Killara Resources has signed a coal sale agreement with Coal Operations & Assets (COPA) for 100% coal output from the PT Borneo Emas Hitam (BEH) project located in East Kalimantan, Indonesia.
As per the deal, COPA will pay in advance the coal sale deposit of $500,000 which is payable within 18 days of signing the agreement to Killara and is subject to COPA’s due diligence in respect of mining reserves and coal delivery.
The deal will enable Killara to become cash flow positive in future and provide ongoing revenue from coal sales.
The BEH project is divided in three blocks, which include the Eastern block, the Central block and the Western block.
The exploration program on the Eastern Block has been completed by contractor PT Reka Indo Internusa with 48 coal samples, which were collected and sent for independent lab testing.
Mineral exploration company Algold Resources has agreed to acquire all of the issued and outstanding units of First Uranium (FIU), by way of a court-approved plan.
As per the deal, Algold will acquire each issued and outstanding FIU Unit, for 0.0729849 of a common share of Algold.
The proposed transaction will provide opportunity for FIU shareholders to hold a majority stake in Algold.
FIU shareholders would also receive 0.0729849 of an Algold share for each First Uranium unit held, implying an offer of about C$0.011 a unit based on the closing price of Algold’s shares.
After completion of the transaction, Algold would gain access to FIU’s net cash and cash-equivalent assets that total approximately C$3.1m ($1.24).
Gold exploration firm West Kirkland Mining has signed an amending letter agreement with Rubicon Minerals.
The deal will allow West Kirkland to defer exploration expenditures due to be spent on the 350 square miles which the company has optioned from Rubicon.
West Kirkland said it has made new discoveries of surface oxide gold mineralisation on the optioned properties and the amendment allows time for the resource market to improve so that further work can be funded.
As per the amendment, West Kirkland now has until 31 December 2014 to complete the second year expenditures of $3,000,000 on the properties and until 31 December 2016 for final phase I expenditures.
The company has spent $2,000,000 to date to satisfy the first year expenditures and $900,000 towards the second year expenditures.
Polygon Mining Opportunity Master Fund, a fund managed by Polygon Global Partners, has agreed to invest C$2.5m to acquire 51.2% of the common shares of Caza Gold.
Polygon currently owns 1,527,500 common shares of Caza Gold and 500,000 warrants exercisable to purchase 500,000 common shares of the company at a price of C$0.20 per share for a period ending 28 December 2014.
After completion of the investment, Polygon will own, on a post-consolidation basis, 52.5% of the issued and outstanding common shares of the company on a non-diluted basis.
Caza Gold is a gold and copper exploration company focused on discovering new deposits in Nicaragua.
The company controls the high sulfidation gold trend of Nicaragua and a copper-gold-iron porphyry system to the north of the El Limon mine.
Barrick Gold has signed an underwriting agreement with a syndicate of underwriters for a bought deal public offering for gross proceeds of around $3bn, representing 163.5 million common shares of the company at a price of $18.35 per share.
The underwriters syndicate is led by RBC Capital Markets, Barclays and GMP Securities.
Barrick Gold has also granted the underwriters an over-allotment option, to purchase up to an additional 24.5 million common shares at the offering price exercisable for a period of 30 days upon closing.
The company said the gross proceeds of the offering will be around $3.45bn if the over-allotment option is exercised in full.
The offering, which is subject to certain customary conditions and regulatory approvals, is expected to close on or about 14 November 2013.
Based in Toronto, Canada, Barrick operates mines and advanced exploration and development projects on four continents.
Image: Several deals were signed this week. Photo: Courtesy of FreeDigitalPhotos.net.