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Proactive weekly mining news - Asiamet Resources, Premier African Minerals, Rainbow Rare Earth ...

A look at the world of Proactive's small cap mining news highlights
Miner at work
JP Morgan Asset Management agreed to subscribe for over 71mln Asiamet shares in a £6mln placing, which give it a stake of approximately 8.31%

Asiamet Resources Limited (LON:ARS) was a strong gainer on Friday after news JPMorgan Asset Management is to become a significant shareholder in the miner after subscribing in a placing which will raise £6mln for the firm.

The 4.3p placing price represented a discount of approximately 9.3% to Asiamet’s closing middle market price yesterday, but AsiaMet shares rose 6.9% higher to 502p.

JP Morgan Asset Management has agreed to subscribe for 71,010,118 placing shares, which give it a stake of approximately 8.31% in AsiaMet and thus make it a significant shareholder

The AIM-listed miner said the net proceeds will be used to fund completion of the definitive feasibility study for the company's 100% owned flagship Beruang Kanan Main (BKM) project, drilling of high priority targets nearby BKM, and expansionary drilling at the Beutong Porphyry Project.

Premier African Minerals Limited (LON:PREM) had got a boost earlier in the week after it said it had identified a potential new zone of lithium at its Zulu deposit in Zimbabwe, which the group said may be larger than the current resource.

WATCH: Premier African geologists salivating over potential new lithium zone at Zulu

At present, Zulu has a resource of 20.1mln tonnes at a grade of 1.06% Li₂O (lithium dioxide) including 7 million tonnes grading 1.5% Li2O and an exploration target of 60-80mln tonnes.

Some 14 holes have been drilled so far in this latest programme with significant visible lithium mineralisation zones intersected in all holes.

The  junior miner also revealed this week that it has upped its stake in potash producer Circum Minerals, which owns the potentially huge Danakil project in Ethiopia.

Premier African said it has agreed to snap up another 416,700 shares – around 0.5% of Circum’s issued share capital – from GMP Securities for just shy of US$521,000. It will make the payment to GMP through the issue of 87.5mln new PREM shares.

Rainbow Rare Earth shone

Elsewhere, rare earths group Rainbow Rare Earth Limited (LON:RBW) reported even better grades than expected at the Gasgawe target on its Gakara licence in Burundi.

Lab testing of ore from the main vein at Gasagwe returned an average Total Rare Earth Oxide (TREO) grade of 62.17%, which compared with an average 57% in veins across the rest of the 39 sq km licence published in the competent person’s report.

Martin Eales, Rainbow’s chief executive, said: "This really is fantastic news. We always knew that the Gakara Project was capable of delivering grades far in excess of industry norms, but to get this level of average TREO content from our first mining area is a wonderful boost as higher grade means that we shall achieve higher prices for each tonne of concentrate sold.”

Interim results from Richland Resources Ltd (LON:RLD) on Monday also pleased investors, revealing the ramp-up of its Capricorn sapphire mine in Queensland, Australia.

Richland’s chief executive Bernard Olivier highlighted in his statement that the mine had hit its second quarter target, for 1.2mln carats, with the final ramp-up implemented during the period.

The financials gave investors an indication of what to expect now that the Capricorn is seeing improved output and lower per-unit costs, as the Aussie gemstone group reported a 66% rise in total income for the first half of 2017.

Jubilee Platinum celebrated

Meanwhile, Jubilee Platinum PLC (LON:JLP) told investors this week that it has executed a US$50mln project funding agreement to support its metals recovery business.

The company highlighted that the deal is structured at project level to minimise dilution and enhance shareholder value. Pre-approved debt funding is being injected at project level directly, by investment group RiverFort Capital Group.

Elsewhere , improved vanadium prices have given a lift to Bushveld Minerals Limited’s (LON:BMN) recently acquired associate, Vametco.

Bushveld, which acquired an effective 35% stake in Vametco in April, said interim underlying profits at the South Africa-based vanadium miner climbed to 85.5mln rand (£4.9mln) or 80% more than the whole of 2016.

KEFI Minerals funding boost

KEFI Minerals plc (LON:KEFI) found support this week having noted on Monday that Ethiopia has lifted the state of emergency implemented in October 2016 and that the junior miner recently agreed a finance package for the construction of the bulk of its Tulu Kapi gold mine in the country.

Later in the week, KEFI Minerals said the recent deal with Oryx Management will have a massive positive impact on the funding requirements for the Tulu Kapi mine.

The company highlighted that the mine’s residual funding requirement has dropped from US$289mln (a figure foreseen in January 2014) to US$32mln as a result of the Oryx arrangement and it is now seeing a further reduction to US$24mln.

Back with the world of lithium, Savannah Resources Plc (LON:SAVP) told investors on Thursday that every one of sixteen new drill holes at the Mino do Barroso lithium project in Portugal has encountered massive pegmatite mineralisation.

The present drill programme is targeting three main areas - Grandao, Reservatorio, and NOA - with work so far focussing on the first two.

Amur lab analysis lift

In other news,  Amur Minerals Corporation (LON:AMC) got a boost after it said its first batch of findings from lab analysis of samples from the Kun Manie nickel project in Russia confirmed the positive drilling results. .

It added that a second batch of results is presently under management review following receipt from the lab and a third batch is still undergoing lab analysis.

Meanwhile, Horizonte Minerals Plc (LON:HZM) told investors that the feasibility study at its Araguaia nickel project in Brazil is now at an “advanced stage” after making “significant progress” since the turn of the year.

A number of the principal work streams are over 50% complete for a 14,500 tonnes per annum (tpa) ferro-nickel operation with a 28-year life on mine, Horizonte said.

And IronRidge Resources Limited ‘s(LON:IRR) chief executive, Vincent Mascolo said he was “excited” at the rapid exploration progress it is making at its Bodite Project based in the Ivory Coast.

He was speaking after the release of infill exploration results on the property that contained significant gold-in-soil anomalies and which built on the original work carried out on the area. Grades of up to 3.9 grams per tonne (g/t) of the precious metal were found.

Metal Tiger venture  approval

Elsewhere, Metal Tiger PLC’s (LON:MTR) said on Monday that drilling has restarted at  Kalahari copper belt joint venture after its Environmental Management Plan received the green light from the Botswana Department of Environment.

Metal and its JV partner MOD Resources Ltd (ASX:MOD) had been waiting on the approvals, which have now been granted through the end of 2018.

In brief, Thor Mining PLC (LON:THR) revealed it has kicked off a new drill campaign at the wholly-owned Pilot Mountain tungsten project, in Nevada, where it is aiming to confirm and expand resources.

Cadence Minerals Plc (LON:KDNC) said it is now preparing for the start of a drill programme at the Tisová project, in the Czech Republic, in early September following approval by the Department of the Environment and Agriculture.

Orosur Mining Inc. (LON:OMI) revealed on Friday that has seen strong demand for a funding to cover a drilling campaign on its acreage in Colombia.

And Strategic Minerals Plc (LON:SML) said it has set itself a target to quadruple in value over the next five years.

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