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Additional Information
Market: ASX
Sector: General Mining
Epic: .BTR
News: Latest news
Web Site: Blackthorn Resources
Other Articles: 01-03-201018-02-201027-01-2010

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Thursday March 18, 08:01SmartFocus, Amphion Innovations and National Milk Records confirmed for March 18 Forum

The presentations will start at 6:00pm and finish at approx 7:30pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

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Thursday March 18, 01:14Cisco remains at the forefront of internet infrastructure

The stock has recently managed to breakout above the long term resistance found at the $25 level which should now provide support for any pullback before the share price drives higher

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Monday March 15, 08:01China's growth boosting commodity prices

The latest economic figures from China have put pressure on the dollar and boosted a number of high-yielding currencies, including the Australian dollar and the South African rand.

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Blackthorn Resources

Blackthorn Resources

Blackthorn Resources (ASX: BTR) is an Australian-based resources company with a diverse portfolio of African assets, including zinc, gold, copper, Nickel and Platinum Group Metals. 

Blackthorn Resources endeavours to create long-term wealth for its shareholders and stakeholders through the successful development of its four key assets which include: the Perkoa Zinc project in Burkina Faso; the Burkina Faso Gold exploration project; the Mumbwa iron oxide copper-gold Joint Venture with BHP Billiton and the Mokopane nickel/platinum Project.

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Tuesday, January 12, 2010

Blackthorn Resources pens agreement with Glencore International for Perkoa Zinc Project JV

by Proactive Investors company news image

Australian-based resources company Blackthorn Resources (ASX: BTR) has added another string to its mining bow after entering into a Heads Of Agreement with Glencore International in relation to the formation of a Joint Venture to commercialise the Perkoa Zinc Mine in Burkina Faso, West Africa.

Under the terms of the agreement, Glencore will provide or procure about US$72 million worth of funding in the form of project equity and loans to the JV to complete development of the Perkoa Project.

Glencore will hold a 50.1% interest in the project, Blackthorn will hold a 39.9% interest, and the State of Burkina Faso will continue to hold a 10.0% free carried interest upon the project being successfully commissioned.

Managing Director Scott Lowe said the Company believed the best way to finance the completion of the Perkoa development was a joint venture at the project level.

"Our analysis shows that the Glencore proposal provides value per share to shareholders that is superior to other alternative funding options," Mr Lowe said.

"Glencore is a strong and well-funded strategic partner, with widespread industry knowledge and expertise, as well as the ability to assist with reducing capital and operating costs.

"A major benefit of this proposal is that it does not dilute the interests of Blackthorn Resources’ shareholders in the Company’s other attractive development assets, including the Mumbwa copper project in Zambia which is in a joint venture with BHP Billiton."

The HoA proposes that Glencore be appointed manager of the JV, responsible for day-today operations and for sourcing the required debt funding facilities, including a working capital facility.

Glencore International is one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers, with customers  involved in industries such as automotive, power generation, steel production and food processing within a global network of operations as a source of Metals and Minerals, Crude Oil and Oil Products, Coal and Agricultural Products.

The companies intend to negotiate off-take sales agreements for all of Perkoa’s available base metal concentrate as a part of the JV agreement.

Glencore will purchase all of the Perkoa Project’s available base metal concentrates not otherwise committed to other customers. The specific terms and conditions of sales to Glencore will be negotiated and defined under a separate off-take agreement.

In formulating the HoA, Glencore has already undertaken certain due diligence in relation to the Perkoa Project, however, commencement of the JV will be conditional upon a number of issues including the following key matters such as Glencore finalising remaining due diligence investigations, execution of definitive and legally binding transaction documents and shareholder approval.

The proposed JV is subject to execution of binding transaction documents.

Subject to execution of binding transaction documents, Blackthorn Resources expects by the end of March 2010 to call an Extraordinary General Meeting of shareholders to consider the proposal and vote on the recommendation.

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