DGR Global (ASX: DGR), previously known as D'Aguilar Gold, is a resource project generator and investment company focused on creating exploration and development companies in a wide array of minerals.
D’Aguilar offers exposure to resource-project generation and discovery across a range of commodities, including copper, gold, nickel, molybdenum, iron ore and uranium. D’Aguilar focuses especially on delivering value through the discovery of orebodies by the application of innovative exploration and reassessment strategies to existing pre-development projects and to new greenfields areas.
D’Aguilar Gold adds value via the takeover of subsidiary, Ridge Exploration
An 86% owned iron and titanium focused subsidiary of Queensland-based mining investment house, D’Aguilar Gold (ASX: DGR), Ridge Exploration Pty Ltd has been notified that the Toronto Stock Exchange will grant conditional approval for Coltstar Ventures Inc (TSX-V: CTR) to proceed with its scrip‐based acquisition of Ridge.
The deal is expected to be finalised and settled by 31 OCtober 2010.
Since the deal was announced, the Coltstar share price has increased from CDN$0.50 to a current level of CDN$0.90.
Shareholders of D’Aguilar Gold will benefit as the carrying value of D’Aguilar’s expected stake in Coltstar has increased from AUD$4.75 million at the time of the original announcement, to the current value of AUD$8.5 million.
Interesingly, the company said, while over the past 40 years the mining industry has concentrated on the exploitation of haematite ores grading better than 55% iron, it has been overlooked that for most of the history of the iron and steel industry (many centuries), iron ore grading 35+% was the accepted standard.
Ridge Exploration, together with Eastern Exploration, holds exploration licences for iron ore over parts of the northern Surat Basin, the underlying basement and other areas where previous work has identified iron ore development with over 40% iron content in lateritised profiles.
Given that Ridge's target areas are situated adjacent to massive coal and gas reserves (owned by unrelated third parties) and given the current high prices for iron ore, "it is possible that lower than currently used grades of iron ore should be able to be very profitably exploited even bearing costs of upgrading by processing."
Coltstar Ventures Inc was established in 2006 and is based in Vancouver, Canada. Coltstar is a Tier 2 TSX Venture Exchange listed company headed by CEO Damien Reynolds. Coltstar’s stated objective is to utilise the proven skills of its team to advance the economic value of world‐scale natural resource projects.
As part of its focus on world‐class iron‐ore projects, Coltstar has just announced the staking of a 958km2 tenement area contiguous with Chevron Canada Limited’s Crest iron deposit which is incorporated within a 600km2 area straddling the Yukon – Northwest Territories border in Northern Canada.
