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Proactive news summary including Gemfields, Mandalay Resources, Plethora Solutions and Galileo Resources

Last updated: 03:06 21 Dec 2013 AEDT, First published: 04:06 21 Dec 2013 AEDT

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Miners were once again under the spotlight.

Ian Harebottle, chief executive of Gemfields (LON:GEM), described the payment of a first dividend by Kagem Mining, its 75%-owned emerald producer in Zambia, as a “truly remarkable milestone”.

The US$8mln cash distribution is thought to be the first in the project’s 29-year history and represents the first time the Zambian government, which owns the other 25%, has received cash from the operation. 

At a media briefing in Lusaka on Friday, the country’s Minister of Finance, Alexander Chikwanda, said: 

"Although this is the first time that a dividend is being received from a gemstone mine, I am confident that this is just the beginning of the good things to come from gemstone mining in Zambia. 

Elsewhere, Mandalay Resources (TSE:MND), the gold, silver and antimony miner, has expanded its footprint in South America with the acquisition of Silver Standard’s Challacollo silver project in Chile.

The consideration is an initial US$16.4 mln, comprising US$7.5mln cash and 12 mln shares in Mandalay valued at US$8.9mln yesterday.

Shares in Toronto edged higher 1.35% to stand at C$0.75 each.

Mandalay's chief executive Brad Mills told investors: "The acquisition of the Challacollo silver project is a significant growth step for Mandalay and represents an excellent addition to our portfolio of assets in Australia and Chile. 

"With its well established resource, existing mine infrastructure, significant exploration potential and a two- to three-year timeline to production, Challacollo meets all of Mandalay's acquisition criteria."

Mariana Resources (LON:MARL) has announced more high grade mineral results from drilling at the Pucayacu prospect on the Condor de Oro copper, gold, molybdenum project in Peru.

Hole four intersected high grade gold, with results including 2 metres at 61.5 grams per tonne of gold from 188.5 metres below surface.

That hole was “certainly the most encouraging to date” in terms of grade and it could open up a new target area in the south-west of the licence, the company revealed.

The third hole intersected a broad zone of molybdenum similar to hole two. A 63m interval averaged 90 parts per million molybdenum.

The company said the wide spaced drilling confirms the Pucayacu mineralisation relates to a “very large porphyry complex”.

Colin Bird, chairman of the phosphate and rare earths specialist Galileo (LON:GLR), said the firm is “aggressively assessing” opportunities which have emerged as a result of the difficult market and financing conditions.

And he reckons the potential targets offered “unprecedented value opportunities in the smaller resources company sector”.

The comments came as the group presented its interim results statement for the six months to the end of September. Shares in the group edged up 2.47% on Friday.

Meanwhile, Red Rock Resources (LON:RRR) is on a stronger financial footing going into 2014, it said - unveiling a £500,000 bond issue.

The proceeds will be for working capital and for feasibility studies at the group's Kenya gold project.

The bond has a two year term and a coupon of 14% per year and is to be 50% amortised with payments starting in June 2014 and continuing on a semi-annual basis. Notes were placed with institutional, professional and high net worth investors.

Shares in Baobab Resources (LON:BAO) gained ground after it said it expects results from its 2013 drilling campaign will mean a revised resource estimate for its Tete project by the end of the first quarter.

The group, which is developing a huge pig iron project at Tete in Mozambique, drilled 5,940m aimed at converting the upper portions of its Tenge resource block to a JORC compliant Measured category.

Ben James, Baobab's managing director, said the company had moved several steps closer to completion of the Bankable Feasibility Study in 2014.

Away from mining andJamie Gibson has been appointed the new chief executive at Plethora Solutions (LON:PLE) starting January 1.

Gibson, 47, is tasked with driving the commercialisation of the firm's treatment for premature ejaculation PSD502 and leading initiatives on manufacturing strategy.

He has spent most of his professional career working with Plethora chairman Jim Mellon  at Regent Pacific Group specialising in corporate finance and direct equity investments. 

Caza Oil & Gas (LON:CAZA, TSE:CAZ) shares also shone higher Friday after it unveiled some more encouraging drilling results from the Bone Springs play in New Mexico, underlining the area’s and the company’s huge potential.

 

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

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