Welcome to our pick of some of the most prominent mining investment, exploration, and development news from the last seven days on Theassay.com. To keep up to date with all the latest headlines, subscribe to our weekly newsletter.
Financing
To kick things off, Arafura Rare Earths Limited (ASX: ARU) received firm commitments from Australian and international institutional investors to raise approximately A$121M.
The placement of fully paid ordinary shares will be staged over two tranches at an issue price of A$0.37 per share. The company is also offering shares under a share purchase plan (SPP) to existing eligible shareholders to raise a further approximately A$12M at the same price.
Hancock Prospecting Pty Ltd acted as cornerstone investor in the placement, committing to invest A$60M across two tranches, which will result in a post-completion interest of ~10% in Arafura.
Blue Sky Uranium Corp. (TSXV: BSK) has closed the first tranche of the non-brokered private placement announced on 21 November 2022 and increased on 1 December 2022 for aggregate gross proceeds to the company of A$1,678,000.
The proceeds of the financing will be used for exploration programmes on the company’s projects in Argentina and for general working capital.
To round up the financing news, Roscan Gold Corp. (TSXV: ROS) has entered into a royalty financing agreement with Osisko Gold Royalties Ltd involving a royalty financing related to the company’s entire 401.8km2 Kandiolé Project in Mali, West Africa.
Osisko has initially acquired a 1.0% net smelter return royalty for upfront consideration of $5.0M. Pursuant to the Agreement, Osisko will retain the option to purchase a second 1.0% NSR (for a total NSR royalty percentage of 2.0%) on the Property at any time for an additional $5.0M.
Furthermore, the company will have the right to compel Osisko to acquire the Additional Royalty in the event Roscan receives a long-term exploitation license on the Property from the Malian government.
Exploration and development
In exploration and development news, we heard that Giga Metals Corp. (TSXV: GIGA) announced it will discontinue its greenfields copper exploration activities in Piaui State, Brazil.
“Our exploration activities in Brazil have not generated enough encouragement to justify continued allocation of budget and effort,” said Mark Jarvis, the company’s CEO.
“We will keep our focus on advancing our core asset, the Turnagain nickel project,” he added.
Since early 2021, Giga Metals, has conducted several reconnaissance and follow-up exploration programs across a 40Kha exploration land package along the southern perimeter of the Parnaiba Sedimentary Basin in southern Piaui State, Northeast, Brazil. This work was done via its wholly owned subsidiary Giga Brazil.
Horizonte Minerals Plc (AIM: HZM) has entered into two long-term port agreements, thereby securing access for the import of required raw materials and the export of its final ferro nickel product, for its 100%-owned Araguaia Nickel Project in Brazil, where construction is underway, and first production remains on track to commence in Q1-2024.
Jeremy Martin, CEO of Horizonte Minerals, commented, “As we move closer to our first debt draw down, these port contracts are a key condition to accessing the debt facility, another example of the progress we are making in terms of de-risking the project.”
Horizonte has awarded the contracts to Grupo Atlantica Matapi and Santos Brasil Tecon Vila do Conde, both established operators in the Port of Vila do Conde in Pará State. These five-year contracts (with an option to extend for a further five years) are in line with Horizonte’s feasibility cost, once adjusted for the foreign exchange rate, and represent another key de-risking milestone for the project.
Drilling results
Significant news in the world of drilling, starting with Ascendant Resources Inc. (TSX: ASND | OTCQB: ASDRF) reporting assay results from an additional three holes drilled to support metallurgical variability testing in the North Zone of Venda Nova at the company’s Lagoa Salgada VMS Project, Portugal.
As of 29 November 2022, Ascendant has completed 23 drill holes (11 metallurgy holes reported and 12 infill holes) totalling 10,453m as part of an overall drill programme to support the completion of a bankable feasibility study, which the company expects to be completed by the end of Q1 2023.
Two additional infill holes are also currently in progress in the South Zone for a total of 985m. The assays reported by Ascendant today represent full results received as of 22 November 2022 and include three metallurgical holes collared in the North zone: Met_MS_05, Met_MS_06, and Met_MS_07.
Similarly, AVZ Minerals Limited (ASX: AVZ) has received further strong results from its Mineral Resource drilling programme at the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC).
The company has received results from the second four diamond drill holes at the Roche Dure North-East Extension drilling programme.
“The second lot of four holes drilled at Roche Dure continue to demonstrate solid grade continuity both along strike and down dip from the current open pit design,” managing director, Nigel Ferguson, said.
Thanks for reading, and don’t forget to subscribe to The Assay Weekly newsletter.
