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  • Cape Lambert Resources Gains Date For Legal Hearing With MCC

    Cape Lambert Resources (ASX: CFE) is a step closer to receiving the final $80 million from the sale of the Marampa iron ore project in Sierra Leone with the Arbitrator confirming a July 2014 hearing date for its legal dispute with Metallurgical Corporation of China.

    Cape Lambert Resources executive chairman, Tony Sage said, "We are pleased a firm date has been set for the legal dispute to be heard this year in order to reach a final resolution on this matter."

    The company had in September 2010 commenced legal action in the Supreme Court of Western Australia against MCC to recover the payment.

    It had received payments totalling $320 million in 2008 in accordance with the terms of the MCC agreement.

    In March 2013, the Court made orders, inter alia, for the dispute to be determined by an arbitrator in Singapore and for the company to propose the payment of the $80 million into an escrow account pending determination of the primary dispute.

    Cape Lambert referred the dispute to arbitration in Singapore and in June 2013 a hearing was held by the Arbitrator to determine the Escrow Dispute.

    In November 2013, the Arbitrator ordered that MCC pay the disputed amount into an interest bearing escrow account in the joint names of the company and MCC pending the determination of the substantive dispute.

    In April 2014, the Arbitrator ordered that, despite an application received by MCC to defer, the substantive dispute will be heard in Singapore commencing in July 2014.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Apr 16 9:10 PM | Link | Comment!
  • Blackthorn Resources To Sell Equity Interest In Perkoa To Glencore Xstrata For US$10M

    Blackthorn Resources' (ASX:BTR) shares should trade higher after agreeing to sell its remaining 27.3% stake in the Perkoa Project in Burkina Faso for $10 million to Glencore Xstrata (LON:GLEN).

    The agreement also includes the sale of Blackthorn Resources' exploration licences in Burkina Faso for up to a further US2 million for exploration expenditure incurred.

    As a result, Blackthorn will not be required to pay its US$9M share of the US$30M working capital requirement for Perkoa that was announced in August 2013.

    Blackthorn is now in a solid financial position to focus on the development of its core asset, the Kitumba Copper Project in Zambia.

    The net effect is that it neatly enables Blackthorn to focus on the development of its core asset, the Kitumba Copper Project in Zambia.

    Chief executive officer, Mark Mitchell said:

    "We are very pleased with the settlement agreed with our partners Glencore Xstrata for the Perkoa Project, and while we are disappointed to end our association with the project, this settlement provides significant capital for Blackthorn Resources to move forward with, and will allow all parties to focus on the future.

    "Our immediate focus remains on progressing the development of the Kitumba Copper Project in Zambia, which will continue with the benefit of the additional funds provided by the Perkoa settlement. Also, beyond Kitumba, we now have the means to consider new opportunities."

    Structuring of definitive agreements to achieve a final and binding settlement is underway. Blackthorn will seek shareholder approval for this transaction and will convene an extraordinary general meeting as soon as possible
    following execution of the definitive agreements.

    Kitumba

    Blackthorn has recently increased its resource base at Kitumba by 25% to 34.7 million tonnes, grading 2.29% copper at a 1% cut-off.

    This includes a Measured Resource of 10.4Mt at 2.93%, or 306,000 tonnes of contained copper.

    Kitumba is currently envisaged as an underground operation targeting the high-grade core of the deposit, with an 11 year mine life based on 33 million tonnes of mineable ore with 572,000 tonnes of contained copper.

    The PFS has estimated Life of mine average C1 cash costs of US$2.04 per pound of copper, and post-tax Internal Rate of Return of 12.7% using a US$3.50 per pound of copper price.

    Estimated NPV is US$108 million, with an annual average EBITDA of about US$105 million once the project is at full production.

    Project development costs are forecast at US$358 million, including a US$34.2 million contingency.

    Given Kitumba's inherent value, and Blackthorn's robust bank balance, there is plenty of potential upside for the company's present $26 million valuation.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Apr 16 8:51 PM | Link | Comment!
  • Gunson Resources Completes Placement, Undertakes A 1:5 Entitlement Offer

    Gunson Resources (ASX: GUN) has completed a placement to raise $300,000 before costs and will undertake a non-renounceable entitlement offer of 1 for 5 also at $0.017 per share.

    The major focus is to bring its 'construction ready' Coburn Heavy Mineral Sands Project in Western Australia into development with a strategic partner.

    The entitlement offer will seek to raise to raise A$928,455 for a maximum of 54,615,001 shares and is partially underwritten by managing director William Bloking, up to $100,000.

    Proceeds will also go towards working capital for operations and maintain permits and tenements through to June 2015 and as Gunson seeks the entry of, a strategic partner to assist with or take over development of the Coburn Mineral Sands Project in Western Australia.

    In addition they will support the activities of Torrens Mining Limited (parent company of Terrace Mining Pty Ltd) in its effort to establish the feasibility of producing Copper, Cobalt and Silver metal from the MG14 and Windabout deposits at Mount Gunson.

    Background

    Gunson aims to mine the Coburn heavy sands deposit in Western Australia, and has formally launched a farm-in with Terrace Mining to study the feasibility of producing copper, silver, and cobalt metal from shallow deposits at Mount Gunson in South Australia.

    The deal with Terrace Mining will see Terrace spend $2.5 million on a bankable feasibility study for mining of the shallow open pittable MG14 and Windabout deposits excised from the joint venture Gunson has with Noranda Pacific.

    A proposed flow sheet is currently being tested by Terrace that utilises cyanide to leach copper and silver. Early tests show 90% copper recovery into solution.

    Dissolution of the copper and silver is the first step to produce saleable metal or metal salts at the minesite. Indications are that this route will significantly improve the value of the Mount Gunson Project.

    MG14 and Windabout contain identified JORC resources of 209,680 tonnes of copper with significant cobalt and silver credits. Conceptual potential exists for a Life of Mine of up to 17 years that outputs 9,000t of copper per year plus cobalt and silver credits.

    Conceptual studies indicate that the project has potential to generate annualised copper revenues of ~$76 million plus cobalt and silver credits.

    Peer group analysis indicates that Gunson's 49% interest in the Terrace Joint Venture after the farm-in phase will carry a conceptual valuation of $0.14 per share on commencement of mining operations.

    A rapid recovery in the zircon market in 2014 has brought the Coburn Heavy Mineral Sands project (100% owned) back into focus. A definitive feasibility study was announced in January 2010 and an optimisation study completed in February last year. Final mine permitting is expected in the current calendar quarter. Coburn carries a Resource of 979 million tonnes and JORC Reserve of 308 million tonnes at a grade of 1.2% heavy minerals.

    Coburn offers a driver for valuation uplift for Gunson given than it is construction ready and that discussions for project funding are continuing.

    On 27th February 2014, the executive chairman of major producer Tronox advised of a very strong rebound in zircon sales in 2014 and he, along with UBS, expect a volume led recovery to begin mid-2014 for titanium feedstocks.

    This will be driven by higher plant utilisation and inventory drawdown from pigment producers, putting upward pressure on feedstock volume/price, and demand-led recovery for zircon.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Apr 16 8:47 PM | Link | Comment!
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