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Proactive weekly mining news, including W Resources, Arian Silver and Stellar Diamonds

A notable release this week came from tungsten explorer W Resources, which was granted development approval for its La Parrilla tunsgten mine
A mixed bag from the mining sector this week..

A notable release this week came from tungsten explorer W Resources (LON:WRES), which was granted development approval for its La Parrilla tunsgten mine in Spain, sending shares higher.

It was the main approval required to move the fast track mine proposal at La Parrilla towards production and follows the receipt of environmental approval in July.

W Resource’s plan is to construct La Parilla in two stages - a  fast-track mine scheduled to be completed next year,  where production will be between 1,200 and 1,300 tonnes per year with 110 tonnes of tin as a by-product

The full mine will come on stream in 2018 at 5,000 tonnes tungsten and 400 tonnes of tin.

Another riser this week was  Coal of Africa (LON:CZA) after it unveiled a deal to take over South Africa-focused miner Universal Coal (ASX:UNV).

It has agreed to pay the equivalent of A$126.4mln (US$91mln), paid in cash and Coal of Africa shares.

Universal Coal shareholders will receive A$0.25 - either entirely in cash or A$0.20 plus one Coal of Africa share per Universal Coal share. Alternatively, certain shareholder can opt to receive a non-converting loan note, which will carry interest at 12.68% and can be redeemed between 12 and 18 months from issue.

Elsewhere, Stellar Diamonds (LON:STEL) said it had submitted two key applications including one for a large scale mining licence for its Tongo project in Sierra Leone.

The mining permit application will now be processed by the National Minerals Agency and then forwarded to the Minerals Advisory Board, which will make a recommendation to the Minister of Mines.

Stellar has also submitted its final Environmental, Social and Health Impact Assessment (ESHIA) report.  Public meetings will be held in the New Year both at Tongo and in the capital Freetown, after which the Environmental Agency can issue a licence.

Meanwhile Sunridge Gold (CVE:SGC) is proposing to wind up the company and return surplus cash to shareholders.

In view of the difficult environment for junior mineral exploration companies, the company took soundings on whether it should wind up the company or buy a new mineral property; the overwhelming response from its shareholders and advisers was to wind up the company.

Arian Silver (LON:ACQ CVE:ACQ) has settled its outstanding debts with Quintana by handing over its flagship San Jose project in Mexico.

Quintana had a foreclosure right which it has now exercised and taken ownership of Arian Silver de Mexico and its assets, including San José.

Arian retains the San Celso, Calicanto and Los Campos projects along with 1,600 hectares of mining concessions. The settlement has also cleaned up its balance sheet and left it debt free.

Also from the small cap sector this week, zinc will be an early beneficiary if metal prices recover Anglesey Mining (LON:AYM) believes, but until then it has put all of its operations on effective care and maintenance.

Minimal work and expense is required to maintain its licences at Parys Mountain, Wales and at Grangesberg in Sweden, it said, though there are some expenses at iron ore group Labrador in Canada and additional working capital will be required.

Mining royalty specialist Anglo Pacific (LON:APF TSX:APY) increased its income in its latest quarter helped by coal mine Narribi's contribution.

Royalty related income rose to £1.9mln in the three months to September, up from £0.5mln a year ago and in spite of the slide in the price of coal and other commodities.

Anglo Pacific noted reports that Rio Tinto, Kestrel’s owner, intends to close the mine unless it is granted a licence extension, but believes this is part of the normal permitting process for an extension to cover the full extent of the mine plan.


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