http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Sun, 22 Apr 2018 08:11:54 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Cradle Arc enters option agreement for joint venture or sale of subsidiary ]]> http://www.proactiveinvestors.co.uk/companies/news/195021/cradle-arc-enters-option-agreement-for-joint-venture-or-sale-of-subsidiary-195021.html Cradle Arc Plc (LON:CRA) said it has entered into an option agreement with Singa Holdings Zambia Private Limited to either establish a joint venture or acquire its subsidiary, Luiri Gold Mines Limited.

The AIM-listed precious metals explorer said the first option agreement would allow Singa to acquire Luiri, which holds the group’s Matala and Dunrobin gold assets in Zambia, for US$2.5mln until it expires on 1 July 2018.

WATCH: Cradle Arc announces maiden JORC resource for Mawana project

If the option agreement is exercised, following the acquisition of Luiri Cradle Arc will receive a royalty of 1.5% of gross revenue generated from the Matala and Dunrobin gold assets, up to a maximum aggregate amount of the net present value of US$2.5mln discounted at 8%.

The group added that it had also granted Singa an exclusive option, expiring on 30 June 2018, to form a joint venture for the operation of the Matala and Dunrobin assets.

If this option is agreed, any such joint venture terminates upon the commencement of commercial gold production. If Singa chooses to enter the joint venture, Cradle Arc said it has the right to require Singa to exercise the acquisition option.

Cradle Arc added that an option fee of US$30,000 was payable by Singa to the company in three equal monthly tranches from the date of the agreement.

Kevin van Wouw, chief executive of Cradle Arc, commented: "The development of our Zambian gold assets has long been an important goal for the Company.  We are, however, extremely mindful of the potential dilution that raising equity funds for the development of Matala could have on existing shareholders at the Company's current share price, and we therefore consider that this partnership with Singa represents the best path towards potential production in the near to mid-term.

He added: "Should the Share Option be exercised, the total amount payable to Cradle Arc would, in our view, represent fair value given the project's current stage of development and will support the Company's future strategy.  On exercise of the Share Option, the Company will receive US$2.5mln, which will contribute towards the cost of the planned Dense Media Separation (DMS) upgrades at the Group's Mowana Copper Mine, together with the potential future royalty stream."

Cradle Arc shares were steady at 6.98p in early trading Monday.

--Adds share price--

]]>
Mon, 16 Apr 2018 08:05:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/195021/cradle-arc-enters-option-agreement-for-joint-venture-or-sale-of-subsidiary-195021.html
<![CDATA[RNS press release - Option Agreement for a JV and/or Sale of Luiri ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180416072504_13604841/ Mon, 16 Apr 2018 07:25:04 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180416072504_13604841/ <![CDATA[Media files - Cradle Arc announces maiden JORC resource for Mawana project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8981/cradle-arc-announces-maiden-jorc-resource-for-mawana-project-8981.html Tue, 03 Apr 2018 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/8981/cradle-arc-announces-maiden-jorc-resource-for-mawana-project-8981.html <![CDATA[News - Cradle Arc re-jigs mine plan at Mowana to speed up development ]]> http://www.proactiveinvestors.co.uk/companies/news/194116/cradle-arc-re-jigs-mine-plan-at-mowana-to-speed-up-development-194116.html Cradle Arc Plc (LON:CRA) is to accelerate the development of Mowana in Botswana to get the copper mine into profit more quickly.

The junior has also upgraded the copper resource using modern JORC standards to 861,000 tonnes of contained copper at a grade of 1.15%. Of that, measured and indicated resources are 466,000 tonnes of contained copper.

READ: Cradle Arc eyeing production expansion after ramp-up completes at Mowana

On a comparable basis, the total resource increased by 6%.

Kevin van Wouw, Cradle Arc’s chief executive, said the emphasis was now on increasing throughput and building towards profitability. 

The accelerated plan will see four mining units in service in the Mowana open pit to access ore below the 950m level.

A new US$10mln debt facility has been arranged to fund the new mine plan and also to refinance the offtake linked facility with Fujax.

WATCH: Cradle Arc announces maiden JORC resource for Mawana project

“The net funds raised will enable us to bolster our mining fleet, accelerate access to the supergene and sulphide ores where grades are higher and recoveries have been shown to be strong,” said Van Wouw.

Initial production at Mowana is expected to be 12,000 tonnes of copper each year rising to 20,000tpa eventually through the introduction of a processing technique known as dense media separation.

A maiden JORC (2012) ore reserve estimate for Mowana is scheduled for this quarter.

]]>
Tue, 03 Apr 2018 07:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/194116/cradle-arc-re-jigs-mine-plan-at-mowana-to-speed-up-development-194116.html
<![CDATA[RNS press release - Operational and Financial Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180403070012_13588485/ Tue, 03 Apr 2018 07:00:12 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180403070012_13588485/ <![CDATA[RNS press release - Result of General Meeting ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180314120001_13566851/ Wed, 14 Mar 2018 12:00:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180314120001_13566851/ <![CDATA[RNS press release - Statement re broker ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180302110001_13552794/ Fri, 02 Mar 2018 11:00:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180302110001_13552794/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180301160001_13551745/ Thu, 01 Mar 2018 16:00:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180301160001_13551745/ <![CDATA[RNS press release - Notice of General Meeting ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180226160001_13546331/ Mon, 26 Feb 2018 16:00:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180226160001_13546331/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180215084501_13534333/ Thu, 15 Feb 2018 08:45:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180215084501_13534333/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180206163001_13523738/ Tue, 06 Feb 2018 16:30:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180206163001_13523738/ <![CDATA[News - Cradle Arc eying production expansion after ramp-up completes at Mowana ]]> http://www.proactiveinvestors.co.uk/companies/news/191148/cradle-arc-eying-production-expansion-after-ramp-up-completes-at-mowana-191148.html The London market has a new copper producer.

Cradle Arc Resources PLC (LON:CRA) made its debut on AIM on January 24 and has immediately hit the market with a couple of positive updates.

READ: Cradle Arc to push ahead with process enhancements at Mowana copper mine

The key though, is the existing production as chief executive Kevin van Wouw explains.

“We spent last year putting the mine into production,” he says.

“It’s now owner operated, and early in February the last piece of equipment will be delivered. That puts us in a position where we can reach nameplate capacity.”

That’s currently set at 12,000 tonnes of copper in concentrate per year, although plans are already well advance to push that on up to at least 20,000 tonnes in due course.

That profile of rising production, particularly when set against the backdrop of a strong copper market, proved an enticing prospect for London investors last year, when Cradle Arc was marketing.

Once the company had completed its reversal of the Mowana asset into what was then called Alecto, it was able to go out for £3.25mln in pre-IPO money, securing a further £2.4mln on admission.

WATCH: Cradle Arc PLC back on AIM and fired up over Mowana potential

Cradle Arc is thus a straightforward enough proposition: a well-capitalised copper producer with plans to increase output and a clear idea of how to do so.

“We will get Wardell Armstrong to do a new block model resource to confirm the life of mine,” says van Wouw.

Already a key component is in.

Cradle Arc reported on 31 January that a study by the well-known mining consultant SGS has confirmed the viability of using dense media separation techniques to separate ore from waste at Mowana.

The impact is likely to be significant and could, as part of the feasibility study, boost the net present value of Mowana from the current US$87mln to upwards of US$245mln.

Part of that value uplift would come from confirmation of the viability of increasing output to as much as 22,000 tonnes per year, and there would be corresponding economies of scale.

At this stage, it’s estimated that the application of the dense media separation option to the expanded operation would result in an internal rate of return (IRR) of 55%.

To formalise those estimates, the technical information gleaned from the SGS study will now be plugged into the work Wardell is undertaking.

Copper outlook positive

But at this stage, Van Wouw puts the overall cost of putting the second phase into production at around US$20mln.

In the meantime, the outlook for copper continues to be positive.

Van Wouw is bullish in the short-to-medium term in the context of the general infrastructure spend in emerging markets. He also points out that although there has been steady upward momentum for some time, there are no signs yet of a bubble developing.

It all sets a useful context for Cradle Arc to initiate expansion, and Botswana’s continuing political stability provides the perfect backdrop.

One route will be through the Makala project, which lies 70 kilometres away from Mowana. “There is a historic resource that grades 1.8% copper and one ounce of silver per tonne,” says van Wouw.

Extra upside will come too, from the company’s gold activities in Zambia, where it has a contract to design, build and operate a gold mine called Matala.

That’s currently in the midst of being funded, so watch this space.

]]>
Mon, 05 Feb 2018 11:52:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/191148/cradle-arc-eying-production-expansion-after-ramp-up-completes-at-mowana-191148.html
<![CDATA[News - Cradle Arc to push ahead with process enhancements at Mowana copper mine ]]> http://www.proactiveinvestors.co.uk/companies/news/190894/cradle-arc-to-push-ahead-with-process-enhancements-at-mowana-copper-mine-190894.html CradleArc Plc(LON:CRA) should be able to use Dense Media Separation (DMS) to boost production substantially at the Mowana copper mine in Botswana.

An independent test report from SGS South Africa confirmed its suitability and Cradle Arc now intends to go ahead and install a plant.

WATCH: Cradle Arc PLC back on AIM and fired up over Mowana potential

DMS is a pre-production process that concentrates the metals in ore and potentially will increase production at Mowana by more than 80% to approximately 22,000tpa of copper in concentrate.

Costs would also be lower, with the estimated value of the project forecast to rise to US$245mln from US$87mln through the use of DMS.

The test work demonstrated that pre-concentration can be deployed at Mowana on all low oxide ores, Cradle Arc said.

A new block model for the resource at Mowana is also being prepared, which will enable a new mining schedules that incorporate the DMS study results. 

Kevin van Wouw, Cradle Arc’s chief executive, said: "Our expectation that DMS upgrades should be deployed at Mowana has been confirmed by SGS's report. 

READ: Cradle Arc to rejoin AIM next week following Mowana acquisition

“We are confident that we can rapidly move the Mowana mine from operating at its current nameplate capacity capable of producing 12,000 tonnes Cu per annum to more than 20,000 tonnes Cu per annum.

This is expected to dramatically improve cash flows as well as the net present value, he added.

The initial phase of DMS preparatory work will be completed this quarter.

]]>
Wed, 31 Jan 2018 08:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/190894/cradle-arc-to-push-ahead-with-process-enhancements-at-mowana-copper-mine-190894.html
<![CDATA[RNS press release - Test Work Confirms the DMS Applicability, Mowana ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180131070005_13515394/ Wed, 31 Jan 2018 07:00:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180131070005_13515394/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180130173502_13515181/ Tue, 30 Jan 2018 17:35:02 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180130173502_13515181/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180126163001_13511749/ Fri, 26 Jan 2018 16:30:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180126163001_13511749/ <![CDATA[Media files - Cradle Arc PLC back on AIM and fired up over Mowana potential ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/8655/cradle-arc-plc-back-on-aim-and-fired-up-over-mowana-potential-8655.html Wed, 24 Jan 2018 11:17:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/8655/cradle-arc-plc-back-on-aim-and-fired-up-over-mowana-potential-8655.html <![CDATA[RNS press release - Align Research initiation of coverage ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180124071501_13507409/ Wed, 24 Jan 2018 07:15:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180124071501_13507409/ <![CDATA[RNS press release - Admission to AIM and First Day of Dealings ]]> http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180124070004_13507072/ Wed, 24 Jan 2018 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180124070004_13507072/ <![CDATA[News - Cradle Arc to rejoin AIM next week following Mowana acquisition ]]> http://www.proactiveinvestors.co.uk/companies/news/190298/cradle-arc-to-rejoin-aim-next-week-following-mowana-acquisition-190298.html Copper miner Alecto Minerals is set to return to AIM next week (24 January) under its new name Cradle Arc PLC.

The junior completed the reverse takeover of the Mowana copper mine in Botswana in November, paving the way for a re-financing and re-listing.

READ: Alecto Minerals to lose AIM listing as Mowana completion drags on

An AIM Schedule One (pre-listing) announcement indicated Cradle Arc will be valued at £20.1mln following a £2.4mln fund raise.

Mowana’s vendor Kevin Van Wouw will be chief executive with a 57.4% stake in the enlarged company.

Institutions City Financial and Hadron Capital will own 10.55% and 3.59% respectively.

Alecto originally agreed to buy Mowana more than a year ago (in December 2016) but had its listing cancelled as the deal was not completed within the junior market’s time deadlines.

The purchase of 60% of Cradle Arc, which owns 100% of Mowana, was eventually concluded on November 13 last year.

Mowana, in north-east Botswana, has a mineral resource of 686,000 tonnes copper in the Measured and Indicated categories (JORC-code compliant) with an additional 758,000 tonnes in the Inferred category.

The company also has gold assets in Zambia.

]]>
Fri, 19 Jan 2018 12:10:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/190298/cradle-arc-to-rejoin-aim-next-week-following-mowana-acquisition-190298.html
<![CDATA[News - Alecto Minerals to lose AIM listing as Mowana completion drags on ]]> http://www.proactiveinvestors.co.uk/companies/news/180362/alecto-minerals-to-lose-aim-listing-as-mowana-completion-drags-on-180362.html Alecto Minerals PLC (LON:ALO) is to lose its AIM listing due to the prolonged suspension of its shares while the proposed acquisition of the Mowana copper mine in Botswana progresses.

Shares in Alecto have been suspended since 21 December 2016 while it completes the admission document for the deal, which has been structured as reverse takeover.

Under AIM rules, six months is the maximum a company’s shares can be suspended.

Alecto has been granted one extension already, but has now been informed its listing will be cancelled on 11 July.

The junior added it still intends to proceed with the acquisition and to seek admission to trading for the enlarged group on AIM as a new applicant. 

Extensive technical, financial and legal due diligence on Mowana and its holding companies has been carried out  the results of which will be reflected in the admission document as appropriate. 

Indeed, Alecto re-started production at Mowana in March and to date approximately 4,300 tonnes of copper concentrate have been produced and sold to offtake partner, Fujax Minerals and Energy.  

However, Alecto warned that in the event the event that the Mowana acquisition does not complete on the expected timetable, more funds will be required without which it faces liquidation.

]]>
Wed, 05 Jul 2017 07:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180362/alecto-minerals-to-lose-aim-listing-as-mowana-completion-drags-on-180362.html
<![CDATA[News - Alecto says Mowana due diligence nearly complete, will seek funds to complete deal ]]> http://www.proactiveinvestors.co.uk/companies/news/179042/alecto-says-mowana-due-diligence-nearly-complete-will-seek-funds-to-complete-deal-179042.html Alecto Minerals PLC’s (LON:ALO) due diligence on the Mowana copper mine in Botswana is nearly complete and it expects to start a funding exercise shortly to complete the deal.

The Mowana mine returned to production in March and is expected to ramp up to 100,000 tonnes of ore processed this month with 3,286 tonnes of copper concentrate produced.

Working capital in the ramp up phase has been provided by Alecto and Fujax Minerals and Energy Limited, the offtake partner of Alecto subsidiary Leboam. 

Alecto currently has cash balances of approximately £140,000, which tis sufficient to cover expected corporate costs through to completion of the acquisition on the current anticipated timetable.   

Alecto added it had also appointed mining heavyweight Roger Williams as a non-executive director with immediate effect.

Williams was previously CFO of Randgold Resources Limited and JSE-listed AECI Limited. He is interim Commercial Executive for Digby Wells and Associates, an environmental and social consultancy to the resources sector in Africa.

]]>
Fri, 09 Jun 2017 16:06:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/179042/alecto-says-mowana-due-diligence-nearly-complete-will-seek-funds-to-complete-deal-179042.html
<![CDATA[News - Alecto Minerals raises £800,000; hopes for AIM re-admission by end June ]]> http://www.proactiveinvestors.co.uk/companies/news/178890/alecto-minerals-raises-800000-hopes-for-aim-re-admission-by-end-june-178890.html Alecto Minerals PLC (LON:ALO) has issued £800,000 worth of convertible loan notes to help fulfil the working capital requirements at its recently-acquired Mowana copper mine in Botswana.

The Africa-focused explorer told investors that the coming months are “expected to be transformational for Alecto” and that the fundraise announced today would help to support the business during the period.

If not converted into Alecto shares, the notes are repayable by 2 December 2017 and carry an interest rate of 20%.

WATCH: Mowana mine hitting full-time production 'all good stuff', says Alecto's Mark Jones

Interest payments will be satisfied through the issue of new Alecto shares at 0.06625p, which will result in 241.5mln shares being issued to the holders of the notes.

Instead of waiting to be paid back, the holders may opt to convert some or all of their notes into ALO shares during a 10-day period after the firm’s shares are readmitted to AIM - the shares are currently suspended at 0.07p.

The closing price of Alecto shares on the day they are readmitted will set an upper limit on the price at which the shares can be converted, while note holders may opt to convert the shares at 80% of the previous day's closing mid-market price if that is lower.

"We are pleased to secure this additional CLN facility which, together with the revenue currently being generated at the Mowana copper mine from ongoing copper concentrate production, will go towards fulfilling the mine's working capital requirements ahead of effecting the first phase of our full scale production plan at Mowana,” said chief executive Mark Jones.

“The coming months are expected to be transformational for Alecto and this CLN will support us while we drive our business forward.”

AIM re-admission by end of the month

In the same stock market announcement, Alecto told investors that it expects its shares – which have been suspended since the end of 2016 – to be readmitted to AIM by the end of June.

In order to achieve that, the company needs to complete the reverse takeover of Cradle Arc Investments, owner of the Mowana mine, which it says it is progressing.

Mowana production update

CEO Jones also gave a brief update on the operational performance of the mine, which is currently in the process of ramping up to full production capacity.

As noted last month, Jones said Mowana was still on track deliver production of 12,000 tonnes of copper concentrate in the third quarter of this year.

]]>
Wed, 07 Jun 2017 08:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178890/alecto-minerals-raises-800000-hopes-for-aim-re-admission-by-end-june-178890.html
<![CDATA[Media files - Mowana mine hitting full-time production 'all good stuff', says Alecto's Mark Jones ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7456/mowana-mine-hitting-full-time-production-all-good-stuff-says-alecto-s-mark-jones-7456.html Mon, 15 May 2017 11:21:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7456/mowana-mine-hitting-full-time-production-all-good-stuff-says-alecto-s-mark-jones-7456.html <![CDATA[News - Mowana copper mine in full-time production, says Alecto ]]> http://www.proactiveinvestors.co.uk/companies/news/177718/mowana-copper-mine-in-full-time-production-says-alecto-177718.html Alecto Minerals PLC (LON:ALO) has told investors that its Mowana copper mine in Botswana is now in full-time production.

That follows on from the first blast at the end of April and a successful trial period during which Aleecto produced saleable concentrate of up to 28% copper.

So far, the company has produced more than 1,900 tonnes of copper concentrate which is being sold to its offtake partner, Fujax.

WATCH: Mowana mine hitting full-time production 'all good stuff', says Alecto boss

“Mowana is now a full-time copper production operation and we look forward to gaining ownership of the project subject to shareholder approval at which point, we believe, our company will benefit from a significant value re-rating.,” said chief executive Mark Jones.

“Once effected, we will have taken control of a significant asset which has been subject to more than US$150mln of investment in the past for an acquisition price of approximately US$10mln.”

A step closer to resuming trading on AIM

The Competent Persons Report (CPR) on Alecto’s African assets has also been completed, which the firm said represented an “important milestone”.

It takes Alecto one step closer to the publication of the admission document which is needed in order to resume trading on the AIM market.

WATCH: Take a tour of the mine

The company reckons it will have the document published early next month (June), which would hopefully lead to readmission within the next six to eight weeks.

The CPR estimates a current resource of circa 172 million tonnes (Mt) at 0.84% copper at Mowana, of which 26Mt sits within two existing pre-stripped 350 metre-deep pits. 

READ: The Competent Persons Report in full

Allowing for some overlap, Alecto estimates the resource at 162Mt at 0.84% copper. That equates to around 481,000 tonnes of copper in the measured and indicated category and a further 732,000 tonnes of copper in the inferred category.

Alecto intends to ramp up to an annualised rate of 12,000 tonnes of copper in the third quarter of this year. That would give Mowana a net present value (NPV) of US$87.5mln for the initial 12,000 tonnes per annum production scenario based on an average copper price of US$2.80 a pound (lb).

Production costs at the mine are expected to average US$1.50/lb over the mine life based on an average metallurgical recovery of 91%.

Additional upside still at Mowana

The numbers make for decent reading for Alecto and its investors, but the firm reckons there are possible option which, if taken, could boost the project further.

It’s considering installing a Dense Media Separation (DMS) unit which could see throughput double to 2.6Mt per annum, yielding around 23,000 tonnes of copper by the third quarter of 2018.

That would send the mine’s net present value soaring to US$245mln.

A future underground operation could add value at Mowana too. It would let Alecto tap into the rest of the resource which is located down dip and along the strike from the open pits currently being mined.

If Alecto were to go underground, it could extend the life of mine to 20 years.

“We are delighted that the CPR demonstrates the compelling economics of our project even without the installation of a DMS, now that the asset is unencumbered by debt,” added Jones.

“Even better is that it starts to show the tremendous potential upside available using modern techniques identified by our experienced industry partners.”

]]>
Fri, 12 May 2017 09:50:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177718/mowana-copper-mine-in-full-time-production-says-alecto-177718.html
<![CDATA[Media files - 'We are a solid proposition' says Alecto Minerals PLC as it appoints Capital Drilling at Mowana ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7164/-we-are-a-solid-proposition-says-alecto-minerals-plc-as-it-appoints-capital-drilling-at-mowana-7164.html Fri, 24 Mar 2017 15:03:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/7164/-we-are-a-solid-proposition-says-alecto-minerals-plc-as-it-appoints-capital-drilling-at-mowana-7164.html <![CDATA[News - Alecto Minerals powers ahead at Mowana, appoints Capital Drilling ]]> http://www.proactiveinvestors.co.uk/companies/news/175240/alecto-minerals-powers-ahead-at-mowana-appoints-capital-drilling-175240.html Alecto Minerals PLC (LON:ALO) has awarded London-listed group Capital Drilling Limited (LON:CAPD) the contract for Drill and Blast at its Mowana copper project in Botswana.

Mark Jones, Alecto’s chief executive, said: "We are moving at speed towards delivering continuous production and first sales at Mowana meaning that the atmosphere on site is buoyant, particularly given that the first blast is anticipated in just a matter of days. 

“It is significant that we have been able to sign up a company of Capital Drilling's profile to provide future Drill and Blast services, and with Giant already on site, our stockpile is increasing.” 

WATCH: Alecto a "solid proposition", says boss ...

Jones said that a local contractor will carry out the first production blast by the end of this month while Capital mobilises its equipment.

Giant Transport, the mining contractor for the project for an initial period of six months, has started work with the conventional crushing and screening circuit operating for two weeks, stockpiling crushed ore.

Test production has also now commenced, producing saleable concentrate up to 28% copper (Cu), which will comprise part of the first tranche of product to be delivered to Fujax Minerals and Energy Limited  under a five year copper offtake contract

This early test production will help the project’s value, Jones said, so the time for the shares to return from suspension on AIM has been pushed back until  end May.

“Most importantly, we have switched the plant back on as part of a test phase and this has been a great success, producing saleable copper concentrate. 

 "Of course, there are still some hurdles to overcome before we can announce that we are in full scale production, but our project is being de-risked on a continuous basis.”

The Mowana acquisition was announced  in December.

The deal will see Alecto acquire a 60% interest for about £6.7mln made up of £1mln cash and the rest in shares.

Alecto believes Mowana can be brought back into production for US$20mln, which will be met through offtake and vendor financing deals.

At a copper price of US$2.50 per lb, Alecto's internal estimate for the project's net present value is US$245mln.

-- adds background--

]]>
Wed, 22 Mar 2017 15:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/175240/alecto-minerals-powers-ahead-at-mowana-appoints-capital-drilling-175240.html
<![CDATA[News - Alecto making “rapid progress” at Mowana ]]> http://www.proactiveinvestors.co.uk/companies/news/173837/alecto-making-rapid-progress-at-mowana-173837.html Alecto Minerals PLC (LON:ALO) has told investors it is making “rapid progress” in bringing its Mowana copper project in Botswana  back into production.

The explorer has contracted Giant Transport Holdings to undertake mining operations at the project on an initial six months basis.

Two bulldozers, two excavators and five 40-tonne dump trucks are also on site and have been mobilised, alongside Alecto’s own excavator dozer and front end loader. Further equipment is in transit, the company added.

Delighted to see first yellow metal on site and starting to move rock: https://t.co/ZUXF3QPoo3 #Mowana #Botswana #Copper #Mining #ALO pic.twitter.com/P5Zo6uyjaf

— Alecto Minerals PLC (@AlectoMinerals) February 27, 2017

Pit clean-up operations and reverse circulation (RC) grade control drilling can now start to test the near-term production targets, while the contract for the supply of fuel and lubricants has been signed, with delivery expected in the next couple of weeks or so.

“The arrival of our mining contractor and the earth moving equipment on site marks the beginning of a very exciting three-month period, which will be characterised by production, sales and renewed activity at Mowana,” said chief executive Mark Jones.

“With grade control drilling due to commence next week, recruitment of key personnel continuing and process plant start-up planned shortly, this Project is becoming a tangible reality.”

Jones also reiterated his belief that, under Alecto’s ownership, Mowana will deliver “greater production at a lower cost than has historically been achieved”.

In addition, the company told investors that a strong recruitment drive is underway with over 150 positions at the project already filled.

Higher than usual rainfalls in Botswana since the end of 2016 have meant that a de-watering programme has had to be started at the pit, although Alecto said this would have no impact on the near-term production plans.

Mowana – which was operated between 2008 and 2015 before it was shut – has a resource of 683,000 tonnes of copper in the measured and indicated categories.

Shares in Alecto were off 3% to trade at 0.064p.

]]>
Mon, 27 Feb 2017 15:25:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/173837/alecto-making-rapid-progress-at-mowana-173837.html
<![CDATA[News - Alecto Minerals raises £1mln to fund restart of recently-acquired copper mine ]]> http://www.proactiveinvestors.co.uk/companies/news/171741/alecto-minerals-raises-1mln-to-fund-restart-of-recently-acquired-copper-mine-171741.html Alecto Minerals PLC (LON:ALO) has wasted no time in securing some of the financing to bring back on stream its recently acquired Mowana copper mine in Botswana.

Read Alecto Minerals to buy copper mine in Botswana

The Africa-focused gold and copper explorer has issued £1mln worth of convertible loan notes to help fund the restarting of operations at the project.

If not converted into Alecto shares the notes are repayable by 16 July 2017 and carry an interest rate of 20% plus an initial £50,000 fee.

Interest payments will be satisfied through the issue of Alecto shares at 0.06625p a pop, which means up to 301.890mln shares could end up being issued to the holders of the notes.

The holders may opt, however, to convert some or all of the notes into Alecto shares in a 10-day period after Alecto's shares are readmitted to Aim (the shares are currently suspended).

The closing price of Alecto shares on the day they are readmitted will set an upper limit on the price at which the shares can be converted; note holders may opt to convert the shares at 80% of the previous day's closing mid-market price if that is lower.

Alecto will syphon off some of the funds raised from the loan note issue to provide a loan of up to US$1mln to Cradle Arc Investments, the company that owns the Mowana copper mine in Botswana and which is being acquired by Alecto via reverse takeover.

The South African group providing off-take financing to Mowana – Fujax Minerals and Energy – will also lend up to US$1mln to Cradle.

That will give Cradle around US$2mln in short-term funding to help bring the mine back into production, which is slated for the first quarter of this year.

At a copper price of US$2.50 per lb, Alecto's internal estimate for the project's net present value is US$245mln.

Mowana has a resource of 683,000 tonnes of copper in the Measured and Indicated categories.

The mine operated between 2008-2015 before it was shut, but Alecto believes it can remodel the operation to slash its costs.

]]>
Tue, 17 Jan 2017 12:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/171741/alecto-minerals-raises-1mln-to-fund-restart-of-recently-acquired-copper-mine-171741.html
<![CDATA[Media files - Copper mine acquisition a “stunning opportunity” for Alecto Minerals ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/6640/copper-mine-acquisition-a-stunning-opportunity-for-alecto-minerals-6640.html Wed, 21 Dec 2016 12:15:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/6640/copper-mine-acquisition-a-stunning-opportunity-for-alecto-minerals-6640.html <![CDATA[News - Alecto Minerals to buy copper mine in Botswana ]]> http://www.proactiveinvestors.co.uk/companies/news/170789/alecto-minerals-to-buy-copper-mine-in-botswana-170789.html Alecto Minerals PLC (LON:ALO) is to take over the running of the mothballed Mowana copper mine in Botswana and bring it back on stream.  

The deal will be structured as a reverse takeover, with the current owner of the mine in north eastern Botswana ending up with a controlling stake. 

Alecto said copper mines in Africa have struggled with its low price recently and years of poor management but this is an opportunity where it can produce at much lower costs than previously.

The deal will see Alecto will acquire a 60% interest in Mowana subject to the regulatory and shareholder approval hurdles and have a ten year management contract.

Shares have been suspended while this process works through with Alecto also mulling a convertible fund raise to bring in additional  capital and an equity funding when the shares resume trading again.

The consideration is about £6.7mln made up of £1mln cash and the rest in shares.

Alecto believes Mowana can be brought back into production for US$20mln, which will be met through offtake and vendor financing deals.

At a copper price of US$2.50 per lb, Alecto's internal estimate for the project's net present value is US$245mln.

Mowana has a resource of 683,000 tonnes of copper in the Measured and Indicated categories.

The mine operated between 2008-2015 before it was shut, but Alecto believes it can remodel the operation to slash its costs.

A Dense Media Separation plant to increase throughput to 2.6mln tpa and lift copper production to 22,000 tonnes per year.

The vendor is PemMin Botswana, a controlled by Kevin Van Wouw a specialist mining contractor based in South Africa.

Following completion of the deal, PenMin and Gerald Chapman, a director of Alecto who was involved in the transaction, will own 29.9% each of the AIM-listed group.

Mark Jones, Alecto’s chief executive, said Mowana is a first class copper mining project and represents an ideal opportunity to achieve a complete transformation of Alecto.

]]>
Wed, 21 Dec 2016 08:32:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/170789/alecto-minerals-to-buy-copper-mine-in-botswana-170789.html
<![CDATA[News - Alecto completes Ashanti Gold Corp option deal in Mali ]]> http://www.proactiveinvestors.co.uk/companies/news/169591/alecto-completes-ashanti-gold-corp-option-deal-in-mali-169591.html Alecto Minerals PLC’s (LON:ALO) previously announced joint venture deal with Ashanti Gold Corp has now been completed.

Ashanti has the exclusive right to earn-in for a 65 per cent interest in the Kossanto East project in Mali, by completing a preliminary feasibility study within a period of 36 months.

If an extension to the Option Period is required, beyond the initial 36-months, then Ashanti has the option to pay to Alecto US$140,000 for each 6-month extension, up to a maximum of 12 additional months in total, to complete the PFS.

Should Ashanti not complete the PFS within the Option Period, then it may elect to pay to Alecto US$4 million in cash to satisfy the earn-in requirement

Meanwhile, Randgold Resources' exploration teams have commenced their new field season activities at Kossanto West, and Kola Gold and Alecto are applying for the extension of the Karan exploration permit in southern Mali.

In addition, predevelopment activities at the Matala project in Zambia has begun.

 

]]>
Mon, 28 Nov 2016 08:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/169591/alecto-completes-ashanti-gold-corp-option-deal-in-mali-169591.html
<![CDATA[Media files - Alecto Minerals' Jones confident over Matala finance ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/6409/alecto-minerals-jones-confident-over-matala-finance-6409.html Thu, 17 Nov 2016 11:54:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/6409/alecto-minerals-jones-confident-over-matala-finance-6409.html <![CDATA[News - Alecto Minerals edging closer to sealing Matala project finance ]]> http://www.proactiveinvestors.co.uk/companies/news/169125/alecto-minerals-edging-closer-to-sealing-matala-project-finance-169125.html Alecto Minerals PLC (LON:ALO) is making progress on securing funding for its Matala project, which will be Zambia's first major standalone gold mine.

It was originally envisaged that Chinese financing could be wrapped up by the end of September but that timeline has slipped, not least due to Presidential elections in Zambia in  that month.

In May, Alecto said Xiamen XGMA International Trade Company Ltd had confirmed that huge Chinese State-owned insurer and credit export group Sinosure would provide risk cover but that needed Ministerial support in Zambia and was delayed by the election.

On September 28, Alecto received confirmation of  Sinosure's cover subject to a local Zambian institution holding the security on behalf of the lender.

WATCH: CEO Mark Jones speaks to Proactive's Stocktube

Alecto is "now focusing on completing the last leg of the financing plan, which is to reach agreement with local Zambian institutions for the provision of an on-lending facility and additional security in order to facilitate the flow of funds from China", it said.

The mine is expected to be commissioned in 2017.

Alecto chief executive Mark Jones said: "The company, and our partners, are very excited about what will be a true Zambian gold mining success story, and we are fully committed to ensuring that it happens. 

"Due to our size, satisfying potential financiers of the merits of taking on project risk has not been without its challenges, and progress has been slower than we would have wished. 

"However, our commitment to the process is undimmed and we continue to believe that bringing Matala in to production is the best way to realise value for shareholders."

]]>
Thu, 17 Nov 2016 08:03:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/169125/alecto-minerals-edging-closer-to-sealing-matala-project-finance-169125.html
<![CDATA[News - Alecto raises funds for pre-development activities ]]> http://www.proactiveinvestors.co.uk/companies/news/166749/alecto-raises-funds-for-pre-development-activities-166749.html Alecto Minerals PLC (LON:ALO), the Africa-focused gold and base metal exploration and development company, has raised £600,000 through a share placing.

The shares were placed at 0.075p, a discount to last night’s mid-market closing price of 0.1p. The shares declined to 0.077p in the wake of the announcement.

Funds from the share issue will finance pre-development activities at its Matala gold project in Zambia, where the company said it continues to make progress towards its goal of bringing the 400,000 tonnes per annum project into low-cost production in the near to mid-term.

The newly issued shares represent around 15.2% of the company’s enlarged share capital.

"We are making steady progress towards the conclusion of a funding package for the Matala gold mine,” said Alecto’s chief executive officer, Mark Jones.

“We have every confidence that we will complete this financing and bring Matala into production in 2017; however, we are obliged to progress at the speed dictated by our counter-parties and other external factors,” Jones noted.

“The current fund-raising will strengthen Alecto's position and enable us to complete essential pre-development activities on the ground in Zambia on a timeline within our control,” Jones said.

News of the placing accompanied the company’s interim results, which revealed loss before tax holding relatively steady at £287,155 versus a loss in the first half of last year of £264,320.

Revenue rose to £105,369 from £44,663 the year before.

Chairman Gerald Chapman said he believed the company is poised for significant growth in the next 12 months.

“We have delivered on a number of our stated objectives for our African gold portfolio during the period,” he said, looking back at the first half of 2016.

“We are also evaluating larger projects with a view to building Alecto to become a profitable African metals producer. We are also pleased to have secured value accretive paths for the rest of our portfolio via joint ventures,” Chapman said.  

]]>
Fri, 30 Sep 2016 08:34:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166749/alecto-raises-funds-for-pre-development-activities-166749.html
<![CDATA[Media files - Zambia the focus for Alecto Minerals ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5430/zambia-the-focus-for-alecto-minerals-5430.html Mon, 22 Aug 2016 15:38:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5430/zambia-the-focus-for-alecto-minerals-5430.html <![CDATA[News - Alecto agrees farm out of third Mali gold property ]]> http://www.proactiveinvestors.co.uk/companies/news/129545/alecto-agrees-farm-out-of-third-mali-gold-property-129545.html Alecto Minerals PLC (LON:ALO) has agreed preliminary terms for Canadian junior Ashanti Gold Corp (CVE:AGZ) to farm-into the Kossanto East gold project in western Mali.

A letter of intent between the two companies has been agreed that will see Ashanti take up to a 65% stake by completing a preliminary feasibility study (PFS) within three years.

 Ashanti will take over as the operator and at the end of the 36 month option a joint venture will be set up.  Alternatively, it can pay US$4mln to take the 65% stake.

Kossanto East has a JORC-compliant resource of 247,000 oz gold currently.

Alecto had originally planned to work with neighbour Desert Gold, the owner of the tenement adjacent to Kossanto East, to develop a new mining district in Mali but this option is now on the backburner said Mark Jones, Alecto's chief executive.

“During the 2015 field season we worked closely with neighbouring Desert Gold Ventures Inc. to complete an internal scoping study for potential joint small scale production. 

“Whilst the economics were positive, it was clear that both company's projects would benefit from additional exploration in order to maximise the potential for future production. 

"Our proposed partnership with Ashanti will enable us to realise the full potential of Kossanto East. 

“With the Gourbassi deposits open along strike and some excellent initial results from exploration targets such as Berola we are confident that together we will be able to build a larger mining play at this very exciting project area.

“In addition, the option remains to work with Desert Gold, should it serve the interests of all parties."

The agreement with Ashanti is the third farm-out in Mali Alecto has negotiated this year.

London-listed giant Randgold Resources (LON:RRS) has partnered with it at the neighbouring Kossanto West project while Karan in southern Mali is now a joint venture with Kola Gold.

The deals have followed Alecto's focus turning fully to the Matala and Dunrobin prospects in Zambia, where gold production is expected to by the second half of next year.  

]]>
Mon, 22 Aug 2016 08:05:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129545/alecto-agrees-farm-out-of-third-mali-gold-property-129545.html
<![CDATA[Media files - 2017 mine commissioning realistic for Alecto Minerals - CEO ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5208/2017-mine-commissioning-realistic-for-alecto-minerals-ceo-5208.html Fri, 01 Jul 2016 14:16:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5208/2017-mine-commissioning-realistic-for-alecto-minerals-ceo-5208.html <![CDATA[News - Alecto Minerals plots a fast track route in Africa ]]> http://www.proactiveinvestors.co.uk/companies/news/127003/alecto-minerals-plots-a-fast-track-route-in-africa-127003.html In the space of a year, Alecto Minerals (LON:ALO) has gone from exploration junior with some promising acreage to one with big name partners and the near-term prospect of gold production.

The step-change has been impressive against the tough backdrop for the sector.

Twelve months ago the big news was the initial non-JORC code resource of almost a quarter of a million ounces of gold at the Kerboulé project in Burkina Faso.

Now all attention is on Zambia and the Matala project.

Matala on a fast track curve

At one time owned by Aussie miner Luiri Gold, Matala found its way into the Alecto portfolio at the end of last year.

In April, Alecto announced an agreement in principle with Yantai Xinhai Machinery under the terms of which an estimated US$14.4mln in funding will be provided for the construction of the mine, 125 kilometres west of Lusaka.

True, the cost was 943mln shares, or approximately 25% of the enlarged share capital, but with the Zambian government looking favourably on the country’s first major standalone gold mine supports for Matala are stacking up.

Production on schedule for next year

Mark Jones, Alecto’s managing director, says it is a realistic target for production to have started to by the second quarter of next year.

The stars will have to align quite nicely for that to happen, but it’s not unimaginable.

“With cash costs envisaged at around US$780 and a projected internal rate of return of 52%, this project has plenty going for it,” he said.

Alecto’s plans are for a 400,000 tonnes per year open pit while a recent feasibility study  indicated a life of around four years 8 months at $1,200 per ounce gold and NPV of US$28.6mln.

Its interest in Zambia comprises two licences, Matala and Dunrobin, with a JORC-compliant 760,000 oz.

Costs to get Matala into production are estimated at US$18mln with cash generated once it is up and running to fund development of a mine at Dunrobin.

Joint ventures and more

Matala is plenty for a junior to be going on with, but Alecto is keeping other irons in the fire through joint ventures with some well-heeled neighbours.

Post December, the group secured joint ventures with Randgold and Cora Gold for two projects in Mali.

Cora Gold owns tenements adjacent to the Alecto’s Karan project. Cora, a subsidiary of Kola Gold, will pay all of the exploration and development costs.

Funding a scoping study will entitle Cora to a 65% stake, with a further 15% to follow on completion of a bankable study.

At that point, Alecto can decide if it wants to maintain a stake and pay its share of mine development costs or hand it all to Cora.

Randgold meanwhile can take a 65% stake at Kossanto West in Mali with Alecto retaining a 35% participating interest.

An initial work programme will involve further mapping with potential follow up reconnaissance drilling anticipated to be undertaken by Randgold in the first 12 months.

In August, meanwhile, Alecto agreed a farm-out of a third property in Mali with Canadian junior Ashanti Gold  Corp to take a 65% stake in the Kossanto East in return for funding the project to pre-feasibility level.

And to come full circle there is still the opportunity at Kerboule, where Alecto is currently looking for a partner.

And there's still Kerboule

Kerboulé lies just 20 metres along strike from the 5mln ounce Inata gold mine owned by Avocet Mining.

The resource estimate by Wardell Armstrong comes in at 6.2 mln tonnes, grading at 1.16 grams per tonne (g/t) gold for 230,758 ounces of gold, at a cut-off 0.5 g/t.

The resource implies an initial acquisition cost of around US$2.25 per resource ounce of gold, substantially lower than the industry-standard cost, said Jones.

Kerboulé may also be combined with the 247,000 ounces of gold at Kossanto East in Mali as part of a plan to make a sizeable gold distrint in Mali.

The mineralisation at Kerboulé starts from surface, with around 70% contained within the oxide and transitional layers.

 

--  updates for Kossanto East farm-out --

]]>
Fri, 10 Jun 2016 15:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127003/alecto-minerals-plots-a-fast-track-route-in-africa-127003.html
<![CDATA[News - Alecto Minerals becomes pre-production gold miner in 2015 ]]> http://www.proactiveinvestors.co.uk/companies/news/126773/alecto-minerals-becomes-pre-production-gold-miner-in-2015-126773.html Alecto Minerals PLC (LON:ALO) was transformed into a pre-production gold miner in 2015 and the focus now is getting cash flow from  its Matala gold mine in Zambia.

"With an established resource in place with additional upside potential, attractive value fundamentals, a clear route to production and planned vendor financing progressing, our focus going forward is very much on achieving gold production at this project location at the earliest opportunity, it said in final results.

In May, Alecto said it wants the 400,000 tonnes per year open pit up and running within a year and a feasibility study  indicated a life of around four years 8 months at $1,200 per ounce gold and NPV of US$28.6mln.

Post period, the group also secured joint ventures with Randgold and Cora Gold in Mali so it retains exposure to exploration without direct expense, while discussions continue over a partner for its Kerboule prospect in Burkina Faso.

Pre-tax profit in 2015  was £3.34mln compared to a re-stated loss of £767,804 for 2014. This was down to an adjustment of fair value to the group's exploration assets acquired in  November 2015.

The firm had cash of £530,003 (2014: £114,258) as at December  31, which has since been bolstered with a £665,000 placing, allowing it to fund working capital as Matala is progressed.

Alecto shares gained 5.56% to stand at 0.095p at the time of writing.

]]>
Mon, 06 Jun 2016 11:22:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126773/alecto-minerals-becomes-pre-production-gold-miner-in-2015-126773.html
<![CDATA[News - Alecto raises funds to fast track Zambia mine ]]> http://www.proactiveinvestors.co.uk/companies/news/126005/alecto-raises-funds-to-fast-track-zambia-mine-126005.html Fast moving Alecto Minerals PLC (LON:ALO) has raised £665,000 for funds to bring its Matala gold mine in Zambia on stream.

Alecto wants the 400,000 tonnes per year open pit up and running within a year.

A feasibility study has indicated a life of around four years 8 months at $1,200 per ounce gold.

The net present value was put at US$28.6mln and the unlevered IRR (internal rate of return) at 52%.

Shares were issued at 0.08p and the equivalent of 18.6% of the enlarged share capital.

Mark Jones, chief executive, said that he was delighted by the support shown by shareholders but was disappointed that the share price has not responded better to the opportunity in Zambia.

“However, the board is acutely aware of the importance of maintaining momentum on the ground in Zambia, to build on the excellent start we have already made. There is potentially still huge upside for stakeholders if we get this right,” he said.

Alecto also has joint ventures with Randgold and Cora Gold in Mali while discussions are in progress over a partner for its Kerboule prospect in Burkina Faso.

"With this in mind, we will continue to focus and deliver on our strategy, which I believe will translate into share price appreciation moving forward, “ said Jones.

]]>
Tue, 17 May 2016 08:29:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126005/alecto-raises-funds-to-fast-track-zambia-mine-126005.html
<![CDATA[News - Alecto farms out Mali deposit to neighbour ]]> http://www.proactiveinvestors.co.uk/companies/news/125851/alecto-farms-out-mali-deposit-to-neighbour-125851.html Alecto Minerals PLC (LON:ALO) has agreed a farm–out of its Karan gold prospect to Cora Gold, which owns tenements adjacent to the project in Mali.

Cora Gold, a subsidiary of Kola Gold, will pay all of the exploration and development costs.

Funding a scoping study will entitle Cora to a 65% stake, with a further 15% to follow on completion of a bankable study.

At that point, Alecto can decide if it wants to maintain a stake and pay its share of mine development costs or hand it all to Cora.

Alecto will retain a 2% Net Smelter Return interest that can be bought out for US$3mln in the first five years.

Cora has already started work at Karan on the ground and on the historical database.

Mark Jones, Alecto’s chief executive, said the agreement was line with its strategy to maintain exposure but limit the cost of any significant discoveries in its West African gold exploration portfolio while it works to gold mine Matala in Zambia into commercial production. 

"Cora Gold is a natural JV partner for Alecto, owning adjoining permits to the south of the Karan permit and with experience in finding and developing gold projects, both in Mali and across the wider region. “

]]>
Thu, 12 May 2016 09:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125851/alecto-farms-out-mali-deposit-to-neighbour-125851.html
<![CDATA[News - Alecto renews Kerboule permit for three years ]]> http://www.proactiveinvestors.co.uk/companies/news/125579/alecto-renews-kerboule-permit-for-three-years-125579.html Gold explorer Alecto Minerals PLC (LON:ALO) has renewed the permits for its Kerboule project in Burkina Faso for a further three years.

The renewal will significantly strengthen its hand when it comes to finding a partner for the project, said Mark Jones, chief executive.

Kerboule, inside the Gassel-Manere and Arae exploration permit areas, has a non-verified resource of 6.2Mt grading at 1.16g/t gold or 231,000 ounces.

it covers 399.5 sq km of the highly prospective Birimian-age Djibo gold belt in the north of Burkina Faso and is 20km along strike from Avocet Mining’s  5mln oz Inata gold mine.

Jones added the extra three years was sufficient for adequate additional exploration work to be completed.

The aim is to finalise a joint venture to fund the exploration while it focuses on producing saleable gold from the Matala project in Zambia as rapidly as possible.

“With nearly 0.25 mln ounces already defined in the KY-corridor and a vast exploration target at Palpaga we are confident that with additional time to explore, this [Kerboule] project will deliver significant future returns.  

]]>
Thu, 05 May 2016 07:59:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125579/alecto-renews-kerboule-permit-for-three-years-125579.html
<![CDATA[News - Alecto Minerals, backed by China, minimises dilution and heads towards production ]]> http://www.proactiveinvestors.co.uk/companies/news/125241/alecto-minerals-backed-by-china-minimises-dilution-and-heads-towards-production-125241.html Keep it simple. That’s the mantra Mark Jones of Alecto Minerals PLC (LON:ALO) took with him to China recently on an expedition to raise vendor finance for his company’s gold mine in Zambia.

And it worked.

In the middle of April Alecto announced an agreement in principle with Yantai Xinhai Machinery under the terms of which an estimated US$14.4 mln in funding will be provided for the construction of the Matala gold mine, 125 kilometres west of Lusaka.

This project was formerly the property of Luiri Gold, an Aussie company now under the charge of one-time Aquarius chief Stuart Murray.

Luiri sold out as part of a drastic scaling back of activities in mid-2014, and Matala then changed hands again before finding its way into the Alecto portfolio at the end of last year.

The timing was fortuitous to say the least, because while all that was going on Alecto had been on a journey of its own.

Jones came into the company at the back end of 2013 with a view to working up some very promising gold exploration assets in Mali.

“We were very comfortable with the opportunities these assets provided,” he says, and indeed Alecto then raised funds and significantly increased the resource base at the modest cost of just US$5 per ounce.

The market wasn’t buying it though. Back then gold looked as though it was in freefall and junior explorers were facing some pretty tough choices as regards funding.

So some months later, in mid-2014, it was time to take stock. “The board sat down and said: ‘where’s our future?’” Jones says.

“Because of where the market was there were cheaper assets around. There were distressed assets. This was clearly the best way forward.”

The plan was hatched to seek out and acquire a near-term production asset that could generate cash for the company to keep it going in the face of hostile equity markets.

It’s a tried and tested method, and in the case of Alecto it comes with an extra twist: because of the proposed vendor financing with Xinhai, from here on in shareholder dilution will be kept to an absolute minimum.

To be sure, the acquisition cost was substantial, at 943 mln shares, or approximately 25% of the enlarged share capital. But that compares pretty well to the near 40% share price rise the company enjoyed once the news of the Chinese financial was announced.

And especially so, since it’s not actually a done deal yet.

But the market now has plenty to hold onto.

Gold’s precipitous decline of a couple of years ago has been halted. Alecto has got serious money lined up behind Matala, with substantial further dilution looking unlikely. The Zambian government is looking on the country’s first major standalone gold mine with considerable favour. And the economics of Matala are stacking up well.

Indeed, this last factor was a key component in the deal. Previous owners had put together a feasibility study for Matala assuming US$1,300 gold.

In the new gold price environment that price was clearly unworkable, but in spite of that drawback the fact remained that much of the heavy lifting involved in feasibility work had already been done by the time Alecto arrived.

And it was here that Jones first brought his “keep it simple” mantra into play.

There’s substantial resource at Matala - a possibility of going underground in due course and really getting in amongst the sulphides. But for the time being, that’s not the plan.

“In reality that’s not what the market’s interested in,” says Jones.

“We are only chasing oxide and transitional material and we are only going for measured and indicated ounces so we don’t have to do any more drilling to get there. We will build a modular plant with the opportunity to expand it when we need to.”

What it all adds up to, says Jones, is a “realistic opportunity” to get Alecto into production by the second quarter of next year. The stars will have to align quite nicely for that to happen, but it’s not unimaginable that they might.

“I will continue to work the levers that we have,” says Jones.

“We need the Chinese government to remain supportive. We need the gold price to continue to do what it’s been doing. And we need the markets to continue to do what they’re doing. The world has to be kind.”

But with cash costs envisaged at around US$780 and a projected internal rate of return of 52%, this project has plenty going for it. Expect more news soon.

 

]]>
Tue, 26 Apr 2016 13:04:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125241/alecto-minerals-backed-by-china-minimises-dilution-and-heads-towards-production-125241.html
<![CDATA[Media files - Alecto chief looking to progress its Matala project “rapidly” ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4889/alecto-chief-looking-to-progress-its-matala-project-rapidly-4889.html Wed, 13 Apr 2016 13:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/4889/alecto-chief-looking-to-progress-its-matala-project-rapidly-4889.html <![CDATA[News - Alecto Minerals surges on Matala financing and feasibility ]]> http://www.proactiveinvestors.co.uk/companies/news/124730/alecto-minerals-surges-on-matala-financing-and-feasibility-124730.html Shares in Alecto Minerals PLC (LON:ALO) surged after it reached another milestone in Zambia - revealing a positive feasibility study on its Matala gold project and a financing agreement to build and develop the site.

The firm said it significantly de-risks the property and comes only five months after buying the mine.

It has been working with Yantai Xinhai Machinery Co. Ltd (Xinhai) and PenMin (Pty) Ltd (PenMin) over the proposed construction and financing.

A feasibility study from PenMin showed a 400,000 tonnes a year open pit with a life of around four years 8 months at $1,200 per ounce gold.

The net present value was put at US$28.6mln and the unlevered IRR (internal rate of return) at 52%.

The estimated cost of plant and infrastructure is US$14.4 million, the study showed.

The three firms have agreed to enter into a proposed design, build and operate (DBO) contract and Xinhai has agreed to arrange vendor financing for this following the feasibility study.

This financing will be via a loan so Alecto will remain the sole owner and during the operational phase, Xinhai and PenMin will jointly manage the plant's operations.

Alecto chief Mark Jones told investors: "In recent months, we have developed a strong relationship with both PenMin and Xinhai that has provided Alecto with the confidence we need to partner with them in both the development and operational phases of the project.

"There remains a lot of hard work to be done before we can commence development on the ground, but considering how far we have come since the acquisition was completed just 5 months ago, I am confident that we will deliver further progress in the months ahead."

In November last year, Alecto acquired the historic Matala and Dunrobin Gold Mines in Zambia.

The two licences have a JORC compliant resource of 760,000oz across all categories at an average grade of 2.3g/t.

Previous owners spent US$20mln on drilling and test work, while forecasts by Alecto suggested strong cash flows were possible at Matala.

Shares in Alecto added 17.07% to stand at 0.12p in early deals.

 

]]>
Wed, 13 Apr 2016 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124730/alecto-minerals-surges-on-matala-financing-and-feasibility-124730.html
<![CDATA[News - Alecto Minerals’ Zambian aims boosted ]]> http://www.proactiveinvestors.co.uk/companies/news/123201/alecto-minerals-zambian-aims-boosted-123201.html Alecto Minerals' (LON:ALO) Zambian aspirations have been boosted - as it identified further surface gold resources within its Matala mine project, which could enhance the economics of early operations.

Alecto sampling has validated a 1984 report from the Zambian Industrial and Mining Corporation (ZIMCO), which estimated that an additional 75,000 tonnes of non- compliant resources exist in dumps and tailings adjacent to the Matala deposit.

Chief executive Mark Jones  told investors: "Since acquiring the historical Matala and Dunrobin mines in November last year, our team has worked swiftly to understand the full potential of these deposits and progress our exciting Matala mining project, such that our goal of Alecto becoming a medium term cash producer, is becoming increasingly achievable.

"Establishing that we have additional high-grade tonnage sitting on surface that can be processed with minimal mining cost is a real bonus and will be a significant boost to the economics in the early phases."

The ZIMCO work revealed the potential for resources of 75,000 tonnes at a weighted average of 2.83 g/t gold, for around 6,800 ounces of gold.

Alecto conceded that to be classed as a JORC resource, a full audit of the report verified by an independent third party would be needed.

Elsewhere, the firm said it had found high grades in its sampling of the Matala deposit, including 3.87 g/t to 8.37g/t  gold at the mill tailings and 0.39 to 7.96 g/t gold from the scree rubble dump.

Alecto shares added 2.22% to 0.07p.

]]>
Wed, 02 Mar 2016 10:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/123201/alecto-minerals-zambian-aims-boosted-123201.html
<![CDATA[Media files - Alecto chief looks to formalise plan with Randgold on joint venture ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4701/alecto-chief-looks-to-formalise-plan-with-randgold-on-joint-venture-4701.html Mon, 29 Feb 2016 12:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4701/alecto-chief-looks-to-formalise-plan-with-randgold-on-joint-venture-4701.html <![CDATA[News - Alecto completes Mali JV deal with Randgold ]]> http://www.proactiveinvestors.co.uk/companies/news/123061/alecto-completes-mali-jv-deal-with-randgold Alecto Minerals (LON:ALO) said its previously announced joint venture with mining major Randgold Resources (LON:RRS) had been completed.

All conditions for exploring and developing Alecto's 137 sq km Kossanto West Gold project in western Mali have now been satisfied.

Alecto chief Mark Jones told investors: "Whilst satisfaction of certain conditions in the joint venture agreement signed with Randgold Resources was essentially a formality, we are delighted to receive formal confirmation and we hope that this will give shareholders the confidence that the joint venture is moving ahead as planned.

"We have been working with the Randgold team over the past three weeks to ensure that they are fully prepared for commencing work on the ground, and we look forward to updating the market on their progress at the appropriate time."

The venture sees Randgold take a 65% stake  and Alecto will retain a 35% participating interest.

An initial work programme will involve further mapping with potential follow up  reconnaissance drilling anticipated to be undertaken by Randgold in the first 12 months.

On completion of a PFS, all costs will be split between the JV parties in accordance with their participating interest.

]]>
Mon, 29 Feb 2016 07:25:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/123061/alecto-completes-mali-jv-deal-with-randgold
<![CDATA[Media files - Alecto Minerals boss says deal with Randgold is good news ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4629/alecto-minerals-boss-says-deal-with-randgold-is-good-news-4629.html Mon, 08 Feb 2016 15:38:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4629/alecto-minerals-boss-says-deal-with-randgold-is-good-news-4629.html