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Mercator Gold upbeat for 2010, plans name change to Electrum Minerals

Fri, 12 Mar 2010 16:30:00 +0000

Mercator Gold PLC (AIM:MCR; OTC: MTGDY) said it expects to enter the second quarter of 2010 with metal prices at levels that will allow mining companies to fund projects and to make profits, as it reported results for the 15 months to end-September 2009.

The group reported revenue for the period of £4.06 million, against nil in the year to June 30 2008. Pretax loss narrowed to £4.4 million against £31.9 million in the comparative period when Mercator booked a £30 million impairment charge after it was forced to close down its Meekatharra gold mining operation due to spiralling costs.

During the period under review Mercator acquired interests in two mineral development projects, one in Papua Province, Indonesia and another in New Mexico, US. The first of these was the acquisition of an interest in an alluvial deposit in Papua that is known to have produced more than 100,000 ounces of gold at very high grades. The second was the acquisition of an exclusive option over the Copper Flat project in New Mexico, at a time when copper prices were much lower than those which currently prevail.

“We see Copper Flat as an attractive option on the copper price through a technically straightforward open pit mining project. The deposit contains over US$2 billion worth of metal at today’s prices and we believe that Mercator will be able to add considerable value to the project with some innovative development,” it said.

Mercator’s balance sheet has been significantly strengthened as a result of the acquisition of the cash generative Thai manufacturing business ACS Asia, in October 2008 and as a result of the partial divestment of the company’s interest in Silver Swan.

Earlier this month, it announced entering into a binding agreement to acquire an interest of up to 70% in all of Uranio AG’s (XETRA: UAI) exploration and mining licences in Argentina. A four-month due diligence period is underway.

The group said it has now re-established itself with a range of assets beyond those that were envisaged at the time of the AIM flotation in October 2004. “In moving forward to a new future it is proposed by the board that the company be renamed Electrum Minerals PLC and a special resolution to this effect will be put to shareholders at the AGM."

EXFO buys Finnish technology group NetHawk Oyj for an initial €37.3m

Fri, 12 Mar 2010 16:00:00 +0000

EXFO Inc (NASDAQ: EXFO, TSX: EXF) said it has acquired Finnish technology group NetHawk Oyj for €37.3m in cash. EXFO expects the deal to be earnings neutral for the remainder of fiscal 2010, and accretive in fiscal 2011. The transaction also includes an additional earn-out agreement, based on the company’s sales performance over the next three years, which could raise the total value of the deal by €8.7m.

"This acquisition represents a defining milestone in EXFO's near 25-year history, since it not only transforms us into a global force in wireless testing, but it also moves us among the top five suppliers in the telecom test and service assurance industry”, EXFO chairman, president and CEO Germain Lamonde said.

According to EXFO, NetHawk is the second-largest provider of 2G, 3G and 4G/LTE protocol analyzers and simulators for wireless network equipment manufacturers (NEMs) and network operators. Under the terms of the deal, EXFO will acquire 91% of NetHawk's outstanding shares, and will purchase the remaining shares through a statutory procedure under the Finnish Companies Act.

NetHawk posted revenue of €28.5m and EBITDA of €4.2m for the fiscal year ended December 31 2009. EXFO plans to retain NetHawk's management, R&D, sales and marketing teams of approximately 370 employees mainly located in Finland, India and the United States.

EXFO cited international consultancy Frost and Sullivan as forecasting the ‘Protocol Analyzer’ and ‘Network Monitoring Market’ for wireless networks will grow from US$595.2m in 2008 to US$814.2m by 2013. Similarly, the ‘LTE Test Equipment Market’ is expected to increase at a compound annual growth rate of 56% during this period.

NetHawk's total addressable market is currently estimated at US$610 million.

NF Energy delivers 22 sets of butterfly valves for US$330,000

Fri, 12 Mar 2010 15:33:00 +0000

Chinese energy conservation specialist NF Energy Saving Corp (OTC: NFEC) has delivered 22 sets of recycling water system electric butterfly valves and fluid control butterfly valves to a thermal power plant in Dalian. The transaction is expected to be worth US$330,000 in revenues in Q1 2010.

The equipment will be used in one of the five national Sino-foreign joint projects for manufacturing Combined Heat and Power Generation (CHP) Equipment. With 4 x 300MW sub-critical coal-fired units.

According to NF Energy, the new plant is a highly promoted energy construction project in Dalian, which will achieve annual savings of 180,000 tons of standard coal and will reduce particulate matter pollution by 4,500 tons annually.

Headquartered in Shenyang city, NF Energy provides energy conservation services and products, utilizing its specialist energy-saving equipment and technical services. The company has several proprietary energy saving technologies and patents, including flow control systems and wind turbine components.

The current revenues are primarily from its energy saving flow control products.

In February, the company said that it expects to achieve continued growth in 2010, due to the ongoing global economic recovery and expansion of the Chinese economy. Additionally NF Energy suggested a number of catalysts including the Chinese government’s expansion of environment protection policies and its continued investment in and encouragement of infrastructure projects.

Xinergy to buy remaining Raven Crest interest in US$40m deal with JMP Coal

Fri, 12 Mar 2010 15:03:00 +0000

Xinergy Ltd (TSX: XRG) has signed an agreement to acquire the remaining interest in West Virginia operating Raven Crest Mining from JMP Coal Holdings in a deal worth US$40m.

Xinergy bought a 5% stake in Raven Crest in December 2009 through its acquisition of Shenandoah Energy; JMP Coal Holdings currently owns 95%. Raven Crest operates surface coal mines in Boone County. Controlling approximately 17m recoverable tons of high quality coal reserves, the company had earnings (EBITDA) of US$21m in 2009.

"The acquisition of Raven Crest provides us with a great opportunity to obtain an additional quality operation and also has an immediate expected positive impact to our cash flow and earnings”, Xinergy CEO Jon Nix commented. “In combination with our existing sales, we will have in excess of 1.3 million tons committed in 2010 at an average sales price of approximately US$90 per ton and over 1.0 million tons committed in 2011 at an average sales price of approximately US$102 per ton”.

Xinergy, who has received a US$75m financing commitment from Marret Asset Management to fund the acquisition, expects the transaction to complete by April 30 2010. The company noted that Raven Crest is expected to have approximately US$25m in long-term debt at the closing of the transaction.

“We also believe that there are additional opportunities to significantly increase our reserve base at Raven Crest that could allow us to possibly expand production in the future ... our intentions are to create value for our stakeholders by acquiring properties that are not only immediately accretive, but also substantially increase our permitted reserve base to allow us to promptly bring on production as market conditions improve” Nix added.

Emera to buy Maine & Maritimes Corp for US$45 per share

Fri, 12 Mar 2010 14:30:00 +0000

Emera Inc (TSX: EMA) has agreed a merger with Maine & Maritimes Corporation (AMEX: MAM). The cash deal sees Emera purchase all the outstanding MAM shares for US$45.00 per share, representing over a 40% premium based from MAM's closing price on March 11 2010.

"This transaction will be very advantageous for our shareholders and electricity customers. Becoming part of Emera strengthens our company financially and enables us to improve reliability and delivery service by working together with Bangor Hydro Electric Co to meet the needs of northern and central Maine customers", MAM President and CEO Brent M Boyles stated.

MAM is the parent company of the regulated electric group, the Maine Public Service Company. The transaction, which is expected to close later this year, has been approved by the MAM board and it is subject to approval by MAM's shareholders, the Maine Public Utilities Commission, and the Federal Energy Regulatory Commission. Regulatory approvals are estimated to take 6-8 months.

Emera said that upon completion of the merger there are no immediate plans to reduce staffing levels as the company contemplates that both MPS and Bangor Hydro will continue to operate separately and serve their customers in their respective service territories. The acquisition will be Emera's second investment in Maine, following its acquisition of Bangor Hydro Electric Co in October 2001. Emera intends to initially finance the transaction from existing credit facilities until long-term financing is arranged. The transaction is expected to be accretive to Emera within the first year.

"Maine plays an important role in the Maritime and New England energy market. This merger is an important next step in Emera's strategy of growth and integration within the Northeast market, by geographically expanding our service territory in Maine to the New Brunswick market", Emera President and CEO Chris Huskilson added.

Starpharma Holdings reports positve results from VivaGel® clinical trial

Fri, 12 Mar 2010 14:04:00 +0000

Australian pharmaceutical development company Starpharma Holdings (ASX:SPL, OTCQX:SPHRY) has received positive results from a clinical trial of the company's 3% SPL7013 Gel (VivaGel®) product.

It was found to be comparable in terms of safety and tolerability with its matched placebo when administered vaginally, twice daily for 14 days in sexually active women involved in the trial.

Starpharma CEO, Dr Jackie Fairley, said, the data from the study provided further evidence of the safety and tolerability of the VivaGel® active ingredient, SPL7013, and will support its development as both a stand-alone gel (bacterial vaginosis, genital herpes and HIV), and as a condom coating.

The study enrolled 61 healthy women who vaginally applied VivaGel®, a matched placebo gel without the SPL7013 active ingredient, or an alternative experimental placebo based on hydroxyethyl cellulose (HEC).

Starpharma plans to commence further clinical studies of VivaGel®, including a phase 2 efficacy study in bacterial vaginosis, during 2010.

The clinical study was funded by the Division of AIDS (DAIDS), National Institute of Allergy and Infectious Diseases (NIAID), and the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD), National Institutes of Health (NIH).

Syntopix making progress towards antimicrobial commercialisation

Fri, 12 Mar 2010 14:01:00 +0000

In its first-half results, the Syntopix Group (AIM: SYN) said it is making progress as it continues to attract a number of commercial opportunities following last year’s completion of a Phase II clinical study and its evaluation agreement with a major consumer healthcare company. The company recently appointed a new chairman, and it is finalising plans for a proposed fundraising which will enable the company to progress these opportunities.

“Our established partnerships with major consumer healthcare companies, the interest being generated from our Phase II clinical study, together with the depth of Syntopix's compound library, positions us well for the next twelve months of development activity and securing licensing deals for products”, Syntopix chief executive Dr Stephen Jones commented.

Syntopix is a specialised research and development business, focusing on the discovery of topical antimicrobials for healthcare and pharmaceutical applications.

An antimicrobial is a substance that kills or inhibits the growth of micro-organisms such as bacteria, fungi, or protozoans. Antimicrobial drugs either kill or prevent the growth of these microbes. The company’s strategy concentrates on repositioning known antimicrobial compounds, or beneficial combinations of compounds, that have a history of use in humans.

Syntopix's main development focus is on three core compounds, SYN0126, SYN1113 and SYN0017, each of which has multiple potential application across a number of large consumer healthcare markets including skincare, hair-care and oral health.

The company’s primary focus and area of expertise continues to be the treatment of acne. According to Syntopix, Antibiotics have been the main treatment for mild to moderately severe acne over many years, but the bacteria causing acne has become more resistant to antibiotics, compromising efficacy. By combining non-antibiotic antimicrobials with complementary agents, Syntopix says its acne products overcome the problem of antibiotic resistance and therefore have an enhanced therapeutic efficacy.

Syntopix has over 1,800 compounds in its R&D library, with the most advanced lead compounds now entering commercialisation. Syntopix currently has 24 core families of patents/applications, of which 11 are granted in the UK, and they are all at various stages of application in key international territories.

Following an evaluation agreement with a major consumer healthcare company last year for a synergistic pair of antimicrobials, Syntopix has applied for patent protection. The combination is being evaluated for use in a major consumer healthcare brand.

Last year, Syntopix reported a Phase II ‘proof-of-concept’ clinical study in subjects with acne-prone skin. The company said that these results continue to attract interest, and it is in discussions with several major healthcare companies. The company said it hopes to conclude these discussions in the near future and will announce developments as appropriate.

In addition to Acne treatment, its topical antimicrobials have been attracting considerable interest from other areas of consumer healthcare market, the company said. Other applications for Syntopix antimicrobials include oral healthcare applications and the treatment/prevention of body odour.

To enhance the company’s development as it advances its topical antimicrobials into commercialisation, Syntopix has appointed a new chairman. As announced in February, Tom Bannatyne’s investment experience is expected to provide the company with a stronger City presence and strategic guidance through the new phase of the group's development.

Furthermore, to provide the additional working capital required to progress the commercial opportunities available, Syntopix is finalising plans for an equity fundraising, and it expects to make an announcement in respect of details shortly.

In terms of its development programme, Syntopix is continuing to move its lead compounds from research into clinical development. SYN1113 is the lead candidate for the next human use study in subjects with acneic skin and once development work is complete, the company intends to commence the study in the autumn. Additionally a ‘proof-of-principle’ study is planned for compounds that may be of use in oral care. The compounds for the study are currently being confirmed, and subsequently the study should start over the summer.

Syntopix noted that it continues to work with Procter & Gamble (NYSE: PG), and it is developing good relationships with all of its partner companies.

In the six-months ended 31 January 2010, Syntopix derived sales revenues from commercial deals with pharmaceutical companies. H1 revenues were £104,000, compared to £85,000 in the comparative period in 2008/09. The company narrowed its net loss to £453,000 during the period compared with £577,000 a year earlier.

Response Biomedical losses narrow as diagnostic tests sales gather pace

Fri, 12 Mar 2010 13:58:00 +0000

Response Biomedical Corporation’s (TSX: RBM, OTCBB: RPBIF) revenues in 2009 climbed 69% to approximately $9.95 million as sales of its on-site diagnostic tests gathered momentum. Clinical products revenue for the year ended December 31, 2009 increased 85% to $6.8 million.

Net losses narrowed from US$13.6 million or 10 cents per share in 2008, to US$9.5 million or 4 cents per share in 2009. At the end of 2009, Response Biomedical had US$7 million in working capital.

"2009 was the strongest revenue year in the history of the Company and we are poised to realize similar growth in 2010," said S. Wayne Kay, Chief Executive officer. "Our success in 2009 was driven in great part by our partners, Roche Diagnostics and 3M Health Care, as they continue to recognize achievements in the U.S. O&D Biotech, our distribution partner in China, was also a strong contributor to our overall growth in clinical products revenue in 2009 and Shionogi continued to show steady expansion in Japan."

Response Biomedical develops, manufactures and markets rapid on-site diagnostic tests for use with its RAMP(R) Platform for clinical and environmental applications.

Roche and 3M Health Care are both distributors for Response Biomedical.

Firestone Diamonds to operate FTP project for De Beers JV in Namibia

Fri, 12 Mar 2010 13:29:00 +0000

Firestone Diamonds (AIM: FDI) has been selected by De Beers’ joint venture with the Namibian government, Namdeb Diamond Corporation, as the preferred supplier and operator for the Dredge and Floating Treatment Plant (FTP) project at Namdeb's diamond mining operations in Namibia.

Contract negotiations are set to be finalised following the review and approval by the Namdeb board of the joint feasibility study . The study, which is being completed by Firestone and Namdeb, is expected to be presented to the board later in 2010.

The plant is expected to have capacity of 11.5 Mt (million tonnes) per annum and a minimum life of 15 years. It will be constructed by Firestone for Namdeb and operated on a toll treatment basis. Production is expected to commence in 2012.

“Being selected by Namdeb, one of the world's leading diamond producers, for the Dredge and Floating Treatment Plant project is a reflection of the significant operating capability that Firestone has developed. This project...represents a further opportunity for the company to supplement cash flow from our own mining operations at BK11 in Botswana with cash flow from long term, low risk toll treatment projects,” said chief executive of Philip Kenny.

The FTP plant is expected to cut operating costs by removing overburden using a dredge and treat diamondiferous gravel.

Shares in the company rose 2.6% on the news.

Firestone has recently been selected by Debswana for a toll treatment tailings processing project at the Jwaneng mine in Botswana.

Kalahari Minerals highly encouraged by Extract Resources progress at Rossing South

Fri, 12 Mar 2010 13:10:00 +0000

Kalahari Minerals’ (AIM: KAH) said it is highly encouraged by the news that its 40.41% owned associate Extract Resources (ASX:EXT, TSX:EXT) is on track with its Definitive Feasibility Study (DFS) for the world-class Rossing South deposit at the Husab uranium project in Namibia.

Extract updated investors stating that the DFS, which is expected to confirm the project's potential as one of the world's largest uranium mines, is progressing well. Extract aims to announce an updated Rossing South resource in Q3 2010 and it said that capital costs for the processing plant and annual operating costs are currently expected to remain in line with the preliminary cost estimates.

"Extract is making strong progress towards publishing the Rossing South Definitive Feasibility Study, and in turn, attributing additional value to its world-class Husab Uranium project”, Kalahari chairman Mark Hohnen commented. “In particular, it should be noted that the operating costs are unlikely to be significantly different to those stated in the scoping study announced in August 2009, indicating that the Rossing South project is still set to be a profitable, low risk, bulk tonnage, open pit mine with a mine life in excess of 20 years”.

According to Extract the size of the Rossing South mineralized system continues to grow with strong drilling results continuing from Zones 1 and 2. Furthermore, the company said there are encouraging indications of significant mineralization on the western limb of the Rossing South antiform and high grade mineralisation in both zones. Extract aims to announce an updated Rossing South resource in Q3, 2010.

The revised resource estimate will incorporate infill and extensional drilling that has been completed since July 2009. Extract expects the updated estimate to increase the overall size and confidence levels of the Rossing South resource.

“The resource continues to grow in size, which increases the time required by Extract to better define the ore body, and in particular to identify the high grade resource. This approach by Extract will ensure that an optimum development plan can be determined in order to maximise the true potential of this outstanding uranium project", Hohnen added.

Daniel Stewart bullish on Planet Payment after TSYS certification news, retains 'buy'

Fri, 12 Mar 2010 11:50:00 +0000

Daniel Stewart & Company (DS&C) issued a note on Planet Payment (LSE: PPT and PPTR; OTC: PLPM) today, reiterating its 'buy' rating after the data and payment processor received certification from its core existing client TSYS (NYSE: TSS).

Planet Payment currently provides TSYS with its Multi-Currency Pricing (MCP) service and is now certified to offer its iPay payment gateway into the TSYS acquirer and ISO customer base, allowing merchants to utilize iPay.

The iPay Gateway supports the processing of debit, credit and ACH payments worldwide. The combined MCP/iPay product will combine merchants with an end to end full service and PCI-compliant e-commerce platform to enhance the group’s offerings and potential revenue streams, DS&C said in the report.

DS&C said that the development was of major strategic importance for the company and, even though the news has not resulted in any immediate changes to the forecasts, it underpinned the broker’s bullish stance on the stock. The report also noted that the shares traded at a 26% discount to DS&C’s 151 pence price target.

Planet Payment’s value has increased to around 120p since DS&C started covering the stock in May 2009 when it stood at 40p, and it retains its 'buy' recommendation.

The broker’s current projections for full year 2010 revenue at US$68.7 compared to reported US$47.1 million for 2009. In February, DS&C said that the agreement with UAE-based Network International to provide it with its proprietary Dynamic Currency Conversion (DCC) services branded as Pay in Your Currency, which it called a “standout deal,” supported its forecasts, allowing the company to launch DCC into the prolific region.

Dragon Oil completes initial testing of Dzheitune development wells

Fri, 12 Mar 2010 11:03:00 +0000

Dragon Oil (LSE: DGO) has completed the initial testing of two Dzheitune development wells, A/142 and 13/143, at its Cheleken operation in the Caspian Sea. The wells were drilled to 3,961m and 3,450m, and tested at combined rates of 2,103 barrels of oil per day (bopd) and 2,168bopd respectively.

"I am pleased to report the successful completion and initial testing of both the Dzheitune (Lam) A/142 and 13/143 development wells, marking our first two successfully-completed development wells this year”, Dragon Oil chief executive Dr Abdul Jaleel Al Khalifa commented. “Our field production is subject to normal decline and adding wells will ensure that we meet our 2010 committed production growth target".

Dzheitune (Lam) is one of Dragon Oil’s two oilfields in the Cheleken Contract Area in the Caspian Sea, offshore Turkmenistan.

The Dzheitune A/142 well was drilled by the Iran Khazar rig, to a depth of 3,961m. The well tested at a combined rate of 2,103bopd with the short string contributing 1,180bopd and the long string contributing 923bopd. Rig 40 drilled the Dzheitune (Lam) 13/143 well to a depth of 3,450m. The well tested at a combined rate of 2,168bopd with the short string and the long string contributing 1,144 bopd and 1,024bopd respectively. Dragon Oil said that further testing and optimisation of both wells are scheduled to take place over the coming weeks.

The Iran Khazar rig has repositioned to work-over a well on the same platform in order to enhance its production, while Rig 40 will shortly commence drilling the Dzheitune (Lam) 13/144 well, from slot 1 on the Dzheitune (Lam) 13 platform.

The initial testing of these two development wells, the first of 2010, adds to the company’s progress in offshore Turkmenistan. In February’s results for the full-year ended 31 December 2009, Dragon oil reported an average daily production rate increase of 9% in 2009 and landmark production of 50,000 bopd (barrels of oil per day) achieved at the turn of 2009/2010. Dragon Oil also offered a bullish outlook for the next three years amid a recovery in commodity prices and with a cash balance of more than US$1.1 billion.

In February’s results statement, Dragon Oil said it plans to complete up to 11 wells in 2010 along with 40 development wells, including five appraisal wells, targeting an annual production growth of 15% in 2010 and 10% to 15% on average in 2010-12.

Baobab Resources resumes drilling at Tete iron-vanadium-titanium project

Fri, 12 Mar 2010 11:02:00 +0000

Baobab Resources (AIM: BAO) has resumed drilling at the Tete iron/vanadium/titanium project in Mozambique, focusing on the Chimbala prospect which comprises the central zone of the 8km long Massamba Group trend. Drilling aims at improving confidence in its exploration target of 400 to 700 Mt (million tonnes) estimated in 2009.

The scout drilling campaign at Chimbala commenced on 10 March 2010 and will include both diamond and reverse circulation (RC) drilling for a combined total of approximately 12,000 metres.

Rock chip sampling collected during recent mapping of the Chimbala prospect area has returned what the company said were encouraging concentrate grades, including 67.4% Fe (iron), 2.11% TiO2 (titanium), 0.67% V2O5 (vanadium) with a 25.6% mass recovery grade, 64.4% Fe, 5.04% TiO2, 0.69% V2O5 with a 47.2% mass recovery grade, and 65.6% Fe, 3.55% TiO2, 0.71% V2O5 with 42.2% mass recovery grade.

Last month, the company reported results from the last three diamond drill holes of the 2009 campaign, which returned the best results to date with an intersection of 46 metres grading 64.5% Fe to beat the previous two holes, which produced Fe grades of up to 62.9%.

The Chimbala prospect comprises the central zone of the Massamba Group trend. The current drill traverse transects the broadest section of the prospect's aeromagnetic signature, located in proximity of Chitongue Grande prospect where drilling in 2009 defined a maiden 47.7 Mt Inferred Resource over a strike length of just 500 metres.

“The Chimbala prospect covers almost half of the Massamba Group trend and its assessment is key to unlocking the potential of the Tete project. Investors may expect a consistent flow of news over the coming months as results from the drilling become available,” said Managing Director of Baobab Resources Ben James.

The Tete project, covering an area of 632 square kilometres, is located immediately north of the provincial capital of Tete and shares licence boundaries with Vale and Riversdale's mega coal projects. The project has access to low tariff hydro-electric power from existing and developing schemes on the Zambezi River, where the ports of Beira and Nacala are being refurbished, as are the rail corridors through to Tete.

The project contains two areas of magnetite-ilmenite mineralisation; the Singore area to the south and the Massamba Group trend in the north. The Massamba Group trend is composed of a series of five prospects including Chitongue Grande and Pequeno, Caangua, Chimbala and South Zone that have experienced little or no historical exploration.

Independent scoping metallurgical studies at the project and financial modelling have indicated positive project economics in the production of high quality magnetite (iron and vanadium) and ilmenite (titanium) concentrate commodities.

The International Finance Corporation has earned a 15% interest in the Tete project after entering a strategic partnership with Baobab in January 2009.

Shares in Baobab climbed 3.5% on the news.

Lonrho promoted into key FTSE-AIM indices

Fri, 12 Mar 2010 09:23:00 +0000

African focused investment company Lonrho (AIM: LONR) has been promoted into the FTSE AIM UK 50 Index and the FTSE AIM 100 Index, effective from the 22 March 2010. The company’s inclusion into the key indices reflects Lonrho’s growth and its position in London’s junior market, then group said in a statement.

"We are delighted that the growth of Lonrho has enabled the company to be included in these important indices operated by the London Stock Exchange,” chairman David Lenigas commented. “Lonrho continues to successfully develop its five core business divisions across the emerging African market and now operates in seventeen countries."
Last week, Lonrho’s full-year results for the year ended 30 September 2009 demonstrated the progress being made by the company’s operations in Africa.

Lonrho said its African investments are delivering real growth and strong tangible businesses in Africa. It increased turnover by 266% on a like-for-like basis. Reported revenue rose 111% to £90.9m and net asset value also rose, increasing by 16% to £81.1m. Consequently Lonrho significantly narrowed its losses to £4.5m compared with £38.7m in the previous year.

Southern Uranium gains new tenements near Ridgeback

Fri, 12 Mar 2010 09:20:00 +0000

Southern Uranium (ASX: SNU) has signed a Joint Venture Agreement to acquire a majority interest in Exploration Licence 3922, extending the company’s exploration reach in South Australia from its Ridgeback project to a prospective area adjoining the Moonta mining field.

The Webling Bay licence area shares a similar structural and gravity setting to Southern Uranium’s high priority Ridgeback project on the northern Yorke Peninsula and has strong iron oxide copper gold uranium (“IOCGU”) discovery potential.

Southern Uranium will pay Destiny Stone Australia Pty Ltd A$15,000 for an 85 per cent legal and beneficial interest in all minerals except dimension stone and industrial minerals which shall remain 100 per cent held by Destiny Stone.

Southern Uranium Managing Director John Anderson welcomed the Company’s new joint venture agreement with Destiny Stone.

“This joint venture enables Southern Uranium to extend its exploration for IOCGU deposits from our high-priority Ridgeback project to other prospective areas adjoining the historic Moonta mining field,” Anderson said.

The purchase remains subject to application to the South Australian Government for approval of the transfer of the 85 per cent interest to Southern Uranium and notification of the release of all encumbrances affecting the tenement.

Southern Uranium will manage the exploration on behalf of the Joint Venture partners. Destiny Stone will be free-carried for its 15 per cent interest in all minerals except dimension stone and industrial minerals until a decision to mine is made on completion of a Bankable Feasibility Study.

The Webling Bay area is particularly attractive to Southern Uranium as it sits over the covered northeasterly extensions of the Moonta field at the intersection with a northwest structure interpreted as a key control on the Ridgeback target.

Anderson said the geological setting of the Webling Bay area was analogous to the position of the Ridgeback targets on the northeasterly Pine Point Fault Zone of copper and uranium deposits.

“At Webling Bay, valuable past drilling by the Mines Department and by other explorers intersected very prospective alteration and breccias indicative of nearby IOCGU potential,” Anderson said.

“The drilling also showed the cover there is relatively thin at 20 to 150 metres in thickness. As encountered at Ridgeback, the past gravity surveying is patchy but encouraging, with indicative gravity anomalies that may represent haematite-hosted IOCGU targets.”

Southern Uranium proposes to cover the EL area with detailed gravity surveying for such targets.

Soil geochemical sampling will also be undertaken in this thinly covered part of the Moonta district.

Anderson said Southern Uranium was successfully applying the soil geochemical technique over similar geology and cover depths on Eyre Peninsula.

“So in contrast with Ridgeback, where the cover is thicker and we have relied on magnetic and gravity geophysics to define those exciting drill targets, the soil geochemistry will give us the added opportunity of directly detecting the metals that the Joint Venture is looking for at Webling Bay.”

Goldcorp operating cash flow exceeds $1.2 billion, thanks to record gold production

Fri, 12 Mar 2010 09:19:00 +0000

By Dorothy Kosich, Mineweb.com

Goldcorp CEO Chuck Jeannes said record gold production, low cash costs, and acquisitions aimed at increasing gold reserves "made a very successful year for Goldcorp."

The company's revenues increased 13% last year to $2.7 billion on gold sales of 2.3 million ounces.

In financial results released Thursday, Goldcorp said a recently completed pre-feasibility study for the Élénore gold project in Quebec "confirmed management's expectation for a long-lived underground gold mine with strong, sustained production at low cash costs."

"Over a 16-year mine life expected to commence in 2015, annual gold production is expected to average approximately 330,000 ounces at cash costs below $400 per ounce," the company said, adding the initial capital expenditure for Élénore is expected to be $800 million.

Meanwhile, plans are progressing toward development of what Goldcorp called a "world class resource" at the Escobar silver discovery in western Guatemala. Measured and indicated resources as of December 31, 2009, totaled 130.1 million ounces of silver.

The company's flagship Red Lake mine remains on track to increase its annual gold production from 622,000 ounces last year to 675,000 ounces this year. Meanwhile total expenditures for the Cochenour project at Red Lake is expected to be $71 million this year.

The Los Filos mine in Mexico is expected to increase its production from 239,000 gold ounces last year to 300,000 ounces this year. The Marlin mine in Guatemala is expected to exceed 2009 gold production of 274,900 ounces to 290,000 ounces of gold this year.

Meanwhile commercial production at the world class Peñasquito mine in Mexico is expected to commence in the third quarter of this year.

Goldcorp hopes to invest $485 million in the Pueblo Viejo joint venture project with Barrick in the Dominican Republic this year.

Goldcorp reported 2.42 million ounces of gold production last year, up from 2.32 million ounces of gold mined in 2008.

FINANCIALS

Goldcorp reported net earnings of $240.2 million or 33-cents per share in 2009, down from $1.47 billion or $2.07 per share reported in 2008.

Net earnings for the fourth quarter of 2009 were reported to be $66.7 million or 9-cents per share, compared to net earnings of $958.1 million or $1.31/sh for the fourth-quarter 2008.

Exploration costs decreased $34 million last year or 51% due to the focus on development projects.

Western Desert Resources identifies copper gold targets at Limbla

Fri, 12 Mar 2010 09:17:00 +0000

Western Desert Resources (ASX: WDR) has identified three Electromagnetic targets at the Limbla Project after an airborne survey.

The aim of the survey was to define any bedrock conductors associated with sulphide mineralisation.

Interestingly, Mithril Resources (ASX: MTH) recently reported significant copper and nickel Cu-Ni mineralisation in its adjoining tenements, immediately to the east of the Limbla Project.

Recent work by the Northern Territory Geological Survey had shown the tenement area is prospective for shear zone hosted gold-copper mineralisation. Grab samples from one prospect returned assays of 35.4% Cu and 0.12% Au.

A field trip will be undertaken in March to take grab samples from each of the targets to evaluate where there is any indication of bedrock conductors.

Norm Gardner, managing director of WDR said drilling could be undertaken if initial results were encouraging.

John Paulson and George Soros backed hedge funds invest in NovaGold

Fri, 12 Mar 2010 09:14:00 +0000

By Dorothy Kosich, Mineweb.com

Two major hedge funds belonging to uber investor George Soros and renowned fund manager John Paulson have placed their bets on troubled gold junior NovaGold Resources.

NovaGold has announced it closed its offering of 18,181,818 shares of the company at a price of US$5.50 per share gross proceeds of US$100 million with several investment funds management by Paulson & Co.

John Paulson is the subject of the book, The Greatest Trade Ever, the story of Paulson's anticipation of the fall of the subprime mortgage market, earning billions. Paulson founded a gold fund which began trading earlier this year.

Meanwhile, NovaGold has also closed another deal to issue 16,636,364 shares at $5 per share or a gross of $75 million to Quantum Partners, an investment fund belonging to Soros Fund Management.

NovaGold intends to use the net proceeds from these financings to fund general exploration and development on advance properties including Alaska's Donlin Creek, British Columbia's Galore Creek and Rock Creek.

A joint venture with Barrick Gold, Donlin Creek is believed to have a reserve base of 29.3 million ounces of gold. Life of mine gold production is expected to be 20 years with an average of 1.3 million ounces annually.

However, analysts suggest NovaGold and its joint venture partner Teck Resources are more likely to develop the Galore Creek project, which is believed to have 8.9 billion pounds of copper and 7.3 million ounces of gold on a measured and indicated basis. Construction costs are estimated at $4 billion.

However, in a blog published Thursday in the Wall Street Journal, James Altucher, managing partner of Formula Capital, described NovaGold as a "junior Canadian miner with a troubled past... NovaGold has negligible revenue and cumulative negative cash flow from operations of $291 million in the past five years."

"Despite burning a substantial amount of cash, the company is no closer to having a single operating mine than it was in 2004," he said. "NovaGold was sued by investors for securities-law violations...and forced to settle the lawsuits for $28 million."

"So why are Soros and Paulson...plunging into this potential quicksand?" Altucher asked. "My only guess is they have so much money to put to work (Paulson raised a $5 billion fund just for gold, and Soros is managing over $15 billion) that it is hard to put the money to work and they are putting it everywhere they can."

"...I would recommend staying as far as possible from NovaGold," he concluded.

However, the publication Market Folly suggested, "The terms of the deal were definitely favorable for the hedge funds, as they're always sitting on a nice paper gain given shares are trading much higher than the offering price."

NovaGold CEO Rick Van Nieuwenhuyse said, "These groups have been following NovaGold for some time, recognizing both the near term and long-term strategic value of our world-class gold and copper -gold assets."

"With the $175 million raised through these financings, we have fulfilled our current equity objectives and are exceptionally well positioned to advance and maximize the value of our projects for the benefit of all NovaGold shareholders," he added.

Starpharma Holdings reports positve results from VivaGel® clinical trial

Fri, 12 Mar 2010 09:13:00 +0000

Australian pharmaceutical development company Starpharma Holdings (ASX:SPL, OTCQX:SPHRY) has received positive results from a clinical trial of the company's 3% SPL7013 Gel (VivaGel®) product.

It was found to be comparable in terms of safety and tolerability with its matched placebo when administered vaginally, twice daily for 14 days in sexually active women involved in the trial.

Starpharma plans to commence further clinical studies of VivaGel®, including a phase 2 efficacy study in bacterial vaginosis, during 2010.

Citigold Corporation extends SPP

Fri, 12 Mar 2010 09:09:00 +0000

Citigold Corporation (ASX:CTO) has announced an extension to the Share Purchase Plan (SPP) offer to shareholders until Wednesday 24 March 2010.

On 4 March 2010 Citigold announced it had signed a non binding memorandum of understanding with Henan Jinqu Gold Company Limited (Jinqu), China, to form a joint venture company to develop the City mines of Citigold’s Charters Towers gold project.

The funds raised from the SPP will be used towards expanding Citigold’s gold mining operations and working capital.

The terms of the SPP are the same as previously mailed to shareholders except that the closing date has been extended.

Applications continue to come in and therefore this offer extension will give shareholders time to participate and join shareholders who have already taken up the offer.

The directors of Citigold have indicated they have applied for their full entitlements as shareholders, respectively.