Share Talk Weekly Mining Sector News Round-Up, Sunday 21st May 2022

Blencowe Resources PLC (LSE: BRES) announced that it had raised £635,000 through a share placement involving issuing 12,700,000 new ordinary shares at a price of 5p each.

This price was a premium to the closing price on Wednesday. The funds will be used for the ongoing Definitive Feasibility Study (DFS) for the Orom-Cross Graphite Project in Uganda, which began in early 2023 and is managed by CPC Engineering.

Cornish Metals Inc (AIM: CUSN, TSX-V: CUSN, OTC: SBWFF) updated that its South Crofty tin project’s water treatment plant in Cornwall is nearing completion. Mine dewatering is expected to commence in the latter part of this summer after the installation of the pump. Based on past records, mine dewatering is estimated to take 18 months to complete.

Liberum’s mining team, at a boutique investment bank, presented a positive outlook following the first-quarter results of Caledonia Mining Corporation PLC (AIM: CMCL, NYSE-A: CMCL), stating, “The worst is behind us; the path ahead is brighter.” The company had a challenging start to oxide gold ore production at the Bilboes operation in Zimbabwe and faced operational issues at its main Blanket operation.

The company announced an ‘at the market’ (ATM) agreement with Cantor Fitzgerald. This arrangement could result in the sale of up to US$30mln shares on behalf of the company. These shares will be sold in the United States at market prices, under the company’s NYSE America listing.

European Metals Holdings Ltd (AIM: EMH, ASX: EMH, OTCQX: EMHLF) welcomed the Czech Republic’s prime minister Petr Fiala to its Cinovec lithium project. Alongside this visit, a new cooperation deal was signed in Germany. The prime minister’s visit to what is described as a “globally significant lithium project” included a speech by the leader.

Aura Energy Ltd (ASX: AEE, AIM: AURA) secured firm commitments to raise A$10 million via a placement and aims to gather a further A$1 million through a share purchase plan (SPP). The funds will be allocated across its uranium assets, as the company transitions from uranium exploration to production, tapping into the growing demand for nuclear power amid a shift towards a decarbonized energy system.

Trident Royalties PLC (AIM: TRR) commended the early developments at the Thacker Pass project in Nevada by operator Lithium Americas Corp (TSX: LAC, NYSE: LAC) and welcomed the US government’s updated guidelines for mining claims. Trident Royalties has a 60% stake in a gross revenue royalty over the entirety of Thacker Pass.

Chaarat Gold Holdings Ltd (AIM: CGH) saw its shares soar nearly 50% after receiving a non-binding letter of intent and indicative term sheet from Xiwang International for a possible equity investment of US$250mln. This investment will be utilized for the development of Chaarat’s organic pipeline and external growth through acquisitions, issued at 2p per share.

Newmont‘s purchase of Newcrest Mining has confirmed its place as the world’s leading gold producer, with attributable gold production of over 8 million ounces, nearly twice the production of the second-largest producer Barrick Gold, as pointed out by Canaccord Genuity analysts (TSX: CF, LSE: CF).

Newmont declared on Sunday night that it had agreed to an all-share, friendly takeover deal with Australian gold and copper miner Newcrest, which, according to analysts, corresponds with Newmont’s highest and last offer as of April 10.

Pembridge Resources PLC (LSE: PERE) saw a 73% drop in shares amid concerns over funding for Minto Mining, a Canadian firm to which it lent C$2mln.

Minto has informed Pembridge that it is unlikely to repay the amount, including the $250,000 instalment due this year.

Pan African Resources PLC (AIM: PAF, OTCQX: PAFRY, JSE: PAN, OTCQX: PAFRF) has reported significant advancements in its renewable energy projects associated with its gold mining activities.

In a stock market statement, the company reported progress on the Barberton Mines’ Fairview solar facility through an engineering, procurement and construction (EPC) agreement with JUWI Renewable Energies.

Celsius Resources Ltd (ASX: CLA, AIM: CLA) has entered into a non-binding term sheet and a binding subscription agreement that would allow Silvercorp Metals Inc (TSX: SVM, AMEX: SVM), a Canadian mining company, to acquire all remaining Celsius shares at a fixed rate of A$0.03 per share.

The offer is 76% above the 20-day volume-weighted average price of Celsius shares on the ASX. The total estimated value of the deal is around A$56mln.

Great Southern Copper PLC (LSE: GSCU) has successfully raised £1,002,000 to fund its ongoing exploration activities in Chile.

The funding was achieved through a placing and subscription, as well as a convertible loan facility, and received strong support from existing, institutional and new investors, resulting in an oversubscription.

Caledonia Mining Corporation PLC is optimistic about meeting its production target this year despite facing challenges at its main operation, the historic Blanket Mine in Zimbabwe.

CEO Mark Learmonth noted that the first quarter of 2023 brought several operational issues at Blanket, which resulted in decreased production and increased costs.

Caracal Gold PLC (LSE: GCAT) has reported advancements in its funding arrangements for the Kilimapesa gold mine and processing operation in Kenya and the Nyakafuru gold project in Tanzania.

The company has been focusing on securing financing for the Kilimapesa expansion project and Philoro Global Trading AG has confirmed its intention to contribute to the funding, contingent on the company securing the remaining necessary financing.

Galileo Resources PLC (AIM: GLR) confirmed that an ongoing airborne survey conducted by two nearby exploration companies will acquire data related to its Botswana licences without any cost. This survey by Cobre and Sandfire will encompass Galileo’s licence PL253/2018, providing a comprehensive review of the Kalahari Copper Belt (KCB), which includes Cobre’s recent discoveries at Ngami, Kitlanya West and Kitlanya East.

Premier African Minerals Ltd (AIM: PREM) announced the successful completion of a placing that raised £1,759,500. The fund will be utilized to enhance its Zulu Lithium and Tantalum Project’s pilot plant in Zimbabwe. The placement entailed the issuance of 190,216,216 new ordinary shares priced at 0.925p each.

Trident Royalties PLC (AIM: TRR) revealed its acquisition of a royalty and milestone payment over a project close to production in Mexico, which would constitute its first revenue source from silver. The La Preciosa project, owned by Canada-listed Avino (TSX-V: ASM) Silver & Gold Mines, is where Trident’s interest comes from, albeit acquired from Coeur Mining (NYSE: CDE).

Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe or follow SHARE TALK on our Twitter page for future updates. Terms of Website Use All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Weekly Newsletter

Sign up to receive exclusive stock market content in your inbox, once a week.

We don’t spam! Read our privacy policy for more info.