Deals this week: New World Resources, Lost Sands, Herencia Resources and more

9 January 2014 (Last Updated January 9th, 2014 18:30)

OKD has signed a memorandum of understanding (MoU) with the Czech State on the closure of Paskov mine.

OKD has signed a memorandum of understanding (MoU) with the Czech State on the closure of Paskov mine.

The MoU, which establishes a framework for co-operation, sets out the role of each party and explains a joint-working process towards a mutually beneficial solution, to be completed by 31 March 2014.

Both companies will explore the option of OKD extending operation of the mine until 31 December 2016, at its own risk.

After December 2016, ownership of the mine will be transferred to the Czech State.

The transaction is subject to the approval of the European Commission and support of the mine's key stakeholders.

NWR is a subsidiary of New World Resources and currently has development projects in Poland and the Czech Republic, which form part of the company's regional growth strategy.

Diatreme Resources' subsidiary Lost Sands has signed a heads of agreement (HoA) with Hong Kong-based Perpetual Mining, over the Cyclone zinc project, in Western Australia.

Under the HoA, Perpetual Mining will invest A$2m directly into the Cyclone project to acquire a 6% equity stake.

Perpetual's investment will be used to locate and secure suitable water supplies for future mining operations and to fund the approvals for both the development of a road transport corridor between the Forrest and Cyclone deposits, as well as for the grant of a mining licence and associated licences.

Diatreme Resources has previously reported the discovery of significant water flows below the proposed Cyclone mine area.

Pump testing is expected to be undertaken early this year, which will provide Diatreme with a clearer picture of planning requirements for any future production bore field to supply a future mining operation.

Herencia Resources has signed a subscription agreement with Shining Capital for a second tranche investment of £1.86m.

Shining currently holds 100 million ordinary shares representing about 4.7% of the total issued shares of the company.

Following the issue of the 300 million tranche two shares, Shining Capital will hold 400 million ordinary shares, representing approximately 16.4% of the total issued shares in the company.

Herencia Resources is a Chile-focused mineral exploration firm.

The company recently completed a feasibility study in relation to its 70%-owned Paguanta project, a high-grade silver-zinc-lead project located in the north of Chile.

The company has also entered into an option to acquire the producing Picachos copper project in central Chile.

Victory Nickel has finalised its supply contract for washed concentrated sand to be delivered for finish processing at its new Seven Persons frac sand plant near Medicine Hat, Alberta.

The company said the deal ensures the availability of the highest quality Jordan formation sand from Wisconsin and also provides it with the opportunity to participate in a joint venture on several properties in Wisconsin and Minnesota, guaranteeing it a long-term supply of sand.

Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba and Lac Rocher in north-western Québec, and by evaluating opportunities to expand its nickel asset base.

Through its subsidiary, Victory Silica, Victory Nickel is establishing a presence in the frac sand market prior to starting frac sand production and sales from Minago.

Discovery Ventures and Roca Mines have amended their letter agreement with respect to the acquisition of Max Mine and Mill.

Pursuant to the original agreement, Roca granted an option for Discovery to acquire all of the issued and outstanding common shares of its subsidiary FortyTwo Metals.

FortyTwo holds the Max Mine, which includes an underground molybdenum mine, crushing, milling and concentrating facilities and tailings storage facilities.

The mine also features mineral claims, mining leases, licenses and other holdings located near Trout Lake in the Revelstoke mining division of the province of British Columbia.

Located about 135km from Discovery's Willa project, Max Mine formerly produced molybdenum. It operated from 2007 until 2011 when depressed metal prices led to its closure.

Discovery has exercised the first stage of the option agreement and is working towards the second stage.

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