Aluminum Corporation of China (Chalco) and Ivanhoe Mines (TSE:IVN)(NYSE:IVN) Wednesday acknowledged the news that the Mongolian government has suspended SouthGobi Resources' (TSE:SGQ) licenses for its Ovoot Tolgoi coal mine.
Earlier this month, Chalco agreed to pay C$925 million for a 57.6 percent controlling stake in Mongolian coal miner SouthGobi Resources in a deal with Ivanhoe.
Chalco also laid out a timetable for its proposed acquisition of the SouthGobi stake.
It
was mentioned that Mineral Resources Authority of Mongolia (MRAM) had
stated that the move is in relation to the proposed takeover bid
contemplated by the lock-up agreement between Ivanhoe and Chalco.
Although
the proposed partial bid is compliant with all the relevant laws and
regulations of jurisdictions concerned, SouthGobi,
Ivanhoe and
Chalco have been advised by the Government of Mongolia that it is
considering the introduction of new foreign investment legislation to
allow it to assess investments.
In this context, the parties
understand that amongst the key issues to be considered include the
establishment of fair transfer pricing and taxation regimes with foreign
investors.
The parties also understand that the Government of Mongolia will look to model the legislation from precedents in other major
jurisdictions.
Ivanhoe
and Chalco have also noted certain statements made by various Mongolian
stakeholders recently since the announcement of the proposed partial
offer and would like to express their commitment to cooperate with and
assist the MRAM and the Government of Mongolia in any future processes
that they may have.
The parties confirm that subject to the terms
and conditions set out in the April, Chalco has agreed to make a
take-over bid on or before 5 July and thereafter the bid must be taken
up 36 days after it is made.
Chalco confirms that its current
intention is to mail the circular on or about 5 July and all deposited
shares would be taken up by Chalco on 10 August. Chalco also confirms
that it will not mail the bid circular before 28 June.
Under the
lock-up agreement, Ivanhoe is required to deposit its shares to
Chalco's bid within 10 days after Chalco mails its circular. However, a
condition to Chalco's completion of the proposed partial offer is that
all required regulatory approvals have been obtained on terms
satisfactory to Chalco.
Unless and until such regulatory
approvals have been obtained to its satisfaction, Chalco may withdraw
its bid or extend its bid up to 180 days from the date of the offer to
allow time for regulatory processes to be completed.
Chalco
confirms that it intends not to take up any shares under its bid unless
and until the regulatory approvals from the Government of Mongolia, if
any, as well as other regulatory approvals have been obtained and other
conditions of its the Lock-up Agreement have been satisfied or waived.
In
the event new foreign investment legislation is implemented by the
Government of Mongolia prior to the completion of the partial offer of
the shares in SouthGobi, Ivanhoe and Chalco will cooperate with
Mongolia's government to ensure any requirements are satisfied.
Chalco
intends to leverage its position as an established metals and mining
industry incumbent to further enhance the coal operation of SouthGobi.
Under
its cooperation Agreement with SouthGobi, Chalco has undertaken,
following completion of the bid, to provide support services to further
develop the SouthGobi operation for the benefit of SouthGobi and its
shareholders.
Chalco believes there will be a net benefit to
Mongolia and the Mongolian mining industry which will also help
strengthen the future economic interests and co-operation between
Mongolia and China.
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Wednesday, 25 April 2012
Ocean Equities expects significant increase in Belvedere's Osikonmaki gold resource
Ocean Equities expects Belvedere Resources (CVE:BEL) to report a significant increase in the resource at its Osikonmaki joint venture gold project before the end of the year.
The note from Ocean followed yesterday’s confirmation of a new high grade gold discovery at the company’s Rantasalmi gold property in Finland. Belvedere told investors that a recent drill programme at the Osikonmäki East prospect’s Upper East HW zone had confirmed the initial find, announced last year.
Drilling has continued to develop and extend the Upper East HW zone and one of the holes was mineralised for almost its entire 205 metre length.
This zone is now considered by Belvedere to be a significant new discovery.
Additionally Belvedere said it has identified the potential for a bulk tonnage target, with what appears to be a zone of lower grade mineralisation adjacent to the discovered high grade zone in the hanging wall.
The Osikonmaki East prospect currently has an indicated resource estimate 68,000 ounces and an inferred resource estimate of 244,000 ounces of gold.
Ocean analyst Christopher Welch expects delineation of the higher grade zone in the east to quickly add ounces to the resource and improve project economics.
He added the combination of the Upper East hanging wall zone with a broader zone of lower grade mineralisation means that the company will be able to start with preferential high grade mining and evolve into a larger scale mining operation.
Furthermore, Belvedere could acquire more claims around the recent discoveries at Osikonmaki, said Welch, noting that its geological team has a “great understanding” of the gold distribution around its properties and could quickly add value to new licences.
“Being in first place to receive licences in areas of known gold mineralisation highlights the potential of the company to grow into a substantial gold producer in an area of low political risk,” said Welch.
The company funds its gold exploration projects with revenues from its Hitura nickel mine in Finland.
Early this year, the company extended its sales agreement with Jinchuan Group, China’s largest nickel producer, de-risking the expansion phase of the mine and securing funds for its gold assets including the Kopsa copper-gold project.
Welch said a scoping study at Kopsa, which is expected to start producing within the next two years, would be supportive for Belvedere’s share price.
According to Welch, with a market cap of C$18 million, the company is undervalued based on either its nickel mining or its gold exploration operations.
"There is some debate regarding the complexity of operating both areas of the business at the same time, but it is clear that the team has been able to turn profit at Hitura into gold discoveries at its joint venture projects,” said Welch.
“Osikonmaki has been a priority for the company during the initial stages of the joint venture, and the team has successfully led the exploration campaign.
“Now Belvedere can look to add value to its other gold asset and deploy the profit from its nickel operations to purely serve its own shareholders.”
The note from Ocean followed yesterday’s confirmation of a new high grade gold discovery at the company’s Rantasalmi gold property in Finland. Belvedere told investors that a recent drill programme at the Osikonmäki East prospect’s Upper East HW zone had confirmed the initial find, announced last year.
Drilling has continued to develop and extend the Upper East HW zone and one of the holes was mineralised for almost its entire 205 metre length.
This zone is now considered by Belvedere to be a significant new discovery.
Additionally Belvedere said it has identified the potential for a bulk tonnage target, with what appears to be a zone of lower grade mineralisation adjacent to the discovered high grade zone in the hanging wall.
The Osikonmaki East prospect currently has an indicated resource estimate 68,000 ounces and an inferred resource estimate of 244,000 ounces of gold.
Ocean analyst Christopher Welch expects delineation of the higher grade zone in the east to quickly add ounces to the resource and improve project economics.
He added the combination of the Upper East hanging wall zone with a broader zone of lower grade mineralisation means that the company will be able to start with preferential high grade mining and evolve into a larger scale mining operation.
Furthermore, Belvedere could acquire more claims around the recent discoveries at Osikonmaki, said Welch, noting that its geological team has a “great understanding” of the gold distribution around its properties and could quickly add value to new licences.
“Being in first place to receive licences in areas of known gold mineralisation highlights the potential of the company to grow into a substantial gold producer in an area of low political risk,” said Welch.
The company funds its gold exploration projects with revenues from its Hitura nickel mine in Finland.
Early this year, the company extended its sales agreement with Jinchuan Group, China’s largest nickel producer, de-risking the expansion phase of the mine and securing funds for its gold assets including the Kopsa copper-gold project.
Welch said a scoping study at Kopsa, which is expected to start producing within the next two years, would be supportive for Belvedere’s share price.
According to Welch, with a market cap of C$18 million, the company is undervalued based on either its nickel mining or its gold exploration operations.
"There is some debate regarding the complexity of operating both areas of the business at the same time, but it is clear that the team has been able to turn profit at Hitura into gold discoveries at its joint venture projects,” said Welch.
“Osikonmaki has been a priority for the company during the initial stages of the joint venture, and the team has successfully led the exploration campaign.
“Now Belvedere can look to add value to its other gold asset and deploy the profit from its nickel operations to purely serve its own shareholders.”
Tuesday, 24 April 2012
Mawson says TSX-V gives conditional approval for listing of Darwin Resources
Mawson Resources (TSE:MAW)
said Tuesday that the TSX Venture Exchange has conditionally accepted
the listing of Darwin Resources Corp's shares - a condition of Mawson's
previously announced reorganization plans to split into two public
companies.
In early April, shareholders of Mawson approved a plan of arrangement between the company and Darwin Resources.
The arrangement will see each shareholder of Mawson be entitled to one new common share of Mawson, one-third of one common share of Darwin and approximately one-fifth of one common share of European Uranium Resources (CVE:EUU), formerly Tournigan Energy, for each share of Mawson held prior.
For this to complete, Mawson shareholders must surrender their Mawson share certificates together with a duly completed Letter of Transmittal to Computershare Investor Services Inc.
It is expected that once the transaction is complete, anticipated for April 30, Mawson will have 52,096,753 shares outstanding and Darwin will have roughly 26,115,584 shares outstanding, after which Dawson's shares will be listed.
The transaction is part of Mawson's plan to restructure its business into two separate public companies, allowing Mawson to focus on the development of its flagship Rompas gold property in Finland.
In December, Mawson agreed to sell seven uranium properties in Finland and Sweden to European Uranium Resources, then Tournigan Energy.
For further details on the arrangement and the reorganization of the business, please refer to the company's circular, filed on Mawson's profile under SEDAR at www.sedar.com.
Mawson Resources is a Scandinavian exploration company with a focus on the flagship Rompas gold project in Finland.
Earlier this month, the company reported that a second diamond drill rig has been mobilized to the project in northern Finland, in order to complete a 3,000 metre drill program before spring breakup.
Mawson is operating under an agreement with landholders that permits the company to access and drill on private land that covers more than 500 metres of strike potential in two areas at South Rompas.
In early April, shareholders of Mawson approved a plan of arrangement between the company and Darwin Resources.
The arrangement will see each shareholder of Mawson be entitled to one new common share of Mawson, one-third of one common share of Darwin and approximately one-fifth of one common share of European Uranium Resources (CVE:EUU), formerly Tournigan Energy, for each share of Mawson held prior.
For this to complete, Mawson shareholders must surrender their Mawson share certificates together with a duly completed Letter of Transmittal to Computershare Investor Services Inc.
It is expected that once the transaction is complete, anticipated for April 30, Mawson will have 52,096,753 shares outstanding and Darwin will have roughly 26,115,584 shares outstanding, after which Dawson's shares will be listed.
The transaction is part of Mawson's plan to restructure its business into two separate public companies, allowing Mawson to focus on the development of its flagship Rompas gold property in Finland.
In December, Mawson agreed to sell seven uranium properties in Finland and Sweden to European Uranium Resources, then Tournigan Energy.
For further details on the arrangement and the reorganization of the business, please refer to the company's circular, filed on Mawson's profile under SEDAR at www.sedar.com.
Mawson Resources is a Scandinavian exploration company with a focus on the flagship Rompas gold project in Finland.
Earlier this month, the company reported that a second diamond drill rig has been mobilized to the project in northern Finland, in order to complete a 3,000 metre drill program before spring breakup.
Mawson is operating under an agreement with landholders that permits the company to access and drill on private land that covers more than 500 metres of strike potential in two areas at South Rompas.
REBgold confirms high grade gold discovery at Osikonmäki East
REBgold (CVE:RBG) has confirmed a new high grade gold discovery at the Rantasalmi gold property, in Finland.
Rantasalmi is a joint venture between REBgold and Belvedere Resources (CVE:BEL).
It has revealed that a recently completed drill programme at the Osikonmäki East prospect’s Upper East HW zone has confirmed the initial find, announced last year.
Drilling has continued to develop and extend the Upper East HW zone, it said. And one drill hole in particular, tagged BELOSI 081, was mineralised for almost its entire 205 metre length, it added.
This zone is now considered by Belvedere to be a significant new discovery.
"With every intersection into the new discovery yielding greater than 100 gram metres of gold the new zone confirms the potential to rapidly build on the current resource at Osikonmäki East,” said Belvedere chief executive David Pym.
“It's position in the hanging wall to the main shear zone, which hosts the bulk of the mineralisation at Osikonmäki East adds
substantially to the potential on the prospect.”
Belvedere says BELOSI 081’s most significant intercept cut 18 metres at an average grade of 5.7 grams per tonne gold, within a broader 35 metre zone averaging 3.2 grams per tonne.
Additionally Belvedere said it has identified the potential for a bulk tonnage target, with what appears to be a zone of lower grade mineralisation adjacent to the discovered high grade zone in the hanging wall.
Pym adds: “While the Osikonmäki East prospect continues to grow, the company remains excited about the overall potential of the Rantasalmi Property.
“Other prospects such as Osikonmäki West and Pirilä areas have not been re-evaluated since their discovery in the late 1980's and the exploration potential for further discoveries appears significant with several gold mineralised boulder trains yet to be traced to source on the property.”
Currently, the Osikonmaki East prospect has an indicated resource estimate of 1.3 million tonnes grading 1.7 g/t gold, for 68,000 contained ounces, and an inferred resource estimate of 3.5 million tonnes grading 2.09 g/t gold, for 244,000 ounces of contained gold.
Belvedere has a portfolio of gold and base metal exploration targets across Finland, which includes the Osikonmaki deposit as well as the Kopsa gold-copper target located close to its producing Hitura nickel mine.
Rantasalmi is a joint venture between REBgold and Belvedere Resources (CVE:BEL).
It has revealed that a recently completed drill programme at the Osikonmäki East prospect’s Upper East HW zone has confirmed the initial find, announced last year.
Drilling has continued to develop and extend the Upper East HW zone, it said. And one drill hole in particular, tagged BELOSI 081, was mineralised for almost its entire 205 metre length, it added.
This zone is now considered by Belvedere to be a significant new discovery.
"With every intersection into the new discovery yielding greater than 100 gram metres of gold the new zone confirms the potential to rapidly build on the current resource at Osikonmäki East,” said Belvedere chief executive David Pym.
“It's position in the hanging wall to the main shear zone, which hosts the bulk of the mineralisation at Osikonmäki East adds
substantially to the potential on the prospect.”
Belvedere says BELOSI 081’s most significant intercept cut 18 metres at an average grade of 5.7 grams per tonne gold, within a broader 35 metre zone averaging 3.2 grams per tonne.
Additionally Belvedere said it has identified the potential for a bulk tonnage target, with what appears to be a zone of lower grade mineralisation adjacent to the discovered high grade zone in the hanging wall.
Pym adds: “While the Osikonmäki East prospect continues to grow, the company remains excited about the overall potential of the Rantasalmi Property.
“Other prospects such as Osikonmäki West and Pirilä areas have not been re-evaluated since their discovery in the late 1980's and the exploration potential for further discoveries appears significant with several gold mineralised boulder trains yet to be traced to source on the property.”
Currently, the Osikonmaki East prospect has an indicated resource estimate of 1.3 million tonnes grading 1.7 g/t gold, for 68,000 contained ounces, and an inferred resource estimate of 3.5 million tonnes grading 2.09 g/t gold, for 244,000 ounces of contained gold.
Belvedere has a portfolio of gold and base metal exploration targets across Finland, which includes the Osikonmaki deposit as well as the Kopsa gold-copper target located close to its producing Hitura nickel mine.
Dundee Capital says Pitchstone "a good deal" for Fission shareholders
Dundee Capital Markets has issued a note about Fission Energy's (CVE:FIS) $5.8 million all-stock acquisition of industry peer
Pitchstone Exploration (CVE:PXP).
Fission Energy is a Canada-based Uranium exploration and development company with properties in Saskatchewan's Athabasca Basin, Quebec, and the Macusani District in Peru.
Its Waterbury Lake property in the Athabasca Basin, immediately adjacent to Rio Tinto's (NYSE:RIO) (formerly Hathor Exploration's) Roughrider deposit.
Under the terms of the deal, Fission will issue 0.2145 common shares of the company for each common share of Pitchstone.
Based on 45.2 million Pitchstone shares outstanding, Fission will issue roughly 9.7 million common shares to complete the deal, representing around 8.5 percent of Fission.
"We view this take-over as a potential marriage between two companies with very good synergies in the Athabasca Basin," Dundee Capital Markets said in a note.
Pitchstone is a Uranium explorer focused in three districts in Canada and Namibia. The company's property portfolio features 13 projects in the eastern Athabasca Basin of Saskatchewan, five of which are 100 percent owned.
In addition, it has two joint venture projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut.
Pitchstone's partner in Namibia is Rio Tinto.
"We continue to recommend Fission Energy and suggest that this land grab while prices are cheap is a good deal for Fission shareholders. The added relationship with Rio Tinto is also viewed as quite positive," the Dundee Capital note said.
"We are changing our Pitchstone Uranium recommendation from 'buy' to 'tender' and believe that Fission's more aggressive style of exploration is better suited for the hard to find high grade Athabasca style Uranium deposits."
Dundee Capitals analysts also joined the dots between Fission, Rio and Pitchstone.
"Perhaps this relationship will manifest itself in the Athabasca in coming months - we submit that we still believe Fission is one of the top take-over targets in the basin."
The analysts cautioned that the deal might take Fission's focus away from its J-Zone discovery.
"...carrying out aggressive exploration on some of the Pitchstone projects, namely the modestly deep Gumboot targets, could take a chunk out of the Fission coffers, depending on how aggressive a drill program it will carry out this year."
Pitchstone Exploration (CVE:PXP).
Fission Energy is a Canada-based Uranium exploration and development company with properties in Saskatchewan's Athabasca Basin, Quebec, and the Macusani District in Peru.
Its Waterbury Lake property in the Athabasca Basin, immediately adjacent to Rio Tinto's (NYSE:RIO) (formerly Hathor Exploration's) Roughrider deposit.
Under the terms of the deal, Fission will issue 0.2145 common shares of the company for each common share of Pitchstone.
Based on 45.2 million Pitchstone shares outstanding, Fission will issue roughly 9.7 million common shares to complete the deal, representing around 8.5 percent of Fission.
"We view this take-over as a potential marriage between two companies with very good synergies in the Athabasca Basin," Dundee Capital Markets said in a note.
Pitchstone is a Uranium explorer focused in three districts in Canada and Namibia. The company's property portfolio features 13 projects in the eastern Athabasca Basin of Saskatchewan, five of which are 100 percent owned.
In addition, it has two joint venture projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut.
Pitchstone's partner in Namibia is Rio Tinto.
"We continue to recommend Fission Energy and suggest that this land grab while prices are cheap is a good deal for Fission shareholders. The added relationship with Rio Tinto is also viewed as quite positive," the Dundee Capital note said.
"We are changing our Pitchstone Uranium recommendation from 'buy' to 'tender' and believe that Fission's more aggressive style of exploration is better suited for the hard to find high grade Athabasca style Uranium deposits."
Dundee Capitals analysts also joined the dots between Fission, Rio and Pitchstone.
"Perhaps this relationship will manifest itself in the Athabasca in coming months - we submit that we still believe Fission is one of the top take-over targets in the basin."
The analysts cautioned that the deal might take Fission's focus away from its J-Zone discovery.
"...carrying out aggressive exploration on some of the Pitchstone projects, namely the modestly deep Gumboot targets, could take a chunk out of the Fission coffers, depending on how aggressive a drill program it will carry out this year."
Allana Potash has "first mover advantage" in Ethiopia, says Salman Partners
Allana Potash (TSE:AAA)
received a "buy" recommendation and 12-month target price of $1.20
Tuesday from equity research firm Salman Partners, saying the potash
explorer has a "first mover advantage" in Ethiopia.
Allana is advancing the Dallol potash project toward a full feasibility study for the construction of a one to two million tonne per year solution mine using solar evaporation, with first production targeted for the end of 2014.
The Dallol potash deposit, Allana’s principal project, is located in the Danakhil Depression, a desert area in northeast Ethiopia, south of the border of Eritrea. The deposit lies at the northern end of the Ethiopian Afar State, approximately 100 kilometres from the Eritrean Red Sea coast and 600 kilometres by road from the deep-water port of Djibouti.
Salman analyst Andrea Rubakovic said the hot Danakil climate is "ideal" for these mining and processing methods, as it "significantly reduces the high capital and operating costs that accompany most potash mining operations".
Last November, the company announced the results of the preliminary economic assessment for its Dallol potash project. The economic study, conducted by Ercosplan, yielded, on an after-tax basis, an internal rate of return (IRR) of 36.8 percent and a net present value (NPV) of US$1.85 billion, based on a 12 percent discount rate.
The results exceeded management's expectations, with the project having "one of the lowest capex and opex in the world" in the potash industry, especially when compared to Saskatchewan players in Canada.
Solar evaporation of the saturated brine solution is possible at the Dallol project due to the year-round hot temperatures and very little rainfall, in contrast to Saskatchewan. Solar evaporation methods avoid the use of costly natural gas-based heating to evaporate water (energy accounts for approximately 30-40 percent of a conventional solution potash mine’s costs).
Aside from the low cost potential, Salman also noted in its report Allana's large and growing resource. The company's holdings contain "significant historic exploration data", Rubakovic said, and Allana is conducting its own exploraiton program to upgrade the already "sizeable" NI 43-101 compliant in-situ potash resource of 244.5 million tonnes at a grade of 19.3% KCI.
"Allana's substantial resource will now allow it to proceed with a feasibility study this summer, and to realistically consider multiple million tonnes per annum production phases," Salman said.
The Dallol project also has a range of strategic benefits, the capital markets firm said, as it is "uniquely situated to appeal to key import markets of India and China."
Allana has secured financial support from two significant strategic investors: IFC, a member of the World Bank Group, and Liberty Metals and Mining Holdings.
The company is currently in discussions with multiple strategic partners, the research report noted, which may result in further investment and off-take agreements.
Catalysts for the miner's stock price in the next 12 months include a revised NI 43-101 compliant resource estimate in the second quarter, off-take and debt financing agreements in the second quarter, a bankable feasibility study in the fourth quarter, and finally initial production in late 2014.
Allana’s properties have a size of approximately 158 square kilometres and are bounded to all sides by properties of other owners, Salman said.
Notable neighbours in the potash basin include the world’s largest mining company, BHP Billiton (NYSE:BHP) and Sainik Coal Mining, an Indian-based coal mining company.
Its deposit is relatively shallow, with mineralization in some portions of the property at a depth of less than 200 metres. As a comparison, the solution mines in Saskatchewan are generally targeting mineralization at 1,500 metres depth or greater, the report noted.
"We believe the current share price represents a good entry point into the stock in light of the 40% drop in share price since the beginning of the year," concludes Salman's Rubakovic.
Salman's report estimated Allana’s current cash balance at approximately C$65 million, which in the firm's view, is "sufficient to carry the company through the release of its bankable feasibility study expected in Q4 2012, while also providing flexibility to pursue various strategic alternatives that may arise."
Earlier this month, Allana announced it had intersected strong potash mineralization in three holes at Dallol, prompting it to extend its drill program in the southern boundary of Ethiopia.
Hole 35 intersected 5.7 metres of 31.3% potassium chloride (KCl) in the sylvinite zone and included a higher grade interval of three metres of 39.1% KCl. The hole also intersected 7.5 metres of 20.3% KCl in the underlying kainitite zone.
Allana Potash was changing hands at around 51 cents Tuesday Morning, up roughly three percent.
Allana is advancing the Dallol potash project toward a full feasibility study for the construction of a one to two million tonne per year solution mine using solar evaporation, with first production targeted for the end of 2014.
The Dallol potash deposit, Allana’s principal project, is located in the Danakhil Depression, a desert area in northeast Ethiopia, south of the border of Eritrea. The deposit lies at the northern end of the Ethiopian Afar State, approximately 100 kilometres from the Eritrean Red Sea coast and 600 kilometres by road from the deep-water port of Djibouti.
Salman analyst Andrea Rubakovic said the hot Danakil climate is "ideal" for these mining and processing methods, as it "significantly reduces the high capital and operating costs that accompany most potash mining operations".
Last November, the company announced the results of the preliminary economic assessment for its Dallol potash project. The economic study, conducted by Ercosplan, yielded, on an after-tax basis, an internal rate of return (IRR) of 36.8 percent and a net present value (NPV) of US$1.85 billion, based on a 12 percent discount rate.
The results exceeded management's expectations, with the project having "one of the lowest capex and opex in the world" in the potash industry, especially when compared to Saskatchewan players in Canada.
Solar evaporation of the saturated brine solution is possible at the Dallol project due to the year-round hot temperatures and very little rainfall, in contrast to Saskatchewan. Solar evaporation methods avoid the use of costly natural gas-based heating to evaporate water (energy accounts for approximately 30-40 percent of a conventional solution potash mine’s costs).
Aside from the low cost potential, Salman also noted in its report Allana's large and growing resource. The company's holdings contain "significant historic exploration data", Rubakovic said, and Allana is conducting its own exploraiton program to upgrade the already "sizeable" NI 43-101 compliant in-situ potash resource of 244.5 million tonnes at a grade of 19.3% KCI.
"Allana's substantial resource will now allow it to proceed with a feasibility study this summer, and to realistically consider multiple million tonnes per annum production phases," Salman said.
The Dallol project also has a range of strategic benefits, the capital markets firm said, as it is "uniquely situated to appeal to key import markets of India and China."
Allana has secured financial support from two significant strategic investors: IFC, a member of the World Bank Group, and Liberty Metals and Mining Holdings.
The company is currently in discussions with multiple strategic partners, the research report noted, which may result in further investment and off-take agreements.
Catalysts for the miner's stock price in the next 12 months include a revised NI 43-101 compliant resource estimate in the second quarter, off-take and debt financing agreements in the second quarter, a bankable feasibility study in the fourth quarter, and finally initial production in late 2014.
Allana’s properties have a size of approximately 158 square kilometres and are bounded to all sides by properties of other owners, Salman said.
Notable neighbours in the potash basin include the world’s largest mining company, BHP Billiton (NYSE:BHP) and Sainik Coal Mining, an Indian-based coal mining company.
Its deposit is relatively shallow, with mineralization in some portions of the property at a depth of less than 200 metres. As a comparison, the solution mines in Saskatchewan are generally targeting mineralization at 1,500 metres depth or greater, the report noted.
"We believe the current share price represents a good entry point into the stock in light of the 40% drop in share price since the beginning of the year," concludes Salman's Rubakovic.
Salman's report estimated Allana’s current cash balance at approximately C$65 million, which in the firm's view, is "sufficient to carry the company through the release of its bankable feasibility study expected in Q4 2012, while also providing flexibility to pursue various strategic alternatives that may arise."
Earlier this month, Allana announced it had intersected strong potash mineralization in three holes at Dallol, prompting it to extend its drill program in the southern boundary of Ethiopia.
Hole 35 intersected 5.7 metres of 31.3% potassium chloride (KCl) in the sylvinite zone and included a higher grade interval of three metres of 39.1% KCl. The hole also intersected 7.5 metres of 20.3% KCl in the underlying kainitite zone.
Allana Potash was changing hands at around 51 cents Tuesday Morning, up roughly three percent.
Bacterin International secures accounts receivable credit facility
Bacterin International Holdings (AMEX:BONE)
said Tuesday that it has secured an accounts receivable credit facility
with mid-market lenders Midcap Financial and Silicon Valley Bank.
The developer of bone graft material and antimicrobial coatings for medical applications said the revolving loan facility allows the company to borrow up to $5 million through January 1, 2015.
The facility allows borrowings based on a pre-determined formula of up to 80 percent of Bacterin's eligible accounts receivable, as defined in the credit and security agreement.
"Due to the high working capital needs of our business associated with the necessity for our inventory to be consigned to our hospital accounts, the accounts receivable facility is an efficient way for Bacterin to access cash, from time to time, without diluting equity," said chairman and CEO, Guy Cook.
"Our strong relationships with Silicon Valley Bank and Midcap Financial helped us to secure this non-dilutive financing option, as we prepare for the next stage of growth at Bacterin International."
In late March, the company said that fourth quarter revenue increased sharply, while full year revenue almost doubled to record levels, with the company reaffirming its 2012 sales forecast.
For the quarter that ended December 31, revenue increased 72 percent to $9.1 million, compared to $5.3 million in the same period a year ago.
The increase was primarily attributed to continued market penetration, the company said, combined with the continued expansion of its direct sales force.
Bacterin's technology optimizes the growth factors in human allografts to promote bone, subchondral repair and dermal growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, bone growth in foot and ankle surgery, cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
In the fourth quarter, two-year study results showed the company's flagship product, OsteoSponge, was equivalent to rhBMP-2 in spinal fusion, an important feature at a time when surgeons are moving away from rhBMP-2 because of concerns over complications, the company said.
OsteoSponge had already been used in 100,000 procedures prior to the release of the data, and the company expects this study to help further increase its market share.
In the fourth quarter, the company also said it "materially increased" the number of medical facilities in which its products are used, and began the doubling of operating capacity through the installation of new equipment.
Hospital accounts increased to 616 facilities, an increase of 27 percent over 484 facilities in the fourth quarter of 2010.
The company's medical device division also develops and licenses bioactive coatings for various medical device applications.
The developer of bone graft material and antimicrobial coatings for medical applications said the revolving loan facility allows the company to borrow up to $5 million through January 1, 2015.
The facility allows borrowings based on a pre-determined formula of up to 80 percent of Bacterin's eligible accounts receivable, as defined in the credit and security agreement.
"Due to the high working capital needs of our business associated with the necessity for our inventory to be consigned to our hospital accounts, the accounts receivable facility is an efficient way for Bacterin to access cash, from time to time, without diluting equity," said chairman and CEO, Guy Cook.
"Our strong relationships with Silicon Valley Bank and Midcap Financial helped us to secure this non-dilutive financing option, as we prepare for the next stage of growth at Bacterin International."
In late March, the company said that fourth quarter revenue increased sharply, while full year revenue almost doubled to record levels, with the company reaffirming its 2012 sales forecast.
For the quarter that ended December 31, revenue increased 72 percent to $9.1 million, compared to $5.3 million in the same period a year ago.
The increase was primarily attributed to continued market penetration, the company said, combined with the continued expansion of its direct sales force.
Bacterin's technology optimizes the growth factors in human allografts to promote bone, subchondral repair and dermal growth. These products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, bone growth in foot and ankle surgery, cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
In the fourth quarter, two-year study results showed the company's flagship product, OsteoSponge, was equivalent to rhBMP-2 in spinal fusion, an important feature at a time when surgeons are moving away from rhBMP-2 because of concerns over complications, the company said.
OsteoSponge had already been used in 100,000 procedures prior to the release of the data, and the company expects this study to help further increase its market share.
In the fourth quarter, the company also said it "materially increased" the number of medical facilities in which its products are used, and began the doubling of operating capacity through the installation of new equipment.
Hospital accounts increased to 616 facilities, an increase of 27 percent over 484 facilities in the fourth quarter of 2010.
The company's medical device division also develops and licenses bioactive coatings for various medical device applications.
SouthGobi Resources extends expected closing date for sale of Tsagaan Tolgoi
SouthGobi Resources (TSE:SGQ)(HKSE:1878)
said Tuesday that the expected closing date of the sale of its Tsagaan
Tolgoi thermal coal deposit to Modun Resources (ASX:MOU) has been
extended to on or before December 31.
Earlier this month, the company announced the Mineral Resources Authority of Mongolia requested the suspension of some of its mining and exploration licenses for its Ovoot Tolgoi coal mine following a buyout bid by Chinese aluminum giant Chalco.
In early April, Aluminium Corp of China - known as Chalco - said it would buy Ivanhoe Mines' (TSE:IVN)(NYSE:IVN) SouthGobi stake in a deal worth as much as $925 million.
SouthGobi, which sells metallurgical and thermal coal mainly to customers in China, said last week the suspension would be initiated to allow the government to review the proposed change of ownership.
SouthGobi said Tuesday the extension of the expected closing date with Modun allows additional time to resolve any issues.
All other material terms of the deal remain unchanged, the company added.
In March, Mongolia-focused SouthGobi said it will sell its Tsagaan Tolgoi deposit, a thermal coal property, to Modun in a deal valued at $30 million.
Under the terms of the agreement, SouthGobi will receive $7.5 million in up-front cash, $12.5 million shares of Modun common stock, and deferred consideration of $10.0 million in Modun stock.
Should SouthGobi acquire over 14.9 percent of Modun shares, it will also have the right to nominate one director to Modun's board. The deal was originally expected to close by June 2012.
In early 2008, the company announced an initial NI 43-101 compliant resource report for the deposit, which estimated measured plus indicated resources of 36.4 million tonnes of coal, plus another nine million tonnes of coal in the inferred category.
Tsagaan Tolgoi is in the Omnigovi Aimag, approximately 570 kilometres south of the nation's capital of Ulaanbaatar and 113 kilometres southeast of the provincial capital of Dalanzagad.
The project is also located 415 metres to the northeast of SouthGobi's flagship Ovoot Tolgoi project, which sells coal to customers in China.
Earlier this month, the company announced the Mineral Resources Authority of Mongolia requested the suspension of some of its mining and exploration licenses for its Ovoot Tolgoi coal mine following a buyout bid by Chinese aluminum giant Chalco.
In early April, Aluminium Corp of China - known as Chalco - said it would buy Ivanhoe Mines' (TSE:IVN)(NYSE:IVN) SouthGobi stake in a deal worth as much as $925 million.
SouthGobi, which sells metallurgical and thermal coal mainly to customers in China, said last week the suspension would be initiated to allow the government to review the proposed change of ownership.
SouthGobi said Tuesday the extension of the expected closing date with Modun allows additional time to resolve any issues.
All other material terms of the deal remain unchanged, the company added.
In March, Mongolia-focused SouthGobi said it will sell its Tsagaan Tolgoi deposit, a thermal coal property, to Modun in a deal valued at $30 million.
Under the terms of the agreement, SouthGobi will receive $7.5 million in up-front cash, $12.5 million shares of Modun common stock, and deferred consideration of $10.0 million in Modun stock.
Should SouthGobi acquire over 14.9 percent of Modun shares, it will also have the right to nominate one director to Modun's board. The deal was originally expected to close by June 2012.
In early 2008, the company announced an initial NI 43-101 compliant resource report for the deposit, which estimated measured plus indicated resources of 36.4 million tonnes of coal, plus another nine million tonnes of coal in the inferred category.
Tsagaan Tolgoi is in the Omnigovi Aimag, approximately 570 kilometres south of the nation's capital of Ulaanbaatar and 113 kilometres southeast of the provincial capital of Dalanzagad.
The project is also located 415 metres to the northeast of SouthGobi's flagship Ovoot Tolgoi project, which sells coal to customers in China.
Southern Silver closes first tranche of private placement offering
Southern Silver Exploration Corp. (CVE:SSV)
said Monday that it has closed the first tranche of its private
placement offering by issuing 6.63 million units at a price of 10 cents
each for proceeds of $662,700.
The company said that each unit consists of one common share and one share purchase warrant, exercisable to purchase one additional common share for a period of three years at a price of 17 cents per share.
In early April, the company announced revised plans to issue up to 20 million units at a price of $0.12 to $0.10 each, for gross proceeds of $2.0 million.
The new funds from the first tranche of the offering will be used for exploration and property maintenance expenses incurred on Southern’s Cerro Las Minitas project in Mexico, and the Oro gold-silver-copper project in New Mexico, USA, where a 20,000 metre drill program is currently underway.
In early April, Southern unveiled drilling results that extend high grade silver-polymetallic mineralization at the Blind and El Sol zones on the Cerro Las Minitas project in Durango State, Mexico.
At the El Sol zone, drilling returned a 26.1 metre interval averaging 67 grams per tonne (g/t) silver, 2.8% lead, and 3.3% zinc, or 239 g/t silver equivalent, including 1.8 metres at 163 g/t silver, 6.9% lead and 8.8% zinc, or 619 g/t silver equivalent in hole 12CLM-044.
Meanwhile, at the Blind zone, drilling continues to delineate both the lateral extent and internal continuity of the mineralized zone, the company said.
Results from the northwest extension of the zone include 4.6 metres averaging 146 g/t silver, 3.0% lead and 2.8% zinc, or 472 g/t silver equivalent, from hole 12CLM-041; and 4.2 metres of 145 g/t silver, 2.7% lead and 2.0% zinc, or 305 g/t silver equivalent, from hole 12CLM-043.
The silver miner has scheduled 20,000 metres of core drilling in 2012 at the property, with the aim of completing an NI 43-101 compliant resource on these first set of targets by the fourth quarter.
The property comprises 18 concessions that total 15,125 hectares and an approximate 25 kilometre strike length.
Southern Silver is a precious and base metal exploration company. It aims to acquire, explore and develop properties in progressive jurisdictions within North America.
Its current projects include the silver-lead-zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca project in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver Oro project in New Mexico.
The company said that each unit consists of one common share and one share purchase warrant, exercisable to purchase one additional common share for a period of three years at a price of 17 cents per share.
In early April, the company announced revised plans to issue up to 20 million units at a price of $0.12 to $0.10 each, for gross proceeds of $2.0 million.
The new funds from the first tranche of the offering will be used for exploration and property maintenance expenses incurred on Southern’s Cerro Las Minitas project in Mexico, and the Oro gold-silver-copper project in New Mexico, USA, where a 20,000 metre drill program is currently underway.
In early April, Southern unveiled drilling results that extend high grade silver-polymetallic mineralization at the Blind and El Sol zones on the Cerro Las Minitas project in Durango State, Mexico.
At the El Sol zone, drilling returned a 26.1 metre interval averaging 67 grams per tonne (g/t) silver, 2.8% lead, and 3.3% zinc, or 239 g/t silver equivalent, including 1.8 metres at 163 g/t silver, 6.9% lead and 8.8% zinc, or 619 g/t silver equivalent in hole 12CLM-044.
Meanwhile, at the Blind zone, drilling continues to delineate both the lateral extent and internal continuity of the mineralized zone, the company said.
Results from the northwest extension of the zone include 4.6 metres averaging 146 g/t silver, 3.0% lead and 2.8% zinc, or 472 g/t silver equivalent, from hole 12CLM-041; and 4.2 metres of 145 g/t silver, 2.7% lead and 2.0% zinc, or 305 g/t silver equivalent, from hole 12CLM-043.
The silver miner has scheduled 20,000 metres of core drilling in 2012 at the property, with the aim of completing an NI 43-101 compliant resource on these first set of targets by the fourth quarter.
The property comprises 18 concessions that total 15,125 hectares and an approximate 25 kilometre strike length.
Southern Silver is a precious and base metal exploration company. It aims to acquire, explore and develop properties in progressive jurisdictions within North America.
Its current projects include the silver-lead-zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca project in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver Oro project in New Mexico.
Monday, 23 April 2012
Acadian Energy contracts satellite imagery on New Albany Shale
Acadian Energy (CVE:ACX)
reported Monday it has contracted Calgary-based Hawkeye Geosensing to
take satellite images of its New Albany Shale gas play to measure oil
potential.
The purpose of the spectral analysis of satellite images is to further quantify the oil potential of Acadian's leaseholds in the New Albany Shale, identified through the greenfield oil simulation recently completed by Fekete Associates.
Hawkeye Geosensing’s high resolution satellite maps use 1.8 metre resolution Nasa Satellite data and a series of algorithms.
The company also utilizes microwave, radiometric, thermal infrared and long and short spectrographic reflectance to assemble the maps and analyze the data.
According to the statement, Hawkeye’s system for mapping the presence of hydrocarbons lowers client risk by 46 percent and helps cut seismic costs.
Remote sensing by satellite can be used to identify large-scale changes in the structure of the basement and sedimentary basins, along with major differences in rock density.
Acadian expects to use the hydrocarbon mapping results to reduce the risk in core site selection for its 2012 shale oil drill program.
Acadian Energy is an independent oil and natural gas exploration and production company focused on natural gas plays and oil plays in the United States, mainly in the Illinois basin.
The New Albany formation is a hydrocarbon rich shale, mostly late Devonian in age, which rests under much of Illinois basin.
The formation is 100 to 140 feet thick in south-eastern Indiana, and dips and thickens to the southwest into the Illinois Basin, where it attains a thickness of well over 300 feet.
Unlike many other shale plays, the New Albany Shale in Indiana is a continuous thick pay zone of brownish black to greenish gray shale, capped by a thick dense, gray-green shale and provides a very effective seal.
The New Albany lies at relatively shallow depths in terms of oil and gas drilling, from 600 to 5,000 feet below the surface.
The purpose of the spectral analysis of satellite images is to further quantify the oil potential of Acadian's leaseholds in the New Albany Shale, identified through the greenfield oil simulation recently completed by Fekete Associates.
Hawkeye Geosensing’s high resolution satellite maps use 1.8 metre resolution Nasa Satellite data and a series of algorithms.
The company also utilizes microwave, radiometric, thermal infrared and long and short spectrographic reflectance to assemble the maps and analyze the data.
According to the statement, Hawkeye’s system for mapping the presence of hydrocarbons lowers client risk by 46 percent and helps cut seismic costs.
Remote sensing by satellite can be used to identify large-scale changes in the structure of the basement and sedimentary basins, along with major differences in rock density.
Acadian expects to use the hydrocarbon mapping results to reduce the risk in core site selection for its 2012 shale oil drill program.
Acadian Energy is an independent oil and natural gas exploration and production company focused on natural gas plays and oil plays in the United States, mainly in the Illinois basin.
The New Albany formation is a hydrocarbon rich shale, mostly late Devonian in age, which rests under much of Illinois basin.
The formation is 100 to 140 feet thick in south-eastern Indiana, and dips and thickens to the southwest into the Illinois Basin, where it attains a thickness of well over 300 feet.
Unlike many other shale plays, the New Albany Shale in Indiana is a continuous thick pay zone of brownish black to greenish gray shale, capped by a thick dense, gray-green shale and provides a very effective seal.
The New Albany lies at relatively shallow depths in terms of oil and gas drilling, from 600 to 5,000 feet below the surface.
Kilo completes airborne survey, interim soil sampling at Somituri
Kilo Goldmines (CVE:KGL)
Monday provided an update on its Somituri project in the northeastern
Democratic Republic of Congo (DRC), saying that it has completed a
geophysical survey and interim soil sampling at the site.
The Canadian gold exploration company said that it had completed an airborne geophysical survey over the entire 122 square kilometre exploitation licence, PE9691, which hosts the Adumbi gold deposit of the Somituri project.
New Resolution Geophysics, based in South Africa, carried out the airborne magnetic and radiometric survey over PE9691, by helicopter, in mid April.
The survey consisted of 1,416.5 line kilometres flown at 100 metre intervals in order to orthogonally traverse the lithologies and gold bearing shear zones, said the company.
Kilo said the objective of the survey is, in part, to better define the structural and lithological settings of the known gold deposits hosted on the exploitation licence, and the on-strike extensions of these structures in areas where they have not been exposed or exploited.
In addition, the company said the magnetics can determine the presence of younger intrusive rocks, and cross-cutting structures that are typically associated with shear-hosted Archaean orogenic gold deposits as well as differentiate between the Banded Iron Formation (BIF), metasediments, volcanic and other rock types.
Kilo also reported that it had completed soil sampling and reconnaissance geological mapping on PE9692, PE138 and PE137, with soil sampling and reconnaissance geological mapping in progress on PE9695.
The company noted that the objective of this program is to delineate areas of anomalous gold values in soil, and ultimately define drill targets.
"Our expanded technical team has worked efficiently around the various concessions since January and has laid the groundwork for expanding the potential of the company's mineral portfolio,” said Kilo president and CEO Alex van Hoeken.
Earlier this month, the company unveiled what it called "encouraging" results from preliminary metallurgical test work on diamond drill core from its Adumbi gold deposit.
Overall recoveries were 94.2 percent for gold recovery in oxide and 96.2 percent for gold recovery in sulphide.
In mid-March, Kilo released an updated NI 43-101 resource estimate for its 71.25 percent-owned Adumbi deposit.
The company said in the inferred category, at a cut-off grade of 0.5 grams per tonne (g/t) gold, the resource estimate comprises 35.6 million tonnes containing 1.87 million ounces of gold at an average grade of 1.63 g/t gold. Of this, 33 percent is attributable to oxide, while 53 percent is attributable to sulphide.
Kilo has over 7,000 square kilometres of favourable Archaean Kabalian greenstone in the Kilo-Moto area in the Democratic Republic of the Congo.
The company's principal focus is to advance its projects from exploration through feasibility to project development and ultimately to full production.
Kilo is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto (NYSE:RIO) on potential iron ore licences in north-eastern DRC.
The Canadian gold exploration company said that it had completed an airborne geophysical survey over the entire 122 square kilometre exploitation licence, PE9691, which hosts the Adumbi gold deposit of the Somituri project.
New Resolution Geophysics, based in South Africa, carried out the airborne magnetic and radiometric survey over PE9691, by helicopter, in mid April.
The survey consisted of 1,416.5 line kilometres flown at 100 metre intervals in order to orthogonally traverse the lithologies and gold bearing shear zones, said the company.
Kilo said the objective of the survey is, in part, to better define the structural and lithological settings of the known gold deposits hosted on the exploitation licence, and the on-strike extensions of these structures in areas where they have not been exposed or exploited.
In addition, the company said the magnetics can determine the presence of younger intrusive rocks, and cross-cutting structures that are typically associated with shear-hosted Archaean orogenic gold deposits as well as differentiate between the Banded Iron Formation (BIF), metasediments, volcanic and other rock types.
Kilo also reported that it had completed soil sampling and reconnaissance geological mapping on PE9692, PE138 and PE137, with soil sampling and reconnaissance geological mapping in progress on PE9695.
The company noted that the objective of this program is to delineate areas of anomalous gold values in soil, and ultimately define drill targets.
"Our expanded technical team has worked efficiently around the various concessions since January and has laid the groundwork for expanding the potential of the company's mineral portfolio,” said Kilo president and CEO Alex van Hoeken.
Earlier this month, the company unveiled what it called "encouraging" results from preliminary metallurgical test work on diamond drill core from its Adumbi gold deposit.
Overall recoveries were 94.2 percent for gold recovery in oxide and 96.2 percent for gold recovery in sulphide.
In mid-March, Kilo released an updated NI 43-101 resource estimate for its 71.25 percent-owned Adumbi deposit.
The company said in the inferred category, at a cut-off grade of 0.5 grams per tonne (g/t) gold, the resource estimate comprises 35.6 million tonnes containing 1.87 million ounces of gold at an average grade of 1.63 g/t gold. Of this, 33 percent is attributable to oxide, while 53 percent is attributable to sulphide.
Kilo has over 7,000 square kilometres of favourable Archaean Kabalian greenstone in the Kilo-Moto area in the Democratic Republic of the Congo.
The company's principal focus is to advance its projects from exploration through feasibility to project development and ultimately to full production.
Kilo is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto (NYSE:RIO) on potential iron ore licences in north-eastern DRC.
Kincora Copper closes Golden Grouse acquisition
Kincora Copper (CVE:KCC) has closed its previously announced acquisition of Temujin Mining Corp.’s subsidiary, Golden Grouse, the company said Monday.
The share exchange agreement between both Kincora and Temujin was first reported on January 16, 2012.
Kincora issued 20 million shares to Temujin. On closing, Temujin kept 1.51 million Kincora shares and paid a dividend for the remaining stock to its shareholders.
Kincora will also issue another 15 million shares to Temujin upon the discovery of one million inferred ounces of gold within four years of the deal’s close.
Golden Grouse is a Mongolian company that holds the mineral exploration licenses 15075X and 15076X next to Kincora's Bronze Fox project.
Kincora also agreed to spend $2 million on exploration on the acquired properties over the next two years. If Kincora does not complete the “minimum work” in the two-year period, it will issue 15 million shares to Temujin.
"We now hold two of Ivanhoe's former high priority target properties in Mongolia, the Bronze Fox and Tourmaline Hills,” Kincora’s chief executive Igor Kovarsky said in a statement.
"Kincora now has one of the largest land holdings along the highly prospective copper belt hosting Oyu Tolgoi."
Temujin is a portfolio company of investment firm Aberdeen International and a member of the Forbes Manhattan Group.
Kincora Copper is a mining exploration and development company focused on copper-gold deposits in Mongolia.
Its key asset is the Bronze Fox copper-gold deposit, which rests in the south-east of Mongolia, along the Oyu Tolgoi copper belt.
The share exchange agreement between both Kincora and Temujin was first reported on January 16, 2012.
Kincora issued 20 million shares to Temujin. On closing, Temujin kept 1.51 million Kincora shares and paid a dividend for the remaining stock to its shareholders.
Kincora will also issue another 15 million shares to Temujin upon the discovery of one million inferred ounces of gold within four years of the deal’s close.
Golden Grouse is a Mongolian company that holds the mineral exploration licenses 15075X and 15076X next to Kincora's Bronze Fox project.
Kincora also agreed to spend $2 million on exploration on the acquired properties over the next two years. If Kincora does not complete the “minimum work” in the two-year period, it will issue 15 million shares to Temujin.
"We now hold two of Ivanhoe's former high priority target properties in Mongolia, the Bronze Fox and Tourmaline Hills,” Kincora’s chief executive Igor Kovarsky said in a statement.
"Kincora now has one of the largest land holdings along the highly prospective copper belt hosting Oyu Tolgoi."
Temujin is a portfolio company of investment firm Aberdeen International and a member of the Forbes Manhattan Group.
Kincora Copper is a mining exploration and development company focused on copper-gold deposits in Mongolia.
Its key asset is the Bronze Fox copper-gold deposit, which rests in the south-east of Mongolia, along the Oyu Tolgoi copper belt.
Implant Sciences' detection systems to be exhibited at London's Counter Terro Expo
Implant Sciences
Corp. (PINK:IMSC) reported Monday that its explosives and narcotics
trace detectors will be exhibited at the Counter Terror Expo in London.
The event, which is scheduled for April 25 and 26, is located at the Grand Hall of the Olympia Exhibitions & Conference Centre.
Implant’s distributor Guartel Technologies will feature the company’s Quantum Sniffer QS-H150 and Quantum Sniffer QS-B220 at stand No. D176, Implant said in a statement.
The Counter Terror Expo showcases the latest technology and techniques available to professionals in this important arena.
In a statement, chief executive Glenn D. Bolduc said having its products showcased at this event builds the company’s international presence in explosives trace detection.
"Our network of distributors around the world, including Guartel Technologies, is a critical asset to our company," he added.
Implant's systems are used by private companies as well as government agencies to screen baggage, cargo, vehicles, and people for the detection of trace amounts of explosives and narcotics.
The QS-H150 is a handheld explosives trace detector that rapidly detects trace amounts of a number of military, commercial, and homemade explosives. The QS-H150 uses no radioactive materials.
Last week, the company announced a key product enhancement for its QS-H150 - a printing kit that gives users the ability to print detection results from the device.
The company's other main product, the Quantum Sniffer QS-B220, is a trace detector that uses ion mobility spectrometry to identify a number of military, commercial and homemade explosives and narcotic substances. It was introduced in May, 2011.
The benchtop explosives and narcotics detector is suited for a number of security settings, including high-traffic airports, borders, and prisons.
In December, the QS-B220 device received CE Certification, an important step for generating sales in Europe, and in February, achieved ASTM E2520-07 certification.
Earlier this month, the company announced that its explosives and narcotics trace detectors would be be used at the Sixth Summit of the Americas, where 34 heads of state and government of the Americas convened in Cartagena, Colombia on April 14 and 15, 2012.
Implant said that the Colombian National Police chose the trace detection equipment as part of its security plan at the summit.
Implant Sciences’ share price went up 1.12 percent to reach 90 cents apiece in trade on the OTC, or over-the-counter market, Monday afternoon.
The event, which is scheduled for April 25 and 26, is located at the Grand Hall of the Olympia Exhibitions & Conference Centre.
Implant’s distributor Guartel Technologies will feature the company’s Quantum Sniffer QS-H150 and Quantum Sniffer QS-B220 at stand No. D176, Implant said in a statement.
The Counter Terror Expo showcases the latest technology and techniques available to professionals in this important arena.
In a statement, chief executive Glenn D. Bolduc said having its products showcased at this event builds the company’s international presence in explosives trace detection.
"Our network of distributors around the world, including Guartel Technologies, is a critical asset to our company," he added.
Implant's systems are used by private companies as well as government agencies to screen baggage, cargo, vehicles, and people for the detection of trace amounts of explosives and narcotics.
The QS-H150 is a handheld explosives trace detector that rapidly detects trace amounts of a number of military, commercial, and homemade explosives. The QS-H150 uses no radioactive materials.
Last week, the company announced a key product enhancement for its QS-H150 - a printing kit that gives users the ability to print detection results from the device.
The company's other main product, the Quantum Sniffer QS-B220, is a trace detector that uses ion mobility spectrometry to identify a number of military, commercial and homemade explosives and narcotic substances. It was introduced in May, 2011.
The benchtop explosives and narcotics detector is suited for a number of security settings, including high-traffic airports, borders, and prisons.
In December, the QS-B220 device received CE Certification, an important step for generating sales in Europe, and in February, achieved ASTM E2520-07 certification.
Earlier this month, the company announced that its explosives and narcotics trace detectors would be be used at the Sixth Summit of the Americas, where 34 heads of state and government of the Americas convened in Cartagena, Colombia on April 14 and 15, 2012.
Implant said that the Colombian National Police chose the trace detection equipment as part of its security plan at the summit.
Implant Sciences’ share price went up 1.12 percent to reach 90 cents apiece in trade on the OTC, or over-the-counter market, Monday afternoon.
Cadillac Ventures to sell interest in Spanish joint venture
Cadillac Ventures (CVE:CDC)
said Monday it plans to sell a 90 percent stake in its Spanish joint
venture for $2.5 million to focus on its Thierry project in northwest
Ontario.
The company entered into a letter agreement with Iberian Minerals (CVE:IZN) to unload the venture.
Cadillac, which owns the past producing Thierry Mine, purchased its 90 percent interest in the venture under an agreement with Minas de Aguas Tenidas in December 2008.
The deal with Minas, a unit of Iberian Minerals Corp, included 14 properties totalling about 232 square kilometres within the prolific Iberian Pyrite Belt of southern Spain.
"At this time Cadillac is selling its interest in the Spanish Joint Venture in order to focus the company's resources on the Thierry Project in northwest Ontario," chief executive Norman Brewster said Monday.
Planning at the copper-nickel project is now underway to start definition drilling and new exploration on the 5,422-hectare property once site conditions permit, Brewster added.
Completion of the Spanish sale is subject to a definitive agreement, the completion of due diligence and TSX Venture Exchange approval.
The Thierry property, near Pickle Lake, Ontario, hosts two NI 43-101 compliant resources: the Thierry mine and K1-1.
The Thierry mine has a current resource estimate of 8.8 million tonnes in the measured and indicated categories with a grade of 1.66% copper, 0.19% nickel, 4 grams per tonne (g/t) silver, 0.05 g/t gold, 0.04 g/t platinum and 0.13 g/t palladium.
In the inferred category, the resource stands at 14.9 million tonnes with a grade of 1.64% copper, 0.16% nickel, 6.4 g/t of silver, 0.10 g/t gold, 0.07 g/t platinum, and 0.21 g/t palladium.
The deposit remains open at depth and to the west, the company said.
Meanwhile, the K1-1 is an open-pit low grade deposit that rests three kilometres from the Thierry mine. It has an inferred mineral resource of 53.6 million tonnes with a grade of 0.38% copper, 0.10% nickel, 1.83 g/t silver, 0.03 g/t gold, 0.05 g/t platinum, and 0.14 g/t palladium.
Iberian is an affiliated entity of Trafigura Beheer B.V., which, indirectly owns or controls, approximately 25 percent of Cadillac's outstanding shares.
The company entered into a letter agreement with Iberian Minerals (CVE:IZN) to unload the venture.
Cadillac, which owns the past producing Thierry Mine, purchased its 90 percent interest in the venture under an agreement with Minas de Aguas Tenidas in December 2008.
The deal with Minas, a unit of Iberian Minerals Corp, included 14 properties totalling about 232 square kilometres within the prolific Iberian Pyrite Belt of southern Spain.
"At this time Cadillac is selling its interest in the Spanish Joint Venture in order to focus the company's resources on the Thierry Project in northwest Ontario," chief executive Norman Brewster said Monday.
Planning at the copper-nickel project is now underway to start definition drilling and new exploration on the 5,422-hectare property once site conditions permit, Brewster added.
Completion of the Spanish sale is subject to a definitive agreement, the completion of due diligence and TSX Venture Exchange approval.
The Thierry property, near Pickle Lake, Ontario, hosts two NI 43-101 compliant resources: the Thierry mine and K1-1.
The Thierry mine has a current resource estimate of 8.8 million tonnes in the measured and indicated categories with a grade of 1.66% copper, 0.19% nickel, 4 grams per tonne (g/t) silver, 0.05 g/t gold, 0.04 g/t platinum and 0.13 g/t palladium.
In the inferred category, the resource stands at 14.9 million tonnes with a grade of 1.64% copper, 0.16% nickel, 6.4 g/t of silver, 0.10 g/t gold, 0.07 g/t platinum, and 0.21 g/t palladium.
The deposit remains open at depth and to the west, the company said.
Meanwhile, the K1-1 is an open-pit low grade deposit that rests three kilometres from the Thierry mine. It has an inferred mineral resource of 53.6 million tonnes with a grade of 0.38% copper, 0.10% nickel, 1.83 g/t silver, 0.03 g/t gold, 0.05 g/t platinum, and 0.14 g/t palladium.
Iberian is an affiliated entity of Trafigura Beheer B.V., which, indirectly owns or controls, approximately 25 percent of Cadillac's outstanding shares.
Pressure BioSciences expands license deal with Target Discovery
Pressure BioSciences
(OTCQB:PBIO) said Monday it has signed expanded technology license and
supply agreements with Target Discovery Inc, giving Target the right to
use its patented Pressure Cycling Technology (PCT) platform for a
planned entry into the clinical diagnostics testing market.
Life science company Pressure BioSciences' patented PCT platform uses rapid and repeating cycles of hydrostatic pressure at controlled temperatures to extract cell components in the preparation of a biological sample, such as DNA, and proteins from humans, animals and plants, for further study.
The applications of the company's PCT-based products are endless - from the key $2 billion target market of mass spectrometry, an analytical technique used to determine the characteristics of molecules, to biomarker discovery, forensics and counter-bioterrorism, among other uses.
Target's planned commercial diagnostic services will initially target "critical, unmet needs" in treatment selection guidance for ovarian cancer, the parties said.
Until now, Pressure BioSciences' PCT platform has been available on a “research-use-only” basis.
In 2010, the companies announced a collaboration to combine Pressure BioSciences' PCT platform with Target's proprietary reagents, to allow for the extraction of membrane protein biomarkers from human tissue.
These biomarkers are typically difficult to extract from tissue in a form suitable for diagnostic testing.
The companies said, however, that they believe their "unique" ability to rapidly extract and recover the commercially useable protein biomarkers from cell membranes positions them to "exploit this critical class of membrane proteins as diagnostic biomarkers".
“Membrane proteins play key biological roles in cancer, in drug resistance, and in viral infections, yet until now scientists have been virtually unable to use this important class of biomarkers for diagnostic and prognostic testing,” said Target's chief scientific officer, Dr. Luke V. Schneider.
CEO of Target, Jeffrey N. Peterson, added: “We are very pleased with the progress and outcomes achieved in our on-going multi-year collaboration with PBI.
"We believe that the PCT Platform, in combination with TDI’s proprietary reagents, provides reliable access to this important class of protein biomarkers for life sciences R&D.
"We further believe that variations measured in these protein isoforms are expected to translate into important commercial applications, and desperately needed breakthroughs in improved patient care and health-economic outcomes."
Indeed, the first area of application is in ovarian cancer, where more than 22,000 women are diagnosed each year in the US. The companies said over two thirds of these new patients could be helped "dramatically" by the introduction of "reliable treatment selection guidance diagnostic information."
The non-exclusive, worldwide, royalty-bearing license is for the in vitro diagnostic services testing for the detection of proteins that may be regarded as biomarkers of ovarian and other cancers.
The license agreement includes a minimum royalty that is replaced by an annual royalty once Target achieves a specified minimum level of diagnostic testing sales.
It also includes a right of first negotiation and right of first refusal for an exclusive license to sell biomarker and/or diagnostic assay products, including instruments, software, kits and consumables, in a specified field of use.
The license continues for the life of Pressure BioSciences PCT patents.
Under the supply agreement, Pressure BioSciences will make available to Target the PCT instruments and consumables at "most favored nation" pricing, it said.
"The innovative scientific team at TDI has vaulted important anticipated applications for PCT forward into near-term realities," said CEO of Pressure BioSciences, Richard T. Schumacher.
"The power and impact of TDI’s isoform-focused technologies and their promise in opening a new era in personalized medicine diagnostics for cancer treatment is dramatic and inspiring.
"We are excited that PBI’s patented PCT Platform will provide the sample-processing foundation upon which many of TDI’s next generation clinical laboratory testing services will be based, and we look forward to supporting our colleagues at TDI with our continued collaboration, and by fulfilling their expected PCT Platform instrument and consumables needs," he concluded.
Palo Alto, California-based Target Discovery is a privately held company developing the clinical diagnostics. The company focuses on creating protein isoform diagnostics to better guide therapeutic choices and lower overall treatment costs for cancer and other diseases.
Pressure BioSciences is focused on the development and sale of PCT-enhanced sample preparation systems (instruments and consumables) for mass spectrometry, biomarker discovery, bio-therapeutics characterization, vaccine development, soil and plant biology, forensics, histology, and counter-bioterror applications.
Earlier this month, the company said that Ironridge BioPharma would buy $500,000 in shares of Series E convertible preferred stock of the company, immediately boosting its balance sheet.
Since Pressure BioSciences began commercial operations in the middle of 2007, it has come a long way, releasing a number of PCT-based products geared towards the $6 billion sample preparation market, including three pressure-generating instruments named Barocyclers, a patent-pending sample homogenization device (The Shredder SG3), five types of single-use processing containers and six different, application-specific reagent kits.
Already, the company has installed around 200 of its PCT Barocycler instruments plus required consumables in laboratories. The sample preparation system has been proven to be safer, more accurate, reproducible, and much faster than current cell extraction methods - with up to 48 samples able to be processed from a wide variety of cells and tissues within minutes.
Life science company Pressure BioSciences' patented PCT platform uses rapid and repeating cycles of hydrostatic pressure at controlled temperatures to extract cell components in the preparation of a biological sample, such as DNA, and proteins from humans, animals and plants, for further study.
The applications of the company's PCT-based products are endless - from the key $2 billion target market of mass spectrometry, an analytical technique used to determine the characteristics of molecules, to biomarker discovery, forensics and counter-bioterrorism, among other uses.
Target's planned commercial diagnostic services will initially target "critical, unmet needs" in treatment selection guidance for ovarian cancer, the parties said.
Until now, Pressure BioSciences' PCT platform has been available on a “research-use-only” basis.
In 2010, the companies announced a collaboration to combine Pressure BioSciences' PCT platform with Target's proprietary reagents, to allow for the extraction of membrane protein biomarkers from human tissue.
These biomarkers are typically difficult to extract from tissue in a form suitable for diagnostic testing.
The companies said, however, that they believe their "unique" ability to rapidly extract and recover the commercially useable protein biomarkers from cell membranes positions them to "exploit this critical class of membrane proteins as diagnostic biomarkers".
“Membrane proteins play key biological roles in cancer, in drug resistance, and in viral infections, yet until now scientists have been virtually unable to use this important class of biomarkers for diagnostic and prognostic testing,” said Target's chief scientific officer, Dr. Luke V. Schneider.
CEO of Target, Jeffrey N. Peterson, added: “We are very pleased with the progress and outcomes achieved in our on-going multi-year collaboration with PBI.
"We believe that the PCT Platform, in combination with TDI’s proprietary reagents, provides reliable access to this important class of protein biomarkers for life sciences R&D.
"We further believe that variations measured in these protein isoforms are expected to translate into important commercial applications, and desperately needed breakthroughs in improved patient care and health-economic outcomes."
Indeed, the first area of application is in ovarian cancer, where more than 22,000 women are diagnosed each year in the US. The companies said over two thirds of these new patients could be helped "dramatically" by the introduction of "reliable treatment selection guidance diagnostic information."
The non-exclusive, worldwide, royalty-bearing license is for the in vitro diagnostic services testing for the detection of proteins that may be regarded as biomarkers of ovarian and other cancers.
The license agreement includes a minimum royalty that is replaced by an annual royalty once Target achieves a specified minimum level of diagnostic testing sales.
It also includes a right of first negotiation and right of first refusal for an exclusive license to sell biomarker and/or diagnostic assay products, including instruments, software, kits and consumables, in a specified field of use.
The license continues for the life of Pressure BioSciences PCT patents.
Under the supply agreement, Pressure BioSciences will make available to Target the PCT instruments and consumables at "most favored nation" pricing, it said.
"The innovative scientific team at TDI has vaulted important anticipated applications for PCT forward into near-term realities," said CEO of Pressure BioSciences, Richard T. Schumacher.
"The power and impact of TDI’s isoform-focused technologies and their promise in opening a new era in personalized medicine diagnostics for cancer treatment is dramatic and inspiring.
"We are excited that PBI’s patented PCT Platform will provide the sample-processing foundation upon which many of TDI’s next generation clinical laboratory testing services will be based, and we look forward to supporting our colleagues at TDI with our continued collaboration, and by fulfilling their expected PCT Platform instrument and consumables needs," he concluded.
Palo Alto, California-based Target Discovery is a privately held company developing the clinical diagnostics. The company focuses on creating protein isoform diagnostics to better guide therapeutic choices and lower overall treatment costs for cancer and other diseases.
Pressure BioSciences is focused on the development and sale of PCT-enhanced sample preparation systems (instruments and consumables) for mass spectrometry, biomarker discovery, bio-therapeutics characterization, vaccine development, soil and plant biology, forensics, histology, and counter-bioterror applications.
Earlier this month, the company said that Ironridge BioPharma would buy $500,000 in shares of Series E convertible preferred stock of the company, immediately boosting its balance sheet.
Since Pressure BioSciences began commercial operations in the middle of 2007, it has come a long way, releasing a number of PCT-based products geared towards the $6 billion sample preparation market, including three pressure-generating instruments named Barocyclers, a patent-pending sample homogenization device (The Shredder SG3), five types of single-use processing containers and six different, application-specific reagent kits.
Already, the company has installed around 200 of its PCT Barocycler instruments plus required consumables in laboratories. The sample preparation system has been proven to be safer, more accurate, reproducible, and much faster than current cell extraction methods - with up to 48 samples able to be processed from a wide variety of cells and tissues within minutes.
Allana Potash appoints senior VP of corporate development, updates on feas study
Allana Potash Corp. (TSE:AAA) reported Monday the appointment of investment analyst Richard Kelertas as senior vice president of corporate development.
Kelertas, who graduated from the University of Toronto with two science degrees and one Masters science degree, has been ranked a top equity analyst and has worked for a number of national and international firms, the company said.
Most recently, he was vice president and senior financial analyst at Dundee Capital Markets and has held a number of positions in corporate Canada.
Kelertas had covered the junior potash sector for Dundee over the years and was also one of the first analysts on Bay Street to launch research coverage on Allana three years ago.
In Canada, he has been ranked a “Top Gun” equity analyst by Brendan Woods International for the past seven years, and was also only one of 14 analysts in Canada to be named Super Leaguer Analyst, in 2010, Allana noted.
"We are delighted that Richard has joined Allana Potash,” Allana’s chief executive Farhad Abasov said in a statement.
"As Allana is in the midst of preparing its bankable feasibility study and securing project financing, Richard's contribution to our potash project will be significant and timely."
In other news, the potash explorer said that technical studies in support of its ongoing feasibility study for its Dallol project in Ethiopia are underway.
Currently, two diamond drill rigs are focused on exploration targets on the eastern and northern portions of the Dallol potash license area.
Total measured and indicated resources stand at 673 million tonnes, with a grade of 18.65% potassium chloride (KCl). In the inferred category mineral resources are 596 million tonnes with a grade of 19.96% KCl.
Earlier this month, the company announced it had intersected strong potash mineralization in three holes at Dallol, prompting it to extend its drill program in the southern boundary of Ethiopia.
Hole 35 intersected 5.7 metres of 31.3% potassium chloride (KCl) in the sylvinite zone and included a higher grade interval of three metres of 39.1% KCl. The hole also intersected 7.5 metres of 20.3% KCl in the underlying kainitite zone.
The company noted that it expects results from an updated NI 43-101 mineral resource estimate by the end of the month.
Allana Potash is a junior mineral exploration company focused on developing potash mineral properties in Ethiopia and Argentina.
Kelertas, who graduated from the University of Toronto with two science degrees and one Masters science degree, has been ranked a top equity analyst and has worked for a number of national and international firms, the company said.
Most recently, he was vice president and senior financial analyst at Dundee Capital Markets and has held a number of positions in corporate Canada.
Kelertas had covered the junior potash sector for Dundee over the years and was also one of the first analysts on Bay Street to launch research coverage on Allana three years ago.
In Canada, he has been ranked a “Top Gun” equity analyst by Brendan Woods International for the past seven years, and was also only one of 14 analysts in Canada to be named Super Leaguer Analyst, in 2010, Allana noted.
"We are delighted that Richard has joined Allana Potash,” Allana’s chief executive Farhad Abasov said in a statement.
"As Allana is in the midst of preparing its bankable feasibility study and securing project financing, Richard's contribution to our potash project will be significant and timely."
In other news, the potash explorer said that technical studies in support of its ongoing feasibility study for its Dallol project in Ethiopia are underway.
Currently, two diamond drill rigs are focused on exploration targets on the eastern and northern portions of the Dallol potash license area.
Total measured and indicated resources stand at 673 million tonnes, with a grade of 18.65% potassium chloride (KCl). In the inferred category mineral resources are 596 million tonnes with a grade of 19.96% KCl.
Earlier this month, the company announced it had intersected strong potash mineralization in three holes at Dallol, prompting it to extend its drill program in the southern boundary of Ethiopia.
Hole 35 intersected 5.7 metres of 31.3% potassium chloride (KCl) in the sylvinite zone and included a higher grade interval of three metres of 39.1% KCl. The hole also intersected 7.5 metres of 20.3% KCl in the underlying kainitite zone.
The company noted that it expects results from an updated NI 43-101 mineral resource estimate by the end of the month.
Allana Potash is a junior mineral exploration company focused on developing potash mineral properties in Ethiopia and Argentina.
Fission Energy to buy Pitchstone Exploration
Uranium explorer Fission Energy (CVE:FIS)(OTCQX:FSSIF) said Monday it has agreed to acquire industry peer Pitchstone Exploration through a plan of arrangement.
Under the terms of the deal, Fission will issue 0.2145 common shares of the company for each common share of Pitchstone.
Based on 45.2 million Pitchstone shares outstanding, Fission will issue roughly 9.7 million common shares to complete the deal, representing around 8.5 percent of Fission.
Pitchstone is a Uranium explorer focused in three districts in Canada and Namibia. The company's property portfolio features 13 projects in the eastern Athabasca Basin of Saskatchewan, five of which are 100 percent owned.
In addition, it has two joint venture projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut.
Pitchstone has agreed to a C$250,000 termination fee, payable under certain events, including if Pitchstone enters into a superior proposal.
The parties said that Pitchstone options and warrants will be converted into Fission options and warrants on the same basis as the common shares.
The deal has already been approved by Pitchstone's board, with a shareholder meeting slated to be held around July 16. The transaction requires two third Pitchstone shareholder approval.
Fission said it has entered into lock-up agreements with all of the directors and officers of Pitchstone, representing around 19 percent of the company, who will vote their shares in favour of the deal.
The arrangement also requires regulatory and court approval, and is expected to close around July 16.
Fission Energy is a Canadian Uranium exploration and development company with properties in Saskatchewan's Athabasca Basin, Quebec, and the Macusani District in Peru.
In 2010, the company made a significant high grade Uranium discovery at its Waterbury Lake property in the Athabasca Basin, immediately adjacent to Rio Tinto's (NYSE:RIO) (formerly Hathor Exploration's) Roughrider deposit.
And last year, Fission made a high grade boulder field discovery at its Patterson Lake South property. Last week, the company said that 19.5 metres of anomalous radioactivity was drilled during a winter program at the Patterson Lake South property.
Under the terms of the deal, Fission will issue 0.2145 common shares of the company for each common share of Pitchstone.
Based on 45.2 million Pitchstone shares outstanding, Fission will issue roughly 9.7 million common shares to complete the deal, representing around 8.5 percent of Fission.
Pitchstone is a Uranium explorer focused in three districts in Canada and Namibia. The company's property portfolio features 13 projects in the eastern Athabasca Basin of Saskatchewan, five of which are 100 percent owned.
In addition, it has two joint venture projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut.
Pitchstone has agreed to a C$250,000 termination fee, payable under certain events, including if Pitchstone enters into a superior proposal.
The parties said that Pitchstone options and warrants will be converted into Fission options and warrants on the same basis as the common shares.
The deal has already been approved by Pitchstone's board, with a shareholder meeting slated to be held around July 16. The transaction requires two third Pitchstone shareholder approval.
Fission said it has entered into lock-up agreements with all of the directors and officers of Pitchstone, representing around 19 percent of the company, who will vote their shares in favour of the deal.
The arrangement also requires regulatory and court approval, and is expected to close around July 16.
Fission Energy is a Canadian Uranium exploration and development company with properties in Saskatchewan's Athabasca Basin, Quebec, and the Macusani District in Peru.
In 2010, the company made a significant high grade Uranium discovery at its Waterbury Lake property in the Athabasca Basin, immediately adjacent to Rio Tinto's (NYSE:RIO) (formerly Hathor Exploration's) Roughrider deposit.
And last year, Fission made a high grade boulder field discovery at its Patterson Lake South property. Last week, the company said that 19.5 metres of anomalous radioactivity was drilled during a winter program at the Patterson Lake South property.
WesternZagros sharply boosts contingent oil resources after giant oil field discovery
WesternZagros Resources (CVE:WZR)
saw its shares rally Monday after it increased its mean contingent
resources in the Oligocene reservoir at its Kurdamir-2 exploration well
in Iraq by around 400 percent following the discovery of a giant oil
field.
The company’s shares jumped over six percent on the back of the news, to 84 cents per share.
As a result of the find, the company said that its estimate of unrisked contingent resources has increased to 147 million barrels of recoverable oil (corresponding to 464 million barrels of mean estimated gross discovered oil initially in place) for the Oligocene reservoir in the Kurdamir block.
When gas and condensate are included, the company said mean contingent resources equal 384 million barrels of oil equivalent (MMboe).
Its estimate of unrisked prospective resources also increased 300 percent to 1.2 billion barrels of recoverable oil (corresponding to 3.6 billion barrels of mean estimated gross undiscovered oil initially in place), or 1.4 billion barrels of oil equivalent (billion boe) when gas and condensate are included.
These results follow the major oil discovery at the Kurdamir-2 exploration well announced in late March, the Iraq-focused oil and gas explorer said.
The Kurdamir-2 well encountered a 118-metre light oil column with no indications of a water leg at the Kurdamir-2 location, proving that the oil leg in the Oligocene reservoir on the flank of the Kurdamir structure is involved in a much larger trap than was previously interpreted.
"We are delighted with these results as we have found what this company was created to find, and the reason we entered Kurdistan,” said WesternZagros's CEO Simon Hatfield.
"The Kurdamir structure is proving to be one of the top oil discoveries of the decade and this is a company maker for us. The oil reservoir of the Kurdamir structure extends further than the area previously assessed and we have not yet found its limits.
"In addition there is still more news to come on this well as we drill deeper into the Eocene and Cretaceous reservoirs and conduct further testing of the Oligocene oil leg in the coming months."
The updated resource estimates were carried out by Sproule International Limited.
In a conference call Monday, Hatfield said the company is hopeful for production by the end of 2012.
The Kurdamir-2 exploration well was spudded on October 25, 2011 and is operated by Talisman Energy (TSE:TLM) (NYSE:TLM).
The well is located approximately two kilometres northeast of WesternZagros’s Kurdamir-1 discovery well and is targeting the Oligocene, Eocene and Cretaceous reservoirs on the flank of the structure, where the company says the combined potential oil interval is likely at maximum thickness.
WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir block, with the Kurdistan Regional Government holding the remaining 20 percent.
The company said the Kurdamir-2 exploration well is currently drilling through the Eocene reservoir at a depth of roughly 3,114 metres and is encountering numerous oil shows.
Operations, to date, remain on time and budget, and WesternZagros anticipates that the deeper Eocene and Cretaceous reservoirs will be drilled and evaluated by the end of the second quarter this year.
The company also said it is working with its partner to examine additional testing options focused on the full 118 metres of gross oil pay in the Oligocene.
In addition, the co-venturers are planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir.
WesternZagros is an international natural resources company focused on exploring, developing and producing crude oil and natural gas in Iraq.
Through its wholly-owned subsidiaries, the company holds two production sharing contracts with the Kurdistan Regional Government in the Kurdistan region of Iraq.
The company’s shares jumped over six percent on the back of the news, to 84 cents per share.
As a result of the find, the company said that its estimate of unrisked contingent resources has increased to 147 million barrels of recoverable oil (corresponding to 464 million barrels of mean estimated gross discovered oil initially in place) for the Oligocene reservoir in the Kurdamir block.
When gas and condensate are included, the company said mean contingent resources equal 384 million barrels of oil equivalent (MMboe).
Its estimate of unrisked prospective resources also increased 300 percent to 1.2 billion barrels of recoverable oil (corresponding to 3.6 billion barrels of mean estimated gross undiscovered oil initially in place), or 1.4 billion barrels of oil equivalent (billion boe) when gas and condensate are included.
These results follow the major oil discovery at the Kurdamir-2 exploration well announced in late March, the Iraq-focused oil and gas explorer said.
The Kurdamir-2 well encountered a 118-metre light oil column with no indications of a water leg at the Kurdamir-2 location, proving that the oil leg in the Oligocene reservoir on the flank of the Kurdamir structure is involved in a much larger trap than was previously interpreted.
"We are delighted with these results as we have found what this company was created to find, and the reason we entered Kurdistan,” said WesternZagros's CEO Simon Hatfield.
"The Kurdamir structure is proving to be one of the top oil discoveries of the decade and this is a company maker for us. The oil reservoir of the Kurdamir structure extends further than the area previously assessed and we have not yet found its limits.
"In addition there is still more news to come on this well as we drill deeper into the Eocene and Cretaceous reservoirs and conduct further testing of the Oligocene oil leg in the coming months."
The updated resource estimates were carried out by Sproule International Limited.
In a conference call Monday, Hatfield said the company is hopeful for production by the end of 2012.
The Kurdamir-2 exploration well was spudded on October 25, 2011 and is operated by Talisman Energy (TSE:TLM) (NYSE:TLM).
The well is located approximately two kilometres northeast of WesternZagros’s Kurdamir-1 discovery well and is targeting the Oligocene, Eocene and Cretaceous reservoirs on the flank of the structure, where the company says the combined potential oil interval is likely at maximum thickness.
WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir block, with the Kurdistan Regional Government holding the remaining 20 percent.
The company said the Kurdamir-2 exploration well is currently drilling through the Eocene reservoir at a depth of roughly 3,114 metres and is encountering numerous oil shows.
Operations, to date, remain on time and budget, and WesternZagros anticipates that the deeper Eocene and Cretaceous reservoirs will be drilled and evaluated by the end of the second quarter this year.
The company also said it is working with its partner to examine additional testing options focused on the full 118 metres of gross oil pay in the Oligocene.
In addition, the co-venturers are planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir.
WesternZagros is an international natural resources company focused on exploring, developing and producing crude oil and natural gas in Iraq.
Through its wholly-owned subsidiaries, the company holds two production sharing contracts with the Kurdistan Regional Government in the Kurdistan region of Iraq.
Argex says initial Lac Brule metallurgy results deemed better than La Blache
Argex Mining (CVE:RGX)
(OTCBB:ARGEF) said Monday it has successfully completed preliminary
metallurgy testing of mineralization from its Lac Brule project in
Quebec, using the patented CTL process.
The testing showed improved leaching results than the ones obtained using the massive mineralization from its La Blache titaniferous magnetite project, Argex added.
Indeed, during the first quarter of the year, the company, in collaboration with Process Research Ortech, completed bench scale testing of the Lac Brule massive mineralization.
Bench testing initial results were 94 percent of the TiO2 (titanium dioxide) leached, compared to 92 percent of TiO2 leached for La Blache, along with 95 percent of the V2O5 (vanadium pentoxide) leached and 99 percent of the iron oxides leached.
"With the higher TiO2 average grade of 34% vs. the 18% TiO2 in the La Blache mineralization and lower iron content, it is expected that the throughput with similar capital expenditure would be approximately 90% higher than what would have been obtained with La Blache," said Argex's COO, Enrico Di Cesare.
"I am pleased with the progress we have made, and we will be running the existing pilot plant with Lac Brule material over the next few months to make TiO2 pigment.
"As part of our due diligence process, we are now conducting batch testing on higher grade TiO2 ilmenite concentrates selected from existing feedstock producers from around the world.
"This pre-qualification of potential feedstock will be used as part of advanced-stage studies," he added.
The patented closed-loop CTL Process involves the leaching of titanium-bearing ore material in chloride acid media, under conditions for both iron and titanium in the ore to be leached into solution.
The energy efficient process operates at atmospheric pressure and does not require pre-treatment of the ore, meaning no oxidation and/or reduction is required.
The process operates with relatively low concentration of hydrochloric acid and avoids the need to handle chlorine, carbon, or carbon containing chemicals at very high temperatures.
"The CTL Process has shown an enormous flexibility to operate successfully on different ore bodies," said president and CEO Roy Bonnell, "which should provide us with even greater optionality in growing the company as we move forward."
The sample processed for the testing was collected by Quinto in 2005 as part of a trenching program completed on the Lac Brule main deposit.
Argex also said Monday it completed a high resolution airborne geophysical survey covering the main area of the Lac Brule property, including the recently acquired claim block from Quinto Mining Corp.
During February and March, a total of 1,590 line kilometres were flown by Geotech with 60-metre line spacing. The final report is expected in the coming days, the company said.
"This survey allows us to get a detailed geophysical picture of the known massive hemo-ilmenite deposits occurring on the property," said Argex's VP of mining and geology, AndrAcopyright LaferriA re.
"This new geophysical dataset will significantly enhance our understanding of the geology in the area, which will help us optimize the next exploration program on the property."
The Lac Brule property covers part of the Labrieville anorthosite complex, which hosts known magmatic iron oxide deposits strongly mineralized in titanium.
Historical exploration work completed on the property in the 50s and 70s outlined three massive ilmenite lenses, while an internal study done in 2005 reported a mineral resource estimate totalling 3.8 million tonnes and having an average grade of 30.1% TiO2. Such tonnage is, however, not confirmed by the recent NI 43-101 report, Argex noted.
Earlier this month, Argex announced that it entered into a technical collaboration agreement with PPG Industries (NYSE:PPG) to develop and optimize PPG's technology for titanium dioxide (TiO2).
The goal is to develop a titanium dioxide product that can meet conventional standards for interior and exterior paint and coatings applications, to be produced by Argex.
Titanium dioxide is an inorganic substance characterized by brightness and very high refractive index, making it an ideal pigment in paints, plastics and paper.
Argex is a junior Canadian resource company that is developing the advanced stage La Blache titaniferous magnetite project, and also owns the Lac Brûlé high grade ilmenite and the Mouchalagane iron ore projects, which are all located on Quebec’s North Shore.
The testing showed improved leaching results than the ones obtained using the massive mineralization from its La Blache titaniferous magnetite project, Argex added.
Indeed, during the first quarter of the year, the company, in collaboration with Process Research Ortech, completed bench scale testing of the Lac Brule massive mineralization.
Bench testing initial results were 94 percent of the TiO2 (titanium dioxide) leached, compared to 92 percent of TiO2 leached for La Blache, along with 95 percent of the V2O5 (vanadium pentoxide) leached and 99 percent of the iron oxides leached.
"With the higher TiO2 average grade of 34% vs. the 18% TiO2 in the La Blache mineralization and lower iron content, it is expected that the throughput with similar capital expenditure would be approximately 90% higher than what would have been obtained with La Blache," said Argex's COO, Enrico Di Cesare.
"I am pleased with the progress we have made, and we will be running the existing pilot plant with Lac Brule material over the next few months to make TiO2 pigment.
"As part of our due diligence process, we are now conducting batch testing on higher grade TiO2 ilmenite concentrates selected from existing feedstock producers from around the world.
"This pre-qualification of potential feedstock will be used as part of advanced-stage studies," he added.
The patented closed-loop CTL Process involves the leaching of titanium-bearing ore material in chloride acid media, under conditions for both iron and titanium in the ore to be leached into solution.
The energy efficient process operates at atmospheric pressure and does not require pre-treatment of the ore, meaning no oxidation and/or reduction is required.
The process operates with relatively low concentration of hydrochloric acid and avoids the need to handle chlorine, carbon, or carbon containing chemicals at very high temperatures.
"The CTL Process has shown an enormous flexibility to operate successfully on different ore bodies," said president and CEO Roy Bonnell, "which should provide us with even greater optionality in growing the company as we move forward."
The sample processed for the testing was collected by Quinto in 2005 as part of a trenching program completed on the Lac Brule main deposit.
Argex also said Monday it completed a high resolution airborne geophysical survey covering the main area of the Lac Brule property, including the recently acquired claim block from Quinto Mining Corp.
During February and March, a total of 1,590 line kilometres were flown by Geotech with 60-metre line spacing. The final report is expected in the coming days, the company said.
"This survey allows us to get a detailed geophysical picture of the known massive hemo-ilmenite deposits occurring on the property," said Argex's VP of mining and geology, AndrAcopyright LaferriA re.
"This new geophysical dataset will significantly enhance our understanding of the geology in the area, which will help us optimize the next exploration program on the property."
The Lac Brule property covers part of the Labrieville anorthosite complex, which hosts known magmatic iron oxide deposits strongly mineralized in titanium.
Historical exploration work completed on the property in the 50s and 70s outlined three massive ilmenite lenses, while an internal study done in 2005 reported a mineral resource estimate totalling 3.8 million tonnes and having an average grade of 30.1% TiO2. Such tonnage is, however, not confirmed by the recent NI 43-101 report, Argex noted.
Earlier this month, Argex announced that it entered into a technical collaboration agreement with PPG Industries (NYSE:PPG) to develop and optimize PPG's technology for titanium dioxide (TiO2).
The goal is to develop a titanium dioxide product that can meet conventional standards for interior and exterior paint and coatings applications, to be produced by Argex.
Titanium dioxide is an inorganic substance characterized by brightness and very high refractive index, making it an ideal pigment in paints, plastics and paper.
Argex is a junior Canadian resource company that is developing the advanced stage La Blache titaniferous magnetite project, and also owns the Lac Brûlé high grade ilmenite and the Mouchalagane iron ore projects, which are all located on Quebec’s North Shore.
Westridge Resources: The Midas Touch
Junior mineral exploration and development company Westridge Resources (TSX.V:WST) has market watchers on the edge of their seats waiting to see what its “golden touch” will produce next.
The relatively new company has maintained investor support since it emerged in 2010, largely due to the management and the successes at its flagship Charay project in Mexico.
Westridge came on the market just two years ago, with an IPO of 25 cents per share. Fast forward to today; where the company’s shares are trading at 2.5x that price throughout all these turbulent market conditions. This is certainly an testament to the strength of the company.
Attributable to many factors, at the forefront of its success is the company’s management team, which boasts over 90 years of combined experience in the field – much of it in South America and Mexico.
President and CEO Peter Schulhof has over 10 years in small cap junior mining companies, coupled with over 30 years of experience in the start up, management and financing of public and private companies.
Leading the board of directors is Chairman Bill Radvak, a mining engineer who joined the team in January.
Radvak brings 25 years experience in the start-up, management and financing of public companies with him. He started as president and CEO at American Vanadium in March 2010, and has since overseen the company’s flagship Gibellini vanadium project outside of Eureka, Nev., which is slated to begin production in 2012.
He is expected to assist Schulhof with some of the heavy lifting during the financing stages, and brings development experience.
Among the experienced team at Westridge is director Richard Barclay, who along with being the co-founder of Eldorado Gold and Bema Gold, brings 35 years of leadership in highly successful exploration and development companies in the mining sector.
With all the experience the Westridge management brings to the table, it was almost inevitable that the Charay project should yield positive results.
Located approximately 40 minutes by car northeast of Los Mochis, an ocean-side city in the State of Sinaloa, Mexico, the Charay project hosts a high-grade epithermal gold/silver vein system that has shown indications for the potential of a significant resource.
Currently, Westridge has a program underway to explore the property, and the company says that significant cost advantages are associated with the Charay project due to mineralization at surface, ease of access and excellent infrastructure that currently exists on or very nearby the property.
The property is comprised of five concessions totaling 11,000 hectares close to railroads, trans-continental power lines and large water sources. It is just 15 minutes away from two major four-lane highways, power and water are already on site and it is easily accessible by ro.
Westridge has also previously reported that the veins at Charay typically come in parallel groups, and have the potential for deeper-gold mineralization that could establish underground mining potential.
The drilling program on the Charay project began in the first quarter of 2012. Its most recent results, published in early March, revealed that it had found several new epithermal veins south of the main El Padre Vein at the Charay project.
This field work is being conducted at the same time as a diamond drill program at the project.
"Our mapping and trenching program has now demonstrated that the total, cumulative strike length of all vein features identified and inferred on the property is now reaching a total of 3,000 meters, more than ten times the strike length previously identified for the El Padre Vein," said president and CEO, Peter Schulhof, in March.
"Worth noting is that we have explored far less than one percent of our 105 square kilometer Charay Project and we expect surface work to continue to identify more vein targets on the property."
The company’s drilling program is designed to extend and expand the zone of gold and silver mineralization defined by previous drilling on the El Padre vein both to depth and along strike.
Previously a drilling program consisted of 20 holes to a depth of approximately 50 meters below the surface and approximately 250 meters along the strike of the El Padre vein.
Three twin holes were completed in July 2011 to confirm the earlier drilling.
Westridge was able to confirm the presence of bonanza grade gold and silver in the El Padre vein system (0.75m at 204.0 gpt Au and 445 gpt Ag) and potential for longer intervals of high grade (9.8m at 18.78 gpt Au).
One drill hole also indicated potential for multiple vein intersections, with a second interval of gold mineralization below the interpreted intersection of the El Padre vein.
Westridge said it will continue to pursue equity financing as the operation moves forward.
With only 15 million shares outstanding, Westridge has a market capitalization of C$9 million - leaving oodles of upside potential in the share price if the company continues to hit mineralization.
Westridge’s commitment to creating strong ties with the communities around Los Mochis and Charay has also been a deciding factor in the company’s great performance thus far.
The company has noted that its ground-level managers, including both head geologists, are all fluent Spanish speakers, and Westridge has hired regional geological and public-relations staff to help with the transition into the area.
So it would seem that Westridge has all the ingredients it needs for success, and less than two years after its arrival on the market, it has instilled confidence in investors and continues to move in the right direction.
All eyes are on Westridge.
The relatively new company has maintained investor support since it emerged in 2010, largely due to the management and the successes at its flagship Charay project in Mexico.
Westridge came on the market just two years ago, with an IPO of 25 cents per share. Fast forward to today; where the company’s shares are trading at 2.5x that price throughout all these turbulent market conditions. This is certainly an testament to the strength of the company.
Attributable to many factors, at the forefront of its success is the company’s management team, which boasts over 90 years of combined experience in the field – much of it in South America and Mexico.
President and CEO Peter Schulhof has over 10 years in small cap junior mining companies, coupled with over 30 years of experience in the start up, management and financing of public and private companies.
Leading the board of directors is Chairman Bill Radvak, a mining engineer who joined the team in January.
Radvak brings 25 years experience in the start-up, management and financing of public companies with him. He started as president and CEO at American Vanadium in March 2010, and has since overseen the company’s flagship Gibellini vanadium project outside of Eureka, Nev., which is slated to begin production in 2012.
He is expected to assist Schulhof with some of the heavy lifting during the financing stages, and brings development experience.
Among the experienced team at Westridge is director Richard Barclay, who along with being the co-founder of Eldorado Gold and Bema Gold, brings 35 years of leadership in highly successful exploration and development companies in the mining sector.
With all the experience the Westridge management brings to the table, it was almost inevitable that the Charay project should yield positive results.
Located approximately 40 minutes by car northeast of Los Mochis, an ocean-side city in the State of Sinaloa, Mexico, the Charay project hosts a high-grade epithermal gold/silver vein system that has shown indications for the potential of a significant resource.
Currently, Westridge has a program underway to explore the property, and the company says that significant cost advantages are associated with the Charay project due to mineralization at surface, ease of access and excellent infrastructure that currently exists on or very nearby the property.
The property is comprised of five concessions totaling 11,000 hectares close to railroads, trans-continental power lines and large water sources. It is just 15 minutes away from two major four-lane highways, power and water are already on site and it is easily accessible by ro.
Westridge has also previously reported that the veins at Charay typically come in parallel groups, and have the potential for deeper-gold mineralization that could establish underground mining potential.
The drilling program on the Charay project began in the first quarter of 2012. Its most recent results, published in early March, revealed that it had found several new epithermal veins south of the main El Padre Vein at the Charay project.
This field work is being conducted at the same time as a diamond drill program at the project.
"Our mapping and trenching program has now demonstrated that the total, cumulative strike length of all vein features identified and inferred on the property is now reaching a total of 3,000 meters, more than ten times the strike length previously identified for the El Padre Vein," said president and CEO, Peter Schulhof, in March.
"Worth noting is that we have explored far less than one percent of our 105 square kilometer Charay Project and we expect surface work to continue to identify more vein targets on the property."
The company’s drilling program is designed to extend and expand the zone of gold and silver mineralization defined by previous drilling on the El Padre vein both to depth and along strike.
Previously a drilling program consisted of 20 holes to a depth of approximately 50 meters below the surface and approximately 250 meters along the strike of the El Padre vein.
Three twin holes were completed in July 2011 to confirm the earlier drilling.
Westridge was able to confirm the presence of bonanza grade gold and silver in the El Padre vein system (0.75m at 204.0 gpt Au and 445 gpt Ag) and potential for longer intervals of high grade (9.8m at 18.78 gpt Au).
One drill hole also indicated potential for multiple vein intersections, with a second interval of gold mineralization below the interpreted intersection of the El Padre vein.
Westridge said it will continue to pursue equity financing as the operation moves forward.
With only 15 million shares outstanding, Westridge has a market capitalization of C$9 million - leaving oodles of upside potential in the share price if the company continues to hit mineralization.
Westridge’s commitment to creating strong ties with the communities around Los Mochis and Charay has also been a deciding factor in the company’s great performance thus far.
The company has noted that its ground-level managers, including both head geologists, are all fluent Spanish speakers, and Westridge has hired regional geological and public-relations staff to help with the transition into the area.
So it would seem that Westridge has all the ingredients it needs for success, and less than two years after its arrival on the market, it has instilled confidence in investors and continues to move in the right direction.
All eyes are on Westridge.
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