18Mar 2016

St Brides Weekly Brief

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The big news this week was the Chancellor’s Budget in which he instituted a number of important measures, most notably, his headline-grabbing sugar tax.  With the government set to introduce a levy on some of our favourite things from 2018, we can still deliver a small dose of sweetness on your Friday through the St Brides Brief.  In the Brief this week.

Atlas (AAI) changed its name to Atlas African Industries Ltd to reflect its widening strategy and expanding operations in the booming manufacturing industry; DekelOil (DKL) successfully secured a debt refinancing deal that significantly improved profitability of its palm oil project in the Côte d’Ivoire; Europa Oil & Gas (EOG) highlighted a portfolio of 3 billion barrels of gross unrisked prospective resources offshore Ireland and a doubling of UK production in H2 2016 in a shareholder letter; FinnAust Mining (FAM) appointed Danish consultants to support the completion of various permitting and regulatory work at the Pituffik Titanium Project in Greenland; Horizonte Minerals (HZM) summed up 2015 in its final results which saw it create one of the highest grade nickel saprolite projects in Brazil following its acquisition of the Glencore Project; Keras Resources (KRS) started the week off with a bang, signing its third gold tribute agreement then conducting first blast at its Grants Patch Gold Tribute Project in the Western Australia goldfields; MX Oil (MXO) raised £2.5 million to fund the final payment of its investment in the Aje field, offshore Nigeria, ahead of first oil; Northcote Energy (NCT) signed two transformational agreements, enabling the acceleration of development at its Shoats Creek Field in Louisiana;  while Stellar Diamonds (STEL) raised £600,000 through the issue of equity and made US$300,000 from the sale of diamonds from its Baoulé project in Guinea.

The Brief

Atlas changed its name to Atlas African Industries Ltd to reflect its widening strategy to develop its industrial division through the advancement of its Chancho Facility, a new state-of-the-art glass bottle manufacturing facility, in Ethiopia.  This will aim to capitalise on the booming consumer market, which has seen East Africa become a manufacturing powerhouse.

DekelOil secured a debt financing deal this week, which significantly reduces  interest costs at its producing palm oil project in the Côte d’Ivoire and will therefore have a major positive impact on its profitability.  Having produced 35,770 tonnes of Crude Palm Oil in 2015, the new terms of the agreement are testament to the Company’s successful transformation into a palm oil producer.

Europa Oil & Gas penned a letter to its shareholders, which highlighted a portfolio of 3 billion barrels of gross unrisked prospective resources at its licences offshore Ireland, as well as a doubling in UK production in H2 2016.  With the recent award of a new strategically important licence in Ireland alongside its three new licences onshore UK, the period ahead should be an exciting one for the Company.

FinnAust Mining appointed Danish consultants NIRAS Greenland A/S and Orbicon A/S to support the advancement of its Pituffik Titanium Project in Greenland.  The consultants, recognised leaders in their fields and experts of operating in Greenland, will bring their knowledge of the region to help streamline the Project licencing and development process with initial focus being on the completion of a Social Impact Assessment and Environmental Impact Assessment.

Horizonte Minerals released its final results this week, highlighting how its acquisition of Glencore’s GAP Project combined with its Araguaia project has created one of the highest grade nickel saprolite projects in Brazil.  Following a productive year in 2015, the Company is now well positioned for recovery in the mining sector with its low cost strategy to de-risk Araguaia and create maximum value for shareholders.

Keras Resources signed its third gold tribute agreement with KalNorth Gold Miners over the 215,000 ounce Au Lindsay’ Project in the Western Australian goldfields.  Then things truly went off with a bang as it conducted its first blast at its Grants Patch Gold Tribute area, signalling the commencement of mining which is due to begin next week ahead of schedule.  With a week full of great news, Keras is on track to become London’s only listed Australian gold miner.

MX Oil raised £2.5 million through a placing to fund the final payment of its investment in the Aje Field, offshore Nigeria where first oil is expected in the very near-term.  Meanwhile a few thousand miles away in Mexico, the Company also announced it will be selling three of the four onshore Mexican fields it was recently awarded to its local partner in return for US$1.8m and an increased interest to 66.6% in its one remaining licence, Tecolutla, which it rates as the best of a great bunch.  A CPR on Tecolutla is expected in April 2016.

Northcote Energy entered into two transactions at its Shoats Creek Field in Louisiana that together will enable the Company to accelerate development of the field in 2016.  The agreements are transformational for the Company, as it effectively funds a four well 12 month drilling programme, the first two of which are to be drilled back to back in the near term.  Following the success of the Lutcher Moore#20 well, which recently commenced production, the new wells have the potential to result in a step up in revenues for Northcote.

Stellar Diamonds raised £600,000 through the issue of equity and made US$300,000 through the sale of diamonds from its Baoulé project in Guinea.  Proceeds of the placing will be used for working cap purposes and to support: the Tongo Mine Licence application process in Sierra Leone; completion of trial mining and the diamond sales exercise at Baoulé, Guinea, and; completion of a maiden resource statement at Baoulé, which is targeting 3 million carats. The Company also announced that Liviu Meran and Dr MarkusElsässer are stepping down from the Board as part of the Company’s ongoing corporate cost rationalisation.

Thank you to St Brides Partners’

You can follow them on Twitter @StBridesP, Business address www.stbridespartners.co.uk

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St Brides Partners is a leading integrated Financial PR, IR, marketing and communications company.



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