Deals this week: Minotaur Exploration, BC Iron, Hummingbird Resources


Minotaur Exploration has agreed to raise A$2m ($1.56m) in a private placement of shares priced at A$0.052 ($0.04) a share. 

The company has already raised A$1m ($0.78m) from various investors in a private placement, and will raise the remaining A$1m ($0.78m) through a share purchase plan.

Yarraandoo is the second largest shareholder of the company and committed to offer A$0.42m ($0.33m) in case of any shortfall. 

Based in Australia, Minotaur Exploration is engaged in the mineral exploration and development of copper and gold minerals deposits. It has engaged Vesparum Capital as its financial advisor for the transaction.

Iron ore mining and development company BC Iron has acquired the Kumina and Cane River tenements from Mineralogy, for A$9m ($7.05m).

Both companies involved in the transaction are based in Australia.

UK-based  Hummingbird Resources has signed a letter of intent (LoI) with African Gold Group (AGG) to acquire a 50% interest in the latter’s Kobada gold project in Mali.

Hummingbird intends to produce a high-grade concentrate at Kobada, in addition to 50,000oz gold a year from its Yanfolila mine. 

"The company will also be entitled to 70% of the net cash-flows until it recoups the investment."

As part of the agreement, Hummingbird will initially pay C$3.6m ($2.88m) to acquire approximately 9.9% in AGG, and will gain a right to increase its shareholding to 19.2% by paying an additional C$4.4m ($3.52m).

Hummingbird has the right to acquire a 50% interest in Kobada through CAPEX funding, upon completion of the detailed feasibility study (DFS). The company will have to fund the entire capital costs required to build the mine and processing plant if the DFS is favourable.

The company will also be entitled to 70% of the net cash-flows until it recoups the investment. Furthermore, it will manage and operate the project under the agreement.

Falco Resources has signed an agreement to acquire Globex Mining Enterprises’s Donalda property in Rouyn-Noranda, Québec, Canada. 

Falco has agreed to pay $300,000 in cash, 350,000 units, and a 2.5% gross metal royalty on mineral produced from the Donalda property to Globex as part of the agreement. 

Each unit will comprise one common share and one common share purchase warrant of Falco. Each warrant will entitle the holder to purchase one common share of Falco at a price of C$1.15 a share for five years after the closing date. 

In addition, Globex will gain 100% ownership of Falco’s Dickenson property. 

Both companies involved in the transaction are based in Canada.