In vogue metal lithium was a big focus once again this week with news from a pair of producers, and another company announcing plans to move into the hot sector.
Bacanora Minerals Ltd (LON:BCN) was one of the current producers benefitting after it signed an off-take deal with one of the largest traders of battery chemicals in Asia.
Under the terms of the agreement, Hanwa Co will also take a 10% stake equity investment in Bacanora, which will raise around £10.2mln through the placement of 12mln shares at 82.5p.
The off-take agreement is for up to 100% of the battery grade lithium carbonate (Li₂CO₃) produced at Bacanora’s Sonora lithium project in Mexico.
WATCH: Off-take deal a "good transaction", says Bacanora boss ...
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Meanwhile, Cadence Minerals PLC’s (LON:KDNC) – previously known as Rare Earth Minerals, which has a stake in Bacanora – revealed that its 16.5% associate Macarthur Minerals has commenced its second soil sampling program at its Stonewall lithium project in Lida Valley, Nevada.
The surprising news, however, was that Arian Silver Corp (LON:AGQ) has taken out an option to acquire three lithium exploration projects in Mexico which sent its share price rocketing by almost 40%.
The company previously had focused purely on silver but its chief executive, Jim Williams said it was now in a position to ‘seize opportunities in growing markets, such as lithium, as they arise’.
WATCH: Arian boss says new lithium projects "good, exciting opportunity" ...
Rutile revelation …
Turning to a less well known metal, Base Resources Ltd (LON:BSE) said this week that it is benefiting from a strong recovery in ilmenite prices with further hikes already locked in for the coming quarter.
The group said June quarter prices are 200% higher than at the start of the financial year said the miner, which operates the Kwale minerals sands mine in Kenya.
In addition, Base produced a record 23,107 tonnes of the more valuable rutile in the three months just past. Ilmenite, an oxide of titanium, is used to make white .
On the more day-to-day metals front, Strategic Minerals Plc (LON:SML) got a lift this week after replacing a contract to supply iron ore to private group Galvin with a new larger deal with an unnamed private company.
The new contract is for 400,000 tons of magnetite from the Cobre facility in New Mexico over several years at market prices.
Strategic said the new customer had paid a US$10,000 deposit and will lodge a further US$250,000 by 14 April.
WATCH: Strategic Minerals' boss "very happy" with new supply deal ...
Cash raising …
Financing moves were also to the fore this week, with gold miner Pan African Resources plc (LON:PAF) unveiling plans to raise US$123mln week via an issue of equity and debt to fast-track the build of the Elikhulu Tailings Project in South Africa.
The company on Wednesday successfully raised US$51mln of that total via a placing of around 291mln new ordinary shares at 14p each, a modest discount to the previous night’s closing price.
Aside from the placing cash Pan African said it has also agreed in principle a US$72mln, seven-year debt facility with Rand Merchant Bank.
WATCH: Pan African boss on "very attractive" Elikhulu project ...
In other financing moves, Hummingbird Resources PLC (LON:HUM) sealed a US$60mln debt agreement on better than anticipated terms that will fund the build of its Yanfolila gold mine in Mali.
The facility is with Coris Bank, one of the largest and fastest growing lenders in West Africa. Hummingbird had been in negotiations with the Taurus Mining Finance Fund, which provided a US$25mln bridge loan to begin the development of Yanfolila, which is scheduled to pour its first gold by the end of year.
Chaarat Gold Holdings Ltd (LON:CGH), meanwhile, raised US$15mln through the issue of short term senior secured loan notes, convertible at a price of 30p per share and redeemable in September 2018.
WATCH: Zak Mir on Chaarat Gold ...
And ECR Minerals PLC LON:ECR) has received a further deposit of £50,000 from its new Chinese investment partner, bringing the non-refundable deposit to £150,000 in aggregate.
Spanish metal …
Spain was also focus for mining news this week, with shares in Ferrum Crescent Limited (LON:FCR) jumping sharply higher on Thursday after the metals developer moved another step closer to getting drilling underway at its Toral lead-zinc project in Spain.
The company has contracted Spanish firm Sondeos y Perforaciones Industriales de Bierzo to carry out the planned phase 1 drill programme.
Meanwhile, tungsten mining specialist W Resources PLC (LON:WRES) made further progress in the development of its La Parilla project in southwestern Spain with the award of a key vendor-financed contract.
The AIM-listed group announced that it has awarded the design and construct contract for the Jig and Mill at the La Parrilla project to German firm allmineral Aufbereitungstechnik GmbH & Co at a contract price of €4.98mln.
W Resources said allmineral is providing vendor finance for just under 50% of the contract price on “very competitive terms.”
Irish gold …
In other areas, Galantas Gold Corporation (LON:GAL CVE:GAL) said this week that it has completed initial portal works ahead of the development of its underground gold mine in Omagh.
The portal will give access to underground ore in the western side wall at the base of the now-closed open pit.
Elsewhere, Asiamet Resources Limited (LON:ARS) told investors that ongoing resource definition drilling continues to intersect thick intervals of copper mineralisation at the BKM project in Indonesia.
The programme comes as part of work towards the completion of feasibility studies.