Deals this week: Poseidon Nickel, Fortune Minerals, Mastermyne Group and more

2 October 2014 (Last Updated October 2nd, 2014 18:30)

Poseidon Nickel has signed a conditional offtake agreement with BHP Billiton’s Nickel West division to supply ore from its Windarra operation to Nickel Wests’ Leinster concentrator for toll treatment.

Mining

Poseidon Nickel has signed a conditional offtake agreement with BHP Billiton's Nickel West division to supply ore from its Windarra operation to Nickel Wests' Leinster concentrator for toll treatment.

Under the deal, Nickel West will purchase the concentrate produced from the Poseidon's Windarra operation, whereas Poseidon will pay treatment charges to Nickel West for every tonne of ore processed.

The agreement will initially begin for two years, with the first ore scheduled for delivery by February 2015. Nickel West also has the option to extend the contract by one or two years.

Fortune Minerals, through its wholly-owned subsidiary Fortune Revenue Silver Mine, has completed the deal to acquire 100% stake in Revenue Silver Mines for $35.

To fund the deal, Fortune has taken $25m from Lascaux Resource Capital Fund and will receive the remaining $10m on 16 October 2014.

With the acquisition of Revenue Silver Mines, Fortune becomes the only mining company with two organic development assets to grow its business.

Mastermyne Group has signed a deal to acquire Diversified Mining Services (DMS) for $20m.

As per the deal, Mastermyne will give $9.7m of its shares to DMS shareholders and will pay $10.3m in cash.

DMS will use the cash to repay its debt and restructure the business.

Roxgold has signed an underground mining service contract with a subsidiary of African Underground Mining Services (AUMS) for its Yaramoko Gold project in Burkina Faso.

Under the contract, AUMS will receive initial investment of $5m, with an option for Roxgold to issue up to additional $10m of common shares in exchange for pre-production underground developmental works.

The contract, which is initially valid for four years, also has the provision of a mining fleet and skilled labour force.

Viking Mines has extended the exclusivity agreement with Ghana-based Akroma Gold for its 100% owned Akoase gold project in southern Ghana by another 30 days.

Akroma was initially given a three month period to undertake due diligence on Akoase but was delayed due to a diligence site visit.

Akroma had already paid the $90,000 option fee for the original period.

Located 150km north of Accra and 25km from Newmont's Akyem gold mine, the Akoase gold project has an inferred resource of 790,000oz of gold.

In addition to Akoase, Akroma also owns Sian gold project, which is 12km north-west of Akoase.


Image: Several deals were signed this week. Photo: courtesy of stockimages / FreeDigitalPhotos.net.

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