Silver Mines identifies high-grade silver at Webb's Silver Mines Ltd (ASX:SVL) today announced drilling completed at the Webb's Silver Southern prospect had identified several high-grade zones of anomalous silver - one zone assaying up to and exceeding 50 ounces/tonne silver (1500 ppm) over 0.5m - and base metal mineralisation along a strike length of 150m. The Webb's Silver Southern prospect is located within EL5674 in northern NSW. This drilling program has targeted the Webb's Silver Southern prospect as identified by Planet Management during the late 1960s. Previous explorers estimated an inferred resource of 1.7m ounces of silver from the previous Planet drillhole information available. SVL has completed a 13-hole, 1225m reverse circulation (RC) program along the Webb's Silver Southern prospect. Concurrent drilling at the Webb's Consols prospect, EL6239, has initially failed to identify any extensions to known mineralisation immediately beneath the existing main workings. Five RC bores totalling 547m targeted the main Webb's Consols shaft and the Mt Galena workings. These holes did not intersect massive sulphides directly beneath the lower levels of the old mines and further interpretation is required before further drilling is completed to ensure the geometry of the ore shoot is understood. Shares in Silver Mines traded steady at 17c yesterday.
Tests of Southern Barite intersect high grades Bass Metals Ltd (ASX:BSM) has tested the Southern Barite Zone, part of the Hellyer mine project. It intersected 57.5 metres at 9.2 per cent zinc, 4.7pc lead, 94 grams per tonne silver and 2.89g/t gold from 181.0m downhole with 11.65m at 13.8pc zinc, 8.3pc lead, 144g/t silver and 3.2g/t gold from 192.35m and 4.5m at 21pc zinc, 9.7pc lead, 160g/t silver and 2.4g/t gold from 224.4m downhole. This intersection occurs within around 175 metres of surface and significantly increases the potential of this area to host high grade massive sulphide lenses as indicated by wide spaced, high grade historic drill intercepts. The intersection indicates a potentially thick zone of high grade massive sulphide mineralisation open vertically and to the north and south for at least 75 metres. Follow-up drilling is planned after the company has completed geological assessment of the other high grade intercepts from historic drilling. Bass Metals shares were last traded at 37.5c.
Cape Lambert Iron Ore calls off Ding deal Cape Lambert Iron Ore Ltd (ASX:CFE) today announced that Chinese investor Mr Ding Liguo had failed to satisfy a condition precedent to the sale agreement and breached an MOU with the company (by not obtaining FIRB approval or exercising CFE options) and as such, had given notice to Mr Ding that the sale agreement was at an end. The company viewed Mr Ding's inability to adhere to the binding sale agreement as a termination of the agreement and has advised his representatives that all further negotiations regarding the sale agreement, and any proposed variations, will now cease. On March 29 Mr Ding entered a sale agreement with CFE to acquire a 70pc interest in its Cape Lambert iron ore project for $240m in cash. Under the sale agreement Mr Ding agreed to make a number of "milestone" payments based on the satisfaction of three key conditions: the delineation of an indicated mineral resource of 300m tonnes, and verification of this by a third party approved by Mr Ding; Under the terms of the MOU Delong exercised 12m CFE options at 37.7c, providing CFE with $4.6m in extra working capital, and also agreed to exercise a further 28m CFE options at 37.7c when a new agreement between CFE and Delong was executed. In negotiations with Delong since that date, CFE says the clear intention of Mr Ding has been to change some of the initial terms and conditions of the original sale agreement, but not the purchase price.
Territory makes first iron ore shipment to China Territory Resources (ASX:TTY) has shipped 67,500 tonnes of high grade iron ore to China. The shipment included an extra 2,500 tonnes to the expected 65,000 tonnes due to the smooth ramp up in processing, stockpiling and transportation of ore for the first shipment from the Port of Darwin. Territory expects to ship up to another 200,000 tonnes of iron ore from Darwin to China before the end of 2007. The shares last traded at $1.06.
Rio Tinto gets French approval for Alcan acquisition Rio Tinto (ASX:RIO) has received French government approval for the proposed acquisition of Alcan by one of its subsidiaries. Receipt of this, plus other regulatory clearances, is a condition to Rio Tinto's offer to acquire the outstanding shares in Alcan. Rio Tinto share were last traded at $106.28.
Sunland sells its stake in Dubai Business Bay project Sunland Group Ltd (ASX:SDG) today announced its Dubai subsidiary had sold its one-third stake in the Business Bay project. The site was sold to Dubai property developer Sheth Estate (International) Ltd for about $40m. The Business Bay site was initially acquired under a joint venture agreement between Emirates Sunland and the Habib family for $25m in September 2006. Sunland is investigating further opportunities in the region. Shares in Sunland Group rose 1c to $4.11 yesterday.
Deep Yellow uranium prospectivity improves Deep Yellow (DYL) reports assay results received from the ground truthing of uranium anomalies outlined by a recent airborne survey has greatly increased the uranium prospectivity of EPMs 14281 and 14916 which form part of the NW Queensland Joint Venture with Matrix Metals. As well as the planned drilling of a number of the prospects this year, the reconnaissance program has developed targets for testing in the 2008 field season.
Straits placement, share purchase plan at $4.70 Straits Resources Ltd (ASX:SRL) has completed a placement of 28.6m shares at $4.70 each to raise gross proceeds of $134.4m. The net funds will be used to reduce the Tritton copper hedge book, restructure the company's debt facilities and provide funding for continued expansion and general corporate purposes including potential acquisitions. The placement was undertaken via a global bookbuild, jointly managed by RBC Capital Markets and Austock Corporate Finance. Significant demand from both domestic and international investors resulted in the placement being heavily oversubscribed and a clearing price of $4.70 a share. Following the placement, Straits int to undertake a share purchase plan at the placement price of $4.70, subject to a cap of $12m to be allocated on a first come, first serve basis. The date for determining entitlement to the SPP is Friday October 12. On completion of the placement and SPP, Straits will have 225m shares on issue. Trading was halted in Straits shares ahead of this announcement and the trading halt has now been lifted. Last sale was $4.89.
Adacel awarded $1.1m upgrade contract Adacel (ASX:ADA) has been awarded a contract valued at around $1.1 million to provide services and upgrades for existing Adacel Air Traffic Control simulators in a European ATC training centre. Its shares were steady at 57c.
Iberian Resources to be removed from official list Iberian Resources (ASX:IBR) has received approval from the Australian Securities Exchange (ASX:ASX) to be removed from the official list. The company is now writing to shareholders to set out the process and timetable for de-listing. Tamaya Resources (ASX:TMR) holds 86.2 per cent of Iberian and has supported the decision to de-list. Iberian shares were last traded at 85.5c.
Aristocrat hoses down damages comments Aristocrat Leisure (ASX: ALL) reports that the hearing of the claim by Dorajay commenced in the Federal Court before Justice Stone yesterday. Dorajay is the representative of a class of shareholders who acquired Aristocrat shares in the period between 19 February 2002 and 26 May 2003 and who claim to have suffered loss. The hearing will deal with some issues common to class members' potential claims, but it will not finally determine their claims. Only the Dorajay claim will be finally determined at the hearing and other class members will need to prove their claims separately. The damages claimed by Dorajay are in the order of $38,000. Aristocrat will continue to vigorously defend the claim by Dorajay. The lawyers acting for Dorajay are reported by the media to have said that the damages in this case "could cost the company $190 million on one assessment of damages and $396 million on a second". It is Aristocrat's view that, even if the clients of Maurice Blackburn Cashman (the lawyer for Dorajay) establish their claims, the potential value of those claims is significantly less than the figures which have been reported and may be as low as $10 to $20 million. At this stage, no class members, other than Dorajay and four other shareholders, have filed details of their claims and there is no evidence before the court of the likely value of these other claims.
Travel.com weighing offers Travel.com.au (ASX:TVL) is considering takeover proposals yesterday from Wotif.com Holdings (ASX:WTF) and Webjet (ASX:WEB) will provide guidance to TVL shareholders as soon as they have completed their assessment of the proposed offers. In the meantime, TVL urges shareholders to take no action.
Benitec 'delighted' with US court decision Benitec (ASX:BLT) has been advised that the US Federal Circuit has posted its decision regarding Nucleonics' petition for rehearing and rehearing en Banc - Benitec Australia Ltd. v Nucleonics, Inc on the Federal Circuit website. The petition has been denied. "We are delighted with the ruling in this case," said Benitec CEO, Sue MacLeman. "This decision to deny a Petition for Rehearing and Rehearing En Banc of Benitec Australia Ltd. v. Nucleonics, Inc. was issued today. In doing so, the Federal Circuit again found that the District Court lacks jurisdiction for declaratory judgment counterclaims of invalidity and unenforceability in the US District Court of Delaware action."
Advanced Engine pro-rata non-renounceable issue Advanced Engine Components (ASX:ACE) has announced a pro-rata non-renounceable rights issue to raise approximately $2.29 million. The issue will offer one new share for every nine held at 16c each. In addition, one free attaching option will be issued for every two shares subscribed. The options will be exercisable at 12.8c each on or before November 30 2009. Funds will be used for working capital and reducing loans. ACE shares were last traded at 15.5c.
AED Oil makes $15m placement to help fund drill program AED Oil Ltd (ASX:AED) has placed 2m shares at $7.70, raising $15.4m to meet some of the initial cash-flow requirements of the Puffin-10 drilling program. Puffin-10, a production well, is located in the Puffin SW region and is scheduled to spud on Wednesday October 10. The jack-up rig will operate in water depths of 84 metres. Primary objective of the well is to drill and complete a horizontal section 200m+ of reservoir interval within the Upper Cretaceous (UK1a) sands. Meanwhile, AED reports testing and pre-commissioning works at Puffin NE is continuing. First oil production is expected within the next couple of days following full testing of the FPSO under operating conditions. Production from the field will commence by initially bringing Puffin-8 gradually up to production levels. Puffin-8 will then be shut in while the process is repeated for Puffin-7. Upon the satisfactory commissioning, both Puffin-8 and Puffin-7 will be opened to facilitate combined production. Production levels are expected to reach full operating levels within two weeks. Shares in AED Oil rose 4c to $9.45 this morning.
Chandler Macleod acquires Mettle Consulting Chandler Macleod (ASX:CHD) will acquire Mettle Consulting, a move that will double Chandler Macleod's strategic HR consulting capability. The acquisition will be earnings accretive from the outset, and prior to any future growth the annualised EBITDA contribution to Chandler Macleod from Mettle should be between $1.2 million and $1.5m. Mettle Consulting specialises in assisting corporate clients to improve their business outcomes through leadership, culture The deal was structured around a purchase price formula of 3.5 times EBITDA, consisting of an initial cash and equity consideration for goodwill on settlement of $3.36m. This will be followed by two deferred payments linked to the performance of Mettle Consulting over the next 24 months. The transaction is scheduled to settle on 8 October 2007. Co-founder of Mettle, Ian Basser, has accepted a newly created role within Chandler Macleod as director - recruitment & consulting services. The other co-founder, John Eales, will also join Chandler Macleod's senior executive team. Chandler Macleod shares were last traded at 89c.
Encounter ext Hillview mineralisation Encounter Resources (ASX:ENR) has extended the area of near surface uranium mineralisation at Hillview. "These results indicate that Hillview has the potential to host a large tonnage near surface uranium deposit," managing director Will Robinson said. "The anomaly is 15km long with only a small part tested. "The mineralisation is over a large area, it is consistent, thick and very near surface which suggests that the deposit may be a future low cost mining opportunity." Intersections include 10m at 209ppm uranium from surface including 6m at 270ppm, 4m at 287ppm from 6m including 3m at 324ppm, 7m at 170ppm from 3m including 1m at 259ppm. Further drilling planned for the December quarter. The shares were last traded at 45c.
Intermet seeks copper, gold at Beak Mountain Intermet Resources (ASX:ITT) has applied for EPM 16596 comprising 32 blocks in the Beak Mountain area, 140km southeast of Townsville, Queensland. InterMet believes this area is highly prospective for porphyry copper-molybdenum and epithermal gold-silver styles of mineralisation as it covers an area of outcropping felsic plutonic and volcanic rocks. "This project together with the recently announced Mundarra copper, gold, iron and base metals project provide InterMet with the start of a developing project portfolio in northern Queensland," managing director Gary Ferris said. Intermet shares were last traded at 16.5c.
Duckworth gas shows "very encouraging" Pure Energy Resources (ASX:PES) reports the Duckworth-1 prospect, ATP806P, Queensland, has been cored to 895 metres and logged. Approximately 15m of net coal has been encountered in the Permian Rangal/Bandanna coal measures. Preliminary gas content is "very encouraging" and the company has taken 16 samples for further analysis. Testing for permeability on both Duckworth-1 and Dingonose-1 continues. The company subsequently plans to proceed to drill Boombah-1 and Kmann-1 on ATP758P. The shares were up 1.5c to 66.5c.
Straits Asia raises $S151.18m in placement Straits Asia Resources has raised $S151.18 million in a placement at $S1.60 a share. Proceeds will be used for potential acquisitions and general working capital purposes. The placement, as the result of a bookbuild, represents a discount of 2.4pc to the last traded price of the shares on the preceding trading day, with significant demand from both domestic and international investors that resulted in the placement being heavily oversubscribed. Straits Resources (ASX:SRL) shares were up 4c to $4.93.
Conditional approvals received at Coos Bay Industrial Minerals Corp (ASX:IDM) has received approval from the Coos County Board of Commissioners for the conditional use for its mining operations at Coos Bay. The conditions do not adversely affect the proposed mining operations. The company will proceed with the planned development of the Oregon heavy minerals project. IDM shares were up 4c to 50c.
Scoping study outcome for Bird-in-Hand Scoping study for the Bird-in-Hand inferred gold resource of 410,000 tonnes at 12 grams gold per tonne has been considered by Maximus Resources (ASX:MXR). A decision to completely avoid the old workings and place new development in the more competent footwall was made. All study was restricted to the larger and more continuous Main Reef with the smaller White Reef ignored for the time being. The study has indicated that a spiral decline accessing the east dipping mineralised lodes from the footwall (western) side could extract the Main Reef. The two most suitable mining methods were using uphole benching and the Avoca method (uphole benching with tight fill). Such a mining technique is expected to allow potential for early production resulting in the generation of early cash flow. The mining scoping study did not consider other important aspects of viability such as costs of dewatering the mine or construction and operation of a gold processing plant. Given recent drill intersections it is likely that a resource of sufficient magnitude to consider a development will be delineated. Maximus is continuing core drilling with a further eight holes planned to test the lateral extent and down dip potential of gold mineralisation being part of the ongoing program. Maximus Resources shares were up 1c to 26.5c.
Liontown trebles project area Liontown Resources (ASX:LTR) has trebled its ground position at its Mount Windsor Volcanics Project, host to the Liontown deposit. The total project area has increased from 1,060 sq km to more than 3,200 sq km and, importantly, ext the line of strike coverage of the key geological sequences from 80 km at the time of the Company's Initial Public Offering, to more than 100 km.
RCR Tomlinson completes Positron purchase RCR Tomlinson (ASX:RCR) has completed the acquisition of the Positron Group. The acquisition of Positron provides RCR with the opportunity to significantly increase RCR's service offering to increase the organic growth rate of RCRÿ¿¿¿¿¿s work portfolio nationwide, and in particular to the Bowen Basin coal industry. The purchase price of Positron was $43.7 million, with purchase consideration of $20.7 million cash plus an additional $1 million cash on successful completion of EBIT earn out based on 07/08 financial results and 10 million RCR shares, of which 8.5 million will be held in escrow for 12 months. The acquisition includes $11 million of net assets. RCR continues to enjoy a strong operating environment and announces that it has accepted $40 million in major new orders in the last two months in the Construction and Maintenance business unit along with equipment manufacturing contracts.
Tectonic completes divestment of stake in Burnakura Tectonic Resources (ASX:TTR) has completed divestment of the part ownership in its Burnakura gold asset thereby enabling it to focus entirely on its Phillips River polymetallic deposits, Western Australia. Tectonic' part-interest in both the Burnakura and Tuckabianna gold projects in the Murchison Region of Western Australia, are now under conditional sale agreements. A Letter of Intent has now been signed with ATW Ventures, a Toronto-listed company, for the sale of the Burnakura project. Subject to conditions being finalised for both transactions, the net realisable nominal value to Tectonic is $5.0m incorporating cash, environmental bond replacement, shares and share options (in ATW). Tectonic shares were last traded at 7.5c.
Wasabi shareholders priority offer in Rum Jungle Shareholders in Wasabi Energy (ASX:WAS) will be offered a priority entitlement in the initial public offering of shares in Rum Jungle Uranium Ltd. The offer will be made out of a $3m allocation. Wasabi has 43.5pc of Rum Jungle and the 12m shares being offered to Wasabi shareholders in this priority entitlement are not part of Wasabi's current holding but part of the IPO. The minimum investment is $2,500. If there is any shortfall subsequent offers may be made. Wasabi shares were down 0.1 to 3.6c.
Golden Circle acquisition discussions discontinued Amatil (ASX:CCL) has discontinued discussions with Golden Circle in relation to a potential acquisition. The board of Golden Circle has recommended an alternative offer and CCL will not consider a revised offer at this time. CCL shares were up 5c to $9.06.
Great Aust Resources in South African platinum buyout Great Australian Resources Ltd (ASX:GAU) today announced the consolidation of its strategic platinum projects in South Africa after reaching agreement to buy the outstanding 50pc shareholding in Platinum Mining Ventures Ltd. The deal comes after last month's $4m purchase by Sylvania Resources Ltd (ASX:SLV), which holds mining and development projects near GAU's tenements, of a cornerstone 19.9pc interest in GAU. Aside from giving GAU full ownership of Mooiplats, the move to ownership of 100pc of Platinum Mining Ventures also brings two additional grassroots exploration projects. GAU will buy the outstanding interest in Platinum Mining Ventures from Africa Pacific Capital in exchange for 17.5m GAU shares. The deal will be subject to shareholder approval.
Magellan proposes takeover of New Privateer Magellan Financial Group (ASX:MFG) has proposed takeover offers to acquire all of the securities in New Privateer (ASX:NPH) and, if those offers are successful, to internalise the Management Services Agreement (MSA) between NPH Funds and MFG. The internalisation would be effected by MFG acquiring the 40 per cent shareholding in NPH Funds held by interests associated with Hamish Douglass, the chairman of MFG (the balance 60pc being already held by NPH). The proposal is intended to simplify MFG for the benefit of MFG shareholders, whilst offering NPH shareholders full and fair consideration for their interests. The NPH offer consideration gives NPH minority shareholders new preference shares with an economic value which MFG believes is at least as attractive as their share of NPH's effective 'look through' interest under the MSA. Chris Mackay and Hamish Douglass do not intend to accept any consideration for their share of NPH's effective 'look through' interest under the MSA. MFG int to offer the following consideration for the acquisition of NPH shares and options: Under the takeover offer for each NPH share, either: a) 1.1 MFG shares plus 1 MFG Class A Preference Share; or 0.65 MFG shares plus 1 Magellan Flagship Fund (ASX:MFF) share plus 1 MFG Class A Preference Share; or 0.65 MFG shares plus 1 MFF share. Under the takeover offer for each NPH option, either: a) 3 MFG 2011 options;
Mitsubishi joins Cowra joint venture
Minotaur Exploration (ASX:MEP) reports Mitsubishi Materials Corp and Mitsubishi Corp have joined the Cowra joint venture with Gateway Mining (ASX:GML). The terms of the original joint venture between Minotaur and Gateway enabled Minotaur to earn a 75 per cent interest in the project through expenditure of $2 million. In the new agreement, Mitsubishi is committed to an initial expenditure of $600,000 after which it may contribute a further $800,000 plus its share of the balance of the full $2 million earn-in expenditure, to earn a 24pc interest. At that time the equity will be Minotaur 51pc, Gateway 25pc and Mitsubishi 24pc. The new joint venture, with Minotaur as operator, incorporates three exploration licences (EL5514, EL6102, EL6806), and is located near Cowra in New South Wales. The area is considered prospective for porphyry-related copper-gold mineralisation and volcanic-hosted massive sulphide base metal deposits. Initial work will focus on generating new regional targets as well as follow up activities related to gold and copper drill-hole intersections reported earlier by Gateway. Minotaur shares were up 1c to 70c.
Takeovers Panel not proceeding on application re Bowen Bowen Energy (ASX:BWN) has received advice from the Takeovers Panel, in respect of the application from Frank Farrall, that it would not commence proceedings in the matter. The Panel did not consider that anything existed that would give rise to unacceptable circumstances in relation to the issue of shares in the investment agreement with Bhushan Steel. Bowen shares were up 0.5 to 21c.
Toro ext Nova takeover bid; satisfies key condition Toro Energy Ltd (ASX:TOE) has extended its $275m friendly takeover bid for fellow uranium explorer Nova Energy Ltd (ASX:NEL) by one week. Shareholders of Toro today approved a resolution to acquire the shares of Nova's largest shareholder, wholly-owned Oxiana Ltd (ASX:OXR) subsidiary Agincourt Resources Ltd, at a general meeting held in Adelaide. Toro has now removed all conditions other than requiring a minimum acceptance of 90pc of Nova's ordinary shares for the bid to be successful. Toro's offer, announced on August 6, to acquire 100pc of Nova's issued ordinary shares, was due to close on Friday October 12, but will now formally close at 5pm CST on Friday October 19. By the close of trading yesterday, Toro had secured acceptances equivalent to a 62pc stake in Nova. "With letters of intent to accept for another 13pc, subject to any superior offer, this is an exceptionally pleasing result," Toro's managing director, Mr Greg Hall, said today. Toro's all-scrip acquisition is offering 5.5 Toro shares for every one Nova share held. If Toro moves to 100pc ownership of Nova, the enlarged bidder will have 494.7m ordinary shares on issue. Oxiana, with 227.5m shares, will hold a 46pc stake and Minotaur Exploration Ltd (ASX:MEP), with 36.0m shares, will control 7.3pc.
Windy Knob raises $900,000 in placement Windy Knob Resources (ASX:WKR) has placed 3m shares at 30c each to raise $900,000. One free attaching option for every two shares subscirbed will be issued, exercisable at 20c on or before December 31 2009. The issue of options is subject to shareholder approval which will be sought at the company's AGM. The shares were last traded at 30c.
Masbate gold project study shows robust economics CGA Mining Ltd (ASX:CGX) has results of the optimisation review into the development of the Masbate gold project in the Philippines. The optimisation of the previously completed full feasibility study confirms the robust nature of the project, further improving project economics. Average annual gold production over the first eight years of the mine life is forecast at 206,000 ounces plus silver credits at a cash operating cost of $US306/oz. The cash operating cost does not reflect the benefit of the 6-year tax free holiday. Indicated Resources are 59.3mt at 1.55g/t containing 3.0m oz and inferred Resources 33.7mt at 1.63g/t containing 1.8m oz. Both of the above were calculated at a 0.7 g/t cut-off and $US450 per ounce gold price. The construction time frame is currently estimated at 15 months, and consequently gold production is targeted for the first quarter of calendar 2009. CGX shares were steady at $1.05.
Resource Mining reports on nickel assays at Wowo Gap Resource Mining Corporation Ltd (ASX:RMI) reports 23 holes have been completed to date at Wowo Gap in Papua New Guinea. Recent nickel assay results include 3.2m at 0.70pc Ni from surface in WGDH 031; 8.1m at 0.87pc Ni from 4.3m and 12.1m at 0.85pc Ni from 12.4m in WGDH 032; 4.2m at 0.82pc Ni from 1.2m and 5m at 0.84pc Ni from 8.4m in WGDH 033; 3.2m at 1.19pc Ni from 2.8m in WGDH 035; and 8.7m at 1.01pc Ni from 2.0m and 18.3m at 0.97pc Ni from 8.4m in WGDH 035. Directors said the two diamond drilling rigs were completing a drillhole every one to two days. "This performance is excellent and is the result of a better understanding of the drilling difficulties associated with diamond drilling wet tropical laterite profiles," they said. Drilling to date showed the better laterite thicknesses were towards the eastern half of the project area, associated with the underlying Silvia Breccia bedrock. The laterite (limonite + saprolite) profile averaged 20m thick on the eastern area and 12m over the western half of the project. Shares in Resource Mining Corp rose 0.1c to 6.9c today.
IMF reports Nomad Telecom settlement IMF (Australia) Ltd (ASX:IMF) today announced settlement of proceedings between Nomad Telecommunications Ltd (NTL), its liquidator and former directors of NTL. Full terms of the settlement are confidential between the parties but IMF expects to receive $3.1m on an investment of about $1.0m and capitalised costs of $300,000. The settlement monies are to be paid over time, with the total amount to be received by June 30 2008. Shares in IMF today rose 3.5c to 72c.
Dominion says shares largely tracking gold price Dominion Mining Ltd (ASX:DOM), in response to an ASX query over a rise in its share price from $2.85 on September 3 to $4.20 today, noted the increases in its shares to a large extent tracked the increases in the US dollar gold price over the same period. "As the company has only a small amount of gold forward-sold, this may explain the strong correlation in the increase in share price to the $US gold price," Dominion said. The company also said it had an ongoing resource/reserve delineation drilling program at its Challenger mine operation, details of which had been provided in previous releases. "As final results from this drilling program become available they are released to the market, which the company will continue to do in the future," Dominion added.
LinQ Resources Fund to renew buyback LinQ Resources Fund (ASX:LRF) today confirmed continuance of the fund's unit buyback authority to enhance NTA per unit for all unitholders. To this end the current buyback program is to be renewed and LinQ int to buy back up to 22.86m units over the next 12 months, with effect from Friday October 19.
Hills invests in fibre infrastructure provider Hills Industries Ltd (ASX:HIL) has agreed to buy 50pc of Opticomm Co Pty Ltd for an undisclosed price. Hills chairman Ms Jennifer Hill-Ling said Opticomm had a leading market position in the provision of fibre infrastructure to deliver high-speed voice, data and video to homes and multi-residential developments. "Opticomm Co has the technology and expertise to install fibre backbones for developers seeking to provide their potential customers with the latest in high-speed voice, data and video services. "Because the Opticomm Co system is based on an open platform, consumers have the ultimate choice of which services to install without being tied to a single carrier or service provider," she said. Shares in Hills Industries rose 3c to $5.91 today.
GrainCorp to buy Hunter Grain for $26.5m GrainCorp Ltd (ASX:GNC) is to acquire Hunter Grain Pty Ltd for $26.5m as part of its strategy to diversify earnings, increase utilisation of port facilities and increase services to the domestic market. Hunter Grain is Australia's largest distributor of imported protein meals, principally operating from port distribution centres at Kooragang (Newcastle), Brisbane, Geelong and Perth. It also operates a transport division comprising company-owned and sub-contractor trucks, and a trading business for grain. Hunter Grain has a turnover of $250m. GrainCorp chairman Mr Don Taylor said the acquisition complemented the company's port, international and domestic marketing and road transport capabilities while providing further expansion into domestic markets on the east and west coasts of Australia. "The synergies in storage and handling, logistics and marketing activities enable GrainCorp to secure new earnings from trading co-products, increasing market share in domestic grain and further utilising the extensive bulk handling infrastructure network. "This acquisition allows GrainCorp to further diversify into other agri-products and port activities, generating counter-cyclical earnings during poor seasonal conditions such as we are experiencing now. "It also strengthens relationships with existing stockfeed customers through the supply and distribution of imported and domestic feedstuffs," Mr Taylor said.
Spotless reviewing judgment of Barkly St dispute Spotless Group Ltd (ASX:SPT) is reviewing today's decision by the Victorian Supreme Court in a dispute over the environmental condition of a property in Barkly Street, Brunswick. "The court determined that all claims against Spotless failed, other than a limited claim for statutory compensation amounting to between $3m and $4m. However, the final amount will be determined after independent assessment and further submissions to the court," said managing director and chief executive officer Mr Peter Wilson. "Today's 233-page judgement reflects the fact that this has been a long and complex case, which we are reviewing to determine what our next steps might be," Mr Wilson said. "Associated Spotless entities ceased dry cleaning operations at the site almost 30 years ago and it was only as a result of a failed property development that this matter was brought before the courts." Spotless shares closed up 2c to $4.27 today.
Transfield Holdings sells down Charter Hall stake Charter Hall Group (ASX:CHC) today disclosed Transfield Holdings had sold 12.2pc (53.2m securities) in Charter Hall overnight, via a selldown to a range of institutional investors. Transfield Holdings continues to hold 13m securities or 3pc in Charter Hall, escrowed until June 30 2008. "The selldown enables Transfield Holdings to fund a significant investment opportunity," directors said. Transfield Holdings became an equity investor in Charter Hall in 2004 when it acquired 50pc of the group. At IPO in 2005 Transfield's investment in the group was diluted to 20pc, which was then diluted to 15.2pc following subsequent Charter Hall capital raisings. Macquarie Securities (Australia) Ltd acted as sole lead manager in the selldown. The announcement was made at the close of trading. Charter Hall closed down 10c to $2.87.
Beach gets $123m cash for 10pc of Basker-Manta-Gummy Beach Petroleum Ltd (ASX:BPT) today received a cash payment of $123m from ITOCHU Corporation of Japan in full payment for a 10pc equity share in the Basker-Manta-Gummy (BMG) joint venture in Bass Strait. Beach, which previously owned a 50pc stake in the project, will retain a 40pc participating interest. Effective date of the transaction is June 1 2007. Anzon Australia Ltd (ASX:AZA) also sold a 10pc share in BMG to Itochu under the same terms as the Beach sale. The new participant in the joint venture will be CIECO Exploration and Production (Australia) Pty Ltd, a wholly-owned subsidiary of ITOCHU. The BMG project was developed to initially produce oil from the Basker and Manta fields, based on initial proved and probable (2P) reserves estimates of about 23m barrels (MMbbl). But new wells drilled in 2006 expanded the reserves base with 2P oil reserves now standing at nearly 40MMbbl while an associated increase in the natural gas resource has nearly quadrupled estimates of the gas/condensate resource. Participants in the Basker Manta Gummy Joint Venture are operator Anzon with 40pc, Beach 40pc and CIECO 20pc.
Fortescue welcomes decision by Federal Court full bench The full bench of the Federal Court today upheld a Federal Court judge's ruling that BHP Billiton Iron Ore's railways are not excluded by the 'production process' exemption from coverage under Part IIIA of the Trade Practices Act. In a majority decision the Federal Court judges upheld the Federal Court's original finding that the use of BHP's Mount Newman railway by a third party would not be the use of a production process, and is a service as contemplated by Part IIIA. Fortescue executive director Mr Graeme Rowley welcomed the Federal Court full bench judgement as "another significant step in Fortescue's attempts to seek access to the railway to unlock the vast resources of the Pilbara and promote local, state and national economic growth". "Three decisions, one by the National Competition Council and two by the Federal Court, have now ruled in favour of Fortescue's attempts to gain access to a railway our planning forefathers always intended would be open to third-party access," Mr Rowley said. Fortescue is seeking to access BHP's Mount Newman line under Part IIIA of the Trade Practices Act to open its proposed Mindy Mindy project, which it owns in a joint venture with Consolidated Minerals Ltd (ASX:CSM).
Claim filed in California against Arasor Arasor International Ltd (ASX:ARR) says it has been made aware that a complaint by two previous consultants and a corporation owned by one of the consultants has been filed against it and CEO Dr Simon Cao in the Santa Clara County Superior Court (California, USA). The complaint alleges a breach of contract and claims damages in the amount of $12m for unpaid commissions due. The company noted the similarity of this allegation to another which was successfully resolved without any damages earlier this year. Arasor has denied any liability to the claimants and emphasised that it would vigorously defend any legal action. The company also noted it had secured and documented legal releases from each of the claimants previous to their termination. Arasor is confident that the complaint is without merit.
SomnoMed placement and share purchase plan SomnoMed Ltd (ASX:SOM) has completed a placement of 157.895m shares with "sophisticated investors" at 1.9c a share to raise $3m before costs of the issue. Directors said the net proceeds of the issue would strengthen the company's financial position and provide it with sufficient resources to take advantage of the global growth opportunities for its Somnomed MAS sleep apnea and snoring device. The placement is subject to shareholder approval, which will be sought at a general meeting to be held on or around November 16. SomnoMed also announced it had established a share purchase plan and that it would invite shareholders registered on Wednesday October 17 to participate in the SPP to increase their holding at 1.9c a share. The company is seeking to raise up to $2.9m under this offer. The additional funds raised via the SPP would provide additional funding for working capital and sufficient resources for the company to take advantage of the global growth opportunities, the directors said. Shares in SomnoMed traded steady at 1.7c today.
Bell IXL proposes merger with GoldLink IncomePlus
GoldLink IncomePlus Ltd (ASX:GLI) has received a proposal from Bell IXL Investments Ltd, a company listed on NSX Ltd's (ASX:NSX) National Stock Exchange of Australia, for the two companies to merge with the added benefit to existing GLI shareholders of a significant capital return. "The proposal advanced by Bell IXL is directed at restructuring GLI so as to give it a new corporate purpose and place it in a position to undertake investments and acquisitions to restore long-term value for all shareholders," Bell IXL said. GLI would reduce its capital by $21m and distribute that sum to existing shareholders of GLI with the result that they would receive 16.49c cash for each share held. GLI would acquire Bell IXL by means of a scrip-for-scrip takeover offer that would require GLI to issue 82.1m shares to the Bell IXL shareholders. GLI would place up to 52.36m shares at 5c each to parties nominated by Bell IXL to raise $2.6m. The board of GLI would be reconstituted so that persons nominated by Bell IXL constituted a majority of the board members. If it was necessary to meet the requirements of the Australian Securities Exchange then GLI would undertake a small public offer of shares to ensure that the shareholder spread requirements of the exchange were met. The name of GLI would be changed to Bell IXL Investments Ltd so that the company could make a fresh start with its new operations and activities.
Anzon tips record profit after Basker Manta Gummy sale Anzon Australia Ltd (ASX:AZA) today received a cash payment of $123m from ITOCHU Corporation of Japan in full payment for a 10pc equity share in the Basker Manta Gummy Joint Venture in Bass Strait. The sale of this interest is estimated to result in a net profit of the order of $75m for the December 31 year-end accounts. Also, the operating profit already recorded at mid-year will result in "an exceptional performance" for the company, "which was listed on the ASX less than three years ago". "At the end of 2007 Anzon will have recorded a profit for each full year since listing, an unparalleled performance in the oil and gas industry," executive chairman Mr Steven Koroknay said. "Further it should be noted that the funds received will make Anzon effectively debt-free."
Minara nickel production lower in September quarter Minara Resources Ltd (ASX:MRE) reports total production of 6676 tonnes of packaged nickel and 442 tonnes of packaged cobalt was achieved at Murrin Murrin for the three months to September 30. The previous corresponding three-month period saw 7598 tonnes of packaged nickel and 551 tonnes of packaged cobalt produced. Packaged production for the quarter was affected by scaling in the refinery. Minara has embarked on a nitric/sulphuric acid clean of the plant's reduction autoclaves located in the refinery in order to remove the scale build-up. The front end of the plant continued to perform well, although issues with the acid plant continued to constrain production. These acid plant issues will be resolved in the forthcoming maintenance shut. The shutdown will include a complete refurbishment of the acid plant and the replacement of the 1B superheater at a cost of $15m (the last of the major legacy design issues). The plant will continue normal operations for a substantial period during the shut and plant downtime will be staggered so as to minimise the impact on production. Annual production guidance is revised to 28,000 to 30,000 tonnes due to the scaling in the refinery and the continued deterioration of the acid plant prior to the commencement of the shut.
rweabn.com.au
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