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Proactive news summary including Enegi Oil, Wessex Exploration, Herencia Resources and Aureus Mining

It was busy on the news front with oil stocks and miners coming to the fore.

Enegi Oil (LON:ENEG) revealed it had struck deals with Providence Resources (LON:PVR) that will add two additional projects to the ABT joint venture.

The plan is for ABT Oil & Gas (ABTOG), Enegi’s 50% owned associate, to deploy its cost reducing, unmanned production technologies to develop the Helvick and Dunmore discoveries in Ireland’s Celtic Sea.

Providence’s AIM quoted partner, Lansdowne Oil & Gas (LON:LOGP), has a 10% stake in Helvick.

The two discoveries have been appraised in the past, with fairly substantial oil flows; however, both were previously deemed to be non-commercial based on conventional development methods and the oil prices at that time.

Shares in Enegi were unchanged today at 8.125p.

Meanwhile, shares in Wessex Exploration (LON:WSX) and Northern Petroleum (LON:NOP) declined as the final well in Shell’s drill programme offshore French Guiana was unsuccessful.

None of the four wells in the programme were successful.

The two AIM quoted explorers share a 2.5% stake in the Shell-led venture, and since the discovery of oil in the Zaedyus well in 2011 the project has been a significant driver of the respective share prices – one way or another.

Through the agreements Enegi can earn up to 50% of the separate discoveries. 

Its interests will be acquired in phases as it completes certain milestones, until each project achieves ‘first oil’.

Meanwhile, in mining, shares in Herencia Resources (LON:HER) surged today after it unveiled a £2.48mln funding deal that brings in a new cornerstone investor and provides it with the cash to progress its Picachos and Paguanta projects in Chile.

Hong Kong-based Shining Capital Management is to acquire 400mln new Herencia shares at 0.62p each.

The price paid represents a 25% premium to the closing share price on the day before the investment was announced and is a 15% improvement on the volume average price over the past month and a half.

As a result of the deal, Shining will own 16.4% of Herencia and has the right to appoint a director to the mining exploration firm’s board.

EMED Mining (LON:EMED) shares moved 8% on Wednesday afternoon after the company rebuffed assertions relating to the mineral rights related to the Rio Tinto mine.

This comes after reports concerning the existence of an option between Dutch commodity trader Trafigura and a private company – called ‘Comision Liquidadora de Minas de Rio Tinto S.A.’ – which would allow the mineral rights to be bought if EMED was unable to secure permitting for the mine.

EMED said that its wholly owned Spanish subsidiary EMED Tartessus is the legal owner of the Rio Tinto mining rights, contrary to any implication made by the reports.

Elsewhere, SolGold (LON:SOLG) revealed encouraging assay results for the lower portion of the second hole from its Cascabel copper-gold porphyry project in Ecuador.

In an update on progress it also revealed that the drill site of a fourth hole, designed  to test below the level of first two, had been relocated.

CSD-13-004 was terminated at depth of just under 319 metres because of ground conditions. Work will restart in the next few days.

Exploration firm GoldStone Resources (LON:GRL) announced boardroom changes on Wednesday.

Benjamin Hill has been appointed as a non-exec director with immediate effect, while Bill Geier has stepped down from the board immediately.

Rambler Metals & Mining’s (LON:RMM, CVE:RAB) latest exploration campaign at the Ming copper-gold mine in Newfoundland, Canada, has unearthed some bonanza grades.

The drilling, which was focused on the 1807 copper zone, showed mill feed grade of between 3.48% and 4.46% over the last six months, along with 1.35-1.83 grams per tonne of gold.

The average recovery at the Nugget Pond processing facility was 95% for copper and 63% for gold.

Construction of the New Liberty mine in Liberia is progressing rapidly and on track for first production in 2015, Aureus Mining (LON:AUE) said.

Earthworks have been completed and work has started on the civils.

Key mechanical supply items have been ordered and the engineering consultants are performing detailed plant design with plant construction scheduled to commence in the final quarter of this year.

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July 31 2012

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