The metals and mining sector provided much of Monday’s news flow with Cameroon focussed Afferro Mining (LON:AFF) among the main stories.
The mine developer, which has recently been in talks with a number of potential partners and possible acquirers, announced it is close to agreeing a link up with Korean powerhouse POSCO.
The African arm of POSCO has signed a memorandum of understanding (MOU) with the AIM and TSX-listed miner with the aim of completing a definitive agreement in the second quarter of the year.
In a short stock exchange statement, Afferro said the accord is far broader than the group’s flagship Nkout asset and also covers the Ntem and Akonolinga prospects.
Planned investment would be made at the project level and focused on the infrastructure required to get the mines off the ground and funding needed to develop the operations.
Jubilee Platinum (LON:JLP) set out the terms of its all-share deal to buy Platinum Australia (PLA), which at the current share prices values PLA at around £20mln.
Chief executive Leon Coetze today spelled out the scale of the opportunity offered by its takeover of Platinum Australia.
Despite its name, PLA owns a working mine and assets in South Africa’s Bushveld Complex.
And when combined with Jubilee’s smelting capacity and the blue-sky of its Tjate exploration block, it creates a vertically integrated platinum group.
“This is a huge opportunity,” said Coetze. “What would have taken two to five years [developing a mine], now happens in six months.”
Spanish mining junior W Resources (LON:WRES) said results from the final two holes of its 11-hole drill programme on its La Parrilla tungsten project, in south-west Spain, exceeded expectations.
The company is now kicking off a resource estimation process which will conclude with a new assessment of the project’s scale during the next quarter.
Ncondezi Coal (LON:NCCL) has revealed Nigel Walls has stepped down as the company’s chief executive officer (CEO) as part of its transformation from a mining to a power company.
The company said the board has kicked off a formal review of the CEO position, with chief operating officer (COO) Paul Venter taking the reins until a successor is found. Venter joined Ncondezi as COO in June 2012 and has been responsible for delivering the company’s power strategy.
Meanwhile in the oil sector, Nostra Terra (LON:NTOG) said it achieved a significant milestone in January as it “surpassed break-even.”
It said the greater than expected oil production from its Chisholm Trail prospect combined with output from its existing portfolio had helped it pass this landmark. It generated an estimated US$110,000 net of royalties last month.
With four wells drilled it is a third of the way through the Chisholm Trail programme. It expects to at least maintain its current 18.52% working interest.
And China focussed Leyshon Resources’ (LON:LRL) exploration and appraisal programme on its Zijinshan gas project in China is two weeks ahead of schedule, the company said today.
In January, Leyshon announced multiple pay zones from drilling at two wells, ZJS5 and ZJS6, at Zijinshan, which is located on the eastern fringe of the prolific Ordos gas basin in Central China.
Following the results, Leyshon sped up its exploration programme and today said contractors and all necessary approvals have been obtained to restart operations immediately following the Spring Festival.