Fox-Davies Daily Newsflash Including Pan Andean Resources, Chariot Oil & Gas, Minera IRL, Archipelago Resources and Avocet Mining

Pan Andean Resources (PRE) announced they have agreed terms with Petrominerales regarding the acquisition of the entire issued and to be issued share capital of Pan Andean. Under the proposals, Pan Andean shareholders will receive £0.15 in cash and one share in Hydrocarbon exploration, a newly created unlisted Plc for every one Pan Andean share held. The proposals value Pan Andean's current issued and to be issued share capital at approximately £22,345,703, equivalent to £0.175 per Scheme Share. This implied valuation of £0.175 per Scheme Share represents a premium of approximately 14.8% to the Closing Price of 15.25p per Pan Andean Share at 24 February 2010.

Chariot Oil & Gas (CHAR) gave an update ahead of its full year results for the year ended 28 February 2010. Over the past six months work has continued across all the offshore Namibian blocks of interest, the focus being on the processing and interpretation of the comprehensive seismic data that was acquired last year. Chariot holds a large acreage position, totalling an area of 38,725km², and has undertaken extensive seismic acquisition programmes over all of its licences. Initial results in the form of quick look cubes are now available, with further detailed processing and interpretation work continuing. A number of key indicators have already been identified from the seismic surveys in the Northern Blocks.  In particular, the time and depth analysis of the initial 900 km² supports evidence of significant structures, oil prone source rock, bright spots and volcanic highs – all of which indicate a working petroleum system which underscores the prospectivity of this area. Additionally, the processing of the latest 600km² of seismic data is underway. In the Central Blocks, the Company is continuing to work on the potential resource volumes, the results of which will be announced later this quarter. In the Southern Blocks, work also progresses in partnership with Petrobras on block 2714A and the latest seismic programme is being processed. Chariot has recently opened a dataroom in London and has received numerous expressions of interest from significant third parties, to visit and review the latest information. Chariot looks forward to welcoming these initial companies and others into the dataroom over the next several months.

Minera IRL (MIRL) announced that it has signed an option to purchase the Quilavira Gold Exploration Project from Ingerieria y Tecnologia Minero-Metalurgica SA (ITMM) for the sum of $50,000. The 5,100 hectare tenement package is located in the Tacna district of southern Peru. ITMM acquired the property from Newcrest in a competitive tendering process.  

Archipelago Resources (AR) announced that following receipt of authority from shareholders on 25 January 2010, it has arranged a placing of 102,000,000 new ordinary shares to institutional investors at a price of 30p per Placing Shares to raise £30.6 million. The proceeds of the Placing are estimated to provide up to approximately 80% of the funds required to complete construction of the company’s Toka Tindung Gold Project.

Avocet Mining (AVM) announced the first shipment of gold from its Inata mine in Burkina Faso. Inata poured first gold on 20 December 2009 and this week exported approximately 11,000oz of gold to Rand Refinery's facility in South Africa. Proceeds from the sale of gold of approximately US$12 million are expected to be received next week.

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