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WA-based exploration and development company Cape Lambert Resources has reported a potential special dividend payment to its shareholders, after appointing global investment bank Deutsche Bank to sell its Mayoko iron ore project royalty. The project, within the Republic of Congo, is estimated to be worth between $55 million and $114 million in royalty to the company, as confirmed by internal valuation. Subject to the success of the sale, Cape Lambert intends to reward its shareholders with a substantial distribution payment from resulting  earnings. The company currently accrues US$1 per tonne, for every tonne of iron ore shipped from the project and is confident of the financial rewards of the sale. Mayoko is expected to ship 2 million tonnes per annum…

A proposed takeover bid by Cauldron Energy for Energia Minerals could be over before it began, with Energia’s major shareholder Uranium Equities stating that Cauldron’s offer substantially undervalued the company. In a bold, unprecedented move, Cauldron Energy announced its intention to undertake an off-market takeover bid for Energia Minerals. Shortly after the announcement was made, Energia’s directors published a letter to shareholders urging them not to take any brash action in response to the announcement. Cauldron’s highly conditional offer for all ordinary Energia shares was made public on 18 March. Were the deal to proceed, it would see the potential new entity gain a substantial foothold in Australia’s expanding uranium industry. In its announcement, Cauldron Energy outlined the ground the…

Gold explorer Bulletin Resources has secured $600,000 from a strategic investor to fund exploration and resource expansion at its WA tenements. The money was received via a share placement of 10.9 million ordinary shares at $0.55 per share, which is a 22 per cent premium of the market price. The company would use the capital for drilling and expansion at the Lamboo and Golden Crown gold projects in the Kimberley. Bulletin managing director Martin Phillips was delighted with the outcome of the capital raising. “We are encouraged by the high level of interest being shown in our project and remain committed to progressing discussions on our financing strategy,” he said. “We look forward to updating the market on the results…

GOLD-focussed explorer Ramelius Resources has announced completion of a mineral resource estimate for its Water Tank Hill deposit in WA’s Mount Magnet, with plans to start the mining operation process. The Water Tank Hill satellite deposit, opposite the company’s gold mine, is estimated to contain 63,000 ounces of gold. Together with the St George resource, Ramelius has a total resource of 125,000oz at a grade of 5.2 grams per tonne of gold which can be accessed by the St George decline. “Ramelius believes that there are now sufficient resources within close proximity of the St George decline to justify commencing a mining study to demonstrate the economic viability of a mining operation,” a company statement said. The study for Water…

LITHIUM producer Galaxy Resources’ plan to develop a vertically integrated lithium business has faced a substantial set-back, following the suspension of operations and sacking of staff at its Mt Cattlin mine in WA due to high operating costs. The Ravensthorpe mine was developed to act as an integrated feedstock provider for Galaxy’s Jiangsu lithium carbonate plant in China, but was placed on suspension in July 2012 because of inventory build up. In mid March Galaxy announced the operation’s 37 remaining staff members would be made redundant and the mine closed until further notice. Galaxy managing director Iggy Tan attributed the suspension to the high Australian dollar and its influence on operating costs. “Given the current exchange rate and the adverse…

A review of Rex Minerals’ Hillside copper project on the Yorke Peninsula has resulted in an optimised mine plan that will deliver a higher production profile and lower start-up capital costs. The mine plan will form the basis for the Hillside bankable feasibility study (BFS) later in 2013; it suggested the combination of a new interim open pit design and multiple ore stockpiles, to allow for higher grade material to be delivered to the processing plant. Based on this model, Rex reported that the average grade delivered to the processing plant between its third year and tenth year would be about 0.6 per cent, plus gold and iron by-product credits. During this period, annual copper production would be about 80,000t…

A review of Rex Minerals’ Hillside copper project on the Yorke Peninsula has resulted in an optimised mine plan that will deliver a higher production profile and lower start-up capital costs. The mine plan will form the basis for the Hillside bankable feasibility study (BFS) later in 2013; it suggested the combination of a new interim open pit design and multiple ore stockpiles, to allow for higher grade material to be delivered to the processing plant. Based on this model, Rex reported that the average grade delivered to the processing plant between its third year and tenth year would be about 0.6 per cent, plus gold and iron by-product credits. During this period, annual copper production would be about 80,000t…

WA gold producer Reed Resources has signed a memorandum of understanding with Crest Minerals for the sale of its subsidiary Sand Queen Gold Mines, the holder of the Comet Vale gold project in the Eastern Goldfields. Under the terms of the agreement – which is subject to due diligence, a capital raising and necessary approvals – Crest will acquire the Comet Vale project and Sand Queen gold mine for $6 million, after having already paid a $100,000 deposit. The deal also includes Reed’s 1 per cent zinc net smelter royalty from production on the Nimbus silver-zinc mine, which Reed divested to MacPhersons Resources in 2011, subject to MacPhersons not exercising its pre-emptive right to purchase the royalty. Upon completion of…

JULIE Shuttleworth – general manager at Barrick Australia’s Granny Smith gold mine – has been named the 2013 Women in Resources Champion at the Chamber of Minerals and Energy’s annual Women in Resources Awards ceremony. Held over a breakfast last month at the Perth Exhibition and Convention Centre, the awards ceremony acknowledged the contribution of women within the Australian mining, oil, gas, and engineering fields. Coinciding with International Women’s Day, the event was attended by about 800 people, wherein many of Australia’s highest flying women were recognised for their invaluable contribution to the resources sector. Along with the overall winner, awards were divided into several categories including: Outstanding Company Initiative (winner, Chevron); Outstanding Professional Woman (Vanessa Guthrie of Toro Energy);…

A $12.2 million joint venture (JV) agreement with prominent Andhra Pradesh company Vijay Group has positioned Perth-based NSL Consolidated to rapidly expand its Indian iron ore operations. “In previous calendar years, the Vijay Group’s extensive iron ore and coal mining contracting business has been operating at a 70 million tonne per annum rate,” NSL managing director Cedric Goode said. “Their extensive equipment and operating/management expertise will be integrated into the JV as quickly as possible, which has significant strategic benefit to NSL,” he said. “NSL and Vijay are targeting the JV to be operating at an estimated 1.5 million tonnes per annum of saleable iron ore within two years, with potential to increase this target further in four to five…

A heads of agreement (HOA) between failed base metals miner Kagara and Mungana Goldmines has collapsed after unfavourable ruling from the Australian Tax Office. An agreement was reached in December whereby Kagara would hand back its 95.6 million Mungana Gold Mines shares, in exchange for the return of the gold rights and cancellation of other debts between the companies. On 21 February, 2013, Mungana Goldmines announced it had received a private ruling from the ATO which “does not confirm the full availability of tax losses to offset any tax liability arising from the HOA transaction”. As a result of this failed key condition, the HOA it was terminated. The administrators of Kagara and Mungana have agreed to continue discussions with…