Conquest Resources Limited (TSXV: CQR) ("Conquest" or the "Company") has entered into a Royalty Purchase and Sale Agreement with VDI Resources LLC (VDI), a subsidiary of VerAI Discoveries Inc. (VerAI), an artificial intelligence (AI) powered mineral discovery generator, pursuant to which the Company agrees to grant to VDI a 1.5% net smelter return royalty on certain target areas with recommended drilling locations generated by VerAI utilizing its proprietary AI technology. The Company agrees to grant VDI an additional 1.5% NSR in return for funding a drill program for testing of the targets identified by VerAI on the Belfast TeckMag Project, a 350 sq. km. land package located northeast of Sudbury, Ontario.
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Abra Construction At 97% Complete – First Ore Stockpiled For January Processing
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine (“Abra” or the “Project”) has reached 97% complete as of 30 November 2022. Processing plant commissioning is progressing quickly with practical completion now expected in December 2022. Ore currently being mined from underground is being stockpiled in readiness for processing to begin in January 2023. Concentrate production will commence January 2023.
Managing Director, Tony James commented, “Record underground development in November with delivery of the first 9,000t of ore to the ROM pad along with successful plant commissioning to date puts Abra on the verge of a quick transition into production. Recruitment and other operational readiness activities are well advanced in preparation for January production”.
Figure 1 – First material being tipped into the crusher during commissioning (Photo 26 November).
Figure 2 – Crushing and screening plant commissioning (Photo 26 November).
The following link will show a short video of the Abra crusher commissioning. https://youtube.com/shorts/iSG58MiW_3o
Update on Abra Project progress
Overall progress continues as planned, with first concentrate production expected in Q1 CY2023, following ore commissioning in January 2023. Practical completion of the processing plant is now expected ahead of schedule in December 2022. The processing plant engineering, procurement and construction has reached 99% complete. Piping and electrical works have made significant progress and at the end of November were 96% and 92% complete, respectively. Mechanical items installation is almost complete at 99%.
In November, the first material was crushed and screened as part of the staged commissioning process. The crushing plant ran at design capacity and all commissioning milestones were successfully achieved. Dry commissioning also progressed in most areas of the plant including water and air services, tailings and concentrate thickening, grinding and reagents. Dry commissioning of the remaining areas will be completed in December. Water commissioning commenced in the tailings and concentrate thickening areas of the plant and the remaining areas are expected to be wet commissioned by the end of December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Galena Mining
Overview
Galena Mining Limited (ASX:G1A, Galena) owns 60 percent of the Abra base metals mine located in the Gascoyne region of Western Australia - home to one of the largest lead and silver deposits in the world, set to produce the highest-grade, cleanest lead concentrate available globally. The company is capitalizing on its Tier 1 asset in a Tier 1 jurisdiction, strengthened by and leveraging partnerships with Japan's largest zinc and lead smelter, as well as with one of the top base metals trading firms in the world.
The company also owns 100 percent of the Jillawarra Project, which covers 76 kilometers of strike extension directly to the west of Abra. The Jillawarra Project contains several large-scale analogous exploration targets including the Woodlands Complex, Quartzite Well and Copper Chert areas.
Galena's major partnerships include Toho Zinc (TSE:5707), Japan's largest zinc and lead smelter, and IXM SA, one of the world's top three base metals trading firms. Toho provided AU$90 million project equity and has a long-term offtake agreement to purchase 40 percent of Abra's production; while IXM has entered into a 10-year take-or-pay offtake contract to purchase the remaining 60 percent.
The company's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
In November 2020, Galena put in place US$110 million in finalized debt facilities arranged by Taurus Funds Management. The facilities include a US$100-million project finance facility plus a US$10-million cost overrun facility.
The project finance facility consists of a 69-month term loan primarily to fund capital expenditures for the development of Abra. Key terms include:
- Fixed interest of 8 percent per annum on drawn amounts, payable quarterly in arrears.
- 1.125 percent net smelter return royalty.
- No mandatory hedging.
- Early repayment allowed without penalty.
- 15 quarterly repayments commencing on 31 December 2023.
The cost overrun facility is a loan to finance identified cost overruns on the project in capital expenditure and working capital. Fixed interest of 10 percent per annum applies to amounts drawn under the cost overrun facility.
The Taurus debt facilities have been fully drawn and are secured against Abra Project assets and over the shares that each of Galena and Toho own in Abra.
Company Highlights
- Positioned to realize value for shareholders:
- Abra mine construction completed in December 2022, on time and on budget.
- First in-specification concentrate shipment achieved in March 2023.
- Abra is one of the largest and cleanest lead-silver deposits in the world (high-grade, high-value concentrate 1/10th typical deleterious elements).
- Exciting exploration ground and known copper-gold mineralisation below the Abra lead-silver deposit.
- JV between Galena (60 percent) and Japan's largest zinc and lead smelter Toho Zinc (40 percent) underpins long mine life (10+ years) in an exciting new mineral province in Western Australia.
- Galena has a 10-year offtake agreement with IXM, one of the world’s largest base metals traders.
- Annual steady-state guidance:
- Mill throughput of more than 1.3 million tonnes per annum (Mtpa), producing +90,000 tonnes per annum lead and +550,000 ounces per annum silver.
- Annual average lead C1 direct cash cost of US$0.55 to US$0.65/lb.
- Annual average EBITDA (earnings before interest, taxes, depreciation, and amortization) of AU$90 million to $100 million.
- The Abra mine is located in the Gascoyne Region of Western Australia, home to one of the largest undeveloped lead deposits in the world and the highest-grade lead concentrate available, globally.
- The Abra mine carries a JORC mineral resource estimate (July 2023) of 16.2 million tons (Mt) at 7.3 percent lead and 19 grams per ton (g/t) silver in the indicated category, and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
- Abra has been named the world's lowest-cost primary lead mine by Wood Mackenzie, a leading mining research and consultancy group.
- US$110 million of project financing debt facilities from leading mining-specialist lending fund Taurus Funds Management.
- Galena's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
Key Projects
Abra Mine
The Abra Mine is a 60:40 joint venture between Galena and Japanese lead producer Toho Zinc. It is a globally significant lead-silver project located in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra approximately 110 kilometers from the DeGrussa copper mine owned by Sandfire Resources (ASX:SFR).
Abra Mine Site Location
The Abra mine carries a total JORC mineral resource estimate published in July 2023 of 33.4 Mt at 7.1 percent lead and 17 g/t silver (5 percent Pb cut-off grade), which includes 0.3 Mt at 7.3 percent lead and 32 g/t silver in the measured category; 16.2 Mt at 7.3 percent lead and 19 g/t silver in the indicated category; and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
All permits for the Abra project have been obtained from the appropriate Western Australian regulatory bodies. The project is also subject to an existing land use and heritage agreement with the Jidi Jidi Aboriginal Corporation. The Abra property is well-serviced by public roads and highways, and all the necessary infrastructure has been developed to transport lead-sulphide concentrates to the Port of Geraldton, Abra's primary export port.
Abra Processing Plant
A final investment decision to complete the Abra Project was made in June 2021 and construction was completed in December 2022, on time and on budget. Several important milestones were achieved in the March 2023 quarter, including the commissioning of the processing plant, first ore fed into the plant and first concentrate produced in January 2023.
The processing plant achieved in-specification concentrate production from the commencement of concentrate production and during the 2023 calendar year, 967,622 tons of ore was processed and 61,800 tons of lead concentrate was produced.
The company is currently undertaking detailed technical work to develop an updated production plan for 2024 production targets and guidance.
Jillawarra Project
Exploration and growth associated with the 100 percent Galena-owned Jillawarra Project covers a highly prospective elongated tenement package covering approximately 76 kilometers of continuous strike length and 508 square kilometers directly to the west of Abra.
The Jillawarra Project hosts many base metals prospects which have had limited shallow exploration work completed since the 1970s by various companies. The bulk of the exploration work was completed by Amoco, Geopeko, Apex Minerals and Abra Mining Limited. The work completed to date has identified several base metals, manganese and gold prospects, of which the Woodlands Complex, Quartzite Well, Manganese Range, Copper Chert, TP and 46-40 were subject to early-stage exploration. Most of the drilling completed within the Jillawarra Project investigated the first 100 to 200-meter depth which, based on recent knowledge of Abra, may not have reached the depths required.
The main prospective corridor within the Jillawarra Project lies within the margins of the Quartzite Well – Lyons River Fault zones which extend east-west along the entire tenement package. Also, the contact between the dolomitic sediments of Irregully Formation and the lower sedimentary unit, polymictic conglomerate, of the Kiangi Creek Formation represents an important marker for the occurrence of base metal mineralisation as seen at Abra.
The Woodlands Complex is an Australian scaled geophysical anomaly which represents a significant target area with the anomaly being 12 kilometers long and 10 kilometers wide. Limited work and technical evaluation have occurred at Woodlands which presents a great opportunity for Galena in the years to come. Ongoing geophysical and exploration drilling will occur concurrently with the development of Abra. The knowledge and understanding of Abra due to its development will provide a significant exploration advantage at Jillawarra.
Management Team
Tony James – Managing Director and CEO
Tony James is a mining engineer with over 30 years’ mine operating and project development experience predominantly in Western Australia. He also has previous experience at managing director level of three ASX-listed companies with two of those companies successfully guided through a merger and takeover process benefiting the shareholders. He has a strong mine operating background (examples being the Kanowna Belle gold mine and the Black Swan nickel mine) and a strong feasibility study / mine development background (examples being the Pillara zinc/lead mine and the Trident/Higginsville gold mine).
Adrian Byass – Non-executive Chairman
Adrian Byass has more than 25 years of experience in the mining industry both in listed and unlisted entities globally. He has served as non-executive and executive director of various listed and unlisted mining entities, which have successfully transitioned to production in bulk, precious and specialty metals around the world. He currently serves on the boards of ASX gold, base metals and lithium companies.
Neville Gardiner – Non-executive Director
Neville Gardiner has over 30 years of experience advising boards on mergers and acquisitions,
equity and debt capital markets, transaction structuring, capital allocation and complex
commercial arrangements. His career achievements include senior executive leadership
roles in Deloitte, Torridon Partners, and at Bank of America Merrill Lynch, where he spent five years as the head of its Australian Natural Resources Team. He also spent nine years with Macquarie Bank, where he had responsibility for its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business. He has a very strong experience and knowledge base associated with the resources sector in Australia.
Stewart Howe – Non-executive Director
Stewart Howe has more than 40 years of experience in the global resource industry including 18 years in mining. He was chief development officer at Zinifex, one of the world’s largest miners and smelters of lead and zinc. He led the spin-off of Zinifex’s smelters to create Nyrstar NV, and restarted the development of the Dugald River mine.
Craig Barnes – Chief Financial Officer
Craig Barnes has over 25 years of experience in senior finance and financial management within the mining industry and previously the financial services industry. He has considerable experience in project financing, mergers and acquisitions, joint ventures, treasury and implementation of accounting controls and systems.
Before joining Galena, he held the position of CFO of Paladin Energy for more than five years and was part of the team that successfully completed the company's capital restructuring in 2018. Prior to that, he was the chief financial officer of DRDGOLD (NYSE and JSE:DRD) and its affiliated subsidiaries for more than seven years.
Aida Tabakovic – Company Secretary
Aida Tabakovic has over 11 years of experience in the accounting profession, which includes financial accounting reporting, company secretarial services, ASX and ASIC compliance requirements. She has been involved in listing several junior exploration companies on the ASX and is currently company secretary for numerous ASX-listed companies
Abra Construction At 92% Complete – Reaches First Ore Underground
Managing Director, Tony James commented, “Reaching first ore underground is extremely rewarding for everyone involved in the project. To see for the first time what we have predicted and interpreted as the Abra orebody delivers a significant step forward for the project. Record development metres in October has taken the mine to the ore and we continue to establish key underground infrastructure with the completion of the 6m diameter surface rise that will be the primary return airway.”
Update on Abra Project progress
Overall progress continues to remain in line for Project completion, with first commercial production expected in Q1 CY2023. The processing plant engineering, procurement and construction has reached 97% complete. Structural steel has been completed in October and mechanical installations are at 96% complete. Piping at 80% and electrical at 71% complete continue to progress quickly.
Pacific Energy’s Hybrid 10MW LNG/solar power station completed full integration with the solar power supply, dry commissioning of the crushing and screening areas was completed in early November and first rock crushing is scheduled for late November. Grinding section dry and wet commissioning will commence in the second half of November and is planned for completion by mid-December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Mine decline development continued during October. A total of 311m was developed with the decline reaching 1,284mRL. October represents the highest individual development month since the first cut was fired in the portal in October 2021. The decline location is 266m vertically below the surface and is 29m vertically below the original top of the orebody (1313mRL). Underground drilling has now identified mineralisation as high as 1330mRL which is currently being reviewed for potential extraction. The 1300mRL ore access drive reached first ore in early November (See ASX announcement 14 November 2022).
The 1290mRL horizon is a significant work area for development as underground infrastructure for pumping, ventilation, second means of egress and power are all distributed from this level outwards into the development network. All this infrastructure is currently being established and will result in an increased focus on lateral development and lower decline development in the short term.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Abra Mine Reaches Ore
Managing Director, Tony James commented, “Reaching first ore underground delivers another significant step in bringing the Abra project on-line. The first cut in the portal was taken in October 2021, and now 2,949m later and 250m below surface we have reached the orebody. Special acknowledgement needs to be given to Byrnecut and the Abra mining team for achieving this milestone, and everyone involved should be very proud of what they have achieved. It’s also important to acknowledge Pacific Energy and the Abra project team for the faultless commissioning of the power station and completing the full integration of the solar system”.
First ore heading underground has been reached on the 1300mRL access drive. Project to date (PTD) underground development to this point in time was 2,949m and first ore is 250m below the surface. Figure 2 below shows the mine development completed to the end of October 2022. The second underground development Jumbo has commenced at Abra in line with multiple headings being established and underground development is expected to increase accordingly. Underground grade control drilling continues and the 6m diameter return airway shaft drilling has been completed in November through to the surface.
On 20 October, the site changed over to mains power station with the commissioning of the Pacific Energy hybrid 10MW gas/solar/BESS power station. On the 10 November the system was fully integrated with the successful integration of the 6MW solar panels. The mine and general site infrastructure is running on mains power and plant commissioning to date includes the energisation of the crushing/screening sections.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Galena Mining Activities Report For Quarter Ended 30 September 2022
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ended 30 September 2022 (the “Quarter”), primarily focused on construction of its 60%- owned Abra Base Metals Mine (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.
Highlights
- Abra Project 87% complete at end of the Quarter (14% of construction works completed during the Quarter). Project focus remains on underground access to the orebody and completion of the processing plant and remaining surface infrastructure.
- Underground development achieved 771m advance during the Quarter remaining on schedule with the decline reaching 1,300mRL. The decline is 13m below the top of the orebody and 250m below the surface.
- Overall processing plant construction has reached 93% complete. Plant engineering and drafting work is 100% complete and site construction work is 90% complete.
- All key overseas supplied equipment has arrived on site.
- Completed oversubscribed placement to raise A$17.2M.
- US$25M final debt drawdown was completed under the Taurus Debt Facilities.
- Cash balance at Quarter-end A$60.5M.
ABRA BASE METALS MINE (60%-OWNED)
Abra comprises a granted Mining Lease, M52/0776 and surrounding Exploration Licence E52/1455, together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by Abra Mining Pty Limited (“AMPL” the Abra Project joint-venture entity), which in turn is 60% owned by Galena, with the remainder owned by Toho Zinc Co., Ltd. (“Toho”) of Japan.
Abra is fully permitted and under construction. First production of its high-value, high-grade lead- silver concentrate is currently scheduled for the first quarter of 2023 calendar-year.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Mineral Resource Upgrade Paves Way for Northern Silica Project PFS
Emerging silica sands developer, Diatreme Resources Limited (ASX:DRX) announced today a significant upgrade to the estimated Si2 Mineral Resource at the Company’s Northern Silica Project (NSP) in Far North Queensland, highlighting the critical mineral project’s potential amid an accelerating solar energy boom.
- Significant 17% increase in Indicated Resource and establishment of maiden 49.5 Mt Measured Mineral
- Resource for Diatreme’s flagship Northern Silica Project (NSP) in Far North Queensland
- Results provide strong Resource foundation for upcoming Pre-Feasibility Study (PFS) and maiden Ore Reserve
- Bulk sample testing and further specialist metallurgical testwork currently underway at external laboratories
- NSP on track for development amid increasing demand for critical mineral key to solar energy industry.
The latest data has shown an increase in both the estimated Mineral Resource categories, with the inclusion of a maiden Measured Resource of 49.5 Mt, as well as increasing the size of the Indicated Resource to 120.5 Mt (up 17% from the previous estimate). Diatreme’s total low iron, high purity silica sand resource base exceeds 402 Mt, an extremely strategic and highly valuable resource that is well positioned to supply the fast-growing solar PV market.
Diatreme’s CEO, Neil McIntyre commented: “It is pleasing to report a further enhancement in the quality of the resource estimate for our flagship NSP, with the establishment of its first Measured category Mineral Resource and significant increase in its Indicated category Mineral Resource.
“The enhanced resource allows us to advance our PFS with greater confidence, providing a deeper understanding of the extraordinary potential for commercialisation contained within the Si2 dune complex at the NSP.
“We look forward to delivering the project’s PFS by mid-2024, together with a maiden Ore Reserve, as we ramp up development of this asset vital to the clean energy revolution, both in Australia and internationally.”
The resource upgrade follows moves by the Australian Government to promote the domestic manufacturing of solar panels under its $1 billion “Solar Sunshot” program. Low iron, high purity silica sand is a key ingredient in the solar PV manufacturing process (solar glass), which is currently dominated by China.
The NSP is also located near Cape Flattery, an area identified as a potential critical minerals hub for silica sand by the Queensland Government in its 2023 “Critical Minerals Strategy.”
Click here for the full ASX Release
This article includes content from Diatreme Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Conquest Resources Enters into Agreement with VerAI Discoveries for AI Targeting on Belfast TeckMag Project
Tom Obradovich, CEO of Conquest stated, "It has been a unique experience working with the VerAI team to integrate their AI technology as another layer of targeting, which enhances our ability to potentially discover subsurface mineral deposits at the Belfast TeckMag Project. This area of Canada is one of the most cost-effective exploration regions and mineral-endowed belts in the world."
Belfast TeckMag Project MIAC Investigation
Over the past several years, Conquest has completed airborne electromagnetic and magnetic geophysical surveys, Mobile MT surveys, ground gravity surveys and regional drill programs. Recent examination of drill core by Dr. JF Montreuil, in particular diamond drill hole BC21-05, has indicated that mineralization and alteration facies are related to hydrothermal systems capable of forming IOCG and affiliated deposits. These systems are referred to as Metasomatic Iron and Alkali-Calcic systems or MIAC. The identified alteration types are similar to the Cloncurry region of Australia which hosts the Earnest Henry Mine in addition to other notable deposits. An exploration program beginning with prospecting and geological mapping of the areas of interest identified by VerAI and compiled with previous data will be conducted this spring under the direction of Joerg Kleinboeck, P.Geo, Vice President Exploration for Conquest. A program of diamond drilling is intended to commence later this year on VerAI targets as well as additional targets established by previous programs.
Yair Frastai, CEO of VerAI, expressed his confidence in the partnership, stating, "It's a privilege to work with Conquest, a well-experienced explorer in the region. Our team is committed to maximizing the chance of discovery by using our AI technology to provide Conquest with higher-probability drilling locations, calibrated from the ongoing drilling inputs."
ABOUT VERAI DISCOVERIES, INC.
VerAI Discoveries ("VerAI") is an AI-powered mineral discovery generator focused on uncovering essential critical minerals for the green energy transition and a sustainable future. Their mission involves working with mining partners to target new mineral discoveries in covered areas in mature mining jurisdictions that remain largely unexplored. By deploying their novel proprietary AI/ML Discovery Platform, VerAI significantly increases the probability of discovering economic mineral deposits of different commodities and in various geological jurisdictions, shortens targeting time, and reduces exploration costs. For more information, visit https://ver-ai.com/.
ABOUT CONQUEST
Conquest Resources Limited, incorporated in 1945, is a mineral exploration company that is exploring for base metals and gold on mineral properties in Ontario.
Conquest holds a 100% interest in the Belfast-TeckMag Project, located in the Temagami Mining Camp at Emerald Lake, Ontario, which is believed to have exceptional exploration upside for magmatic sulphide deposits (Cu-Ni-PGE), VMS, IOCG, Iron formation hosted Au and Paleo-placer Au. The Belfast-TeckMag Project is the Company's flagship property, evolved from the Golden Rose Project, which was initially acquired in December 2017, and significantly augmented through the acquisition of Canadian Continental Exploration Corp. ("CCEC") in 2020 and subsequent additional claim staking and purchases in its adjacent Belfast Copper Project and TeckMag Property.
Conquest now controls over 300 square kilometers of underexplored territory in the Temagami Mining Camp, including the past producing Golden Rose Mine at Emerald Lake.
Conquest also holds a 100% interest in the Alexander Gold Property located immediately east of the Red Lake and Campbell mines in the heart of the Red Lake Gold Camp along the important "Mine Trend" regional structure. Conquest's property is almost entirely surrounded by Evolution Mining landholdings.
In addition, the Company holds interests in the Smith Lake Gold Property, Lake Nipigon Basin Property, and the Marr Lake Property.
FOR FURTHER INFORMATION CONTACT:
general@conquestresources.com
www.ConquestResources.com
Tom Obradovich
President & Chief Executive
416-985-7140
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205667
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SOURCE ROCK ROYALTIES ANNOUNCES INCREASED MONTHLY DIVIDEND
/Not for distribution to U.S. news wire services or dissemination in the U.S./
Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces that its board of directors has declared a monthly dividend of $0.0065 per common share, payable in cash on May 15, 2024 to shareholders of record on April 30, 2024 . This represents an increase of 8% to the monthly dividend. Source Rock has now increased its monthly dividend by 30% since March 2023 .
This dividend is designated as an "eligible dividend" for Canadian income tax purposes.
Source Rock is a pure-play oil and gas royalty company with an existing portfolio of oil royalties in southeast Saskatchewan , central Alberta and west-central Saskatchewan . Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock's strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production.
Contact Information
For more information about Source Rock, visit www.sourcerockroyalties.com .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
SOURCE Source Rock Royalties Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/15/c4373.html
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Compelling Cobalt Copper and REE Targets Identified at Broken Hill
Rimfire Pacific Mining (ASX: RIM, “Rimfire” or “the Company”) is pleased to advise that multiple cobalt, copper, and Rare Earth Element [REE] targets have been identified at its recently expanded 100% - owned Broken Hill Project which is located 17-30 kilometres west of Broken Hill, NSW (Figures 1 and 2).
Highlights
- Detailed ground magnetics identifies a potential extension to high grade cobalt mineralisation drilled by Rimfire at Bald Hill last year, including;
- 125m @ 0.13% Co from 198 metres in FI2470 including 97m @ 0.15% Co
- Bald Hill Extension magnetic anomaly which has not been drilled present over 450 x 400m to a vertical depth of ~300m
- Additional magnetic anomalies identified 2km northeast of Bald Hill with initial rock chip samples up to 0.72% cobalt and 0.46% copper
- Rimfire will shortly commence reconnaissance mapping & sampling to refine new targets and plan for drilling in 2H CY24
Commenting on the announcement, Rimfire’s Managing Director Mr David Hutton said: “Rimfire is exploring throughout New South Wales for critical minerals that are associated with global decarbonisation strategies, such as scandium, PGEs, copper, and cobalt.
While we remain firmly focussed on the scandium exploration program currently underway at Fifield and Avondale, we are also keen to advance our recently expanded Broken Hill Project.
Broken Hill is shaping up as a compelling exploration opportunity for Rimfire with ground magnetics highlighting a potential extension to high grade cobalt sulphides drilled last year at Bald Hill, as well as the cobalt, copper and REE targets outlined in this announcement.
With executed Access Agreements in place, we will shortly commence a ground inspection of the targets with a view to drill testing during the second half of 2024 and look forward to further market updates as new information comes to hand.”
Click here for the full ASX Release
This article includes content from Rimfire Pacific Mining Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Rights Issue and Shortfall
Reach Resources Limited (ASX: RR1 & RR1O) (“Reach” or “the Company”) is pleased to announce it has received $822,595 from the recently completed non-renounceable rights issue.
As announced on 21 February 2024, eligible shareholders who participated will receive 1 fully paid ordinary share in the capital of the Company (“Share”) for every 3 Shares held, at an issue price of $0.002 per Share (pre-consolidation) (or $0.01 on a post-consolidation basis), together with 1 free attaching option to acquire a Share (“Option”) for every 2 Shares subscribed for and issued (“Rights Issue”).
Each Option issued under the Rights Issue will be exercisable within 3 years from the date of issue with an exercise price of $0.003 (pre-consolidation) (or $0.015 on a post-consolidation basis) (“New Options”). Participants in the Rights Issue will be issued Shares and New Options prior to 10am AWST, this morning.
In addition to the Rights Issue, the Company will be offering eligible holders of the existing RR1O listed Options (“RR1O Options”) a non-renounceable priority offer to subscribe for 1 New Option for every 1 RR1O held at an issue price of $0.0002 (pre-consolidation) or $0.001 (post-consolidation) per New Option, to raise up to approximately a further $0.26 million (“Priority Offer”). The issue of the New Options under the Priority Offer is subject to shareholder approval at the meeting to be held at 9:30 am AWST on the date of this announcement.
The Company intends to apply for the quotation of the New Options to be issued under the Rights Issue and the Priority Offer (together, the “Offers”).
Funds raised under the Offers will be allocated towards funding the exploration of the Company’s projects and for general working capital purposes.
The Company engaged Westar Capital Limited (AFSL 255789) (“Westar”) to act as lead manager for the Offers. In consultation with the Company, Westar has the exclusive right to the placement of any shortfall under the Rights Issue (ASX Announcement 14 March 2024 – Entitlement Issue Prospectus) (“Shortfall Offer”). Westar have been advised of the shortfall and the Company looks forward to providing an update to shareholders regarding the placement of the shortfall, in the short term.
Consolidation
Subject to receipt of shareholder approval at this morning’s General Meeting, the Company plans to consolidate its issued capital on a 1 for 5 basis (“Consolidation”).
The Consolidation will apply equally to all shareholders, individual shareholdings will be reduced in the same ratio as the total number of shares (subject to rounding of fractions). The Consolidation will have no material effect on the percentage interest in the Company of each shareholder from a pre- consolidation basis to a post-consolidation basis.
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McKinsey: Commodities Trading Generated US$104 Billion in 2023
A recent report from McKinsey highlights trends seen in commodities trading over the past year.
The document shows that despite global uncertainty, commodities trading generated over US$100 billion in earnings before interest and taxes in 2023, translating into more than US$150 billion in gross margin.
McKinsey mentions challenges related to COVID-19 and geopolitical conflicts, such as increased price volatility and supply chain disruptions, but notes that commodities trading value pools have show resilience.
Total trading values remained relatively stable in 2023 following rapid growth from 2021 to 2022.
Commodities trading trends in 2023
Looking at specific commodities, McKinsey notes that oil and oil-based products remain the largest value pool, although their profitability decreased in 2023. The firm also notes that the year brought physical volatility.
Total demand for oil is seen growing for the majority of this decade, followed by a decline after 2030. Demand for the commodity is forecast to decrease by nearly 50 percent by 2050.
Until then, competition is anticipated to escalate as more large players enter the fray. According to McKinsey, national oil companies and legacy oil marketers are already bolstering their trading capabilities.
For power and gas, trading pool value saw a bump in 2023, with markets seeing above-average volatility.
New opportunities are emerging in power and gas trading, particularly around entering new markets, data-driven trading and investments in new assets like battery energy storage systems.
The liquefied natural gas (LNG) market continued to grow in 2023, playing a crucial role in maintaining energy security in Europe. Similar to oil, market competition is poised to escalate as players that traditionally relied on long-term pipeline gas contracts, particularly in Europe, can now leverage their existing customer base to bolster their trading capabilities.
For metals and mining, trading profitability decreased in 2023, driven by elevated energy prices and lower commodities prices. Even so, nickel production saw a notable upsurge, largely driven by Indonesia, while lithium output experienced only modest growth. McKinsey sees the energy transition driving metals demand in the years to come.
Commodities sector increasingly interconnected
Aside from that, the McKinsey report highlights two major trends shaping commodities markets today.
The first is increasing interconnectedness. According to McKinsey, the average correlation between commodities vital to the energy transition has doubled, reaching 56 percent from 2015 to 2019.
Part of the reason for that is increased diversification of supply, which has led to a decrease in long-term relationships and a surge in short-term contracts. The LNG market exemplifies this shift, notes McKinsey, with approximately 100 new LNG tankers launched in the past three years, poised to surpass oil carriers by 2028.
Similarly, flexible contracts are gaining traction as buyers seek to mitigate risk. This shift often leads to higher exposure to global prices, as residual volumes are typically priced based on current market levels. The competition between Asia and Europe for additional LNG volumes highlights the growing preference for spot or indexed contracts.
However, not all markets follow this pattern. Critical industries like agriculture and certain metals, where supply chain security is paramount, often enjoy protection from local authorities.
Power to play a key role in the energy transition
The second major trend McKinsey mentions is the growing role of power in the energy transition.
The firm notes that power will be key to meeting the net-zero goals outlined in the Paris Agreement, and states that the power sector's value is anticipated to grow by up to 5 percent annually, reaching US$1.3 trillion to US$2.4 trillion by 2040.
However, the road to a sustainable energy future is not straightforward. Unlike other commodities, power demands immediate generation and consumption in close proximity. While solar and wind have spearheaded initial efforts in the energy transition, the journey to achieving the next 50 percent reduction in emissions presents complex hurdles.
Solutions such as nuclear, hydrogen and carbon capture necessitate substantial investments, alongside urgent grid expansions to accommodate evolving demands.
In Germany alone, the annual buildout of the transmission grid is projected to skyrocket by a factor of five, with approximately 1,900 kilometers added per annum by 2035, compared to a mere 400 kilometers previously.
Renewables, particularly wind and solar, are also set to dominate the power mix from 2030 to 2050. Yet this reliance on renewables introduces dependencies on other commodities. For instance, wind turbines, which are integral to renewable energy infrastructure, heavily rely on materials like steel, copper and aluminum.
Investor takeaway
As uncertainty drives large value pools in commodities trading, McKinsey is suggesting that players in this market embrace data-driven trading, which involves artificial intelligence.
The firm believes this approach can give commodities traders an advantage, particularly in power and gas.
"To expand capabilities and agility, players will need to think through the macrotrends to determine which cross-commodity opportunities are the best fit, what role traders can play in power, and how to differentiate across managing illiquid risks, data-driven trading, and having deep capabilities in niche commodities," states McKinsey.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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