Proactiveinvestors Australia New Energy Minerals Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia New Energy Minerals Ltd RSS feed en Tue, 18 Jun 2019 02:50:16 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - New Energy Minerals confirms expandability and purity of Caula Graphite Project in Mozambique ]]> https://www.proactiveinvestors.com.au/companies/news/216435/new-energy-minerals-confirms-expandability-and-purity-of-caula-graphite-project-in-mozambique-216435.html New Energy Minerals Ltd (ASX:NXE) has confirmed project expandability and flake purity at its Caula Graphite and Vanadium Project in recent metallurgical tests conducted by German-based NGS Trading and Consulting.

The testing indicates the Caula project in Mozambique is suitable to produce expandable graphite, spherical graphite and other applications including flame retardants and graphite foil.

Two composite samples of graphite concentrate, one from the oxide zone and one from the fresh zone were submitted to NGS for purification tests, as well as a full site of 25 different tests for the preparation of expandable graphite conducted over a mix of all grain sizes.

READ: New Energy Minerals advised of one-month extension to ruby merger agreement closing date

New Energy managing director Bernard Oliver said: “The specialised independent test work returned some truly excellent results for the Caula graphite samples and concluded that they could not find any restriction on the application of this type of expandable graphite.

“The report further states that the chemically-purified flake graphite qualifies for the production of spherical graphite and all kind of other applications including flame retardants and graphite foil.”

READ: New Energy Minerals to divest remaining 50% interest in Caula project for $7 million

The metallurgical test work returned the following results:

Expansion volumes of 430 millilitres per gram for plus-500-micron flakes;

Expansion volumes of 390 millilitres per gram for plus-300 to minus-500-micron flakes; and

Expansion volumes of 350 millilitres per gram for plus 180 to minus-300-micron flakes.

The industry benchmark standard of 230 millilitres per gram is considered an excellent expansion rate and is used as a reference point for expandable graphite test work.

The first set of expandable tests produced ratios of up to 430 millilitres per gram for both the oxide zone and fresh zone composite samples and an average of 295 millilitres for all flake sizes combined.

Purity test work results

Chemical purification test work was also conducted on both the oxide zone and fresh zone samples returning the following results:

 

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Wed, 13 Mar 2019 22:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216435/new-energy-minerals-confirms-expandability-and-purity-of-caula-graphite-project-in-mozambique-216435.html
<![CDATA[News - New Energy Minerals advised of one-month extension to ruby merger agreement closing date ]]> https://www.proactiveinvestors.com.au/companies/news/215763/new-energy-minerals-advised-of-one-month-extension-to-ruby-merger-agreement-closing-date-215763.html New Energy Minerals Ltd (ASX:NXE) has been advised of a one-month extension to the closing date of the Merger of Ruby Assets Amending Agreement with Fura Gems Inc (CVE:FURA).

This agreement covers disposal of New Energy’s non-core ruby assets in Mozambique.

Fura Gems has notified New Energy that the extension of the ‘Drop Dead Date’ to March 31, 2019, will allow for satisfaction of outstanding conditions precedent.

Awaiting government decisions

The primary conditions, which are outside the control of the parties, are receipt of a binding tax opinion from tax authorities in Mozambique, and Ministerial approval.

READ: New Energy Minerals amends ruby sale agreement to encompass $2.8 million cash payment

Last November, the parties agreed that New Energy would receive $2.8 million in cash from Fura rather than the originally agreed 10.5 million Fura shares.

New Energy also agreed to sell certain gemstone processing related plant and equipment to Fura for more than $489,400 independently of the cash payment.

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Tue, 05 Mar 2019 12:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215763/new-energy-minerals-advised-of-one-month-extension-to-ruby-merger-agreement-closing-date-215763.html
<![CDATA[News - New Energy Minerals to divest remaining 50% interest in Caula project for $7 million ]]> https://www.proactiveinvestors.com.au/companies/news/214231/new-energy-minerals-to-divest-remaining-50-interest-in-caula-project-for-7-million-214231.html New Energy Minerals Ltd (ASX:NXE) (FRA:GGY) has entered into an agreement for the sale of its remaining 50% interest in Balama Resources Pty Ltd for a total cash consideration of $7 million.

Balama is the subsidiary company through which New Energy holds its interest in the Caula Graphite and Vanadium Project in Mozambique.

Following completion, New Energy will have no further interest in the Caula project, which is the company’s main undertaking.

On completion of the sale, Auspicious Virtue Investment Holding Limited, an investment vehicle owned by Louis Ching, will be the sole shareholder of Balama, holding 100% of the shares on issue.

Chairman’s statement

New Energy chairman Ian Daymond said: “Following several months of very careful examination of the company’s financial situation, and following the unsolicited approach by the company’s largest shareholder, New Energy directors have negotiated with its largest shareholder the highest sale price obtainable for the remaining 50% of the issued capital of Balama Resources Pty Ltd.

“The transaction has been negotiated with consideration to the disappointingly low prevailing share price, despite a series of excellent results being announced throughout 2018 in respect of the Caula Vanadium & Graphite Project.

“The board has also considered various alternatives for the future funding of the company and its projects, taking into account the need to avoid excessive dilution to existing shareholders, given the current share price and also within the context of the highly disputed and highly damaging statutory demand by Arena Investors.

“An unsolicited, non-binding offer was received from UBezTT at the end of November 2018, and although a public company takeover or scheme of arrangement involving the New Energy entity itself was considered in this process, it was considered to be a very costly form of corporate transaction for the company.

“As a result, the best price obtainable from the purchaser for the 50% shareholding was $7,000,000.

“The directors of New Energy unanimously reached the conclusion that the sale of the remaining 50% of the issued capital of Balama Resources Pty Ltd to Auspicious Virtue Investment Holding Limited should be considered to be in the best interests of the company and its shareholders excluding the purchaser and its associates and, accordingly, now recommend that shareholders approve the relevant resolutions to be proposed at the forthcoming EGM, but only in the absence of a superior proposal and subject to the Independent Expert’s Report being favourable.

“The distribution in cash to NXE shareholders of at least 60% of the sale proceeds net of transaction costs is considered, in all the circumstances, to be a significant benefit for all shareholders as well as for NXE itself.

“Shareholders will retain their existing shares in NXE and will therefore retain a stake in the company going forward.

“Assuming 60% of the net sale proceeds are distributed to NXE shareholders, then NXE will receive after closing 40% of the net sale proceeds (around $2.6 million to $ 2.7 million), to supplement NXE’s cash resources which will be further supplemented by receipt of the gross amount of $2.8 million upon closing of the sale of the ruby assets to Fura Gems Inc.

READ: New Energy Minerals amends ruby sale agreement to encompass $2.8 million cash payment

“NXE’s total cash resources will, of course, depend upon the outcome of the dispute with Arena Investors of which the outcome (as yet not known) could increase (or reduce) these cash resources.

“Our plan is for NXE to retain its ASX-listed status as an explorer and developer of mineral interests and for NXE to be adequately funded going forward.

“A review of potential mineral interest acquisition opportunities is already underway.

“Further announcements concerning future project opportunities and the status of the Arena dispute will be made as and when required.

“We urge and encourage shareholders to vote in favour of the various resolutions if no superior proposal emerges and if the Independent Expert’s Report is favourable.

“We also call upon shareholders actively to support the board and management going forward in the interests of the company and all shareholders.”

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Fri, 08 Feb 2019 15:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214231/new-energy-minerals-to-divest-remaining-50-interest-in-caula-project-for-7-million-214231.html
<![CDATA[News - New Energy Minerals substantial shareholder lifts stake in company to 11.92% ]]> https://www.proactiveinvestors.com.au/companies/news/211627/new-energy-minerals-substantial-shareholder-lifts-stake-in-company-to-1192-211627.html New Energy Minerals Ltd (ASX:NXE) (FRA:GGY) substantial shareholder Regius Resources Group Limited has increased its interest in the graphite focused company to 11.92% from 6.85%.

This follows the conversion of $700,000 debt owing by New Energy to Regius by the issue of 10 million shares.

London-based Regius now holds almost 18 million shares in New Energy, which has an 80%-interest in the Caula Vanadium Graphite Project in Mozambique.

READ: New Energy Minerals secures $5 million to fast-track Caula Vanadium Graphite Project

Last month the company completed a $5 million strategic investment and joint venture transaction with Hong Kong-based investor UBezTT International Investment Holdings (BVI) Ltd.

UBezTT’s largest shareholder is the strategic investor and Hong Kong-listed PT International Development Corporation Ltd’s (HK:00372) chairman and managing director Louis Ching.

Project on fast-track

At the time, NXE managing director Bernard Olivier said: “We are pleased to have completed this transaction and we welcome Mr Ching’s investment into New Energy.

“With the scoping study now completed, we look forward to applying these funds to fast-tracking the development of the Caula Vanadium Graphite Project.”

Caula’s graphite deposit has one of the highest grades in the world, with up to 28% total graphitic carbon.

The project has a 21.9 million-tonne measured resource grading 13.4% total graphitic content (TGC) at an 8% cut-off for 2,933,100 tonnes of contained graphite.

The vanadium assets include a 22 million-tonne measured resource grading 0.37% vanadium oxide at a 0.2% cut-off for 81,600 tonnes of contained vanadium.

READ: New Energy Minerals highlights Caula study economics as it targets early cash flows

A scoping study for the world-class project has delivered positive economics with the company targeting first cash flows in the second half of 2019.

Caula’s after-tax net present value (NPV10) for the entire project is US$448.76 million at a 10% discount, while its after-tax internal rate of return (IRR) is 58.8%.

Graphite and vanadium production planned

Phase I would target annual production of 10,000-15,000 tonnes a year of graphite concentrate and 14,000-18,000 tonnes a year of vanadium concentrate.

Capital expenditure of the first phase would be US$7.368 million.

The peak funding requirement for the whole project would be US$77.54 million while ongoing capex would be US$18.14 million.

New Energy’s costings were based on a US$1,103.50 graphite basket price assumption and a vanadium price assumption of US$40,785 a tonne vanadium oxide concentrate at mine gate.

The operating cost per tonne is US$50.87, putting revenue at US$135.52 a tonne.

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Fri, 21 Dec 2018 15:19:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211627/new-energy-minerals-substantial-shareholder-lifts-stake-in-company-to-1192-211627.html
<![CDATA[News - New Energy Minerals secures $5 million to fast-track Caula Vanadium Graphite Project ]]> https://www.proactiveinvestors.com.au/companies/news/210272/new-energy-minerals-secures-5-million-to-fast-track-caula-vanadium-graphite-project-210272.html New Energy Minerals Ltd (ASX:NXE) (FRA:GGY) has completed the strategic investment and joint venture transaction with Hong Kong-based investor UBezTT International Investment Holdings (BVI) Ltd.

UBezTT’s largest shareholder is the strategic investor and Hong Kong-listed PT International Development Corporation Ltd’s (HK:00372) chairman and managing director Louis Ching.

READ: New Energy Minerals’ ambitions in Mozambique supported by Louis Ching’s UBezTT

Pursuant to the transaction, New Energy completed a $1.5 million placement in two tranches to UBezTT at 6.5 cents per share for a total of 23 million shares, which is a premium to the current share price.

In addition to the placement, a $3.5 million equity investment by UBezTT in New Energy’s wholly-owned asset-holding subsidiary Balama Resources Pty Ltd has been concluded in return for 50% of the enlarged capital of Balama.

New Energy holds an 80% interest in its flagship Caula Vanadium-Graphite project in Mozambique through Balama.

New Energy managing director Bernard Olivier said: “We are pleased to have completed this transaction and we welcome Mr Ching’s investment into New Energy.

“With the scoping study now completed, we look forward to applying these funds to fast-tracking the development of the Caula Vanadium Graphite Project”.

READ: New Energy Minerals highlights Caula study economics as it targets early cash flows

New Energy’s graphite deposit at the Caula project has one of the highest grades in the world, with up to 28% total graphitic carbon.

The vanadium assets include a 22 million tonne measured resource grading 0.37% vanadium oxide at a 0.2% cut-off for 81,600 tonnes of contained vanadium.

New Energy plans to become a supplier of vanadium as world demand for vanadium to be used in vanadium redox flow batteries (VRFBs) goes from 3,000 tonnes last year to between 25,000 and 30,000 tonnes by 2025.

READ: New Energy Minerals amends ruby sale agreement to encompass $2.8 million cash payment

UBezTT director and controlling shareholder Ching recently said: “We are very excited to make this strategic investment in New Energy Minerals and the Caula Vanadium-Graphite Project.

“We were attracted to this investment by what we believe is a unique opportunity to achieve near-term production of vanadium and graphite, as well as by the quality and experience of the NXE board and management team.

“We look forward to working closely with the board to bring our extensive commodity trading experience and networks in Asia to this project.”

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Fri, 30 Nov 2018 16:52:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210272/new-energy-minerals-secures-5-million-to-fast-track-caula-vanadium-graphite-project-210272.html
<![CDATA[News - New Energy Minerals amends ruby sale agreement to encompass $2.8 million cash payment ]]> https://www.proactiveinvestors.com.au/companies/news/210175/new-energy-minerals-amends-ruby-sale-agreement-to-encompass-28-million-cash-payment-210175.html New Energy Minerals Ltd (ASX:NXE) will now receive $2.8 million in cash as part of an amended agreement with Fura Gems Inc (CVE:FURA) covering disposal of the company’s non-core ruby assets.

The Merger of Ruby Assets Agreement (MRAA) has been amended to include the cash rather than the originally agreed 10.5 million Fura shares to be issued over a 20-month period from closing.

READ: New Energy Minerals highlights Caula study economics as it targets early cash flows

Both parties have also agreed to extend the closing date of the agreement from November 30, 2018, to February 28, 2019.

This has been done to allow for the satisfaction of the remaining conditions precedent, principally being a binding tax opinion from tax authorities in Mozambique and Ministerial approval.

Concurrently, New Energy has also entered into a loan agreement with Fura for the aggregate amount of $2.8 million.

This agreement allows for New Energy to be able to draw down funds prior to completion of the MRAA, for purposes of settling any claims or disputes with Arena Investors, should this be required.

READ: New Energy Minerals’ ambitions in Mozambique supported by Louis Ching’s UBezTT

New Energy Minerals managing director Bernard Olivier said: “The amendment to the agreement and the cash consideration was specifically re-negotiated due to the statutory demand received from Arena Investors and places New Energy in an advantageous position in the dispute process.

“It is also particularly important as the company enters the financing stage of its pilot plant development at the Caula Vanadium-Graphite Project.

“The board of New Energy would like to thank Fura for renegotiating the terms of the MRAA at the request of the company.”

New Energy has also agreed to sell certain gemstone processing related plant and equipment to Fura for more than $489,400 independently of the loan agreement advances.

READ: New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium Graphite Project

The loan agreement is conditional on Fura obtaining TSX Venture Exchange approval for the loan within 21 business days.

Any advance by Fura under this agreement is conditional on either:

- Arena withdrawing its Statutory Demand, or - Arena agreeing to withdraw the Statutory Demand conditional upon receiving an amount of money from the company not exceeding the amount of the commitment. ]]>
Thu, 29 Nov 2018 12:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210175/new-energy-minerals-amends-ruby-sale-agreement-to-encompass-28-million-cash-payment-210175.html
<![CDATA[News - New Energy Minerals highlights Caula study economics as it targets early cash flows ]]> https://www.proactiveinvestors.com.au/companies/news/210114/new-energy-minerals-highlights-caula-study-economics-as-it-targets-early-cash-flows-210114.html New Energy Minerals Ltd (ASX:NXE) securities gained 10.9% today after highlighting key financials from a scoping study for its flagship Caula Vanadium-Graphite Project in northern Mozambique as it targeted first cash flows in the second half of 2019.

The company previously known as Mustang Resources Ltd (ASX:MUS) held its annual general meeting in Sydney today, where all motions were passed by a majority vote.

READ: New Energy Minerals’ ambitions in Mozambique supported by Louis Ching’s UBezTT

South Perth-based New Energy shared its AGM presentation with the market today, highlighting its effort to develop its world-class vanadium-graphite project in Mozambique.

New Energy said in a presentation shared with the market, “The company is current fast-tracking its world-class Caula Vanadium-Graphite Project in Northern Mozambique with first cash flows expected in the December half of 2019.”

The company’s graphite deposit at Caula project has one of the highest grades in the world, with up to 28% total graphitic carbon.

Caula’s vanadium assets include a 22 million tonne measured resource grading 0.37% vanadium oxide at a 0.2% cut-off for 81,600 tonnes of contained vanadium.

Its vanadium measured resource sits at 21.9 million tonnes measured resource grading 13.4% total graphitic content (TGC) at an 8% cut-off for 2,933,100 tonnes of contained graphite.

The company articulated its hopes today, saying “New Energy Minerals has the goal for Caula to become one of a handful of global primary vanadium supply sources.”

It plans to become a supplier of vanadium as world demand for vanadium to be used in vanadium redox flow batteries (VRFBs) goes from 3,000 tonnes last year to between 25,000 and 30,000 tonnes by 2025.

READ: New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium-Graphite Project

The US$448.76 million Caula project is found within 200 kilometres of the port of Pembla which is also in the Cabo Delgado province.

Caula is along strike from the world-class Syrah Resources (ASX:SYR) asset but has “superior graphite metallurgy and integrated vanadium-graphite flowsheet” to its neighbour

A 25-kilometre access road meets sealed roads that would enable transport to the ports of Pemba and Nacala.

BIG PICTURE: New Energy Minerals eyes first cash flow from world-class vanadium-graphite project in 2019

Earlier this year the company shifted its focus to the battery minerals graphite and vanadium, changing its name in October 2018 to reflect its new energy focus.

Louis Ching-controlled investment UBezTT International Investment Holdings (BVI) Ltd subsequently made a $1.1 million strategic investment in New Energy three weeks ago.

New Energy highlighted in its presentation today the two-phased approach its scoping study takes to development.

Caula’s after-tax net present value (NPV10) for the entire project is US$448.76 million at a 10% discount, while its after-tax internal rate of return (IRR) is 58.8%.

Phase I would target annual production of 10,000-15,000 tonnes a year of graphite concentrate and 14,000-18,000 tonnes a year of vanadium concentrate.

Capital expenditure (capex)of the first phase would be US$7.368 million.

The peak funding requirement for the whole project would be US$77.54 million while ongoing capex would be US$18.14 million.

New Energy’s costings were based on a US$1,103.50 graphite basket price assumption and a vanadium price assumption of US$40,785 a tonne vanadium oxide concentrate at mine gate.

The operating cost per tonne is US$50.87, putting its revenue at US$135.52 a tonne.

READ: New Energy Minerals’ rebrand reflects focus on vanadium and graphite

The company highlighted its capital structure today, highlighting its registry on November 26, 2018 included 3,900 shareholders.

New Energy noted its directors had 6% of the company while its top 20 shareholders had 41%, and its remaining shareholders held 53%.

Company management has invested $428,000 over the year, in August 2018 and February 2018.

The figures highlighted there were 139,586,263 shares on issue two days ago, 22,173,772 options and 1.4 million unquoted performance rights.

The company’s next steps may include a product offtake and phase I financing activities in the June 2019 half-year as it works toward phase I mining in the December 2019 half.

New Energy added 0.5 cents, or 10.87%, to close at 5.1 cents today.

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Wed, 28 Nov 2018 03:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210114/new-energy-minerals-highlights-caula-study-economics-as-it-targets-early-cash-flows-210114.html
<![CDATA[News - New Energy Minerals’ ambitions in Mozambique supported by Louis Ching’s UBezTT ]]> https://www.proactiveinvestors.com.au/companies/news/208691/new-energy-minerals-ambitions-in-mozambique-supported-by-louis-chings-ubeztt-208691.html New Energy Minerals Limited (ASX:NXE) (FRA:GGY) has returned to trading on the Australian Securities Exchange after recruiting a strategic investor and agreeing to $5 million of investment deals.

The company, which was to settle a $1.1 million first tranche under the deal yesterday, was returned to the market by ASX Ltd (ASX:ASX) this morning after first halting on Tuesday last week.

READ: New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium Graphite Project

New Energy Minerals, which traded as Mustang Resources Ltd (ASX:MUS) until September, has entered into a binding agreement with Hong Kong-based UBezTT International Investment Holdings (BVI) Ltd.

UBezTT’s largest shareholder is the strategic investor and Hong Kong-listed PT International Development Corporation Ltd’s (HK:00372) chairman and managing director Louis Ching.

 

Ching has experience in commodity trading and business development in China, Asia and Africa.

PT is a holding company that trades copper cathodes and nickel briquettes, has stakes in high-growth investment projects, and investments in a registered Hong Kong-regulated asset manager, and Chinese oil port and storage facilities.

Ching is also a director and deputy president of South Korea-listed STX Corporation (KS:011810) which trades in non-ferrous metals such as zinc, nickel and stainless steel, and provides shipping and logistics services across the world.

READ: New Energy Minerals’ rebrand reflects focus on vanadium and graphite

Caula project in Mozambique

New Energy’s flagship project is the 80%-owned Caula Vanadium-Graphite Project in Mozambique, which the company has previously shared that it hopes to produce first cash flows from in the December 2019 half-year as it embarks on trial mining operations.

Late last month, New Energy released a scoping study demonstrating the viability of an open pit vanadium and graphite mining operation.

The results indicate substantial financial returns could be generated through a two-phase development schedule with life-of-mine based on the large JORC-measured resource and a strip ratio of 1:1.

The company aims to implement phase I production in the second half of next year as well as the concurrent completion of definitive feasibility studies and development activities for phase II.

READ: New Energy Minerals produces high-grade vanadium concentrate from Caula ore

Caula project's mineral resource in July

Today, the company described its relationship with UBezTT as a “strategic equity placement and asset level investment and incorporated joint venture in respect of the Caula Vanadium-Graphite Project.”

New Energy managing director Dr Bernard Olivier reported: “This agreement is an important step forward for NXE in fast-tracking the world-class Caula Vanadium-Graphite Project towards development.”

Southern Africa-based Olivier highlighted Ching’s access to Asian debt and equity capital, and commodities trading experience, predicting the investor would “significantly assist in financing the Caula project, but also in securing offtake agreements in the short term once the project is in production.

“The company welcomes Mr Ching as a strategic investor in New Energy Minerals and looks forward to working with him to move the Caula project into early cashflow.”

BIG PICTURE: New Energy Minerals eyes first cash flow from world-class vanadium-graphite project in 2019

New Energy's comparison of its graphite gradings, back when it was known as Mustang

UBezTT director and controlling shareholder Ching said: “We are very excited to make this strategic investment in New Energy Minerals and the Caula Vanadium-Graphite Project.

“We were attracted to this investment by what we believe is a unique opportunity to achieve near-term production of vanadium and graphite, as well as by the quality and experience of the NXE board and management team.

“We look forward to working closely with the board to bring our extensive commodity trading experience and networks in Asia to this project.”

Funding specifics

New Energy’s new investor UBezTT is buying into the company in two different ways.

The first is through a $1.5 million share placement priced at 6.5 cents a share, a 15% discount to the three-day volume-weighted average price before the agreement.

UBezTT’s placement will give it 15.4% of the company and has been split into two tranches, with the $1.1 million, 17.6 million-share first tranche due yesterday.

The first tranche investment entitles UBezTT to appoint at least two directors to the New Energy board as long as its total membership is a maximum of seven people.

UBezTT’s second tranche of 5.67 million shares, for about $400,000 is to be approved by shareholders at an extraordinary general meeting likely to be called for mid-December.

Each share under the placement has a 14-cent free-attaching option to be paid to UBezTTor a nominee which expires 36 months from date of issue, if shareholders agree at the upcoming meeting.

UBezTT will also make a $3.5 million project-level investment in New Energy’s wholly-owned asset-holding subsidiary Balama Resources Pty Ltd which has 80% of Caula project.

New investor UBezTT will take a 50% stake in the subsidiary the parties have dubbed Asset Holdco, subject to a due diligence process, with New Energy to hold the remaining 50% stake.

If not taken up by December 15, UBezTT’s option over the subsidiary and project will lapse.

If UBezTT buys into Asset Holdco it can appoint at least two directors to the subsidiary’s board, if it has no more than four directors.

New Energy's project flowsheet

Convertible note matters

Late yesterday New Energy advised it was seeking legal advice after Arena Structured Private Investments (Cayman), LLC, a subsidiary of Arena Investors L.P, issued it with a $5.1 million debtor’s notice.

The company said the notice appeared to include a $2.5 million termination fee claim which it reported on August 15, 2018, that Arena had waived in a convertible note deed that was announced on January 8, 2018.

Arena holds notes with a $2.5 million face value, excluding interest of about $104,000.

New Energy said yesterday evening: “A termination payment is not payable to Arena.

“The company intends to vigorously defend this position.

“It is the company’s intention to repay in cash the amounts it considers to be owing to Arena (including all interest) as soon as possible and the company is actively engaging with potential investors regarding a refinancing and repayment of the Arena loan.”

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Tue, 06 Nov 2018 23:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208691/new-energy-minerals-ambitions-in-mozambique-supported-by-louis-chings-ubeztt-208691.html
<![CDATA[News - New Energy Minerals granted voluntary suspension of trading pending funding update ]]> https://www.proactiveinvestors.com.au/companies/news/208281/new-energy-minerals-granted-voluntary-suspension-of-trading-pending-funding-update-208281.html New Energy Minerals Ltd (ASX:NXE) has been granted a voluntary suspension of trading in its securities following a request made by the company to the ASX.

The voluntary suspension was sought in relation to a material funding arrangement.

The suspension will remain in place until the details of the funding arrangement are released to the market.

New Energy is expecting the lifting of the suspension for the commencement of trade on or before November 5, 2018.

READ: New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium Graphite Project

Last week, New Energy released a scoping study demonstrating the viability of an open pit vanadium and graphite mining operation at its 80%-owned Caula project in Mozambique.

Results indicate the potential to generate substantial financial returns through a two-phase development schedule with life-of-mine based on the large JORC measured resource and a strip ratio of 1:1.

The company aims to implement phase I production in the second half of next year as well as the concurrent completion of definitive feasibility studies and development activities for phase II.

Minimum 26-year mine life

The operation's total life of mine is 26 years based on the current JORC resource which is expected to increase after the completion of a recent 4,000-metre drilling program.

The scoping study outlines a phase I graphite concentrate production of 10,000-15,000 tonnes a year and 14,000-18,000 tonnes a year of 1.7% vanadium concentrate.

Phase II will see graphite production up to 120,000 tonnes per year at 97.5% total graphitic carbon (TGC) and 204,200 tonnes per year of 1.7% vanadium concentrate.

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Thu, 01 Nov 2018 13:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208281/new-energy-minerals-granted-voluntary-suspension-of-trading-pending-funding-update-208281.html
<![CDATA[News - New Energy Minerals enters trading halt ahead of funding details ]]> https://www.proactiveinvestors.com.au/companies/news/208072/new-energy-minerals-enters-trading-halt-ahead-of-funding-details-208072.html New Energy Minerals Ltd (ASX:NXE) has been granted a trading halt by the ASX pending the release of details regarding a material funding arrangement.

Shares in the company will remain halted until the earlier of, either, the release of relevant information, or the commencement of trading on Thursday 1 November 2018.

READ: New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium Graphite Project

Last week, New Energy received scoping study results for its 80%-owned Caula Vanadium Graphite Project in Mozambique.

The study forecast a post-tax net present value (NPV) of US$448.76 million or A$619.29 million for the proposed 26-year life.

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Tue, 30 Oct 2018 12:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208072/new-energy-minerals-enters-trading-halt-ahead-of-funding-details-208072.html
<![CDATA[News - New Energy Minerals' scoping study reveals exceptional economics for Caula Vanadium Graphite Project ]]> https://www.proactiveinvestors.com.au/companies/news/207519/new-energy-minerals-scoping-study-reveals-exceptional-economics-for-caula-vanadium-graphite-project-207519.html New Energy Minerals Ltd (ASX:NXE) has demonstrated the viability of an open pit vanadium and graphite mining operation with a completed scoping study at its 80%-owned Caula project in Mozambique.

The study was undertaken by mining consultant group Bara International and examined all facets of geology, mining, processing and supporting infrastructure, including a consultant site visit in June.

Results indicate the potential to generate substantial financial returns through a two-phase development schedule with life-of-mine based on the large JORC measured resource and a strip ratio of 1:1.

The company aims to implement phase I production in the second half of next year as well as the concurrent completion of definitive feasibility studies and development activities for phase II.

READ: New Energy Minerals' rebrand reflects focus on vanadium and graphite

New Energy managing director Bernard Olivier said the results of the study clearly show the potential financial benefits of the unique Caula project.

"With its low 1:1 strip ratio, large high-grade JORC measured resource and simple, fully-integrated process flowsheet design using flotation and magnetic separation to extract graphite and vanadium concentrates, this project is truly remarkable.

"We are currently busy with metallurgical test work with the aim of producing 98% vanadium pentoxide which we believe will improve the project's potential even further.

"We are currently in off-take and associated project finance discussions and ... given the current level of financing interest for our phased development approach with a peak funding requirement for both phases of US$77.5 million for a pre-tax net present value and internal rate of return of US$673 million and 78% respectively, that the project finance for phase I and phase II can be secured."

READ: New Energy Minerals granted trading halt ahead of scoping study release

The scoping study outlines a phase I graphite concentrate production of 10,000-15,000 tonnes a year and 14,000-18,000 tonnes a year of 1.7% vanadium concentrate.

Phase II will see graphite production up to 120,000 tonnes per year at 97.5% total graphitic carbon (TGC) and 204,200 tonnes per year of 1.7% vanadium concentrate.

Economic outcomes are based on a graphite basket price assumption of US$1,103.50 a tonne and a vanadium price assumption of US$40,785 per tonne of 98% vanadium pentoxide.

Operating cost per tonne processed is US$50.87 and revenue per tonne US$135.52.

Minimum 26-year mine life

The operation's total life of mine is 26 years based on the current JORC resource which is expected to increase after the completion of a recent 4,000-metre drilling program.

New Energy is also undertaking additional metallurgical test work on the optimal beneficiation process for vanadium and graphite concentrates to refine flowsheet processes and improve concentrate grades.

Geotechnical and rheological test work and studies are underway to support the current pit design and tailings deposition methods.

Caula's implementation schedule

  READ: New Energy Minerals produces high-grade vanadium concentrate from Caula ore

Caula consists of two exploration licences totalling more than 16,790 hectares and is along strike from the Balama Graphite Project owned by Syrah Resources Ltd (ASX:SYR).

New Energy announced in July Caula's maiden vanadium JORC measured mineral resource of 22 million tonnes at 0.37% vanadium pentoxide for 81,600 tonnes of contained vanadium.

The project's upgraded graphite JORC measured mineral resource is 21.9 million tonnes at 13.4% TGC for a total of 2.93 million tonnes of contained graphite.

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Sun, 21 Oct 2018 22:14:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207519/new-energy-minerals-scoping-study-reveals-exceptional-economics-for-caula-vanadium-graphite-project-207519.html
<![CDATA[News - New Energy Minerals granted trading halt ahead of scoping study release ]]> https://www.proactiveinvestors.com.au/companies/news/206631/new-energy-minerals-granted-trading-halt-ahead-of-scoping-study-release-206631.html New Energy Minerals Ltd (ASX:NXE) has been granted a trading halt by the ASX today pending the release of an announcement in relation to a material scoping study report.

The halt will remain in place until the earlier of the start of normal trading on Thursday, October 11, or when the announcement is released to the market.

Earlier this week, the company changed its name from Mustang Resources after receiving shareholder approval and registration by the Australian Securities and Investment Commission (ASIC).

The name change reflects the company’s focus on vanadium and graphite exploration and mining, commodities that are crucial for the rapidly-growing new energy market.

READ: New Energy Minerals’ rebrand reflects focus on vanadium and graphite

New Energy recently produced high-grade vanadium concentrate in initial bench-scale metallurgical test work on ore from its Caula Vanadium-Graphite Project in Mozambique.

The company used an integrated graphite and vanadium flowsheet and the test work utilised wet high-intensity magnetic separation (WHIMS) on composite samples.

This resulted in a cleaner concentrate grade of 1.66% vanadium pentoxide with 80.6% recovery.

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Tue, 09 Oct 2018 15:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206631/new-energy-minerals-granted-trading-halt-ahead-of-scoping-study-release-206631.html
<![CDATA[News - New Energy Minerals’ rebrand reflects focus on vanadium and graphite ]]> https://www.proactiveinvestors.com.au/companies/news/206542/new-energy-minerals-rebrand-reflects-focus-on-vanadium-and-graphite-206542.html New Energy Minerals Ltd (ASX:NXE) has changed its name from Mustang Resources after receiving shareholder approval and registration by the Australian Securities and Investment Commission (ASIC).

The name change reflects the company’s focus on vanadium and graphite exploration and mining, commodities that are crucial for the rapidly-growing new energy market.

READ: New Energy Minerals produces high-grade vanadium concentrate from Caula ore

New Energy Minerals managing director Bernard Olivier said: “Given the company’s rapid development of the world-class Caula Vanadium-Graphite Project, we believe it to be an appropriate time to rebrand the company to ‘New Energy Minerals’.

“[This will] accurately emphasise our focus on the new energy market and the key commodities that make energy storage and electric vehicle transportation possible.

“We look forward to taking shareholders with us on this new journey over the next few years, as we advance the Caula project in northern Mozambique, with a focus on progressing it to phase I production by H2-2019 and beyond.”

READ: New Energy Minerals eyes first cash flow from world-class vanadium-graphite project in 2019

Following completion of the 1:10 share consolidation by October 12, Mustang will immediately initiate the process of changing the name on the ASX system.

The company will trade under the deferred settlement code of ASX:MUSDE until around October 12, or once the share consolidation is complete.

It will revert back to ASX:MUS before the new ticker symbol of ASX:NXE is implemented on or around October 15.

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Mon, 08 Oct 2018 01:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206542/new-energy-minerals-rebrand-reflects-focus-on-vanadium-and-graphite-206542.html
<![CDATA[News - Mustang Resources produces high-grade vanadium concentrate from Caula ore ]]> https://www.proactiveinvestors.com.au/companies/news/206251/mustang-resources-produces-high-grade-vanadium-concentrate-from-caula-ore-206251.html Mustang Resources Ltd (ASX:MUS) has produced high-grade vanadium concentrate in initial bench-scale metallurgical test work on ore from its Caula Vanadium-Graphite Project in Mozambique.

The company used an integrated graphite and vanadium flowsheet and the test work utilised wet high-intensity magnetic separation (WHIMS) on composite samples.

This resulted in a cleaner concentrate grade of 1.66% vanadium pentoxide with 80.6% recovery.

Results were achieved from an overall feed grade of 0.401% vanadium before graphite extraction.

Based on its new focus on battery metals, Mustang recently received shareholder approval to change its name to New Energy Minerals Ltd.

READ: Mustang Resources eyes first cash flow from world-class vanadium-graphite project in 2019

Mustang managing director Bernard Olivier said the preliminary vanadium results achieved through a simple WHIMS process was truly outstanding.

“Concentration through a WHIMS process is highly economical compared with other concentration processes and requires no expensive nor complicated reagents.

“I urge investors to compare our exceptional preliminary concentrate grades of around 1.7% vanadium pentoxide and 81% recoveries with other vanadium-dedicated projects.

“Furthermore, our vanadium grades and recoveries are in addition to the exceptional grade and quality of graphite extracted from the same material.”

  READ: Mustang Resources drilling extends graphite vanadium resource

The metallurgical test work was conducted on a composite diamond drillcore sample weighing about 62 kilograms from a depth of between 160 and 212 metres.

Scavenging the rougher and cleaner tailings delivered a further 10.2% recovery to a scavenger concentrate grade of 0.67% vanadium.

Combined cleaner and scavenger concentrates gave 90.8% overall recovery to a combined concentrate grade of 1.42% vanadium.

A full-scale commercial circuit could employ more stages of cleaning and scavenging and intermediate products such as cleaner tailings and scavenger concentrates could be recycled to achieve improved concentrate grades and recoveries.

Mustang is undertaking quantitative mineralogy studies to investigate mineral associations in vanadium concentrate, with the initial results confirming the micaceous nature of the concentrate.

Flowsheet of WHIMS testing

  READ: Mustang Resources secures $24 million for vanadium graphite project

Extraction process for vanadium from mica is substantially different to vanadium extraction from vanidiferous titanomagnetite magnetites (VTM).

Vanadium extraction from micas has closer parallels to the processes associated with lithium extraction from micas and clay minerals.

The company is also progressing additional test work which will produce a bulk sample of high-grade graphite concentrate for evaluation of downstream processing characteristics.

Tailings from this graphite flotation work will be used in additional vanadium concentrate recovery tests, including testing of weathered and oxidised material.

All ongoing and planned test work is focused on optimising the beneficiation process and establishing a robust, low-cost flowsheet for graphite and vanadium extraction and vanadium downstream beneficiation.

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Wed, 03 Oct 2018 00:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/206251/mustang-resources-produces-high-grade-vanadium-concentrate-from-caula-ore-206251.html
<![CDATA[News - Mustang Resources eyes first cash flow from world-class vanadium-graphite project in 2019 ]]> https://www.proactiveinvestors.com.au/companies/news/204981/mustang-resources-eyes-first-cash-flow-from-world-class-vanadium-graphite-project-in-2019-204981.html Mustang Resources Ltd (ASX:MUS) is fast-tracking its world-class Caula Vanadium-Graphite Project in Mozambique, with the first cash flows targeted for H2 of 2019 from trial mining operations.

Caula represents a unique opportunity for the supply of two critical raw materials (graphite & vanadium) which are needed for the storage of energy (lithium-ion batteries & vanadium redox flow batteries), next-generation building materials (expandable graphite) and earthquake-resistant steel-rebar (vanadium as alloy).

 

The Caula project hosts a resource of 22 million tonnes at 0.37% vanadium pentoxide (V2O5) and 13.4% TGC (total graphitic carbon) for 81,600 tonnes of V2O5 and 2.93 million tonnes of contained graphite.

READ: Mustang Resources drilling extends graphite vanadium resource

Mustang recently completed its feasibility study drilling program on the Caula Vanadium-Graphite Project.

Mineralisation was intersected in all 34 holes and visible graphite and vanadium were visually encountered outside the current JORC resource boundaries to the east, west and south.

The strike has increased to over 850 metres from 540 metres, and the true width has nearly doubled to 430 metres, from 230 metres.

On track for cash flow in December half of 2019

A two-phased development for Caula is being modelled, based on the measured resource for both graphite and vanadium.

Mustang is on track to generate its first cash flow from Caula in the December half of 2019 through the implementation of a phase I trial mining and processing operation.

The scale and economics of this operation will be defined in the scoping study, which is due by October 5, 2018.

Graphite for an electric future

Graphite is a critical commodity for electric vehicles, used in the anodes of lithium batteries, with companies like Tesla preferring natural graphite due to lower carbon footprint and cost.

Bloomberg estimates electric vehicles would account for 28% of global new car sales by 2030, and 55% by 2040.

Electric buses are expected to dominate the market even more decisively, reaching 84% global share by 2030.

Major car manufacturers (Renault, Volvo, GM etc) have committed to go all electric & hybrid by around 2023.

Vanadium redox flow batteries

Vanadium redox flow batteries (VRFBs) are the most efficient battery tech for utility-scale renewable energy storage.

At present only <5% of vanadium supply is used for VRFBs, which is set to grow rapidly.

It is worth noting that 3,000 tonnes of vanadium was used in batteries in 2017, twice as much reported in 2016.

 

By 2025, the VRFB industry is forecasted to demand between 25,000 and 30,000 tonnes of vanadium (up to 10X more than 2017).

VRFBs require high purity (99%+ V2O5) vanadium pentoxide which very few projects can supply at scale.

Mustang has the goal for Caula to become one of a handful of global primary vanadium supply sources of high purity, battery grade vanadium pentoxide.

+500% vanadium price increase over the last two years

Vanadium’s current main use is as a steel-strengthening alloy.

China announced new policies in January 2018 requiring higher % vanadium in steel rebar from November 1, 2018 onwards.

The new policy is expected to add between 10,000 to 15,000 tonnes of vanadium demand in the short term.

Steel rebar

Notably, vanadium demand is conservatively forecast to grow at a compound annual growth rate (CAGR) of 5.6%, reaching 133,000 tonnes in 2025.

However, forecast supply, including all idle capacity and expansion of existing primary mines, is predicted to grow at a slower CAGR of 3.7% to 111,000 tonnes in 2025.

98% purity V2O5 currently trades at US$41,690/tonne (US$18.95/pound).

Mozambique is one of the top-rated African resource investment destinations with multi-billion-dollar oil and gas investments (Exxon, ENI, Mitsui, CNPC etc) and mining projects (Vale, Syrah, Kenmare, BHP).

The Mozambique government is highly supportive of new mining projects with no local shareholder requirements imposed on foreign investors.

Mustang is developing an integrated vanadium-graphite flowsheet utilising simple flotation and WHIMS (wet high-intensity magnetic separation) to extract vanadium and graphite concentrates.

Metallurgical test work has confirmed exceptional quality graphite with more than 63% of cumulative proportion in large to super jumbo flakes sizes (>180 micrometres) and excellent concentrate grades of up to 98% TGC.

Furthermore, the Caula vanadium resource is hosted in a unique mica-mineral making it potentially simpler and cheaper to extract

Share price catalysts for 2018 and 2019

Mustang is changing its name to New Energy Minerals Ltd (ASX:NXE), subject to shareholder approval at the extraordinary general meeting (EGM) to be held on October 2, 2018.

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Mon, 17 Sep 2018 12:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204981/mustang-resources-eyes-first-cash-flow-from-world-class-vanadium-graphite-project-in-2019-204981.html
<![CDATA[News - Mustang Resources drilling extends graphite vanadium resource ]]> https://www.proactiveinvestors.com.au/companies/news/204297/mustang-resources-drilling-extends-graphite-vanadium-resource-204297.html Mustang Resources Ltd (ASX:MUS) has completed, ahead of schedule, its feasibility study drilling program on the Caula Vanadium-Graphite Project in Mozambique.

Mineralisation was intersected in all 34 holes and visible graphite and vanadium was visually encountered outside the current JORC resource boundaries to the east, west and south.

The strike has increased to over 850 metres from 540 metres, and the true width has nearly doubled to 430 metres, from 230 metres.

The drilling program comprised 3,025 metres of diamond drilling and 1,130 metres of reverse-circulation drilling.

READ: Mustang Resources to outline shift in focus to battery metals at Proactive CEO Sessions

Mustang’s managing director Dr Bernard Olivier said: “It is Mustang’s view that Caula represents a unique opportunity for the supply of two critical raw materials (graphite & vanadium) which are needed for the storage of energy (lithium-ion batteries & vanadium redox flow batteries), next generation building materials (expandable graphite) and earthquake resistant steel-rebar (vanadium as alloy).

“As such, the company is committed to fast-tracking this project and will therefore be running a number of workflows concurrently to ensure the fast & effective development of this world-class project, with first cash flow from phase I trial mining and processing targeted for H2-2019.

“The pending scoping study report is expected to be a major step towards achieving this milestone.”

On track for cash flow in December half of 2019

The scoping study underway is well advanced and results are expected between 24 September and 5 October 2018.

A two-phased development for Caula is being modelled, based on the JORC Measured resource for both graphite and vanadium.

Mustang is still on track to generate its first cash flow from Caula in the December half of 2019 through the implementation of a phase I trial mining and processing operation.

The scale and economics of this operation will be defined in the scoping study.

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Thu, 06 Sep 2018 14:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204297/mustang-resources-drilling-extends-graphite-vanadium-resource-204297.html
<![CDATA[News - Mustang Resources to outline shift in focus to battery metals at Proactive CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/204020/mustang-resources-to-outline-shift-in-focus-to-battery-metals-at-proactive-ceo-sessions-204020.html Mustang Resources Ltd (ASX:MUS) is shifting its focus to the key battery metals of vanadium and graphite and this process involves a proposed name change to New Energy Minerals Ltd (ASX:NXE).

Geographical focus remains on Mozambique with the Caula Vanadium-Graphite Project, adjacent to the Montepuez Ruby Project which the company is divesting to Fura Gems Inc (CVE:FURA).

With this transaction allowing Mustang to devote attention to the world-class Caula project, non-executive director Christiaan Jordaan will outline fast-tracking plans at this month’s Proactive CEO Sessions.

Non-executive director Christiaan Jordaan.

The 80%-owned Caula project is directly along strike from and due north of the Balama Graphite Project of Syrah Resources Ltd (ASX:SYR).

Given the strong demand for vanadium and large-flake graphite, coupled with the exceptional results from Caula to date in 2018, Jordaan will explain why the company has taken the decision.

 

The new name proposed for approval by shareholders reflects the new focus on the development and mining of two geologically associated commodities from the same deposit.

Both metals are essential to the production of electric vehicles and the storage of renewable energy with graphite used in lithium-ion batteries and vanadium in vanadium redox-flow-batteries.

READ: Mustang Resources secures $2.4 million for vanadium-graphite project

The commodities also have traditional applications in the steel industry, a mainstay of global economic development.

Vanadium is used as a steel-strengthening alloy while large-flake graphite has the capacity to expand when heated and, therefore, has a fast-growing application in flame-retardant building materials.

The company has developed a simple, fully integrated flowsheet to extract vanadium and graphite from the same processing plant, using for the most part simple flotation.

READ: Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project

Among the near-term plans to be outlined by Jordaan at the CEO Sessions are completion of a scoping study, vanadium test work, feasibility study drilling, permitting, trial mining and discussions with strategic project partners.

Register today to find out more.

Sydney details, Monday, September 17, 2018

Melbourne details, Tuesday, September 18, 2018

Or call John Phillips on (02) 9280 0700

The Proactive CEO Sessions will feature five presenting companies in total.

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Mon, 03 Sep 2018 14:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204020/mustang-resources-to-outline-shift-in-focus-to-battery-metals-at-proactive-ceo-sessions-204020.html
<![CDATA[News - Mustang Resources given funding discretion after Arena Investors agrees to amendments ]]> https://www.proactiveinvestors.com.au/companies/news/202903/mustang-resources-given-funding-discretion-after-arena-investors-agrees-to-amendments-202903.html Mustang Resources Ltd (ASX:MUS) has been given funding discretion after major institutional investor Arena Investors LP agreed to amend key approvals and waivers of a $19.95 million investment agreement.

The Arena amendment deed follows Mustang last month agreeing to merge its ruby assets with Fura Gems Inc (CVE:FURA) so it can focus on its Caula Vanadium-Graphite Project in Mozambique.

READ: Mustang Resources secures $2.4 million for vanadium graphite project

In the deed, Arena has provided the required approvals for the merger agreement and has agreed to waive the 15% termination fee on amounts not drawn under the agreement.

This gives Mustang the discretion to decide to which extent it wishes to draw on Arena’s $19.95 million in finance, if at all.

Managing director Bernard Olivier said: “Given the company’s renewed focus on the Caula project and the fact that the agreement with Arena was entered into only in January 2018, it is important that Arena has been willing to waive the termination fee.

“This allows Mustang to decide whether or not to continue using this source of funding going forward.”

 

On January 8, 2018, Arena, entered into an agreement with Mustang, committing to invest $19.95 million into the company, under a multi-tranche convertible note facility.

Last month Mustang entered into a merger agreement with Fura Gems for $10 million in Fura shares over three tranches and a $25 million funding commitment from Fura.

$2.5 million in convertible notes held

As at August 1, 2018, Arena held $2.5 million of convertible notes in Mustang, of which $1 million is in tranche I notes issued in January 2018 with an 18-month term and $1.5 million is in Tranche IIA notes issued in July 2018, also with an 18-month term.

At the end of these terms, Mustang has the option to repay these convertible notes in cash or in shares at their election.

Prior to expiry Arena is able to convert its notes to shares at the higher of the floor price of 1.6 cents and 1.8 cents respectively or the lowest preceding 20-day VWAP.

READ: Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project

In July 2018 Mustang announced a maiden vanadium mica-hosted JORC measured resource for Caula of 22 million tonnes at 0.37% V2O5 for 81,600 tonnes of contained vanadium pentoxide.

It also announced a 317% increase in its graphite resource to 21.9 million tonnes at 13.4% total graphitic carbon, for almost 3 million tonnes of contained graphite, all in the measured category.

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Wed, 15 Aug 2018 10:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202903/mustang-resources-given-funding-discretion-after-arena-investors-agrees-to-amendments-202903.html
<![CDATA[News - Mustang Resources secures $2.4 million for vanadium graphite project ]]> https://www.proactiveinvestors.com.au/companies/news/202705/mustang-resources-secures-24-million-for-vanadium-graphite-project-202705.html Mustang Resources Ltd (ASX:MUS) has secured commitments to raise $2.4 million from sophisticated and institutional investors in a placement of shares priced at 1.374 cents.

Funds will be used principally to further develop the company’s Caula Vanadium Graphite Project in Mozambique.

Notably, management and board members subscribed for $258,000 worth of stock.

READ: Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project

Mustang’s managing director Bernard Olivier said: “This capital raise is important in the fast-tracked development of the Caula Vanadium Graphite project in Mozambique where we have recently established a JORC Measured resource of 22 million tonnes at 0.37% vanadium pentoxide and 13.4% total graphitic carbon (TGC) for 180 million pounds of vanadium and 2.93 million tonnes of graphite respectively.

“With the feasibility study drilling now well underway it is likely that the resource will be enlarged in the near future, and this placement plays an important role.

“We will update the market as soon as the drilling and scoping study results are available.”

Fast-tracking Caula

Mustang’s strategy is to produce a scoping study in September 2018 with the aim of advancing to a pre-feasibility study (PFS) by end of December 2018 and definitive feasibility study in the March quarter of 2019.

Mustang is targeting phase I trial mining to produce vanadium and graphite concentrates in the December half of 2019.

Attaching options

Placement shares will come with a 1:2 option exercisable at 2 cents expiring in 24 months from issue.

The options issue is subject to shareholder approval which will be sort at a general meeting expected to be held in late September.

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Mon, 13 Aug 2018 12:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202705/mustang-resources-secures-24-million-for-vanadium-graphite-project-202705.html
<![CDATA[News - Mustang Resources granted trading halt ahead of capital raising news ]]> https://www.proactiveinvestors.com.au/companies/news/202533/mustang-resources-granted-trading-halt-ahead-of-capital-raising-news-202533.html Mustang Resources Ltd (ASX:MUS) has been granted a trading halt by the ASX pending news of a capital raising placement.

The halt will remain in place until the start of trading on Monday, August 13, or until an announcement is released to the market, whichever occurs earliest.

Mustang last traded on Wednesday at 1.5 cents.

READ: Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project

Earlier this week the company announced that it has started a drilling program at its Caula Vanadium-Graphite Project in northern Mozambique.

There are 4,000 metres planned for completion this quarter with results to underpin resource expansion and feasibility studies.

It will also provide additional core samples for metallurgical testing.

Drilling is being undertaken by Major Drilling International and will comprise 3,025 metres of diamond drilling and 1,050 metres of reverse circulation drilling.

 

Caula hosts a vanadium resource of 22 million tonnes at 0.37% for 81,600 tonnes of vanadium pentoxide, with high-grade intersections up to 1.9%.

Within the same deposit is a graphite resource of 21.9 million tonnes at 13.4% for 2.93 million tonnes of graphite, with high-grade intersections up to 29%.

Mustang believes potential exists to define additional vanadium-graphite mineralisation adjacent to the existing resource, as well as over a significantly larger area across the prospect.

A scoping study is underway and scheduled for completion in September while a resource upgrade is expected to be completed in the December quarter.

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Thu, 09 Aug 2018 10:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202533/mustang-resources-granted-trading-halt-ahead-of-capital-raising-news-202533.html
<![CDATA[News - Mustang Resources begins feasibility drilling at Caula Vanadium-Graphite Project ]]> https://www.proactiveinvestors.com.au/companies/news/202432/mustang-resources-begins-feasibility-drilling-at-caula-vanadium-graphite-project-202432.html Mustang Resources Ltd (ASX:MUS) has begun a drilling program at its Caula project in northern Mozambique, with over 4,000 metres planned for completion this quarter.

Results from the program will underpin resource expansion and upcoming feasibility studies, as well as provide additional core samples for metallurgical testing.

Drilling is being undertaken by Major Drilling International Inc and will comprise 3,025 metres of diamond drilling and 1,050 metres of reverse circulation (RC) drilling.

Caula lies along strike from the Balama Graphite Project, owned by Syrah Resources Ltd (ASX:SYR).

 

Managing director Bernard Olivier said: “This drilling program is a significant step forward for Mustang Resources as we expect to see an expansion of the already valuable Caula vanadium and graphite resources.

“Samples from the drilling will be used to conduct further metallurgical test work to validate and confirm the company’s previous test work and reinforce the simplicity of the recovery process.”

Vanadium and graphite resources

Caula hosts a vanadium resource of 22 million tonnes at 0.37% for 81,600 tonnes of vanadium pentoxide, with high-grade intersections up to 1.9%.

Within the same deposit is a graphite resource of 21.9 million tonnes at 13.4% for 2.93 million tonnes of graphite, with high-grade intersections up to 29%.

READ: Mustang Resources shares ride higher after fourfold increase in graphite resource

Drilling will test for both up-dip and down-dip extensions to the Caula deposit, with mineralisation now defined over a 540-metre strike length and up to 230 metres wide.

Clear potential exists to define additional vanadium-graphite mineralisation adjacent to the existing resource, as well as over a significantly larger area across the prospect.

Potential of the larger Caula area based on EM signatures

  Successful test work

Mustang has observed in metallurgical test work that the vanadium in the Caula ore reports to tailings during the graphite flotation process.

Vanadium recovery test work on the flotation tailings demonstrated that a portion of the vanadium can be recovered and concentrated using a wet high intensity magnetic separator (WHIMS).

Test work also showed that additional vanadium can be recovered from WHIMS tailings by a froth flotation procedure, aimed at recovering and concentrating micaceous minerals including roscoelite.

It has also demonstrated strong similarities with Balama mineralisation, which Syrah Resources has shown can be used to produce commercial grade vanadium pentoxide.

Work towards optimising vanadium recovery and concentrate grade is ongoing.

A scoping study at Caula is underway and scheduled for completion in September.

Resource upgrades and results of the feasibility studies are anticipated to be complete in quarter four of 2018 and the first quarter of 2019, respectively.

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Tue, 07 Aug 2018 23:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202432/mustang-resources-begins-feasibility-drilling-at-caula-vanadium-graphite-project-202432.html
<![CDATA[News - Mustang Resources enters trading halt ahead of an update ]]> https://www.proactiveinvestors.com.au/companies/news/201789/mustang-resources-enters-trading-halt-ahead-of-an-update-201789.html Mustang Resources Ltd (ASX:MUS) has been granted a trading halt by the ASX pending information regarding clarification of a published report.

The securities will remain in a trading halt until the earlier of the start of normal trading on Wednesday, 1 August 2018 or when the clarification is released to the market.

READ: Mustang Resources shares ride higher after fourfold increase in graphite resource

Mustang recently achieved a key milestone towards development of its Caula Vanadium-Graphite Project in Mozambique with the completion of an upgraded graphite resource.

The resource, which is all in the measured category, is 21.9 million tonnes at 13.4% total graphitic carbon (TGC) (8% cut-off) for a total of 2,933,100 tonnes of contained graphite.

Importantly, the upgraded resource represents a 317% increase in size from 702,600 tonnes of contained graphite to 2,933,100 tonnes of contained graphite.

  ]]>
Mon, 30 Jul 2018 15:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201789/mustang-resources-enters-trading-halt-ahead-of-an-update-201789.html
<![CDATA[Media files - Mustang Resources shifts focus to graphite and vanadium ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9958/mustang-resources-shifts-focus-to-graphite-and-vanadium-9958.html Thu, 26 Jul 2018 16:40:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9958/mustang-resources-shifts-focus-to-graphite-and-vanadium-9958.html <![CDATA[News - Mustang Resources shares ride higher after fourfold increase in graphite resource ]]> https://www.proactiveinvestors.com.au/companies/news/201385/mustang-resources-shares-ride-higher-after-fourfold-increase-in-graphite-resource-201385.html Mustang Resources Ltd (ASX:MUS) has taken another key step towards development with the completion of an upgraded graphite resource for its Caula Vanadium-Graphite Project in Mozambique.

The resource, which is all in the measured category, is 21.9 million tonnes at 13.4% total graphitic carbon (TGC) (8% cut-off) for a total of 2,933,100 tonnes of contained graphite.

Importantly, the upgraded resource represents a 317% increase in size from 702,600 tonnes of contained graphite to 2,933,100 tonnes of contained graphite.

Mustang’s metalurgical testwork has confirmed exceptional quality graphite with more than 63% of cumulative proportion in large to super jumbo flakes sizes and excellent concentrate grades of more than 97% TGC.

Mustang managing director Dr Bernard Olivier said: “This is an exceptional result, Caula’s Graphite mineral resource has not only increased over 300% but the entire resource is now in the measured category.

“The combination of the upgraded graphite mineral resource and our recently announced maiden vanadium mineral resource now paves the way for the fast-tracked development of the Caula project into production.”

READ: Mustang Resources shares rise after revealing maiden vanadium resource in Mozambique

Last week, Mustang revealed a maiden JORC resource of 22 million tonnes at 0.37% vanadium pentoxide (V2O5) for the Caula Vanadium-Graphite Project.

The project is located within a world-class graphite province and there is significant potential to expand the graphite and vanadium resource through ongoing exploration and drilling.

In the immediate vicinity of the Caula discovery, graphite mineralisation has now been defined over a 540-metre strike length.

This mineralisation is up to 230 metres wide and the depth is completely open-ended at the limit of the current drilling.

A new program of diamond and reverse circulation drilling has been planned to test for both up-dip and down-dip extensions to the Caula deposit in this area.

READ: Mustang Resources to merge ruby assets with Canadian-listed Fura Gems

Following the merger of its ruby interests with Fura Gems Inc (CVE:FURA), Mustang is now ideally positioned to become a leading vanadium and graphite company.

Mustang’s scoping study for the Caula Vanadium-Graphite Project is due in Q3 2018.

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Tue, 24 Jul 2018 11:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201385/mustang-resources-shares-ride-higher-after-fourfold-increase-in-graphite-resource-201385.html
<![CDATA[News - Mustang Resources shares rise after revealing maiden vanadium resource in Mozambique ]]> https://www.proactiveinvestors.com.au/companies/news/201189/mustang-resources-shares-rise-after-revealing-maiden-vanadium-resource-in-mozambique-201189.html Mustang Resources Ltd (ASX:MUS) has revealed a maiden JORC resource of 22 million tonnes at 0.37% vanadium pentoxide (V2O5) for its Caula Vanadium-Graphite Project in Mozambique.

It is worth noting that this is in addition to Caula’s graphite resource of 5 million tonnes at 13% TGC (total graphitic content).

Mustang managing director Dr. Bernard Olivier said the combination of the vanadium and graphite resources shows Caula is rapidly emerging as a highly valuable project.

READ: Mustang Resources reveals further strong vanadium and graphite assays from Caula

Olivier added: “This is an exceptional result, with over 81,000 tonnes contained V2O5, particularly given that the entire JORC resource is in the measured category.

“With vanadium pentoxide prices running at more than US$40,000 per tonne (98% V2O5), the Caula resource translates to a highly valuable resource.

“Furthermore, the potential of the project is even greater as our vanadium is mica-hosted and associated with the graphite mineralisation and potentially far cheaper to extract and recover through two simple processing steps, compared with most vanadium projects, where the vanadium is located in a complex titaniferous magnetite ore body.”

The Caula Project is located within a world-class graphite province and there is significant potential to expand the maiden vanadium resource through ongoing exploration and drilling.

In the immediate vicinity of the Caula discovery, graphite mineralisation has now been defined over a 540-metre strike length.

This mineralisation is up to 230 metres wide and the depth is completely open-ended at the limit of the current drilling.

A new program of diamond and reverse circulation drilling has been planned to test for both up-dip and down-dip extensions to the Caula deposit in this area.

READ: Mustang Resources to merge ruby assets with Canadian-listed Fura Gems

Following the merger of its ruby interests with Fura Gems Inc (CVE:FURA), Mustang is now ideally positioned to become a leading vanadium and graphite company.

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Fri, 20 Jul 2018 11:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201189/mustang-resources-shares-rise-after-revealing-maiden-vanadium-resource-in-mozambique-201189.html
<![CDATA[News - Mustang Resources to merge ruby assets with Canadian-listed Fura Gems ]]> https://www.proactiveinvestors.com.au/companies/news/200894/mustang-resources-to-merge-ruby-assets-with-canadian-listed-fura-gems-200894.html Mustang Resources Ltd (ASX:MUS) has agreed to merge all of its ruby interests with Fura Gems Inc (CVE:FURA) for $10 million in Fura shares.

The shares will be issued in three tranches over 20 months and give Mustang about an 8% stake in Fura.

The merger will see the Montepuez Ruby Project in Mozambique managed by a specialist gem company in Fura enabling Mustang to solely focus on its Caula graphite-vanadium project.

Positioning to realise maximum value from both assets

Mustang’s managing director Dr Bernard Olivier said: “Both Montepuez and Caula are outstanding assets in their own rights with substantial growth prospects.

“But the reality is that they don’t sit together comfortably in a publicly-listed company, where investors tend to have an interest in one or the other of these very different businesses.

“In simple terms, this merger will benefit Mustang shareholders by giving them ongoing exposure to the ruby assets and Fura’s other ruby and gemstone assets via the shares in Fura."

Fura led by former Gemfields COO

Fura is led by former Gemfields chief operating officer Dev Shetty with interests in the Montepuez gem-field and the legendary Conscuez emerald mine in Colombia.

Olivier added: “At the same time, the ruby assets will be managed by some of the world’s leading gem mining and marketing specialists, whose company has committed to spending A$25 million on their exploration and resource definition work program.

“Fura will also bring the critical mass required to compete with established players in the ruby market."

Maiden vanadium JORC resource expected in coming days

Olivier added: “The transaction will allow Mustang to focus solely on exploring and developing its Caula graphite-vanadium project, which continues to go from strength to strength on the back of strong drilling and metallurgical results.

“We are anticipating being able to announce our maiden vanadium JORC resource and significantly improved graphite JORC resource within the coming days.”

READ: Mustang Resources reveals further strong vanadium and graphite assays from Caula

Closing of the transaction is subject to satisfaction of customary conditions precedent on or before 30 November 2018, including Mozambican government approval.

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Tue, 17 Jul 2018 10:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200894/mustang-resources-to-merge-ruby-assets-with-canadian-listed-fura-gems-200894.html
<![CDATA[News - Mustang Resources enters trading halt pending asset merger ]]> https://www.proactiveinvestors.com.au/companies/news/200802/mustang-resources-enters-trading-halt-pending-asset-merger-200802.html Mustang Resources Ltd (ASX:MUS) has been granted a trading halt by the ASX this morning pending further details regarding an asset merger transaction.

Shares in the company will remain halted until the earlier of either the release of relevant information regarding the asset merger, or, the commencement of trading on Wednesday.

READ: Mustang Resources reveals further strong vanadium and graphite assays from Caula

Mustang is focused on two projects in the northern region of Mozambique in East Africa.

They are the revenue-generating Montepuez Ruby Project and the high-grade Caula Graphite Vanadium Project.

Mustang is targeting first phase production of vanadium and graphite from its Caula project in Mozambique in the first half of 2019.

This makes Mustang one of the closest vanadium-graphite developers to achieving actual cash flows.

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Mon, 16 Jul 2018 11:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200802/mustang-resources-enters-trading-halt-pending-asset-merger-200802.html
<![CDATA[News - Mustang Resources reveals further strong vanadium and graphite assays from Caula ]]> https://www.proactiveinvestors.com.au/companies/news/199628/mustang-resources-reveals-further-strong-vanadium-and-graphite-assays-from-caula-199628.html Mustang Resources Ltd (ASX:MUS) has received further strong assay results from drilling at its Caula Graphite-Vanadium Project in Mozambique.

The assays come from the final seven holes drilled as part of the Caula Scoping Study, which is scheduled for completion in the coming quarter.

The latest results contain exceptional assays of up to 1.9% vanadium and 28.9% total graphitic carbon (TGC), as well as confirming the presence of elevated mineralisation around the anticlinal hinge.

High grade graphitic schist

The results also provide an important insight into the structure and controls of the vanadium-graphite mineralisation at Caula.

Mustang managing director Dr Bernard Olivier said: “These latest assays provide more strong evidence that Caula hosts extensive high-grade graphite mineralisation as well as highly promising vanadium mineralisation.

“The results further highlight the potential for Caula to be a world-class, low-cost graphite and vanadium supplier to the fast-growing battery industry.”

READ: Mustang Resources test work reveals more value at graphite-vanadium deposit

The Caula Project is located along strike from Syrah Resources’ (ASX:SYR) Balama graphite project in Mozambique.

The new results will now be incorporated into the maiden vanadium resource and upgraded graphite resource which are scheduled for release in the coming quarter

Mustang recently received metallurgical test work results further validating Caula as a top global graphite project with regards to flake size distribution and quality.

The shallow deposit is unique given its high grades of 13% TGC and that it has vanadium in the same ore.

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Wed, 27 Jun 2018 12:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199628/mustang-resources-reveals-further-strong-vanadium-and-graphite-assays-from-caula-199628.html
<![CDATA[News - Mustang Resources test work reveals more value at graphite-vanadium deposit ]]> https://www.proactiveinvestors.com.au/companies/news/199444/mustang-resources-test-work-reveals-more-value-at-graphite-vanadium-deposit-199444.html Mustang Resources Ltd (ASX:MUS) has received metallurgical test work results further highlighting the value of its Caula graphite-vanadium project in Mozambique.

The results position Caula as a top global graphite project with regards to flake size distribution and quality.

Furthermore, the shallow deposit is unique given its high grades of 13% total graphitic carbon (TGC) and that is has vanadium in the same ore.

READ: Mustang Resources’ vanadium-graphite project on track for production by mid-2019

Mustang’s managing director Dr Bernard Olivier said: “These metallurgical results are outstanding and provide further evidence of the exceptional quality of the graphite at Caula.

“We managed to achieve an extraordinary 27% increase in the cumulative proportion of large to super jumbo flakes (>180µm) while maintaining our exceptional concentrate grade of 97%.

“The large to super jumbo flake-sizes in the fresh zone increased from 55% to 68% while the cumulative oxide zone increased from 44% to 60%.”

Upgraded flow sheet yields results

The processing flow sheet has been updated in the latest test work to result in a significant increase in flake size and a significant reduction in reagent costs.

The new reagent scheme will cost less than half that used in the test work completed late last year, which adds further value to the project.

The cumulative proportion of large to super jumbo flakes increased from 44% to 60% for the combined Oxide zone and the Fresh zone increased from 55% to 68%.

Importantly, high concentrate grades of more than 97% TGC have been maintained in the modified flow sheet.

READ: Mustang Resources test work shows benefits to Caula graphite from ore sorting

Earlier this month, Mustang received positive results from preliminary ore sorting test work conducted on drill core from Caula.

Test work demonstrated that the Caula ore is highly amenable to sensor-based ore sorting.

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Mon, 25 Jun 2018 12:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199444/mustang-resources-test-work-reveals-more-value-at-graphite-vanadium-deposit-199444.html
<![CDATA[News - Mustang Resources test work shows benefits to Caula graphite from ore sorting ]]> https://www.proactiveinvestors.com.au/companies/news/198657/mustang-resources-test-work-shows-benefits-to-caula-graphite-from-ore-sorting-198657.html Mustang Resources Ltd (ASX:MUS) has received positive results from preliminary ore sorting test work conducted on drill core from its Caula Graphite-Vanadium Project in Mozambique.

Test work demonstrated that the Caula ore is highly amenable to sensor-based ore sorting.

Results showed that an ore sample with no visible waste could be split into high-grade and low-grade streams.

Importantly, the results demonstrate the potential to increase production rates without increasing the plant size and to reduce operating costs

Applicable to full-scale mining

The tests found that in a full-scale mining operation, electromagnetic sorting would efficiently reject barren waste with minimal loss of graphite or vanadium values.

Testing also showed that a moderate-grade ore sample with no visible waste could be successfully split into high-grade and low-grade fractions.

In conclusion, ore sorting has the potential to upgrade graphite and vanadium grades at Caula.

Two ore sorting methods tested

Both x-ray transmission (XRT) and electromagnetic (EM) sorting were evaluated.

The EM sorting achieved greater levels of separation of graphite and vanadium values than the XRT sorting.

Ore sorting specialist TOMRA recommends a larger-scale formal test work program based on these strong results.

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Tue, 12 Jun 2018 14:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198657/mustang-resources-test-work-shows-benefits-to-caula-graphite-from-ore-sorting-198657.html
<![CDATA[News - Mustang Resources’ vanadium-graphite project on track for production by mid-2019 ]]> https://www.proactiveinvestors.com.au/companies/news/197969/mustang-resources-vanadium-graphite-project-on-track-for-production-by-mid-2019-197969.html Mustang Resources Ltd’s (ASX:MUS) strategy to develop the Caula Vanadium-Graphite Project in Mozambique is on track with the appointment of Bara International to undertake the scoping study.

Bara is an engineering consultancy based in Johannesburg, South Africa with extensive experience in African graphite and vanadium.

Mustang managing director Dr. Bernard Olivier said: “This appointment is another key step in our strategy to be in production at Caula by the middle of next year.

“We have multiple workstreams underway to deliver a maiden vanadium JORC Resource and an upgraded graphite resource along with metallurgical testing for an integrated vanadium and graphite processing flowsheet.

“We are also awaiting the results of ore-sorting testwork in Australia.”

READ: Mustang Resources one of closest vanadium-graphite developers to achieving cash flows

The scoping study expected to be completed by end-July 2018, putting the project on track for production and cashflow by mid-2019

Key impending results and milestones for Caula include:

• Imminent return of all graphite and vanadium assays from the 2017 scoping study drilling campaign; 

• Initial graphite and vanadium ore-sorting and ore upgrade results – expected early June 2018;

• Additional metallurgical test work on graphite and first vanadium metallurgical results – expected in June 2018;

• Maiden JORC compliant vanadium resource based on the combined 2016 and 2017 scoping study drilling results – expected by end-June 2018;

• Updated graphite resource estimate – expected by end June 2018;

• Completion of the geological resource model and conceptual mine design for an integrated vanadium and graphite processing plant – expected July 2018; and

• Commencement of definitive feasibility study (DFS) work program.

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Thu, 31 May 2018 11:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197969/mustang-resources-vanadium-graphite-project-on-track-for-production-by-mid-2019-197969.html
<![CDATA[News - Mustang Resources exports rubies to Thailand office to be sold ]]> https://www.proactiveinvestors.com.au/companies/news/197589/mustang-resources-exports-rubies-to-thailand-office-to-be-sold-197589.html Mustang Resources Ltd (ASX:MUS) is exporting a further 34,400 carats of medium and higher grade rubies to its sales office in Thailand.

The rubies were recovered as part of Mustang’s bulk sampling operations at its Montepuez Ruby Project in Mozambique from January to May 2018.

In April 2018, Mustang made its first sale of rubies from its newly established sales and marketing office in Thailand.

READ: Mustang Resources makes first ruby sale from new Thailand office

Notably, the newly discovered Block B at Montepuez delivered 10,238 carats from the processing of 22,180 tonnes at a grade of 46 carats per hundred tonnes since April
2018.

Establishing a maiden JORC Resource at Montepuez

Mustang has appointed independent consultants to commence geological and resource modelling based on the comprehensive exploration and bulk sampling to date.

The work aims to establish a maiden JORC resource for the Montepuez Ruby project in the December quarter of 2018.

Mustang has been increasing its exploration and pitting activities to provide additional data for the modelling and to define new potential resource areas.

READ: Mustang Resources developing ruby and graphite-vanadium projects in Mozambique

Mustang’s managing director Dr Bernard Olivier said: “We are pleased to report continuing progress on the development of the Montepuez Ruby Project.

“Our revised exploration and development strategy is now well on track.

“We look forward to completing the maiden JORC resource and economic viability work later this year which, along with the planned plant capacity increase, we hope will pave the way for commercial-scale production operations to start in the first half of next year.”

Support received from Thai Department of Commerce

A delegation from Thai Deparment of Commerce has inspected the project in Mozambique and given their full support to Mustang and future auctions in Thailand.

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Thu, 24 May 2018 10:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197589/mustang-resources-exports-rubies-to-thailand-office-to-be-sold-197589.html
<![CDATA[News - Mustang Resources amends funding drawdown terms ]]> https://www.proactiveinvestors.com.au/companies/news/197490/mustang-resources-amends-funding-drawdown-terms-197490.html Mustang Resources Ltd (ASX:MUS) has agreed to amend the terms of the $19.95 million investment facility from US-based Arena Investors LP.

In January 2018, Mustang secured the funding through an unsecured convertible note facility, which could be drawn down in seven tranches.

READ: Mustang Resources attracts $19.95 million funding for ruby, graphite projects

The amended terms will see Mustang split its second tranche drawdown into two parts, thereby reducing the amount of the drawdown from $3.8 million to $1.995 million.

Mustang’s managing director Dr. Bernard Olivier said: “The continued strong support from Arena, a major global institutional investor managing in excess of US$750 million, is testimony to the quality of Mustang’s Montepuez Ruby and Caula Vanadium-Graphite projects.

"The reduction in the original Tranche II quantum to be drawn end of May 2018 will result in less potential equity dilution for existing shareholders, but does not adversely affect the funding of the company’s planned project activities in June and July 2018.”

READ: Mustang Resources places rights issue shortfall to secure additional funding

Mustang is focused on two projects in the northern region of Mozambique in East Africa.

They are the revenue-generating Montepuez Ruby Project and the high-grade Caula Graphite Vanadium Project.

Mustang is targeting first phase production of vanadium and graphite from its Caula project in Mozambique in the first half of 2019.

This makes Mustang one of the closest vanadium-graphite developers to achieving actual cash flows.

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Wed, 23 May 2018 08:33:00 +1000 https://www.proactiveinvestors.com.au/companies/news/197490/mustang-resources-amends-funding-drawdown-terms-197490.html
<![CDATA[News - Mustang Resources places rights issue shortfall to secure additional funding ]]> https://www.proactiveinvestors.com.au/companies/news/196865/mustang-resources-places-rights-issue-shortfall-to-secure-additional-funding-196865.html Mustang Resources Ltd (ASX:MUS) has placed 21.74 million shortfall shares priced at 2.3 cents to raise $0.5 million in additional funding.

During March, Mustang secured $2.45 million in funding through a rights issue.

Shareholders subscribed for 106.8 million shares priced at 2.3 cents.

READ: Mustang Resources secures $2.45 million from rights issue, multiple catalysts upcoming

As well as developing the Montepuez Ruby Project in Mozambique, funding will also be used to fast-track the Caula Graphite and Vanadium Project also in Mozambique.

READ: Mustang Resources one of closest vanadium-graphite developers to achieving cash flows

Mustang is targeting first phase production of vanadium and graphite from its Caula project in Mozambique in the first half of 2019.

This makes Mustang one of the closest vanadium-graphite developers to achieving actual cash flows.

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Mon, 14 May 2018 10:47:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196865/mustang-resources-places-rights-issue-shortfall-to-secure-additional-funding-196865.html
<![CDATA[News - Mustang Resources one of closest vanadium-graphite developers to achieving cash flows ]]> https://www.proactiveinvestors.com.au/companies/news/196101/mustang-resources-one-of-closest-vanadium-graphite-developers-to-achieving-cash-flows-196101.html Mustang Resources Ltd (ASX:MUS) is targeting first phase production of vanadium and graphite from its Caula project in Mozambique in the first half of 2019.

This makes Mustang one of the closest vanadium-graphite developers to achieving actual cash flows.

What’s more, the economic outlook of the project continues to improve as new drilling results have confirmed near-surface vanadium intersections together with high-grade and quality graphite.

Cheaper to process

The vanadium mineralisation is found in a mica material, which is cheaper to process than magnetite-type deposits.

Managing director Dr Bernard Oliver said: “The outlook for Caula continues to go from strength to strength with every step of the scoping study.

“Caula was already emerging as an outstanding graphite project with both high grades up to 26% TGC and in excess of 55% large to super jumbo flakes.

 

“The combination of high-grade vanadium and extremely attractive graphite metallurgical results with significant intersections and grades obtained close to surface, highlight the potential for low operating costs.

“This is based on the production of two commodities which are enjoying robust prices and strong growth prospects."

READ: Mustang Resources developing ruby and graphite-vanadium projects in Mozambique

Latest results from drilling of Fence Line 3 are considered important because they have revealed significant widths and grades with many intersections close to the surface.

Four holes were drilled close to five previous holes from which the 2017 inferred mineral resource of 5.4 million tonnes at 13% total graphitic carbon (TGC) for 702,600 tonnes of contained graphite was derived.

Best result was 6 metres at 0.41% vanadium pentoxide (V2O5) and 19.8% TGC, including 74 metres downhole at 1.02% V2O5 and 96 metres downhole at 24.2% TGC.

Other results include 22 metres at 0.31% V2O5 and 16.2% TGC from 17 metres; 14 metres at 0.36% V2O5 and 16.7% TGC from 17 metres; and 6 metres at 0.31% V2O5 and 17% TGC along with 8 metres at 0.4% V2O5 and 14.2% TGC average.

Drill holes from Fence Line 3 at Caula.

Vanadium resource estimate

Following initial work on Caula’s graphite, laboratory analysis also tested for V2O5, which led to the discovery of high-grade vanadium mineralisation within the ore.

In light of the results, Mustang expects to complete a maiden JORC-compliant vanadium resource in coming weeks followed by feasibility studies.

It aims to undertake a fast-track development to stage I vanadium and graphite cashflow from trial mining in the first half of 2019.

READ: Mustang Resources directors buy $128,000 worth of shares

The vanadium mineralisation is found within a roscoelite mica and has a strong correlation with the high-grade graphite.

Vanadium-bearing micas such as these are typically liberated using less energy and fewer processing steps than magnetite-vanadium deposits found in the South African Bushveld complex and Western Australia.

This creates the potential for higher V2O5 concentrate grades and lower overall operating costs.

A scoping study examining the merits of a full commercial-scale graphite and vanadium operation is expected to be completed by the end of this quarter.

Conditional on a positive outcome, a definitive feasibility study will then be undertaken to serve as a basis for project development and financing.

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Tue, 01 May 2018 12:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196101/mustang-resources-one-of-closest-vanadium-graphite-developers-to-achieving-cash-flows-196101.html
<![CDATA[News - Mustang Resources discovers new ruby deposit in Mozambique ]]> https://www.proactiveinvestors.com.au/companies/news/195098/mustang-resources-discovers-new-ruby-deposit-in-mozambique-195098.html Mustang Resources Ltd (ASX:MUS) has discovered a new ruby-bearing gravel deposit just 3.5 kilometres from its processing plant at the Montepuez Ruby Project in Mozambique.

The company plans to add this discovery to its bulk sampling activities at Montepuez which produced 29,069.1 carats during the March 2018 quarter.

The rain season is now ending in Mozambique and bulk sampling activities are in the process of recommencing, which will include the new Block D discovery.

READ: Mustang Resources makes first ruby sale from new Thailand office

Mustang’s managing director Dr Bernard Olivier said: “The discovery of the Block D ruby-bearing gravels and the success of our ongoing exploration activities continue to show the significant prospectivity of the Montepuez Ruby Project.

“When combined with the recent initial success of our newly-implemented sales and marketing strategy, we are confident that we can continue to steadily build value around this high-quality asset – which is strategically located in the heart of the Montepuez gem-field, currently the world’s leading supply source of rubies.”

Most recently, Mustang sold $230,953 worth of rubies through its newly established sales and marketing office in Thailand during March.

A total of 329,309 carats of rubies were in Mustang’s available-for-sale inventory as at 10 April 2018.

June quarter expected to improve on March quarter

During the March quarter, a total of 29,069.1 carats were recovered from the processing of 68,107 tonnes of material at Montepuez.

This resulted in an average grade for the quarter of 0.42 carats per tonne processed.

With heavy rains subsiding, the June quarter is expected to see an increase in production.

Block D is not the only positive from exploration

The discovery was made during an extensive exploration and test pitting campaign undertaken at Montepuez during the March 2018 quarter.

This resulted in the development of 196 test pits during the period.

The discovery at Block D is 3.5 kilometres to the south-west of the company’s 200 tonnes per hour processing plant.

Furthermore, ruby bearing gravels have been confirmed in Block A, B and C, confirming the extension of ruby mineralisation extending from the LM bulk sampling pits.

Rubies recently reintroduced to Tiffany & Co collections

As Mustang advances its sales and marketing operations through its newly opened office in Thailand, ruby jewellery continues to be prominent.

For example, recently Tiffany & Co in Australia were promoting “New Reasons to Love Rubies”.

Notably, new ruby designs are being promoted after being recently reintroduced to several Tiffany collections.

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Tue, 17 Apr 2018 11:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195098/mustang-resources-discovers-new-ruby-deposit-in-mozambique-195098.html
<![CDATA[News - Mustang Resources makes first ruby sale from new Thailand office ]]> https://www.proactiveinvestors.com.au/companies/news/194692/mustang-resources-makes-first-ruby-sale-from-new-thailand-office-194692.html Mustang Resources Ltd (ASX:MUS) has sold $230,953 worth of rubies through its newly established sales and marketing office in Thailand during March.

The sale is a positive start for the new Thailand office which was opened last month as a result of a strategic review.

Rubies being sold are from exploration activities at the Montepuez Ruby Project in Mozambique.

READ: Mustang Resources aligns ruby sales strategy with production, improving cashflow

The March sale saw 18,288 carats of mostly lower and medium quality rubies sold at an average price of $12.67 per carat.

Total sales of $1.23 million have now been achieved since September 2017 through the sale of 100,184 carats at an average price of $12.29 per carat.

Rubies on hand for sale stands at 329,309 carats.

Shares are up as much as 13% to 2.7 cents.

Interest received from well-known international jewellery brands

Market development is progressing well with Mustang’s sales and marketing team selecting and developing long-term sales relationships with preferred buyers.

Notably, significant interest received from well-known international jewellery brands and buyers who seek sustainable and responsibly produced rubies with full supply chain assurance.

Montepuez is only at the exploration stage

The rubies being retrieved from Montepuez are part of a bulk sampling exercise meaning operations have good potential to ramp up over time.

Importantly, any further scale-up in future mining at Montepuez has good potential to flow through to increased sales.

READ: Mustang Resources developing ruby and graphite-vanadium projects in Mozambique

The Montepuez Ruby Project is adjacent to the world’s largest ruby deposit discovered in 2009 and currently mined by Gemfields plc (LON:GEM).

Since the start of project development in early 2016, Mustang’s team has made significant progress in exploration, bulk sampling and ruby recovery.

Mustang has two bulk sampling processing plants on site, capable of processing 200 tonnes of material per hour.

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Wed, 11 Apr 2018 12:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194692/mustang-resources-makes-first-ruby-sale-from-new-thailand-office-194692.html
<![CDATA[News - Mustang Resources developing ruby and graphite-vanadium projects in Mozambique ]]> https://www.proactiveinvestors.com.au/companies/news/194105/mustang-resources-developing-ruby-and-graphite-vanadium-projects-in-mozambique-194105.html Mustang Resources Ltd (ASX:MUS) is focused on two projects in the northern region of Mozambique in East Africa.

They are the revenue-generating Montepuez Ruby Project and the high-grade Caula Graphite Vanadium Project.

The two projects are near each other and share a tenement boundary meaning they share camp, infrastructure and certain key personnel.

Next to the world’s largest ruby deposit

The Montepuez Ruby Project is adjacent to the world’s largest ruby deposit discovered in 2009 and currently mined by Gemfields plc (LON:GEM).

Since the start of project development in early 2016, Mustang’s team has made significant progress in exploration, bulk sampling and ruby recovery.

Mustang has two bulk sampling processing plants onsite, capable of processing 200 tonnes of material per hour.

Shallow low-cost mining

Mustang’s bulk sample mining is currently concentrated in an area in the south-eastern part of its concessions, where gem-rich gravels can be found at the depth of less than one meter.

Operations at such shallow depth are inexpensive, as little overburden removal is required.

Ruby inventory stands at over 330,000 carats

During exploration efforts in late 2017 and early 2018, 69 sampling pits were developed, and 14,502 tonnes of material extracted for bulk sampling.

As of the end of January 2018, Mustang’s gem quality ruby inventory stood at 302,028 carats.

In early March 2018 this had climbed to 333,184 carats.

Sales and marketing strategy for rubies

In March 2018, after a strategic review, Mustang elected to close its sales facilities in Mauritius to establish a sales and marketing office in Chanthaburi, Thailand.

This measured approach to marketing is intended to generate regular cashflow as it continues to pursue exploration and bulk sampling activities.

READ: Mustang Resources aligns ruby sales strategy with production, improving cashflow

Thailand is considered the world-leader in trading and beneficiation of coloured gemstones, especially rubies and sapphires.

Fast-tracking Caula Graphite Vanadium Project

During March 2018, Mustang concluded from a strategic review that its Caula Graphite Vanadium Project in Mozambique could achieve first production by mid-2019.

The review’s key recommendation was to establish trial mining and processing operations for completion during the June quarter of 2019.

Mustang’s board of directors has accepted the recommendation.

Mustang considers that trial mining and processing operations at Caula could produce both graphite and vanadium concentrates.

The trial mining development strategy is based on a robust, low-cost mining operation and construction of a processing plant capable of handling 100,000 tonnes per annum of ore.

Scoping study to consider full-scale mining and processing operation

The strategic review does not form part of the formal scoping study, which is set for completion in the June 2018 quarter.

The scoping study will consider the merits of a full commercial-scale graphite and vanadium operation.

Conditional on a positive outcome of the scoping study, a definitive feasibility study (DFS) will be undertaken to serve as a basis for project development and financing.

READ: Mustang Resources drill result shows large potential for Caula vanadium graphite project

A hole drilled 7.5 kilometres from previously drilled mineralisation at the Caula Graphite Vanadium project hit high-grade graphite and vanadium.

Importantly, assays from the diamond drill hole showed grades of up to 23.7% total graphitic carbon (TGC) and 0.68% vanadium.

Intersecting this mineralisation 7.5 kilometres from the main Caula mineralisation further establishes this graphite and vanadium project as world-class.

Mozambique is pro-mining

Mozambique is a pro-mining and foreign investment jurisdiction.

As at October 2015, the World Bank portfolio had an overall net commitment of US $ 1.5 billion distributed across all major sectors.

Notably, Mustang’s experienced team has a track record in developing profitable projects in Mozambique and greater Africa.

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Tue, 03 Apr 2018 15:15:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194105/mustang-resources-developing-ruby-and-graphite-vanadium-projects-in-mozambique-194105.html
<![CDATA[News - Mustang Resources directors buy $128,000 worth of shares ]]> https://www.proactiveinvestors.com.au/companies/news/194099/mustang-resources-directors-buy-128000-worth-of-shares-194099.html Mustang Resources Ltd (ASX:MUS) has had two more key members of its board and management buy shares in the company.

Christiaan Jordaan and Cobus van Wyk have interests in Regius Resources Group Ltd which subscribed for $128,000 worth of shares in the recent rights issue.

Jordaan is a non-executive director of Mustang's board while van Wyk is the company’s chief operating officer and director of the board.

Regius Resources is a major shareholder in Mustang now with a 7.43% interest.

Mustang’s chairman also participated in the rights issue

Mustang’s chairman Ian Daymond also acquired 500,000 shares as part of the rights issue.

The share purchases were a result of the recent rights issue in which the company secured $2.45 million.

WATCH: Mustang Resources funded and fast tracking graphite and vanadium projects

Funding will go towards the company’s two flagship projects, the Montepuez Ruby Project and Caula Graphite and Vanadium Project, both in Mozambique.

Mustang recently concluded from a strategic review that its Caula Graphite Vanadium Project in Mozambique could achieve first production by mid-2019.

The review’s key recommendation was to establish trial mining and processing operations for completion during the June quarter of 2019, which the board accepted.

READ: Mustang Resources secures $2.45 million from rights issue, multiple catalysts upcoming

While the recent rights issue secured $2.45 million, an additional $1.97 million can be raised through the placement of shortfall shares.

Should all the shortfall be placed, the total funds raised will total $4.4 million.

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Tue, 03 Apr 2018 11:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194099/mustang-resources-directors-buy-128000-worth-of-shares-194099.html
<![CDATA[News - Mustang Resources chairman increases stake through share purchases ]]> https://www.proactiveinvestors.com.au/companies/news/193997/mustang-resources-chairman-increases-stake-through-share-purchases-193997.html Mustang Resources Ltd (ASX:MUS) has received a vote of confidence from its chairman Ian Daymond who has acquired 500,000 shares.

The share purchases were a result of the recent rights issue in which the company secured $2.45 million.

WATCH: Mustang Resources funded and fast tracking graphite and vanadium projects

Funding will go towards the company’s two flagship projects, the Montepuez Ruby Project and Caula Graphite and Vanadium Project, both in Mozambique.

Mustang recently concluded from a strategic review that its Caula Graphite Vanadium Project in Mozambique could achieve first production by mid-2019.

The review’s key recommendation was to establish trial mining and processing operations for completion during the June quarter of 2019, which the board accepted.

READ: Mustang Resources secures $2.45 million from rights issue, multiple catalysts upcoming

While the recent rights issue secured $2.45 million, an additional $1.97 million can be raised through the placement of shortfall shares.

Should all the shortfall be placed, the total funds raised will total $4.4 million.

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Thu, 29 Mar 2018 15:50:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193997/mustang-resources-chairman-increases-stake-through-share-purchases-193997.html
<![CDATA[Media files - Mustang Resources funded and fast tracking graphite and vanadium projects ]]> https://www.proactiveinvestors.com.au/companies/stocktube/8965/mustang-resources-funded-and-fast-tracking-graphite-and-vanadium-projects-8965.html Wed, 28 Mar 2018 08:41:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/8965/mustang-resources-funded-and-fast-tracking-graphite-and-vanadium-projects-8965.html <![CDATA[News - Mustang Resources secures $2.45 million from rights issue, multiple catalysts upcoming ]]> https://www.proactiveinvestors.com.au/companies/news/193838/mustang-resources-secures-245-million-from-rights-issue-multiple-catalysts-upcoming-193838.html Mustang Resources Ltd (ASX:MUS) has received strong shareholder support in its recently closed rights issue which has secured $2.45 million in funding.

Shareholders subscribed for 106.8 million shares priced at 2.3 cents.

As well as developing the Montepuez Ruby Project in Mozambique, funding will also be used to fast-track the Caula Graphite and Vanadium Project also in Mozambique.

READ: Mustang Resources drill result shows large potential for Caula vanadium graphite project

Mustang’s managing director Dr Bernard Olivier said: “The company and its management team is highly encouraged by the strong support shown by our shareholders in the entitlement offer and we are confident in placing the shortfall quickly.

“Exploration and development work is currently underway on both our projects with multiple catalysts and milestones in the coming months.”

The shortfall from the rights issue is 86 million shares representing $1.97 million, and can be placed over the coming three months.

Should the shortfall be placed, the total funds raised will be $4.4 million.

Ruby market is strengthening

Mustang produces gemstones from its Montezpuez Ruby Project in Mozambique and the company’s ruby inventory recently totalled 333,184 carats.

After a recent review, Mustang decided to close its sales facilities in Mauritius to establish a sales and marketing office in Chanthaburi, Thailand.

Olivier added: “In the near term, we will continue exploration and market development work on our Montepuez Ruby Project with test sales through our Thailand office in step with fieldwork and bulk sampling.

“We are encouraged by the continued growth of the ruby market and Mustang’s enviable position as the only publicly listed revenue-generating ruby supplier and believe that there is substantial value to be realised for our shareholders.”

A fast-tracked strategy at Caula can deliver cash flow from mid-2019

Mustang recently concluded from a strategic review that its Caula Graphite Vanadium Project in Mozambique could achieve first production by mid-2019.

The review’s key recommendation was to establish trial mining and processing operations for completion during the June quarter of 2019, which the board accepted.

Olivier added: “Furthermore, recent drill results on the Caula Graphite and Vanadium project have prompted the board to approve its fast-tracked development with first revenues from stage I trial mining of high-grade graphite and vanadium targeted for 1H2019.

“This will place Mustang in a unique position amongst its peers in both the graphite and vanadium sectors as the company leverages off its in-house technical and operational abilities to become a leader in the fast-growing battery commodity markets.”

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Tue, 27 Mar 2018 15:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193838/mustang-resources-secures-245-million-from-rights-issue-multiple-catalysts-upcoming-193838.html
<![CDATA[News - Mustang Resources drill result shows large potential for Caula vanadium graphite project ]]> https://www.proactiveinvestors.com.au/companies/news/193589/mustang-resources-drill-result-shows-large-potential-for-caula-vanadium-graphite-project-193589.html Mustang Resources Ltd (ASX:MUS) has drilled a hole 7.5 kilometres from previously drilled mineralisation at the Caula Graphite Vanadium project and hit high-grade graphite and vanadium.

Importantly, assays from the diamond drill hole show grades of up to 23.7% total graphitic carbon (TGC) and 0.68% vanadium.

Intersecting this mineralisation 7.5 kilometres from the main Caula mineralisation further establishes this graphite and vanadium project as world-class.

READ: Mustang Resources on track for graphite and vanadium production mid-2019

Shares were 12% higher at 2.8 cents in early trade.

Mustang’s new recently outlined strategy is to focus on fast-tracking a dual graphite and vanadium development to deliver first cash flow in mid-2019.

Diamond drill hole hits 99-metre intersection 7.5 kilometres to the south

Assays from the drill hole show 99 metres at 12.56% TGC and 0.34% vanadium from 16 metres down hole.

High-grade intersections included 53 metres at 15.06% TGC and 15 metres at 0.46% vanadium.

This southern extension clearly supports the potential for increasing the size of the deposit

Mustang’s managing director Dr Bernard Olivier said: “The impressive results from diamond drill hole MODD010 located approximately 7.5 kilometres south of the “Caula-Hinge” and the recently announced MODD014 is further testimony to the overall potential of the Caula project.

“Although we are focusing our efforts on the main section of the Caula graphite and vanadium deposit, this southern extension clearly supports the potential for increasing the size of the deposit many times its current size.

“We expect to receive the assay results from the remaining drill holes shortly and will combine the results into a comprehensive market update once received.”

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Thu, 22 Mar 2018 10:49:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193589/mustang-resources-drill-result-shows-large-potential-for-caula-vanadium-graphite-project-193589.html
<![CDATA[News - Mustang Resources on track for graphite and vanadium production mid-2019 ]]> https://www.proactiveinvestors.com.au/companies/news/193501/mustang-resources-on-track-for-graphite-and-vanadium-production-mid-2019-193501.html Mustang Resources Ltd (ASX:MUS) has concluded from a strategic review that its Caula Graphite Vanadium Project in Mozambique could achieve first production by mid-2019.

The review’s key recommendation was to establish trial mining and processing operations for completion during the June quarter of 2019.

Mustang’s board of directors has accepted the recommendation.

READ: Mustang Resources' high-grade drill results strengthen plan to develop Caula graphite-vanadium project

Mustang considers that trial mining and processing operations at Caula could produce both graphite and vanadium concentrates.

The trial mining development strategy is based on a robust, low-cost mining operation and construction of a processing plant capable of handling 100,000 tonnes per annum of ore.

Scoping study to consider full-scale mining and processing operation

The strategic review does not form part of the formal scoping study, which is set for completion in the June 2018 quarter.

The scoping study will consider the merits of a full commercial-scale graphite and vanadium operation.

Conditional on a positive outcome of the scoping study, a definitive feasibility study (DFS) will be undertaken to serve as a basis for project development and financing.

Caula’s vanadium potential to increase project economics

The Caula ores are considered to be broadly similar to ore at the nearby Balama Project of Syrah Resources (ASX:SYR).

In July 2014, Syrah published the results of its vanadium scoping study.

The outcome of the study was very positive and most of the conclusions drawn have relevance to Caula.

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Wed, 21 Mar 2018 10:46:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193501/mustang-resources-on-track-for-graphite-and-vanadium-production-mid-2019-193501.html
<![CDATA[News - Mustang Resources' high-grade drill results strengthen plan to develop Caula graphite-vanadium project ]]> https://www.proactiveinvestors.com.au/companies/news/193270/mustang-resources-high-grade-drill-results-strengthen-plan-to-develop-caula-graphite-vanadium-project-193270.html Mustang Resources Ltd (ASX:MUS) has released high-grade results over extensive widths from drilling at its Caula Graphite and Vanadium Project in Mozambique.

Assays show grades of up to 24.2% total graphitic carbon (TGC) and about 1% vanadium.

There were some outstanding isolated samples such as 125 metres at 14.1% TGC at a shallow depth of 17 metres.

Other features were multiple wide intersections of vanadium including 74 metres downhole at 1%.

High-grade jumbo flake graphite

Bernard Olivier, managing director, said, “Caula goes from strength to strength, as these new results show.

“We have very high graphite grades, substantial widths and a very significant proportion of large and jumbo flake sizes.”

Mustang fast-tracking graphite-vanadium project

Caula is being established as one of the world’s highest-grade graphite and vanadium projects.

READ: Mustang Resources flags the potential to produce vanadium concentrate at Caula Graphite Project

The project is within a world-class graphite province and there is significant potential to expand the maiden JORC inferred mineral resource of 5.4 million tonnes at 13% TGC.

Based on the company’s new strategy focused on fast-tracking a dual graphite and vanadium development, it expects to deliver first cashflow in the first half of 2019.

Vanadium assay results to be used in strategy report

Olivier said: “Now, in addition to the outstanding graphite mineralisation, we are establishing the presence of substantial vanadium mineralisation.

“We look forward to updating the graphite resource, including a maiden resource estimate for the vanadium.

“This will, in turn, form part of the concept study now underway at Caula.”

Two-stage development

Mustang estimates that, subject to the final results of the concept study, it can fast-track the project development through a two-stage development strategy.

It is anticipated that this will deliver a marketable graphite and vanadium product in the first half of 2019 from Stage I.

Mustang plans to incorporate the average vanadium assay results of 0.42% vanadium over 125 metres at shallow depths into a revised graphite and vanadium development strategy.

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Fri, 16 Mar 2018 11:17:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193270/mustang-resources-high-grade-drill-results-strengthen-plan-to-develop-caula-graphite-vanadium-project-193270.html
<![CDATA[News - Mustang Resources adds experienced metallurgist to board ]]> https://www.proactiveinvestors.com.au/companies/news/192716/mustang-resources-adds-experienced-metallurgist-to-board-192716.html Mustang Resources Ltd (ASX:MUS) has appointed resources industry veteran Dr Evan Kirby as a non-executive director to its board.

Dr Kirby is a metallurgist with more than 40 years’ experience and has extensive corporate and technical expertise.

Notably, Mustang will be looking to utilise Dr Kirby’s recent experience with an African-based graphite project.

READ: Mustang Resources’ shares ride higher on securing new ruby mining concession

This extensive knowledge and experience working in the graphite sector, as well as his previous technical experience with gemstones, will be invaluable to Mustang.

Ian Daymond, chairman, said: “Evan’s graphite skills and knowledge together with extensive processing, plant design and commissioning experience will be very valuable for Mustang.”

READ: Mustang Resources aligns ruby sales strategy with production, improving cash flow

Dr Kirby will join chairman Ian Daymond, managing director, Bernard Olivier and director Christiaan Jordaan.

Mustang produces gemstones from its flagship Montezpuez Ruby Project in Mozambique.

It is also on target to complete a concept study at its 80%-owned Caula project in Mozambique during the June quarter of 2018.

Most recently, the company’s ruby inventory totalled 333,184 carats.

Mustang Resources: Implementation of new ruby sales & marketing strategy $MUS https://t.co/u528yHfemM #rubies #ASX #ausbiz #mining pic.twitter.com/CFsnLhbjL6

— Mustang Resources (@Mustang_Res) March 6, 2018 ]]>
Wed, 07 Mar 2018 08:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192716/mustang-resources-adds-experienced-metallurgist-to-board-192716.html
<![CDATA[News - Mustang Resources aligns ruby sales strategy with production, improving cashflow ]]> https://www.proactiveinvestors.com.au/companies/news/192633/mustang-resources-aligns-ruby-sales-strategy-with-production-improving-cashflow-192633.html Mustang Resources Ltd (ASX:MUS) has completed a review of its sales and marketing strategy, which should see the company realise revenues from its ruby inventory.

The gemstones are produced at the company’s Montezpuez Ruby Project in Mozambique, and the company’s ruby inventory totals 333,184 carats.

Mustang has decided to close its sales facilities in Mauritius and is now establishing a sales and marketing office in Chanthaburi, Thailand.

This measured approach to marketing is intended to generate regular cashflow as it continues to pursue exploration and bulk sampling activities.

Strategy to unlock value

The review was overseen by Mustang’s new managing director, Bernard Olivier, who has more than 18 years’ experience in the exploration, mining and marketing of coloured gemstones.

Olivier said: “Our sales and marketing review has been very productive and creates a clear pathway to unlocking the full value of our outstanding Montepuez Ruby Project.

“We will achieve this end objective in a staged and measured fashion, growing our business by developing strong and close customer relationships, meeting their respective requirements.

“This approach will allow us to place an accurate value on our existing inventory and enable us to assess the project’s longer-term economic outlook."

More aligned with production profile

As a backdrop, the Mauritius facilities were designed to enable Mustang to undertake large-scale auctions from a large production position.

Consequently, the new initiative is very much about right-sizing the company’s business structure to fit with the group's existing early stage smaller production.

Also, Thailand is considered the world-leader in trading and beneficiation of coloured gemstones, especially rubies and sapphires.

Olivier said: “In the near-term, we aim to align our sales volumes with our limited production from what is essentially still an exploration and development project."

Lower cost operation

This facility is markedly smaller and lower-cost than the Mauritius facilities and more in line with the company’s emphasis on project and ruby market development and research.

Mustang sees this as better reflecting the current exploration and development status of its Montepuez Ruby Project in Mozambique.

Mustang continues to see decided development opportunities at Montepuez.

Olivier said: “As part of this exploration phase, we intend to establish a maiden JORC resource.

“In conjunction with the market intelligence we gather from the sales activity, this will form an important basis for determining the project’s economic viability.”

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Tue, 06 Mar 2018 09:21:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192633/mustang-resources-aligns-ruby-sales-strategy-with-production-improving-cashflow-192633.html
<![CDATA[News - Mustang Resources’ shares ride higher on securing new ruby mining concession ]]> https://www.proactiveinvestors.com.au/companies/news/192392/mustang-resources-shares-ride-higher-on-securing-new-ruby-mining-concession-192392.html Mustang Resources Ltd’s (ASX:MUS) shares are trading circa 8% higher intra-day at $0.026 after upgrading another exploration licence at its Montepuez Ruby Project in Mozambique to a mining concession.

The company has been issued a mining concession over an area which forms an integral part of its ruby project.

READ: Mustang Resources to raise up to $4.4 million for ruby and graphite projects

Significantly, much of the bulk sampling and pitting conducted by Mustang over the past seven months has been undertaken in the licence which has now been upgraded.

Dr. Bernard Olivier, managing director, said: “The area covered by the new mining concession represents a crucial part of the deposit and most of the ground covered by our current bulk sampling and test pitting campaign.

“The granting of the mining concession marks another important step in our strategy to establish Mustang as a consistent supplier of ethically mined rubies.”

Targeting mine development within 24 months

The mining concession is valid for an initial term of 25 years, taking it up to 5 December 2042.

Mustang is aiming to complete an Environmental Impact Assessment (EIA) and the right to use and benefit from the land (DUAT) within 3 years from the grant of the concession.

Mine development must start within 24 months after the grant of the EIA or DUAT and production must start within four years after the mining concession is granted.

READ: Mustang Resources increases high-quality ruby consistency in Mozambique

The company is continuing to achieve consistent production of high-quality gems from the Montepuez project after making improvements to the processing plant.

Since 1 January 2018, 17,025 tonnes have been processed with 7,495 carats recovered at an average grade of 0.44 carats per tonne.

As at 31 January the company had an inventory of 302,028 carats available for sale.

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Thu, 01 Mar 2018 12:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192392/mustang-resources-shares-ride-higher-on-securing-new-ruby-mining-concession-192392.html
<![CDATA[News - Mustang Resources to raise up to $4.4 million for ruby and graphite projects ]]> https://www.proactiveinvestors.com.au/companies/news/192023/mustang-resources-to-raise-up-to-44-million-for-ruby-and-graphite-projects-192023.html Mustang Resources Ltd (ASX:MUS) intends to raise up to $4.4 million in a 1:4 rights issue to advance its ruby and graphite projects in Mozambique.

The non-renounceable rights issue is priced at $0.023 per share, which has been revised from the original January offer details.

Originally, it was proposed that a 1:5 rights issue would raise circa $4 million at an offer price of $0.026 per share.

Support from company executives

A number of company executives have supported the company’s strategy by indicating they will participate in the issue.

Bernard Olivier, managing director, said: “This entitlement offer provides shareholders with a further opportunity to participate in Mustang’s growth.

“We believe we are well on track to establishing Montepuez as a world-class ruby project.

“The ongoing ruby bulk sampling and exploration campaign in coming months will be funded predominantly by this raising as we continue to refine our ruby marketing strategy with increasing market intelligence.

“Equivalent funds will be dedicated to exploration at the high-grade Caula Graphite Project aimed at increasing the resource and fast-tracking feasibility studies as part of our strategy to supply the lithium battery market.”

The offer price represents a 23% discount to the 15-day VWAP and an 11.5% discount to the last closing price.

Regius to take up $200,000

Mustang’s largest shareholder, with 7.74% of issued capital, and operator and founder of its ruby and graphite projects, Regius Resources Group Ltd, will take up $200,000 of its entitlement.

Regius is the investment company of Mustang’s chief operating officer Cobus van Wyk and director Christaan Jordaan and their participation is a positive sign for other investors.

Non-executive chairman Ian Daymond has also confirmed his intention to take up his full entitlement.

There will be 40.58% of the funds allocated to Montepuez and the same percentage to Caula with 17.42% for working capital and 1.42% for offer expenses.

READ: Mustang Resources attracts $19.95 million funding for ruby, graphite projects

The offer follows the company securing a $19.95 million funding facility under a convertible note facility with Arena Investors LP, a U.S. institutional investor.

Mustang can draw down the funds in seven tranches with the first tranche of $1.9 million to be received on signing the convertible note deed.

The follow-on tranche of $3.8 million will be available to the company in May 2018.

Mustang will receive the balance of $14.25 million in five further draw-downs of $2.85 million over two years.

READ: Mustang Resources increases high-quality ruby consistency in Mozambique

The company is achieving consistent production of high-quality gems from the Montepuez project after making improvements to the processing plant.

Average grades have increased by more than 10% from October 2017 compared with the total average grade achieved from previous bulk sampling.

READ: Mustang Resources targeting June quarter DFS at Caula graphite project

Mustang is also on target to complete a concept study at its 80%-owned Caula project during the June quarter of 2018.

The study will pave the way for Mustang to begin a definitive feasibility study on the graphite project which has a resource of 5.4 million tonnes at 13% total graphitic carbon for 702,600 tonnes of contained graphite.

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Thu, 22 Feb 2018 13:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192023/mustang-resources-to-raise-up-to-44-million-for-ruby-and-graphite-projects-192023.html
<![CDATA[News - Mustang Resources increases high-quality ruby consistency in Mozambique ]]> https://www.proactiveinvestors.com.au/companies/news/191540/mustang-resources-increases-high-quality-ruby-consistency-in-mozambique-191540.html Mustang Resources Ltd (ASX:MUS) is achieving consistent production of high-quality gems from the Montepuez Ruby Project in Mozambique.

Improvements have been made to the processing plant to optimise efficiency and reduce processing costs.

Average grades have increased by more than 10% from October 2017 compared with the total average grade achieved from previous bulk sampling.

Montepuez strategy is on track

The results demonstrate that Mustang’s strategy to establish Montepuez as a world-class ruby project with consistent production and exploration upside is on track.

Bernard Olivier, managing director, said: “Having spent time on site in recent weeks, I am very pleased to report that exploration, bulk sampling and processing activities on the Montepuez Ruby Project are meeting our targets.

“These results reflect the skills and commitment of Mustang’s motivated and experienced operational team.

“The quarter four 2017 plant optimisation program is generating the intended results with further improvements and upgrades now being implemented.

“The overall results demonstrate that Montepuez is highly prospective and technically sound.”

READ: Mustang Resources appoints new leadership with gemstone and graphite experience

Mustang is implementing further processing, sorting and grading improvements to increase overall efficiencies.

Average grades increase

Ongoing processing of bulk sample material during the December quarter of 2017 saw 80,658 tonnes processed with 29,983 carats recovered at an average grade of 0.37 carats per tonne.

Since 1 January 2018, 17,025 tonnes have been processed with 7,495 carats recovered at an average grade of 0.44 carats per tonne.

As at 31 January the company had inventory available for sale of 302,028 carats.

Mustang’s ongoing exploration activities are also delivering positive results.

Additional gravel bed targets

The exploration, pitting, trenching and bulk sampling program has extended the gravel bed extension from 3.3 to 4.2 kilometres.

This work has identified additional gravel bed targets over a 3 kilometre-long river and associated tributaries system.

Montepuez Ruby Project is in northern Mozambique.

During the remainder of this quarter, exploration will focus on identifying further high-grade targets for large-scale bulk sampling excavation and processing.

It also aims to further delineate the dimensions and ruby distribution of the deposit, which remains open in all directions.

READ: Mustang Resources targeting June quarter DFS at Caula graphite project

Mustang has recently completed a diamond drilling campaign which will underpin the concept study on its 80%-owned Caula Graphite Project also in Mozambique.

The study is on track for completion in the June quarter, paving the way for Mustang to start a definitive feasibility study.

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Tue, 13 Feb 2018 11:36:00 +1100 https://www.proactiveinvestors.com.au/companies/news/191540/mustang-resources-increases-high-quality-ruby-consistency-in-mozambique-191540.html