Deals this week: African Energy Resources, Brades Resource, Richmont Mines and more

17 October 2013 (Last Updated October 17th, 2013 18:30)

African Energy Resources has signed a binding sale agreement to acquire Asenjo Energy's 2.4 billion tonne Mmamabula West coal project in south‐east Botswana.

Agreement

African Energy Resources has signed a binding sale agreement to acquire Asenjo Energy's 2.4 billion-tonne Mmamabula West coal project in south-east Botswana.

As per the deal, African Energy will pay an initial $1m to Asenjo following the receipt of approval of the transfer of prospecting license PL56/2005 to one of African Energy's subsidiaries.

The transaction is subject to a written confirmation from Minister of Minerals Energy and Water Resources.

After securing approval for a retention license, African Energy will further pay $1.5m for the acquisition of the project, which is situated 100km north of Gaborone, and 50km west of the railway line between Gaborone and Francistown.

Mmamabula West features 892Mt of indicated resource and 1,541Mt of inferred resource at an average in-situ raw CV of 4,800kcal/kg.

Brades Resource has signed a letter of intent (LOI) to acquire a 50% interest in Fission Uranium's Clearwater West project in the south-western Athabasca basin region, Saskatchewan.

As per the terms of the property option agreement, Brades should earn $5m of staged exploration expenditures on or before 14 October 2016 in order to acquire up to a 50% interest in Clearwater West.

The acquisition is subject to the satisfaction of certain conditions precedent including TSX Venture Exchange approval.

Clearwater West features three contiguous claims totalling 11,835ha in the south-west area of the Athabasca Basin immediately South of and adjacent to Fission's joint venture Patterson Lake South project.

Richmont Mines has signed a land and mining rights agreement with Argonaut Gold, which owns the Magino gold project that is near the Corporation's Island Gold Mine near Dubreuilville, Ontario, Canada.

The deal will allow Richmont to extend the western boundary of its Island gold deep project by a distance of 585m, increasing the project's exploration potential towards the west.

Mining rights below a depth of 400m were also secured on several claims to the south of the Island Gold Deep project.

As part of the deal, Richmont will acquire Claim SSM 722481 in its entirety, which immediately abuts Island Gold's Localsh Zone, where reserves and resources currently exist and where mining is currently taking place.

Argonaut will receive exploration and mining rights from surface to a maximum depth of 400m on certain Richmont claims that border the Magino gold project.

The Island Gold Deep C Zone project features an estimated Inferred mineral resource of 2,278,000t grading 10.53g/t Au for 771,000 ounces as at 1 October 2013.

Lara Exploration has signed an option agreement with Tessarema Resources for the development of the Curionopolis copper project in Brazil.

As per the deal, Tessarema can earn a 100%-interest in the project by funding exploration, development of mining operations, making $2m in cash payments and granting royalties of between 2-5% to Lara.

Under the terms of the deal, Tessarema can initially earn a 49% interest by making staged cash payments to Lara totalling US$750,000.

Tessarema should complete 2,000m of drilling, and deliver a National Instrument 43-101 report confirming a mineral resource which could be economically mined of at least 100,000t of contained copper and copper equivalent by-products, all before 30 September 2015.

Tessarema can earn further 11% and 40% interests by satisfying conditions set by Lara.

Lara said if Tessarema fails to complete any of the three stages, ownership of the project reverts to Lara.

Maudore Minerals has signed agreements for the consensual restructuring of current debts owed to Cyrus Capital Partners, in its capacity as a manager to FBC Holdings, as well as with the major unsecured creditors at both Maudore and its operating subsidiary Aurbec Mines.

The deal will enable Maudore to focus on increasing production from the Sleeping Giant mine where underground diamond drilling has been proceeding for the past six weeks.

The Maudore deal covers $2.36m of trade credit, of which $300,000 should be repaid by 30 November 2013 with the balance due on 30 October 2014.

The Aurbec agreement covers $4.33m of trade credit, of which $562,000 is to be repaid by 30 November 2013 and a further $562,000 should be repaid by April 30, 2014, for a total reduction of $1.12m while the balance will be due on 31 October 2014.


Image: Several deals were signed this week. Photo: Courtesy of FreeDigitalPhotos.net.

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