Deals this week: OZ Minerals, Kodal Minerals, Aura Energy

1 February 2019 (Last Updated January 31st, 2019 11:17)

OZ Minerals has entered an exploration agreement that provides a two-year option to fund various work programmes on six early-stage projects of Red Metals.

OZ Minerals has entered an exploration agreement that provides a two-year option to fund various work programmes on six early-stage projects of Red Metals.

OZ Minerals has agreed to finance $8.05m in exploration and make cash payments of $1.8m, allowing it to earn between 51% and 70% of a project.

OZ Minerals will fund proof-of-concept work programmes on Yarrie, Nullarbor Gulf, Three Ways, Lawn Hill, and Mount Skipper projects in Australia, as part of the agreement.

OZ Minerals is a mining company focused on copper, while Red Metal is engaged in the development of gold and copper deposits.

Both the companies involved in the transaction are based in Australia.

Kodal Minerals has signed an agreement and secured exclusive rights to explore and an option to acquire Bambara Resources’ Mafele Ouest and Nkemene Ouest concessions.

Kodal made the transaction through its wholly owned subsidiary Future Minerals and proposes to carry out a rapid exploration programme to develop the concessions.

The company holds the right to acquire 80% of the concession areas by paying £185,000 in cash and issuing shares worth £195,000 over three stages. It also has the right to acquire the remaining 20% following the completion of the feasibility study and upon filing the mining application.

“Kodal made the transaction through its wholly owned subsidiary Future Minerals and proposes to carry out a rapid exploration programme to develop the concessions.”

Based in the UK, Kodal Minerals is a lithium mining company, while Mali-based Bambara Resources is a mining company.

Aura Energy has signed a binding off-take agreement with Curzon Uranium Trading for the sale of uranium produced at the Tiris uranium project.

Aura Energy has agreed to sell 800,000lb of uranium at fixed prices, in addition to 1.8Mlb at fixed and market pricing for a seven-year period.

Aura Energy is an Australian developer of battery metals and uranium projects, while US-based Curzon Uranium Trading provides uranium trading solutions.

Rainbow Rare Earths has signed a funding agreement with The Lind Partners and secured financing of up to $7.75m.

The funding comprises an unsecured convertible security amount of $750,000, along with a 24-month equity facility of up to $7m and an initial share subscription of $100,000.

The Lind Partners is an alternative asset management company based in the US, while Burundi company Rainbow Rare Earths is engaged in exploring and developing rare earth deposits.

Colombia’s National Mining Agency (ANM) has extended the mining concession contract of Drummond for the La Loma coal mine by an additional 20 years.

ANM will receive $557m in royalties following the contract extension.

Based in the US, Drummond is focused on exploring and developing coal projects.