungarian uranium project
Development prospects of WildHorse Energy's (ASX: WHE) Pecs uranium project in Hungary have improved.
WildHorse Energy has raised $2.9 million via a one for four entitlement issue at 10 cents per share.
Funds will be used to develop the Mecsek Hills (Pécs) project in Hungary - specifically in progressing the cooperative agreements with Mecsek‐Öko and Mecsekerc. Mecsekérc is the state owned privatised company in Hungary.
Europe is the world’s largest uranium market.
This has resulted in a technical and economic evaluation of the project area. A preliminary scoping study of the Mecsek Hills project has suggested development potential of the project. An environmental license has been granted for drilling program at Pécs to increase the resource base.
Investors may recall that current JORC inferred resource at Mecsek Hills is 30mlbs at a grade of 0.08% U3O8 for the project. Exploration target for the Mecsek Hills project area is 90 to 120 mlbs of U3O8 with a grade range of 0.08‐0.12%.
WildHorse will commence drilling and continue resource definition and the start of a Pre-feasibility study.
Innamincka Petroleum to drill highly anticipated coal seam gas targets with AGL in August
The highly anticipated drilling on Innamincka Petroleum (ASX: INP) Coal Seam Gas targets is moving closer.
A rig has been confirmed for exploration drilling within PEL 103 in the Cooper Basin to commence in August. AGL Energy Limited (Operator) will pay for the three planned core holes as part of its $5 million carry of INP’s share of future exploration and appraisal activity.
What renders excitement is that coal intersections were recorded in the majority of the surrounding wells on the Innamincka Dome at depths of 200-540 metres with cumulative interpreted coal thicknesses of up to 40 metres in a single well.
These depths and coal intersections are similar to a number of commercial Surat Basin CSG fields.
Independent consultants Resource Investment Strategy Consultants has calculated that the Innamincka Dome contains an estimated potential high side recoverable CSG resource of up to 800 Billion standard cubic feet (“Bscf”).
Strategically for for INP shareholders, this area is located only 25 kilometres from the QSN Link (Ballera-Moomba) transmission pipeline, enhancing cost-effective access to the gas market.
If successful, a pilot test to demonstrate the ability to commercially produce gas. This will be followed by development plans and economics to support commercial development.
The relatively close proximity of the transmission pipeline infrastructure would improve project economics and differentiate Innamincka Dome CSG from other potential projects as gas could be brought to market quickly.
INP has signed gas marketing agreements with AGL earlier this year which allow INP to obtain market prices for its share of any gas produced.
Locations have been selected and approvals are anticipated so that drilling will commence on time.
NuPower Resources re-assays and finds high grade phosphate at Lucy Creek, NT
In good news for NuPower Resources shareholders, (ASX: NUP) the company has encountered high grade phosphate from the re-assay of Reverse Circulation (RC) drilling in 2006 by Arafura Resources at Lucy Creek in the Northern Territory.
One hole produced near surface direct shipping phosphate intercept grading >30% P205.
The re-assay of all 45 Arafura drill holes returned the following results:
· LCRC003: 10m @ 15.7% P2O5 from 25m.
· LCRC004: 10m @ 21.7% P2O5 from 30m, including 5m @ 26.0% P2O5 from 30m
· LCRC016: 5m @ 17.6% P2O5 from 35m.
· LCRC023: 16m @ 15.7% P2O5 from 15m.
· LCRC026: 5m @ 17.2% P2O5 from 15m.
· LCRC027: 5m @ 10.7% P2O5 from 15m.
· LCRC028: 10m @ 16.3% P2O5 from 35m, including 5m @ 22.4% P2O5 from 35m
· LCRC029: 20m @ 18.2% P2O5 from 10m, including 5m @ 24.0% P2O5 from 10m and 5m @ 21.9% P2O5 from 20m
· LCRC039: 5m @ 21.3% P2O5 from 5m.
· LCR040: 10m @ 21.7% P2O5 from 5m, including 5m @ 30.6% P2O5 from 5m
Mining Management Plans and Risk Management plans for Lucy Creek will be lodged with the NT regulatory agencies this week. Subject to regulatory approvals, NuPower will commence drilling at its Lucy Creek exploration licence in August.
NuPower aims to identify a JORC compliant resource at Lucy Creek by the end of 2009. Currently, Lucy Creek currently has a conceptual target of up to 43m tonnes at @21% P205 (15% P2O5 cut off).
Iron Ore Holdings adds to iron ore bounty in Pilbara
Fast emerging Pilbara iron ore developer Iron Ore Holdings (ASX: IOH) can do no wrong at present.
Fresh from a deal with Rio Tinto (ASX: RIO) for a mine gate sale covering future iron ore production of up to 1.5Mtpa from IOH's Phil’s Creek Project, the company has inked a significant increase in the Mineral Resource for its 100%-owned Iron Valley Project in the Pilbara Region of Western Australia.
The new JORC Indicated and Inferred mineral resource is 132.3 Million Tonnes @ 58.9% Fe 4.3% SiO2, 3.0% Al2O3, 0.19% P and 7.4% LOI. This is a 50% increase from March 2009. It also includes a high grade Direct Shipping Ore (DSO) component of 85.9 million tonnes at 60.75 Fe.
Just how large both of IOH's iron ore resources are in the Pilbara is the question that is pondered by investors and analysts right now?
Importantly, the export quality of the ore delineated is manna from heaven for IOH holders - and a major reason for the one mine-gate deal to date with Rio Tinto.
IOH believes initial scoping studies point to a resource that will support a 5-10 Million tonne per year mine development with the potential to be a low-cost, low strip ratio operation.
IOH is aiming for production of up to 1.5Mtpa to commence in 2010 at Phil’s Creek Project.
The 100% owned Iron Valley DSO Deposit is located 10km north east of Rio Tinto’s Yandicoogina Operation in the East Pilbara Region of Western Australia.
Property, coal and alchohol lead Shanghai higher
Mainland markets advanced, led by property shares, after land prices reached new highs in Beijing while Hong Kong stocks declined, led by commodity-related shares. The Shanghai Comprehensive Index advanced 1.61 percent to 2975.31t. The small and medium sized enterprises SME Comprehensive Index slid 0.12 percent to 4333.77. The Hang Seng Index slid 0.39 percent to 18528.51, as big energy firms fell with the drop in oil price. The Hang Seng Growth Enterprises Index however advanced 0.64 percent to 590.49. The Hang Seng China Enterprises Index lost 0.45 percent to 10987.57. Taiwan's TAIEX Index dropped 1.12 perent to 6391.15. Petro China Co. (SH:601857;HK:0857), the nation's largest oil producer, advanced 3.22 percent on Shanghai trading but slid 0.58 percent on Hong Kong trading. Jiangxi Copper Co. (SH:600362;HK:0358), China's largest producer of the metal, gained 0.47 percent on Shanghai but lost 2.66 percent on Hong Kong. Lianhua Supermarket Holdings (HK:0980) surged 11.13 percent on reports that it will acquire it rival Hualian. Alchohol shares rise Xinghuacun Fen Wine raised the price of its 10-year-old Fenjiu liquor by 10 percent starting on June 26, it said in a statement dated June 27. Kweichow Moutai Co .(SH:600519), the nation's biggest producer of spirits by market value climbed 7.82 percent. Wuliangye Yibin Co.(SZ:000858), the second-largest, added 4.92 percent. Lu Zhou Lao Jiao Co. (SZ:000568) surged 8.26 percent after the announcement of its generous dividend plan. Coal shares rise on expectations of rise in power output China Shenhua Energy Co.(SH:601088;HK:1088), the country’s largest coal producer, jumped 7.9 percent on Shanghai trading and 1.97 percent on Hong Kong trading. Yanhzhou Coal Mining Co.(SH:600188;HK:1171) gained 3.44 percent on Shanghai and 1.13 percent on Hong Kong. Electricity output may rise in June, ending an eight-month drop, as the economy recovers and temperatures climb across the nation rise, the National Development and Reform Commission said in a statement on June 26. Output by June 23 was 2.37 percent higher than the same period a year earlier, it said. Property shares rose on higher land price
The price of land in Beijing was raised to RMB 15,217 per square meter last Friday, the highest in history. House price will be higher, too, developers say.
Mainland-listed property shares rose an average 3.34 percent today. The Hang Seng Propety Index gained 0.02 percent.
China Vanke Co.(SZ:000002), the nation’s largest listed developer, advanced 2.3 percent. Poly Real estate Co.(SH:600048), the second-largest, added 4.06 percent. Zhejiang WHWH Industry Co.(SH:600576) and Huayuan Property Co.(SH:600743), surged to the 10 percent trading cap.
Premium Land (HK:0164) surged 15.38 percent. Zhong An Real Estate (HK:0672) rose 13.64 percent.
Following property, cement shares also rose. Prosperity International (HK:0803) surged 18.87 percent. Shanghai Allied Cement (HK:1060) advanced 3.39 percent. Hebei Taihang Cement Co.(SH:600553) surged to the 10 percent trading cap.
www.proactiveinvestors.com.hk
Panflu vaccine gets approval for over-60s
Sinovac has received a revised Drug Supplementary Application Approval from the China State Food and Drug Administration (SFDA) for Panflu(TM), its pandemic influenza vaccine.
Under the revised approval, the age group eligible for use of the whole viron inactivated pandemic influenza vaccine was expanded to 18 years old and over, whereas it was previously 18 to 60 years of age, enabling Sinovac to reach a much broader percentage of the population.
Sinovac also received approval to change the existing packaging of 0.5mL to 1mL per vial, which will improve the company’s packaging capacity and put in a better position to deliver on its first order from the Beijing government.
Sinovac is currently focused on production of a vaccine against the new pandemic influenza strain, H1N1. This vaccine will be sold under the Panflu brand, which has in the past also referred to Sinovac's vaccine against the pandemic influenza strain, H5N1.
Sinovac expects to complete production of its first batch of the H1N1 Panflu vaccine by the end of July 2009.
SMIC revises Q2 revenue guidance from 58pct to 76pct growth
Semiconductor Manufacturing International Corporation upwardly revised its Q2 revenue guidance for the three months ended June 30, to an increase of 76 percent to 78 percent, from the original guidance of an increase of 58 percent to 62 percent.
The original guidance was released on April 29th but has been revised due to strong growth in orders from the domestic market exceeded expectations.
Piper Jaffray reiterates "Buy" rating on Yingli Green Energy
Piper Jaffray has reiterated its Buy rating on Yingli Green Energy with a price target of US$17 after visiting the company recently.
Yingli recently added four new customers and benefited from China’s stimulus plans, which have involved large subsidies for renewable energy companies. Piper Jaffray analysts anticpate 70 percent quarterly growth
Monday, 29 June 2009
Alizyme plummets after funding shortfall bombshell, facing liquidation
Shares in Alizyme PLC (LSE: AZM) plummeted after the pharma group announced its current funding is not expected to last beyond the end of August 2009 and it may face going into administration or liquidation.
Investors headed for the hills, leaving the stock languishing nearly 55 percent below its opening level by late afternoon.
Laizyme said material uncertainty has now arisen as to the receipt of milestone payments due from various parties in connection with licensing and development agreements for COLAL-PRED, a treatment of ulcerative colitis, a form of inflammatory bowel disease.
Funding obligations under these contracts for Alizyme are subject to potentially significant rises, and ongoing talks with various parties to mitigate the potential impact on the company are not progressing well.
The group is running out of cash in August unless it is able to raise additional funds. The company is in discussions with its advisers in relation to such funding.
Alizyme is reviewing the overall strategy and structure of the company, and is planning to make a significant number of its employees redundant.
It is also considering the suitability of the company's current main market listing given its market capitalisation and limited resources.
www.proactiveinvestors.co.uk
Investors headed for the hills, leaving the stock languishing nearly 55 percent below its opening level by late afternoon.
Laizyme said material uncertainty has now arisen as to the receipt of milestone payments due from various parties in connection with licensing and development agreements for COLAL-PRED, a treatment of ulcerative colitis, a form of inflammatory bowel disease.
Funding obligations under these contracts for Alizyme are subject to potentially significant rises, and ongoing talks with various parties to mitigate the potential impact on the company are not progressing well.
The group is running out of cash in August unless it is able to raise additional funds. The company is in discussions with its advisers in relation to such funding.
Alizyme is reviewing the overall strategy and structure of the company, and is planning to make a significant number of its employees redundant.
It is also considering the suitability of the company's current main market listing given its market capitalisation and limited resources.
www.proactiveinvestors.co.uk
Evolution Securities initiates coverage of Cluff Gold with a ‘buy’ rating
West Africa focused gold producer, Cluff Gold (AIM: CLF, TSX: CLF), received some positive coverage from London based Evolution Securities today, after the broker initiated coverage with a ‘buy’ note.
In the note, Evolution said that Cluff Gold has “worked hard” in developing two gold mines (Kalsaka, Burkina Faso and Angovia, Ivory Coast) simultaneously and was on track to reach annualised production of almost 100,000 ounces per annum as the two operations moved through commissioning in the next three months.
Cluff Gold’s Baomahum Project in Sierra Leone, which is at the scoping study stage, also has the potential to be a multi-million ounce deposit, the broker said: “The Baomahun project is the company’s key exploration focus and although less than 30% of the potential strike has been drilled, almost 1.5Moz have already been identified. A revised scoping study is underway while exploration drilling continues and we expect this to generate considerable newsflow over the remainder of the year.”
Taking into account the increasing production profile and potential value of Baomahum, Evolution Securities valued the gold producer at 132 pence per share.
“We think that the upside potential of Baomahun is not fully reflected in Cluff’s share price. We also believe its shares will be re-rated once Kalsaka and Angovia are fully commissioned and the company becomes a profitable gold miner,” Evolution added.
www.proactiveinvestors.co.uk
In the note, Evolution said that Cluff Gold has “worked hard” in developing two gold mines (Kalsaka, Burkina Faso and Angovia, Ivory Coast) simultaneously and was on track to reach annualised production of almost 100,000 ounces per annum as the two operations moved through commissioning in the next three months.
Cluff Gold’s Baomahum Project in Sierra Leone, which is at the scoping study stage, also has the potential to be a multi-million ounce deposit, the broker said: “The Baomahun project is the company’s key exploration focus and although less than 30% of the potential strike has been drilled, almost 1.5Moz have already been identified. A revised scoping study is underway while exploration drilling continues and we expect this to generate considerable newsflow over the remainder of the year.”
Taking into account the increasing production profile and potential value of Baomahum, Evolution Securities valued the gold producer at 132 pence per share.
“We think that the upside potential of Baomahun is not fully reflected in Cluff’s share price. We also believe its shares will be re-rated once Kalsaka and Angovia are fully commissioned and the company becomes a profitable gold miner,” Evolution added.
www.proactiveinvestors.co.uk
Pacific North West Capital to sell Nixon Fork Gold Mine to Fire River Gold
Pacific North West Capital (TSX: PFN; OTCBB: PAWEF) reaffirmed its intention to remain focused on platinum group metals (PGM’s) and nickel today, announcing that it had granted an option to Fire River Gold (CNSX: FAU) to acquire its Nixon Fork Gold Mine in Alaska.
Fire River Gold will pay Pacific North West Capital US$50,000 on signing the option agreement and will pay a further US$450,000 over six months and issue 6.415 million shares to Pacific North West Capital if it chooses to exercise the option to acquire the project in full. The transaction places a US$3 million price tag on the Nixon Fork property, and post transaction, Pacific North West will hold approximately 64% of Fire River Gold. Pacific North West will also be issued 1 million share purchase warrants with an exercise price of 50 cents per share, and Fire River Gold will refund C$1.25 million in expenses incurred by Pacific North West at Nixon Fork.
“PFN's management has examined several possible scenarios for advancing the Nixon Fork Gold Project, and has had discussions with numerous groups interested in funding the project,” the company stated. “The general consensus of these discussions is that Nixon Fork should be funded through a company that is completely focussed on gold.”
Pacific North West went on to say that it believed the shareholder structure of Fire River Gold was better suited to raise the necessary capital to re-develop the mine.
“Management's expertise remains rooted in exploration, and to that end, PFN is currently negotiating on several advanced stage projects in Canada, and subject to the completion of one or more of these acquisitions, plans to expend a minimum of $1 million in Canada before year end,” it noted.
Pacific North West Capital’s current option/joint ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and Fire River Gold.
www.proactiveinvestors.co.uk
Fire River Gold will pay Pacific North West Capital US$50,000 on signing the option agreement and will pay a further US$450,000 over six months and issue 6.415 million shares to Pacific North West Capital if it chooses to exercise the option to acquire the project in full. The transaction places a US$3 million price tag on the Nixon Fork property, and post transaction, Pacific North West will hold approximately 64% of Fire River Gold. Pacific North West will also be issued 1 million share purchase warrants with an exercise price of 50 cents per share, and Fire River Gold will refund C$1.25 million in expenses incurred by Pacific North West at Nixon Fork.
“PFN's management has examined several possible scenarios for advancing the Nixon Fork Gold Project, and has had discussions with numerous groups interested in funding the project,” the company stated. “The general consensus of these discussions is that Nixon Fork should be funded through a company that is completely focussed on gold.”
Pacific North West went on to say that it believed the shareholder structure of Fire River Gold was better suited to raise the necessary capital to re-develop the mine.
“Management's expertise remains rooted in exploration, and to that end, PFN is currently negotiating on several advanced stage projects in Canada, and subject to the completion of one or more of these acquisitions, plans to expend a minimum of $1 million in Canada before year end,” it noted.
Pacific North West Capital’s current option/joint ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and Fire River Gold.
www.proactiveinvestors.co.uk
Lipoxen wins DNA vaccine patent in EU and US for ImuXen
Biopharma group Lipoxen PLC (AIM: LPX) has been granted a new co-delivery DNA vaccine patent in the EU and the US for its ImuXen liposomal technology.
The new patent claims that ImuXen technology can induce a further enhanced immune response for vaccine delivery when the DNA and antigen components are combined together into the liposomal delivery system. This new patent is a sequel to Lipoxen's existing patent surrounding ImuXen where an improved immune response was demonstrated when DNA alone was entrapped in the liposome technology.
CEO Scott Maguire said: “We have several collaborations in place with some of the world's leading vaccine companies and further technology evaluation projects underway. We expect this new patent will strengthen our capability to collaborate with partners and we look forward to announcing progress on this front in due course.”www.proactiveinvestors.co.uk
Mercator Gold raises £850,000 in institutional placing for potential acquisitions
Mercator Gold PLC (AIM: MCR) announced an institutional placing of 42.5 million new ordinary shares at 2 pence, raising £850,000 to help finance potential acquisitions.
In a statement, Mercator said it has identified, and is in the early stages of the due diligence process required to evaluate, a number of potential acquisitions. The proceeds of the placing may allow the company to pursue such opportunities as and when appropriate.
Chairman Michael Silver took part in the placing, taking 1,513,500 new shares. He now holds 2,080,043 shares, or 1.81 of the enlarged share capital. Managing director Patrick Harford took the same amount of new shares, thus raising his holding to 3,516,467 shares, or 3.05 pct.
Additionally, management has secured a buyer for the purchase of an existing 7,998,268 shares for £160,000.
Harford commented: “We are very encouraged by the continued support of our existing shareholders and we welcome our new investors in this placing, which provides the company with the financial flexibility to pursue new projects of merit.”www.proactiveinvestors.co.uk
Premier Foods sticks to first-half and full-year guidance
Premier Foods PLC (LSE: PFD) said trading over May and June has continued in line with the trends seen in the first four months of 2009 - covered in its mid-May interim management statement in which it said it has made a solid start to the 2009 financial year.
“Our expectations for sales and profit for the half year and the full year are unchanged,” Premier Foods said.
In today’s trading update for the half year ended June 27 2009, the company said sales for its Grocery division continued to see good growth, driven by 2008 pricing actions with growth in market share supported by new product launches and strong promotional activity.
Sales in the bread business continued to see excellent sales and market share growth as it continued to invest behind Hovis. Although sales of bulk flour were lower than last year due to the previously announced exit from a low margin flour contract, bulk flour profitability has been unaffected.
The Chilled division continued to see good sales growth of both Quorn and retailer branded products although profitability has been reduced by the high level of marketing investment and increased and increased manufacturing costs in the Meat free business. Integration synergies remain on track, the company added.www.proactiveinvestors.co.uk
Modern Water says Gibraltar desalination plant performing ahead of expectations
Modern Water PLC (AIM: MWG) said its proving plant in Gibraltar, the first of its kind in the world to use the company's Manipulated Osmosis Desalination technology, is performing ahead of expectations.
Shares in the desalination specialist were lifted by the news and were trading up more than 8 percent by late morning.
The plant began supplying water directly into Gibraltar's potable water distribution system in early May. The water being produced has been thoroughly quality tested by the client and verified by a third party expert for approval to supply the public.
The Gibraltar proving plant allows Modern Water to showcase for the first time the benefits of its Manipulated Osmosis Desalination technology in a commercial environment. The technology reduces the energy consumption involved in desalination, and the costs associated with the process.
It provides a more environmentally friendly alternative to traditional desalination methods by significantly reducing energy, chemical consumption and salt brine discharge. There are also a range of additional benefits including significantly lower levels of boron, the company said.
Last year, Modern Water agreed to locate a second proving plant for the technology in Oman, in the company's key Middle East market.
Executive chairman Neil McDougall said: “We are delighted with the progress we have made to date, and we continue to maintain an ongoing programme of improvements on the plant which we anticipate will deliver further successes. I look forward to reporting back on the progress of our second proving plant in Oman soon.”www.proactiveinvestors.co.uk
National Express shows little interest in FirstGroup’s preliminary approach
National Express Group (LSE: NEX) rose 5% after the United Kingdom, Spain and North America focused rail, bus and coaches company confirmed that it had received a “very preliminary approach” from fellow FTSE 250 constituent FirstGroup plc.
National Express was quick to shoot down the possibility of an all share merger with FirstGroup, stating that it did not consider it “appropriate” to be entering into discussions at this time.
FirstGroup, for its part, appears to have a challenging task ahead of it, as it attempts to convince the board of National Express Group and its larger shareholders that a merger should happen. In a brief statement released this morning, FirstGroup confirmed that it had made a preliminary approach, and that it could see synergetic benefits from merging with its competitor. FirstGroup also operates in the rail, bus and coach arenas, and it also operates in both the United Kingdom and North America.
Shares in FirstGroup slipped marginally, and the company currently has a market capitalisation of approximately £1.7 billion. Shares in National Express jumped 5%, giving it a market capitalisation of £443 million.
www.proactiveinvestors.co.uk
Ariana Resources announces 1st gold production from Kiziltepe in Turkey
Turkey-focused Ariana Resources PLC (AIM: AAU) announced its first gold production from the Kiziltepe deposit, part of the Sindirgi gold project, following the conclusion of trial mining at the Arzu South vein at Kiziltepe.
Managing director Kerim Sener said "Trial processing of ore from Kiziltepe (at Eti Gumus’ Gumuskoy plant) has resulted in the production of the first 387 ounces of gold from the Kiziltepe deposit. This is a solid result from the initial trial mine at Kiziltepe, and discussions regarding an extension to this trial for the processing of a further batch of ore are underway. “
It is currently the intention of the companies to develop their partnership with the intention of advancing both the Sindirgi and Tavsan projects.
"Ariana is currently considering the sale of investment ingots from its first gold production from Kiziltepe, following further refining and minting at the Istanbul Gold Refinery, “ Sener added.
www.proactiveinvestors.co.uk
Managing director Kerim Sener said "Trial processing of ore from Kiziltepe (at Eti Gumus’ Gumuskoy plant) has resulted in the production of the first 387 ounces of gold from the Kiziltepe deposit. This is a solid result from the initial trial mine at Kiziltepe, and discussions regarding an extension to this trial for the processing of a further batch of ore are underway. “
It is currently the intention of the companies to develop their partnership with the intention of advancing both the Sindirgi and Tavsan projects.
"Ariana is currently considering the sale of investment ingots from its first gold production from Kiziltepe, following further refining and minting at the Istanbul Gold Refinery, “ Sener added.
www.proactiveinvestors.co.uk
Pacific North West Capital to sell Nixon Fork Gold Mine to Fire River Gold
Pacific North West Capital (TSX: PFN; OTCBB: PAWEF) reaffirmed its intention to remain focused on platinum group metals (PGM’s) and nickel today, announcing that it had granted an option to Fire River Gold (CNSX: FAU) to acquire its Nixon Fork Gold Mine in Alaska.
Fire River Gold will pay Pacific North West Capital US$50,000 on signing the option agreement and will pay a further US$450,000 over six months and issue 6.415 million shares to Pacific North West Capital if it chooses to exercise the option to acquire the project in full. The transaction places a US$3 million price tag on the Nixon Fork property, and post transaction, Pacific North West will hold approximately 64% of Fire River Gold. Pacific North West will also be issued 1 million share purchase warrants with an exercise price of 50 cents per share, and Fire River Gold will refund C$1.25 million in expenses incurred by Pacific North West at Nixon Fork.
“PFN's management has examined several possible scenarios for advancing the Nixon Fork Gold Project, and has had discussions with numerous groups interested in funding the project,” the company stated. “The general consensus of these discussions is that Nixon Fork should be funded through a company that is completely focussed on gold.”
Pacific North West went on to say that it believed the shareholder structure of Fire River Gold was better suited to raise the necessary capital to re-develop the mine.
“Management's expertise remains rooted in exploration, and to that end, PFN is currently negotiating on several advanced stage projects in Canada, and subject to the completion of one or more of these acquisitions, plans to expend a minimum of $1 million in Canada before year end,” it noted.
Pacific North West Capital’s current option/joint ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and Fire River Gold.
www.proactiveinvestors.com
Fire River Gold will pay Pacific North West Capital US$50,000 on signing the option agreement and will pay a further US$450,000 over six months and issue 6.415 million shares to Pacific North West Capital if it chooses to exercise the option to acquire the project in full. The transaction places a US$3 million price tag on the Nixon Fork property, and post transaction, Pacific North West will hold approximately 64% of Fire River Gold. Pacific North West will also be issued 1 million share purchase warrants with an exercise price of 50 cents per share, and Fire River Gold will refund C$1.25 million in expenses incurred by Pacific North West at Nixon Fork.
“PFN's management has examined several possible scenarios for advancing the Nixon Fork Gold Project, and has had discussions with numerous groups interested in funding the project,” the company stated. “The general consensus of these discussions is that Nixon Fork should be funded through a company that is completely focussed on gold.”
Pacific North West went on to say that it believed the shareholder structure of Fire River Gold was better suited to raise the necessary capital to re-develop the mine.
“Management's expertise remains rooted in exploration, and to that end, PFN is currently negotiating on several advanced stage projects in Canada, and subject to the completion of one or more of these acquisitions, plans to expend a minimum of $1 million in Canada before year end,” it noted.
Pacific North West Capital’s current option/joint ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and Fire River Gold.
www.proactiveinvestors.com
Evolution Securities initiates coverage of Cluff Gold with a ‘buy’ rating
West Africa focussed gold producer, Cluff Gold (AIM: CLF, TSX: CLF), received some positive coverage from London based Evolution Securities today, after the broker initiated coverage with a ‘buy’ note.
In the note, Evolution said that Cluff Gold has “worked hard” in developing two gold mines (Kalsaka, Burkina Faso and Angovia, Ivory Coast) simultaneously and was on track to reach annualised production of almost 100,000 ounces per annum as the two operations moved through commissioning in the next three months.
Cluff Gold’s Baomahum Project in Sierra Leone, which is at the scoping study stage, also has the potential to be a multi-million ounce deposit, the broker said: “The Baomahun project is the company’s key exploration focus and although less than 30% of the potential strike has been drilled, almost 1.5Moz have already been identified. A revised scoping study is underway while exploration drilling continues and we expect this to generate considerable newsflow over the remainder of the year.”
Taking into account the increasing production profile and potential value of Baomahum, Evolution Securities valued the gold producer at 132 pence per share.
“We think that the upside potential of Baomahun is not fully reflected in Cluff’s share price. We also believe its shares will be re-rated once Kalsaka and Angovia are fully commissioned and the company becomes a profitable gold miner,” Evolution added.
www.proactiveinvestors.com
In the note, Evolution said that Cluff Gold has “worked hard” in developing two gold mines (Kalsaka, Burkina Faso and Angovia, Ivory Coast) simultaneously and was on track to reach annualised production of almost 100,000 ounces per annum as the two operations moved through commissioning in the next three months.
Cluff Gold’s Baomahum Project in Sierra Leone, which is at the scoping study stage, also has the potential to be a multi-million ounce deposit, the broker said: “The Baomahun project is the company’s key exploration focus and although less than 30% of the potential strike has been drilled, almost 1.5Moz have already been identified. A revised scoping study is underway while exploration drilling continues and we expect this to generate considerable newsflow over the remainder of the year.”
Taking into account the increasing production profile and potential value of Baomahum, Evolution Securities valued the gold producer at 132 pence per share.
“We think that the upside potential of Baomahun is not fully reflected in Cluff’s share price. We also believe its shares will be re-rated once Kalsaka and Angovia are fully commissioned and the company becomes a profitable gold miner,” Evolution added.
www.proactiveinvestors.com
Lipoxen wins DNA vaccine patent in EU and US for ImuXen
Biopharma group Lipoxen PLC (AIM: LPX) has been granted a new co-delivery DNA vaccine patent in the EU and the US for its ImuXen liposomal technology.
The new patent claims that ImuXen technology can induce a further enhanced immune response for vaccine delivery when the DNA and antigen components are combined together into the liposomal delivery system. This new patent is a sequel to Lipoxen's existing patent surrounding ImuXen where an improved immune response was demonstrated when DNA alone was entrapped in the liposome technology.
CEO Scott Maguire said: “We have several collaborations in place with some of the world's leading vaccine companies and further technology evaluation projects underway. We expect this new patent will strengthen our capability to collaborate with partners and we look forward to announcing progress on this front in due course.”
www.proactiveinvestors.com
The new patent claims that ImuXen technology can induce a further enhanced immune response for vaccine delivery when the DNA and antigen components are combined together into the liposomal delivery system. This new patent is a sequel to Lipoxen's existing patent surrounding ImuXen where an improved immune response was demonstrated when DNA alone was entrapped in the liposome technology.
CEO Scott Maguire said: “We have several collaborations in place with some of the world's leading vaccine companies and further technology evaluation projects underway. We expect this new patent will strengthen our capability to collaborate with partners and we look forward to announcing progress on this front in due course.”
www.proactiveinvestors.com
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