Ikwezi Mining has agreed to sell a portion of the mining right for the Alleen No.2 coal property in South Africa to Forbes and Manhattan Coal.
Located north of Dundee in the Kwa-Zulu Natal province, the property is adjacent to Forbes Coal’s current Magdalena opencast operations.
Under the agreement, Forbes Coal’s subsidiary Zinoju Coal Proprietary will acquire Alleen No. 2, based on the estimated run-of-mine that can be extracted from the mining right area.
Ikwezi will receive a top-up payment equivalent to ZAR10 ($0.9) per tonne, if the run-of-mine extracted exceeds the agreed upon production threshold.
The sale is subject to the South African Minister of Mineral Resources’ written consent.
Orestone said that mapping and sampling at the site has outlined an intrusive hosted gold vein stockwork system in numerous dry placer pits over an area measuring 500m by 1,000m.
A total of 391 selected grab quartz vein samples were taken from placer pits, with 277 samples grading greater than 500ppb gold and 160 samples greater than 1,000ppb gold with values up to 260g per tonne gold.
Orestone said it believes that there is potential for the Estrella de Oro project to outline an oxidised, bulk tonnage stockwork gold system in a region of better infrastructure for development.
The first phase of the project includes a detailed soil geochemical survey followed by backhoe trenching to test the system.
Newmont will initially invest $2.5m in the project over 30 months from the effective date.
Polar Star said no interest in the project will vest with Newmont until completion of the phase one earn-in.
Upon completion of the expenditure, Newmont will have a 51% beneficial interest in the project.
The funding requirement for the second phase is $5.5m over 30 months, which will provide Newmont with an additional 14% beneficial interest in the project, taking the total stake to 65%.
If Newmont continues to phase three, it must invest an additional $12.5m before the expiry of a further 24 months, which will earn the company an additional 10% beneficial interest in the project, taking the total stake to 75%.
Upon reaching 75% interest, Newmont will have options available to either finance its 25% through to mine production or accept a financing option provided by Newmont, under terms provided for in the agreement.
Kerr Mines has entered into a letter agreement with American Bonanza Gold. The firms will merge their respective businesses pursuant to an amalgamation or plan of arrangement.
Under the terms of the letter agreement, each American Bonanza shareholder will receive about 0.53 of a common share of Kerr Mines
Kerr Mines currently has about 392 million shares outstanding and American Bonanza has about 234 million shares outstanding.
American Bonanza is likely to issue up to an additional 337 million shares prior to the closing of the transaction, to settle certain outstanding unsecured indebtedness.
Canadian exploration and development company Kerr Mines is the owner of the McGarry gold mine in Ontario’s Kirkland Lake area.
Canada-based Tyhee Gold has signed a merger agreement with Santa Fe Gold.
Tyhee will acquire 100% of the issued and outstanding securities of Santa Fe, including the dilutive securities, in exchange for securities of Tyhee.
Santa Fe currently holds several precious metals properties in New Mexico, US, including the Summit gold mine, which started commercial production in 2012. Mining activities were suspended in November 2013, primarily because of operational challenges brought on by capital constraints.
After completion of the merger, Tyhee’s core assets will include the Summit mine and Lordsburg Mill in New Mexico, as well as the larger but longer-term Yellowknife gold project in Canada’s Northwest Territories.
Tyhee is acting through a newly-incoporated Delaware subsidiary corporation.