Sacre-Coeur Minerals seeks to reduce conversion price for gold denominated bonds

Sacre-Coeur Minerals (CVE:SCM) says it is seeking to restructure the agreement for delivery of ETF units for amortization, over the remaining term of its gold denominated bonds, moving the conversion price much closer to the current spot gold price. 

The bonds were issued by a company subsidiary under a trust deed dated January 15 of this year. Sacre-Coeur is proposing to reduce the effective conversion price for the outstanding principal balance of US$5.38 million of bonds, in exchange for a rescheduling of the delivery of a corresponding number of ZKB gold ETF units over the remaining 13 straight quarterly deliveries. 

The company is also looking for the consent of the bondholders to defer its interest payment due September 30 to October 15 and to eliminate its September obligation to redeem 6.25% of the bonds through the delivery of 265 ETF units. In exchange for this, the company has agreed to increase the number of units to be delivered on each of the remaining 13 payment dates, starting with December 31. 

In its statement Tuesday, Sacre-Coeur said: "The company believes that the proposal advanced will be advantageous to both the bondholders and the company, as in the first instance, the conversion price will be much closer to current spot gold price than as currently provided under the Trust Deed, and in the second instance, the restructuring will assist in mitigating the company's working capital requirements until it can close on its recently announced royalty based financing."

Indeed, Sacre-Coeur recently announced it received a definitive term sheet for a US$10 million interest-free secured loan, helping the company to prepare for the construction of its Million Mountain Zone 1 hard rock mine in Guyana. The loan with the undisclosed lender will convert to a royalty interest in production from Sacre-Coeur's Million Mountain block of properties. This will be tied to the company meeting certain conditions for full funding and advancement of Million Mountain Zone 1.  

If not yet converted to a royalty interest, the loan will be payable on March 31, 2015. A binding agreement is still subject to the completion of due diligence by the lender, with the expectation of closing the deal in November.

The company said it plans to apply a portion of the proceeds from such royalty financing to retire the remaining balance due on the bonds at an earlier date of January next year. 

Million Mountain Zone 1 hosts roughly 500,000 troy ounces of gold as currently tested, including NI 43-101 compliant measured resources of 12.12 million tonnes grading 1.0 g/t gold, and indicated resources of 2.18 million tonnes grading 0.9 g/t gold. Since this report, the company has drilled an additional 40 holes on the outside of the resource body, with the estimate to be updated as part of the feasibility study in process.

Largo Resources gets recognized for project financing skills by Latin Finance magazine

Largo Resources (CVE:LGO) has received yet another accolade for its Maracas vandium project, getting Latin Financemagazine's best mining finance award for the funding of the asset last year, with the magazine citing "the novel nature of the non-recourse financing structure", as well as difficult market conditions and unique aspects of the project and its chief commodity. 

The total R$556 million transaction, which was led and financed entirely by Brazilian banks, was completed in June of 2012. The Brazilian property is the first Greenfield mining project ever to be fully funded by Brazilian banks, according to Largo. 

“We are quite honored to continue to receive accolades from the project finance community," said president and CEO of Largo, Mark Brennan, in emailed comments. "Although the financing was completed in June 2012, I think this serves as a great reminder of the significance of this accomplishment to our team, financiers and our shareholders.”

“The environment has been, and continues to be, extremely tough for mining companies – particularly for the juniors. So, the fact that we received funding, as a junior miner, in a non-traditional commodity, really speaks to the exceptional quality of the Maracas asset and the team that is developing it.”

The Canadian strategic mineral company's primary focus is to continue to advance its flagship Maracas vanadium project with the company targeting a production start date in first quarter of next year. The project, which is fully funded, permitted and in construction, is slated to be the world's "premier producer of vanadium", according to the company, due to its high grade and low operating costs.

In a recent company update, Largo said the majority of system areas at the Maracás project remain on track for commissioning in the fourth quarter of the current calendar year. The 27,000-hectare property is located 813 kilometres northeast of Brasilia, the capital of Brazil, and 250 kilometres southwest of Salvador, the capital of Bahia State.

The news, released in a statement late Monday, follows another award earlier this year, when Largo was named the recipient of Project Finance magazine's Latin American Mining and Metals Deal of the Year, 2012. 

Madalena Energy gets several analyst nods on “best Ostracod” well so far, Argentina acreage

Madalena Energy (CVE:MVN), a junior Canadian oil and gas company, maintained an "outperform" recommendation at National Bank and a "buy" recommendation at Mackie Research in the wake of a positive three-day test rate from its latest Canadian Ostracod oil well and on its multi-billion barrel resource potential in Argentina.

National Bank analyst Amy Chang kept her target price on the stock at 80 Canadian cents, while Mackie's Bill Newman retained his target price at C$2.05.

A three-day production test from Madalena's most recent horizontal Ostracod oil well in the Paddle River area of west-central Alberta showed oil flow of 1,045 barrels of oil equivalent a day, or boe/d, the Calgary-based company said in a statement yesterday. Maldena anticipates this horizontal well will be brought on-stream next month.

Mackie's Newman described the production test as the "best Ostracod test so far." National Bank's Chang, for her part, said: "This test rate is above [the company's] two previous Ostracod oil wells that were drilled in the first quarter and tested at 719 boe/d and 547 (both 24 hours rates) boe/d respectively."

A third analyst note, from Jin Yan of Casmir Capital, pointed out that the well is expected to significantly boost Madalena's exit production and oil weighting going into next year.

On the Argentina update, the analysts cited a big disconnect between the company's current market capital, which stands at C$159 million, and the prospective value of just one of the company's blocks in the south American country.

A recent bustle of activity by oil majors in Argentina has recently drawn much attention to Madalena, which seeks joint ventures to fund the appraisal of its shale resources in the region. 

Last week, a joint venture was announced between Dow Chemical Co. (NYSE:DOW) and state-run YPF to invest up to $120 million in developing 16 shale gas wells in the Vaca Muerta formation. YPF also signed a separate deal with Germany's Wintershall last week.

The two JVs value prospective acreage at $21,600 per acre and $12,500 per acre respectively, according to Casimir Capital. "On average transaction metrics of $19,800 per acre including the Chevron deal in July, Madalena’s 35 percent interest in the Coiron Amargo block alone should be worth $694 million," Casimir's Yan wrote.

National Bank’s Chang agrees: “In terms of valuation, we believe Madalena’s acreage in Argentina is not being fully reflected in the current share price, which would represent significant share price upside should the company secure a joint venture deal.”

Madalena is currently in negotiations to secure a potential joint venture partner on any of its three Argentina blocks by year-end or early next year, wrote Chang.  

Madalena holds 135,000 net acres on the Coiron Amargo, Curamhuele and Cortadera blocks within the Neuquen basin.

Mandalay Resources extends mineralisation at its Cerro Bayo silver-gold mine

Mandalay Resources (TSE:MND) has unveiled drilling results from its Cerro Bayo silver-gold mine in Chile, which has shown additional mineralisation.

Some of the extensions found will contribute to the firm's year end resource update and replace the resource that will be depleted in 2013, the company said.

The work, which cost $3million and consisted of 99 holes, was carried out between January and August this year and, also tested potential new targets.

Chief executive Brad Mills told investors: "Infill and extention drilling at Cerro Bayo continues to delineate additional mineralisation along the veins we are currently mining or plan to mine in the near future. 

"We expect this work to at least replace the company's resource depletion for 2013 with additions in Coyita, Marcela Sur, Delia NW and Trinidad (adjacent to Delia NW) veins. 

"In addition, we have begun drilling wide spaced long horizontal holes from underground platforms to test the strike lengths (500 metres each) of Fabiola, Yasna, and Coyita veins under Laguna Verde. 

"Should these holes prove successful, we anticipate infill drilling and/or underground development to extend mineral resources on these veins during 2014."

On new targets, Mills said one had been confirmed, namely  the Carola vein, which has potentially economic grades and widths. 

At another two targets, initial drilling failed to generate intersections of both mineable grade and width, but Mandalaly identified possible vectors toward potentially more prospective parts of the systems, he said.

Toronto-listed Mandalay has the producing Costerfield gold-antimony mine in Australia and producing and exploration projects in Chile.

Klondex Mines to raise $15 mln via special warrant financing

Klondex Mines (TSE:KDX) will raise $15 million through a special warrant financing, the Nevada-focused gold development company announced Monday, putting the company on a closer track to production. 

The news comes just hours after the company provided investors with an update on its underground development and toll milling programs --from which it yielded almost $2 million so far -- as well as the results of the metallurgical test work from its Fire Creek project in Nevada as the company prepares for initial production.

The private placement of special warrants has been agreed upon with GMP Securities, said Klondex, with the offering to be made on a "best efforts basis", by a syndicate of agents led by GMP. 

Every special warrant will entitle the holder to receive one common share of the company, for no additional consideration. 

The new funds are to be used for the development of Fire Creek, as well as to repay debt and for general working capital. The financing is expected to close in mid-October, subject to regulatory approvals. 

As a first step to unlocking value, Klondex has been undertaking an underground development program at the Joyce and Vonnie structures on the Fire Creek property as a way to monetize its high grades, with Klondex having toll milling agreements in place with both Newmont Mining (NYSE:NEM) and Veris Gold (TSE:VG) to treat the material. 

In the earlier release on Monday, Klondex said that toll milling of the property's first lot is complete, with final receivables totaling $1.97 million, sold at an average gold spot price of US$1,332 an ounce. Milling of the second lot, which is comprised of 1,812 tonnes, started earlier this month.

"Continuing to toll mill and treat our second lot of material from the Fire Creek project is an important step moving forward," said CEO Paul Huet in the first statement released this morning. "Through toll milling, we are able to better understand the metallurgical characteristics of the Fire Creek material, and the proceeds can be applied towards future exploration and development."

The company also announced metallurgy results, with gold and silver recoveries coming in at 94.8 per cent and 82.4 per cent, respectively. Additional test-work is scheduled to be conducted throughout 2013. 

The latest resource estimate from the site consists of 295,900 ounces of gold at a grade of 44.7 g/t in the measured and indicated category, and 421,400 ounces of gold at a grade of 19.2 g/t, applying a 7 g/t gold cut off.

Spanish Mountain Gold closes financings for exploration at BC property

Spanish Mountain Gold (CVE:SPA) has closed the brokered private placement financing it announced last month, raising a total of $1.25 million for exploration on its property in British Columbia. The company also said it put to bed a non-brokered placement, raising an additional $200,000. 

Under the brokered placement, 8.72 million flow-through units were issued at a price of 12 cents apiece, as well as 1.97 million non-flow through units at a price of 10 cents each. 

Every flow through unit is made up of one "flow-through" common share of Spanish Mountain -- designated as such for tax purposes -- and one half of one share purchase warrant. Each non flow-through unit consists of one common share and one warrant. 

A whole warrant allows the holder to acquire an additional common share of the company for 15 cents, for a period of two years. 

The $200,000, non-brokered private placement consisted of 2.0 million units at 10 cents apiece. 

The new funds from the flow through proceeds will be used for exploration on its Spanish Mountain project in B.C., while non flow through proceeds will be used for "general corporate purposes", the company said in its release.

The Vancouver-based exploration-stage company is developing its flagship Spanish Mountain gold project in southern central British  Columbia. It has no debt and owns 100 per cent of all four gold properties located in British Columbia.  Last month, it announced that it embarked on a 10,000 metre drill program aimed at potentially improving grades within a test block area of the main pit at Spanish Mountain. 

“Considering the current market conditions management believes this program provides the best opportunity to potentially add significant value at minimal cost to the shareholders," Colin Clancy, head of Corporate Communications at the company, toldProactiveinvestors in an interview at the time. 

Klondex Mines says further milling underway at Fire Creek, while metallurgical results impress

Klondex Mines (TSE:KDX) (OTCQX:KLNDF) provided investors Monday with an update on its underground development and toll milling programs --from which it yielded almost $2 million so far -- as well as the results of the metallurgical test work from its Fire Creek project in Nevada as the company prepares for initial production.

As a first step to unlocking value, it has been undertaking an underground development program at the Joyce and Vonnie structures on the property as a way to monetize its high grades, with Klondex having toll milling agreements in place with both Newmont Mining (NYSE:NEM) and Veris Gold (TSE:VG) to treat the material. 

In the release Monday, Klondex said that toll milling of the property's first lot is complete, with final receivables totaling $1.97 million, sold at an average gold spot price of US$1,332 an ounce. Processing of the first lot comprised 1,055 dry tonnes, at an average head grade of 50.7 grams per tonne (g/t). Milling of the second lot, which is comprised of 1,812 tonnes, started earlier this month. 

"Continuing to toll mill and treat our second lot of material from the Fire Creek project is an important step moving forward," said CEO Paul Huet in the statement. "We are very fortunate to have multiple options (Newmont and Veris agreements) in place to treat the Fire Creek material. Through toll milling, we are able to better understand the metallurgical characteristics of the Fire Creek material, and the proceeds can be applied towards future exploration and development."

The Nevada gold company is developing the Fire Creek project with the aim of starting initial production later this year though bulk sampling. Over the past four months, the underground development program at the Joyce and Vonnie structures has yielded 4,375 tonnes of mineralized material, averaging 63.7 g/t gold. In August, at Joyce, grades from 192 samples came in as high as 486 g/t gold, over vein widths between 0.1 to 1.3 metres. 

The company said Monday that the average grade from the development program is 43 per cent higher than the average grade from the latest mineral resource estimate, suggesting further upside. 

Meanwhile, metallurgical test work was also conducted at an independent lab in Nevada on two samples taken from underground development to determine whether the Fire Creek material can be treated through a gravity/cyanidation process. The results, said the company, indicate that both samples were readily amenable to this type of treatment, with gold and silver recoveries coming in at 94.8 per cent and 82.4 per cent, respectively. Cyanide consumption was low, averaging 0.2 kg/mt of material, Klondex added. 

"We are very encouraged by the high gold recoveries from our Fire Creek material," said general manager of the project, Mike Doolin, in the statement announcing the general update. "Additional test-work is scheduled to be conducted throughout 2013 in order to continue understanding the metallurgical characteristics of the Fire Creek deposit."

The latest resource estimate from the site consists of 295,900 ounces of gold at a grade of 44.7 g/t in the measured and indicated category, and 421,400 ounces of gold at a grade of 19.2 g/t, applying a 7 g/t gold cut off. 

Klondex Mines last week raised $595,000 via a warrant exercise for the continued development of its flagship project, as it announced that its largest shareholder, The K2 Principal Fund L.P., exercised warrants to purchase 500,000 common shares at the price of $1.19 apiece. The news came a matter of days after the company released to market its new mineral resource estimate for Fire Creek, with the report emphasizing the high grades at the property and propelling the company closer to production. 

Century Iron Mines appoints new CFO

Century Iron Mines (TSE:FER) has appointed Rebecca Ng as the company's new CFO, with former chief financial officer Ivan Wong now to take the role of senior vice president, corporate finance and project development.

Ng, who has more than 12 years of experience in finance, governance, and reporting in multi-national mining companies, most recently was the financial controller at Xstrata Nickel, from 2006 to this year, before the merger with Glencore International in May. Prior to this, she was group controller at Noranda Inc, and Falconbridge Limited before their acquisition by Xstrata in 2006. 

Meanwhile, Wong, who has worked for KPMG and Ernst & Young, has held positions as financial controller and company secretary for a Hong Kong-listed company, and is also a supervisor of Maanshan Iron & Steel Company. 

The appointments were announced at the company's annual general meeting held last week, where president and CEO Sandy Chim, along with  Ben Koon (David) Wong, Maurice Strong, Howard Bernier, Paul Murphy, Hua Bai, Yi Jun Kuang, Wei Ke Peng and Jionghui Wang were all elected to Century Iron's board of directors. 

Also passed at the meeting, Chim was elected chairman of the board, while Murphy was chosen as lead director. 

Century Iron, which is aiming to become a major iron ore producer, is one of the largest iron ore companies in Canada, in terms of number of claims by area. It has 6,493 claims and titles, covering some 198,779 hectares in the provinces of Québec and Newfoundland & Labrador. It has interests in four iron ore projects, none of which yet generate revenue.    

Earlier this month, the company said that WISCO International has completed its second $20 million equity investment in the Attikamagen iron property, bringing its stake in the joint venture to 40 per cent. 

The Attikamagen property near Schefferville, Quebec is majority held by the joint venture company called Labec Century, which is now owned 40 per cent by WISCO, One of China’s leading steelmakers, and 60 per cent by Century Iron. WISCO has now invested a total of $40 million into the project, which features the Joyce Lake direct shipping ore (DSO) deposit. 

The company in May revealed preliminary economics on the most advanced Joyce Lake deposit at Attikamagen, showing a pre-tax net present value of $94.5 million at an 8 percent discount rate. The internal rate of return was pegged at 35 percent pre-tax, with initial project capex estimated at $96.6 million including contingency, and a projected payback period of just less than three years from production start-up. 

Madalena Energy reports initial results from "boomer" Ostracod well in west-central Alberta

Madalena Energy (CVE:MVN) has unveiled the results of a three-day production test from its most recent horizontal Ostracod oil well in the Paddle River area of west-central Alberta, showing oil flow of 1,045 barrels of oil equivalent per day (boe/d) that is expected to be brought on stream next month. 

The well, in which the Canadian junior oil and gas company has a 100 per cent working interest, reached a total depth of 3,250 metres. Completion operations included a 16-stage multi-frac program, according to Madalena's statement released Monday, where a total of 4,800 barrels of water-based load fluid were pumped. 

The well was thereafter production tested for three days, during which time it flowed continuously, and recovered a total of 3,120 barrels of load fluid, or 64 per cent of the pumped volume. 

The average rate from the well was 877 barrels per day of 30 degrees API oil, and 1.007 million standard cubic feet per day of natural gas, for a total of 1,045 boe/d, 84 per cent of which was oil, Madalena said. 

After accounting for shrinkage and natural gas liquids recovery at the local production facility, the test rate over the final 24 hours would be about 957 boe/d, according to the company release. 

The horizontal well, which is currently shut-in, is currently being equipped for production, with operations also underway to tie in the solution gas to existing Madalena facilities. 

Madalena has a large land base of over 150 net sections in the Greater Paddle River area of which the company controls approximately 60 net sections of land across the Ostracod oil trend, with a sizable inventory of drill-ready horizontal locations for Ostracod development. Ongoing technical work and operational enhancements continue to improve its understanding of the Ostracod oil play potential, the company said. 

In emailed comments, president and CEO of Madalena, Kevin Shaw, told Proactive Investors that the results are a significant well event for the company as it continues to "drive forward on its world class shale and unconventional assets internationally, while building a solid production base domestically across its 150+ net section land position."

Indeed, aside from its existing production in Canada, the Calgary, Alberta-based junior is working hard at developing its prized Vaca Muerta play in Argentina, where it holds 135,000 net acres on the Coiron Amargo, Curamhuele and Cortadera blocks within the Neuquen basin.

It has been suggested that there is a big disconnect between Madalena's market cap and the implied valuation of its properties in Argentina and Canada, along with the fact that the company has ample cash in the bank and zero debt. 

A recent bustle of activity by oil majors in Argentina has also drawn much attention to Madalena, which seeks partners to fund the appraisal of its shale resources in the region. A deal announced last week between Dow Chemical Co. (NYSE:DOW) and state-run YPF to invest up to $120 million in developing 16 shale gas wells in the Vaca Muerta formation would be "a major catalyst" for Madalena, according to Mackie Research.

In July, U.S. oil company Chevron Corp. (NYSE:CVX) also signed a deal with YPF to invest $1.24 billion in the Vaca Muerta formation.

Black Iron enlists shareholder rights plan to protect against opportunistic buyers

Black Iron (TSE:BKI) has adopted a shareholder rights plan to protect the rights of its investors in the case of any takeover bid, citing a "large discrepancy" between its traded market value and the potential of its iron ore project in the Ukraine. 

The plan ensures the company's board of directors has adequate time to evaluate such a takeover bid, and if appropriate, seek alternatives to maximize value for shareholders. 

"The Rights Plan has not been adopted in response to any specific take-over bid or other proposal to acquire control ofBlack Iron and Black Iron is not aware of any such pending or contemplated proposals," said Black Iron's chairman, Bruce Humphrey, in a statement late Thursday. 

"In light of our recent announcement with regards to securing a strong, respected, local development partner, and solidifying infrastructure access for the project, the Board decided we could no longer ignore the large discrepancy that currently exists between the traded market value for the company and the project potential as outlined in our economic studies, including the Bankable Feasibility Study," he continued. 

Indeed, the company recently announced an agreement securing access to a deep water port facility in Ukraine for the handling of 9.5 million metric tonnes of iron ore per year from its Shymanivske project, taking another crucial step in de-risking the asset. The Protocol of Intent Agreement was signed between a subsidiary of Black Iron and the Sea Terminal at Port Yuzhny, for guaranteed access to the port's rail car dumper, stockyard, and port loading facilities. 

The preliminary deal took effect immediately, Black Iron said last week, and remains in place until a full commercial contract is signed, expected sometime in the middle of 2015 - closer to the sart of production at Shymanivske given that the contract would be on a "take or pay" basis.

The company announced a completed NI 43-101 compliant bankable feasibility study on the Shymanivske project late in 2012, which outlined an operation producing 9.2 million tonnes per year of high-grade 68 per cent iron ore concentrate, projecting a 45.9 per cent internal rate of return, $3.5 billion net present value at an 8 per cent discount rate and 2.2 year payback for a capital investment of $1.1 billion.

Black Iron says it continues to progress on its timeline to production,  reaping the benefits of its recently-announced definitive development agreement with Metinvest B.V. as it works to complete similar protocal of intent agreements in support of other core infrastructure needs, such as rail, power, water, gas and land.

"Today's adoption of the Rights Plan provides shareholders with some added protection from an opportunistic acquirer and ensures that a full value maximization review can be completed before any take-over is completed," said Humphrey.

Cancana Resources moves toward workable solution for Rio Madeira financing

Cancana Resources Corp. (CVE:CNY) has extended its agreement to purchase Rio Madeira, the company which holds the adjacent property to its flagship Valdirâo manganese site in Brazil, to allow time to consider various financing proposals. 

The closing date of the share purchase agreement with Rio Madeira has been extended to October 4th, with CEO of Cancana, Andrew Male, saying that he is encouraged by Rio Madeira's co-operation and willingness to be involved in the process of achieving a "workable solution" for the deal to be completed. 

Male says he has received several different offers for the financing of the agreement, which would see Cancana acquire 100 per cent of Rio Madeira, and all of its associated assets, mineral claims and operations. The offers have ranged from big to small, with the two companies now working together to consider some alternative proposals. 

"We had an open discussion with Rio Madeira, and they agreed to be a part of the solution. They're interest in selling, and we're interested in buying, which is a good opportunity for us to continue moving forward."

The chief executive says that over the next week, the two parties will consider alternate proposals using some of the financial offers already on the table, with Male encouraged that the discussions will yield a "positive result". 

In a statement released Friday, Cancana said that Rio Madeira has "expressed their willingness to consider all aspects and have provisionally agreed to modifications of terms as needed to facilitate financing."

Rio Madeira is a producing manganese mine operation, producing lump ore of varying sizes and is located adjacent to, and mainly contiguous with, Cancana's manganese claims. The target company holds title to 15 mineral claims that total around 62,000 hectares in size, with the deal, which was announced in February, also including three full mining licenses known as a "Lavra".  

In the interim, the Calgary, Alberta-based company is marketing a financing of a minimum $1.5 million for the development of its own greenfield project, Valdirao, with Male expecting to close a first phase of the offering in the coming weeks. 

After the funds are raised from both institutional investors and family offices, the company is looking to start production imminently at the site, and is projecting to produce 20,000 tonnes of high grade manganese within the next 12 months. 

"Once we commence sales, we will be self-funding at Valdirao," says Male, adding that he expects the Brazilian site will generate $5 million of gross revenue and $1.6 million in net profit, with the product predominately to be sold to the Brazilian marketplace. 

One massive advantage that accrues to the project is its proximity to infrastructure -- Valdirao is within 20 kilometres of the Brazilian National Highway, which itself is accessible by municipally-maintained roads, for transportation of ore out of region. Last month, the company announced that it had been issued a trial mining license on its manganese claim, providing approval for mining operations, extraction, processing and sales of manganese ore. 

RESAAS chosen to add social media power to New York City Real Estate Expo

RESAAS Services (CNSX:RSS) (OTCMKTS:RSASF) has been selected to provide its social-media power to yet another high-profile event with the announcement late Thursday that its platform has been chosen to create an exclusive group for the upcoming New York City Real Estate Expo.

The Vancouver-based social network for real estate professionals was seen as a good social media counterpart for the expo, which is expected to attract more than 3,500 professionals representing all facets of the region’s commercial and residential real estate industry. 

“The name of the game in real estate is networking, so this was a natural fit for the direction of our show’s online presence,” said the Expo’s show director, Anthony Kazazis. 

The NYC Real Estate Expo, the fifth iteration of which is coming up in early October, is New York’s only full-scale real estate exposition and conference geared exclusively towards real estate and real estate-related professionals. 

All NYC Real Estate Expo attendees and speakers who useRESAAS will receive profile pages on the platform and will be networked together privately, to easily share activity and connect with other event attendees from all over the United States and surrounding countries. 

RESAAS’ platform, designed to allow real-time updating of property listings as well as the ability to sync with social media sites such as Facebook (NASDAQ:FB) and Twitter, has taken off in North America, where RESAAS has added a broker several times a month across Canada and the U.S. since opening for business at the start of the year.

The real estate social network designed specifically for the real estate professional to connect and communicate in real-time allows for seamless real-time communication -- including for photos to be shared, news to be posted, and realtors to connect with other with real estate professionals on the RESAAS platform. The app automatically generates real estate workflow into social content known as ‘real estate broadcasts’ that is then instantly pushed out to the RESAAS platform and other social networks.

The Expo has a speaker lineup that includes such names as Faith Hope Consolo, the chairman of Douglas Elliman Real Estate; John Lam, the chairman and CEO of The Lam Group; and Michael Ashner, the chairman and CEO of Winthrop Realty Trust. 

Exhibitors lined up for the event represent a cross section of the industry including commercial and residential real estate brokers, developers, mortgage companies, social media experts, and marketing firms. 

“We look forward to empowering all of the New York City Real Estate Expo attendees by creating an exclusive group on the RESAASplatform,” said the company’s vice-president of communications, Danielle Sissons, in a release. “The NYC Real Estate Expo is clearly focused on technology in real estate, specifically with their technology village feature, and our team is excited to further enhance their efforts.” 

This is not the first time RESAAS has been singled out to lend its social networking expertise to a high-prestige annual event – less than two weeks ago the company announced it had been chosen by the National Association of Hispanic Real Estate Professionals to create an exclusive group on the RESAAS platform for its National Convention, the annual meeting that marks the largest gathering of Hispanic practitioners in the real estate and housing industry. The same month the company announced it had been chosen by RE/MAX of Indiana to power their RE/MAX Day of Distinction, an educational and networking event which is expecting more than 500 agents and brokers from all corners of the state.

Otis Gold to raise up to $300,000 for Idaho project

Otis Gold Corp. (CVE:OOO)(OTCQX:OGLDF) says it will raise up to $300,000 through a non-brokered private placement financing, with the new funds to be used to advance the company's Kilgore gold project in Idaho and for general working capital purposes.

The company will issue up to 6.0 million units at a price of 5 cents apiece, with unit to be made up of one common share and one share purchase warrant. Every warrant can be used to buy an additional share, at a price of 10 cents each for a period of 18 months from closing. 

 

The financing is part of the Vancouver-based company's plan to withstand challenges sweeping across the junior mining landscape. "This funding will provide the necessary capital to continue permitting activities at Kilgore, and the small size will minimize dilution to existing shareholders," said CEO CraigLindsay in an interview with Proactive Investors today. “We have worked very hard to minimize our operating costs over the first 9 months of 2013, and will continue to maintain our low overheads.

"As well, unlike many juniors, we own a 100% interest in our core properties, and thus have no earn-in requirements on our mineral projects apart from annual claim maintenance costs.  As a result, we have not had to rationalize our property ownership positions by dropping projects.”

Lindsay's confidence in the company is highlighted by the fact that the chief executive has been adding to his stake in Otis aggressively since the start of the year. In fact, since May of this year, Lindsay has purchased 1.555 million shares in the open market.  His direct holdings amount to 4.2 per cent of the company, and he states “I will be continuing to add to my position in the company.”

In May, Otis filed its intention to build approximately 1,550 metres of roads into the North Target Area, which is next to the existing Kilgore Gold deposit, and in an area that recently returned "strong drilling results" such as 121.9 metres of 1.04 grams per tonne (g/t) gold.  The Kilgore deposit in Idaho contains an NI 43-101 indicated resource of 520,000 gold ounces in 27.4 million tonnes at a grade of 0.59 grams per tonne (g/t) and an inferred resource of 300,000 ounces in 20.2 million tonnes at a grade of 0.46 g/t. 

 

Otis Gold also earlier this year announced a partnership that allows Lateral Gold to earn up to a 100 per cent interest in the Oakley Gold project in Idaho, as a means to raise cash for Kilgore. 

 

The proposed financing announced Friday still needs the approval of the TSX Venture Exchange.

Avrupa Minerals puts to bed $600,000 financing

Avrupa Minerals (CVE:AVU) has closed a $600,000 financing, with funds to be used to advance the company's project generation business model in Europe.

The company, which has properties in Portugal, Kosovo and Germany that it is working to joint venture, holds a total of 16 exploration licenses in these European countries, including 10 in Portugal. It operates three joint ventures in Portugal, including the Covas partnership with Blackheath Resources (CVE:BHR), and the Alvalade joint venture with Antofagasta Minerals in the southern part of the country.    

Earlier this year, it signed a third deal to option out its Arga tungsten-gold project to tungsten explorer Blackheath, giving Blackheath the option to acquire up to an 85 per cent interest in the property over several years.              

The financing that closed late Thursday, which was first reported in August and increased by $0.1 million earlier this month, involved both strategic investors, as well as management. 

According to the company's statement, it issued six million units at 10 cents apiece, with each unit made up of one common share and one share purchase warrant. Each warrant allows the holder to buy one additional share for a 36-month period, at a price of 15 cents each. 

Earlier on Thursday, Avrupa also announced that it had started phase 2 diamond drilling at its Covas tungsten joint venture in northwest Portugal, which is operated by the Canadian company and fully funded by partner Blackheath. The new drilling program, which will include up to 2,000 metres of drilling at up to 19 separate locations, will aim to expand known deposits and mineralization around the Covas property. 

Ascot Resources jumps on high grade gold results in B.C.

Ascot Resources (CVE:AOT) rose to its highest share price in seven months as the company said it drilled 23.72 metres of 5.09 grams per tonne (g/t) gold at the Martha Ellen area at its properties near the town of Stewart in northwestern British Columbia. 

The hole is part of a campaign of 20,000 metres of drilling at the sites, with 13,000 metres completed thus far. Drilling is continuing to expand and confirm the property potential for bulk tonnage and higher grade underground gold/silver targets, according to the Vancouver, British Columbia-based company's statement released Thursday. 

Drilling will continue at the Premier and Dilworth properties, on which Martha Ellen is located, with three rigs until the end of the season. Results will continue to be released as they are received. 

"Drilling to date at Martha Ellen is demonstrating good continuity, particularly to the north in areas never historically drill tested. Results from this release indicate grades as good as or better than the historic tested area," said Ascot in its release. 

As the season progresses, the company added that the drills will be relocated into the Big Missouri area with lower elevations and better road access, which will allow "cost effective" drilling into the fall season.

Shares of Ascot climbed over 15.5 per cent to $1.04, the highest level since mid-February of this year. Its stock has declined more than 28 per cent year-to-date. 

The mineral exploration and development company also owns the Mt Margaret property in Washington, U.S., and the Swamp Point sand and gravel deposit, on the Portland Canal in northwestern British Columbia. 

Gold Resource Corp dishes out September dividend

Gold Resource Corp (NYSE MKT:GORO) declared Thursday its monthly dividend of three cents per share for September, with the gold producer having now returned more than $90 million to shareholders in such payments since beginning production in July of 2010. 

The latest dividend is payable on October 23rd, to shareholders of record as of October 11. 

The U.S.-based gold producer, with operations in the southern state of Oaxaca, Mexico, also offers shareholders the option to convert their cash dividends into physical gold and silver. 

The company's stock was up 0.3 per cent at $6.73 on Thursday. Earlier this month, Gold Resource Corp said that its CEO, William Reid, will retire from the company at the end of the month, with current president Jason Reid to take the helm, effective October 1. 

In August, Gold Resource reported a 42% rise in production in the second quarter. It recorded a net loss of $1.37 million, or three cents per share, compared to a net profit of $4.13 million, or seven cents per share a year ago. The miner said mill expansion was the main reason for the loss and expects costs to drop once the mill runs at full capacity.

The gold miner, with cash and equivalents of $30.4 million at quarter end, realized $12.5 million in cash flow from mine site operations and distributed dividends of $6.4 million or 12 cents per share for the three month period, after cutting its monthly dividend in half earlier this year in response to the precipitous precious metals price drop. 

The company said it continues to target increased production levels in anticipation of increased milling capacity later this year, expecting a decrease in production costs with higher mill throughput.

Asanko Gold offers strong gold project, low financing risk: Jennings Capital

Asanko Gold (TSE:AKG) should be a focus for investors seeking a strong gold project with low financing risk, says Jennings Capital analyst Dan Hrushewsky in morning comments Thursday, after meeting with company management at the Denver Gold Forumin Colorado. 

Hrushewsky took special note of the company's large cash position, in addition to sizable project with "good grades and continuity", as well as "intriguing exploration potential and good jurisdiction". 

The comments by the analyst were prompted after an update on Asanko's Esaase project in Ghana was given to him by CEO Peter Breese and CFO Greg McCunn at the forum. 

The environmental impact statement was submitted by the company just this month, as Asanko worked with the Ghanian government to ensure that the version submitted would have no potentially contentious issues, as significant changes would require a revision to the definitive feasibility study, which is underway currently, and is expected for release in the fourth quarter. The environmental permit is also expected in the fourth quarter. 

In the definitive study expected this November, cost figures by and large are expected to come close to those included in the pre-feasibility study. The Jennings analyst estimates that capex may come in slightly lower than the original $290 million figure, while operating costs should be in the same $730 per ounce range. 

"There is currently some uncertainty on the route the company will take regarding power, as the Ghanian government has come back with a more competitive hydro-electric power cost proposition after learning of AKG’s plan to self-generate power," wrote Hrushewsky in the morning note. 

With cash on hand of US$190 million, the balance of funding for the project is expected to be around $150 million, which does not include a potential $37 million funding from the exercise of 9.4 million in warrants expiring in one year, at a strike of $4.00 a share. 

From his conversations with management, the analyst said that Asanko is pursuing two tracks regarding funding, with the first being traditional bank financing, while the second avenue consists of a single "non-traditional" lender. Benefits of using this latter funding source, says the analyst, are that no hedging, no cash sweep and M&A restriction provisions would be required, while drawbacks consist of a 150 basis point higher interest rate, and some warrants and other requirements on a $20 million overrun facility. Both of these facilities are expected to be finalized by the end of the year, with the company expected to benefit from the increased favourable loans made by South African banks to mining projects. 

Asanko is also pursuing the opportunity to act as a consolidator in Africa with its M&A strategy, and as such has been in discussions with various parties over the last year or so. 

"AKG noted that in the last three months it has noticed an improvement in the willingness of target company management to engage in M&A discussions," the analyst wrote. "AKG confirmed it would not imperil its cash position in this regard, but would only consider all share transactions."

Hrushewsky still sees the key to Asanko as its focus on improving project parameters at Esaase, which should result in better economics, as well as a resource to reserve conversion ratio than that used in the prefeasibility study. The company is planning to achieve this by using the lower cost figures that were not included in the preliminary study due to time constraints, as well as increasing the processing rate in the early years, and decreasing the mass pull of the flotation circuit through optimization. 

According to the analyst report, investors can expect the release of the definitive feasibility study in the fourth quarter, as well as upcoming project financing and steady state production sometime in 2015 to act as future catalysts for the mining company's stock price, which currently sits at $2.41 in Toronto. 

Jenning's Hrushewsky has a buy recommendation on the Vancouver, British-Columbia-based development company, with a 12-month price target of $4.75.