Deals this week: Bounty Mining, Attila Resources, Bandanna Energy and more

26 September 2013 (Last Updated September 26th, 2013 18:30)

Bounty Mining has finalised agreements for a farm-in, a joint venture and a management contract for the Wongai coal project in in Cape York, Queensland, Australia.

Handshake

Bounty Mining has finalised agreements for a farm-in, a joint venture and a management contract for the Wongai coal project in in Cape York, Queensland, Australia.

As per the deal with Aust-Pac Capital and the Kalpowar traditional owners, Bounty may earn a 40% interest in the project by expenditure on resource delineation, pre-feasibility and feasibility studies, and the finalisation of the environmental impact statement.

Bounty will also have the right to acquire a further 11% equity in the project prior to construction.

Bounty has been appointed as mine manager of Wongai for the life of the project, which currently has an estimated resource of 67.5 million tonnes and is anticipated to produce about 1.5 million tonnes per year of coking coal.

Attila Resources' 70%-owned subsidiary Kodiak Mining Company has signed a lease agreement and an option agreement to acquire additional coal leases within the Gurnee Property at its coking coal project in Alabama, US.

The company has signed an option agreement to lease the Upper Thompson coal seam within its Gurnee Property from the existing mineral rights holder RGGS Land and Minerals.

The lease includes the former Upper Thompson No. 1 Mine which was mined by the principals of Attila's joint venture partners, TBL Metallurgical Resources, from 2008 to 2010.

Apart from the lease the Upper Thompson seam, Attila has signed a lease agreement with RGGS to mine the Gholson and Clark coal seams at an area known as Project X, which is also situated on the Gurnee Property.

Project X has an exploration target of 2-3 million tonnes, as determined by Stagg, based on Attila's existing phase 1 drill programme which drilled through the Gholson and Clark coal seams.

Bandanna Energy has signed a non-binding heads of agreement with Korea Midland Power (KOMIPO) for a potential equity investment in the Springsure Creek thermal coal project, in Queensland, Australia.

Both the firms are also negotiating for potential equity investment by KOMIPO Springsure Creek project as well as long-term coal offtake agreements.

The non-binding agreement is subject to ongoing due diligence by KOMIPO.

Bandanna Energy is also negotiating with other coal customers and investors in relation to offtake and investment opportunities.

Until binding investment arrangements are reached, Bandanna Energy will continue to progress all options for project development funding.

The Springsure Creek underground thermal coal project is expected to start production in mid-2015.

Bea Mountain Mining has agreed with the Government of Liberia to ratify a restated and amended mineral development agreement for its Bea Mountain mining licence.

The licence covers 457km² and includes the New Liberty gold project along with the Ndablama, Gondoja and Weaju exploration targets.

The restated agreement provides for a stable operating environment in respect of the legal, operational and fiscal parameters for the operations on the Bea Mountain mining licence.

New Liberty Gold Project is situated within the 100%-owned Bea Mountain mining licence, which has a 25 year, renewable, mineral development agreement.

The Archaen Gold exploration licence, which covers 89km², is also a focus of exploration for 2013, with Leopard Rock being the main target.

Northwest Resources has entered into a $1.93m royalty financing facility arranged by Royalty Stream Investments.

The royalty financing is structured as a loan with repayments linked to a gross royalty over Northwest's entitlement to future production from its Camel Creek gold project.

Northwest recently reported a maiden ore reserve estimate of 1.075Mt @ 1.40g/t Au for 48,300oz of gold for the Camel Creek joint venture (JV) between Northwest and Millennium Minerals.

The Camel Creek JV is a 50:50 mining joint venture between Northwest and Millennium relating to four gold deposits within Northwest's Camel Creek gold project.

As per the JV, which is managed by Millennium, Northwest and Millennium will entitle each one to 50% of physical gold produced from the deposits.


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

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