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Fox-Davies Capital

Fox-Davies Capital Newsflash including Petra Diamonds, Sterling Energy, Vane Minerals and Altona

Sterling Energy  (SEY)  announced its intention to undertake a two for nine open offer to raise approximately £20.6m at a price of 1.3p per share. The offer is expected to close prior to year end. The Company expects to complete the sale of its US assets, announced on 20 October 2009, in early December.
 
Mining Corporate News
 
Petra Diamonds  (PDL)  announced that the two Cullinan white diamonds of 58 and 53 carats were sold in early November for US$2.8 million. The strong prices achieved bode well for the values that could be realised from the exceptional 507 and 168 carat white diamonds, which were recovered in the same production series at the Cullinan mine in September this year.

The company has also announced that it has entered into an option agreement whereby Petra can, by 18 December 2009, acquire (at its election) Al Rajhi's 37% interest in the Cullinan mine on the terms set out below. Exercise of the Cullinan Option would take Petra’s interest in this iconic diamond mine from 37% to 74%, substantially increasing the Group’s attributable revenues and resource base.  On exercise, Petra to issue 36M fully paid new ordinary Petra shares to Al Rajhi, based on a value per share agreed between Petra and Al Rajhi of 80 pence per share, and (in December 2011) Petra to pay Al Rajhi a deferred option fee of US$35M (secured by a pledge of shares over Petra's Cullinan shareholding). On exercise, Petra to repay the US$20M Al Rajhi convertible loan note (plus accrued interest of US$475,000) from the Placing proceeds.
 
Vane Minerals  (VML)  announced further results from the exploration drilling on the Wate breccia pipe in northern Arizona. The project is within the VANE-Uranium One Exploration U.S.A. Inc. joint venture in which the Company's wholly-owned subsidiary, VANE Minerals (US) LLC, holds a 50% interest.Holes WT-33 and WT-34 were completed to the depths of 1500 feet and 1640 feet, respectively.

Hole WT-33 encountered one main mineralized zone grading 0.47% eU3O8 over a thickness of 25.5 feet with maximum grade of 1.00% eU3O8. Hole WT-34 intersected a total of 98 feet of mineralization, within which four intervals contained grades above the 0.10% eU3O8 cutoff grade used in calculations. The main zone has a thickness of 25.0 feet with an average grade of 0.22% eU3O8 with a maximum grade of 0.48% eU3O8.
 
Altona Energy (ANR)  announced its wholly owned Australian subsidiary Arckaringa Energy Pty Ltd, has signed a binding agreement with CNOOC New Energy Investment Ltd that agrees the terms of the Unincorporated Evaluation Joint Venture Agreement. Through the UEJV, the parties will evaluate the maximum development and commercial potential of the Company’s estimated 7.8 billion tonne coal resource (based on non-JORC standards) in South Australia and will carry out detailed studies covering resource extraction and optimisation, project development options and chemicals and other coal conversion studies.

CNOOC-NEI, a subsidiary of China National Offshore Oil Corporation, one of the three largest state owned oil companies in the Peoples Republic of China, specialises in and is dedicated to developing alternative energy sources, renewable energy, energy-efficient products and innovative technologies. The UEJV will be executed by an Australian subsidiary of CNOOC-NEI, upon its incorporation.