logo-loader

Proactive news summary: Belvedere, Bullabulling, Falcon Oil, Galileo Resources, Kea ...

Published: 02:04 03 May 2014 AEST

magazines350_5363c4168ba36

Aussie-based gold miners were in focus on Friday.

The boss of Brisbane-based SolGold (LON:SOLG), Alan Martin, said he believes the Cascabel copper-gold project in northern Ecuador has the potential to be a deposit running to “billions of tonnes”.

His comments accompanied a progress report in which the group revealed it had carried out a second round of magnetic modelling and chosen the location for its seventh exploration hole.

Meanwhile, Bullabulling Gold (LON:BGL, ASX:BAB) repeated on Friday its rejection of the offer from gold miner Norton Gold Fields, recommending shareholders take no action.

A bidder’s statement from Aussie firm Norton, which is offering 7c cash per share, has been dispatched to Bullabulling shareholders.

Back in Europe, Finland-focused Belvedere Resources (CVE:BEL) posted a net loss of €10.4mln (2012: profit of €1.2mln) in 2013 - mainly due to an impairment charge against its Hitura nickel mine. The mine was placed on care and maintenance in June last year because of low nickel prices.

Switching to Africa, Premier African Minerals (LON:PREM) has agreed a bridging loan to fund its option over 30% of the Danakil potash project in Ethiopia, which could also see it sold on.

In March, Premier agreed an option to buy Canada-listed AgriMinco’s 30% interest in Danakil, which is held in a subsidiary called Madalore.

Continuing our tour of the continents, Rurelec (LON:RUR) has agreed to an extension to its loan with financier Birdsong ahead of an expected compensation payment from the Bolivian government.

Rurelec said this week it had reached an agreement with the Bolivian authorities that will see it receive payment early this month.

Red Rock Resources (LON:RRR) is still looking at the options for its Colombian gold assets, including a possible sale of the El Limon mine.

The company, which also has gold projects in Kenya and the Ivory Coast, said the focus is on keeping costs low, while maximising the output at El Limon.

Rare earths group Galileo Resources (LON:GLR) has sold its entire holding of 4 mln shares in Praetorian Resources Limited for £320,000.

Moving on to energy plays, it is case of two partners for the price of one for Falcon Oil & Gas (LON:FOG), which this morning unveiled a new farm-out deal for the company’s highly prospective Beetaloo acreage in Australia.

Chief executive Philip O’Quigley has brought on board local operator Origin, valued at US$16bn, and South African gas-to-liquids specialist Sasol to help unlock the huge potential of the licences estimated to contain 162 trillion cubic feet of gas and 21bn barrels of oil.

Rose Petroleum's (LON:ROSE) plans for newly acquired acreage in Utah's Paradox basin have been boosted by a positive update from the operator of a neighbouring project.

New York listed MDU Resources, as part of a broader update, yesterday told investors that that the Paradox Basin is the company's fastest growing oil producing area, with output up 121% in the first three months of 2014.

Oklahoma-focused Northcote Energy (LON:NCT) has now finished four well recompletions as part of this year's work programme in Osage County.

B-14 and B-15 have been placed back on pump. They are Bartlesville producers and have been fracked. Results of production are expected shortly.

Kea Petroleum (LON:KEA) has confirmed the recently agreed farm-out of a stake in the Puka oil field will go ahead, as it has now received government approval for the deal.

"We are delighted that the minister has approved the transfer of equity and we look forward to a prosperous partnership with MEO," said Ian Gowrie-Smith, Kea's chairman.

Oilex (LON:OEX, ASX:OEX) is to retain its full 45% direct interest in the Cambay production sharing contract (PSC) after the Indian government failed to give its seal of approval to a deal with Magna Energy.

As part of the sale and purchase agreement, Magna will now take 73.5mln shares in Oilex, giving it a 12.46% stake in the unconventional oil group.

Oilex had agreed to sell up to 15% of its interest in the PSC to Magna for up to US$6mln.

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...

10 hours, 13 minutes ago