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Proactive news highlights including Paragon Diamonds, Forte Energy, SolGold, Sierra Rutile...

Published: 11:13 02 Oct 2015 EDT

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Magnolia Petroleum (LON:MAGP) says it's balancing its energy product and diversifying revenues with the participation in ten new gas wells in Oklahoma.

It was the biggest news on a subdued end to a hectic week in the world of small caps.

They will be drilled alongside operator Continental and target the proven Woodford formation at a total cost to Magnolia of an estimated US$590,000, with its net interest in each well 0.525%.

Elsewhere, Andes Energia (LON:AEN), the Latin American exploration and production group, has terminated its joint venture agreement in Brazil.

After protracted legal wrangling, Forte Energy (LON:FTE) has withdrawn from participation in the Kuriskova and Novoveska Huta uranium projects in Slovakia.

It can’t have helped that uranium prices remain in the doldrums, but in the end it was the unlikeliness of making any progress on the ground that really decided Forte.

In mining news, Paragon Diamonds (LON:PRG) has agreed a US$15mln package to fund the development of its Lemphane and Mothae mines in Lesotho.

The company has signed a term sheet with Acrux Resources, a private South Africa based finance group, for a combined convertible debt and revenue sharing facility.

Egypt-focused gold explorer Alexander Nubia (CVE:AAN) has raised C$150,000 from a non-brokered private placing, it said. 

The funds will be used for working capital and corporate costs.

SolGold (LON:SOLG) shares headed north as the week ended as it struck funding deals with two major shareholders to bring in over £1mln.

The convertible loan note deals are with DGR Global Limited and Tenstar Trading for funding of A$1.25mln (around £580,000) and £500,000 respectively.

In financing news, Horizonte Minerals (LON:HZM) has raised £1.125mln through a placing to fund the acquisition of Glencore’s nearby nickel asset.

A further £425,000 will be raised after certain conditions are met for the Toronto Stock Exchange. These have already received conditional approval, the company said.

Meanwhile, Non-exec director at Sierra Rutile (LON:SRX) Richard Lister bought shares in the  mineral sands company yesterday worth £35,000.

It was in two transactions - the first for £4,375 and the second for £30,625 with shares in both being bought for 17.5p.

Finally, cyber defence specialist Corero Network Security (LON:CNS) has inked a deal for its SmartWall Threat Defence System with a FTSE100 company.

The order, worth around US$700,000, will provide the unnamed firm with worldwide Distributed Denial of Service (DDoS) protection.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

3 hours, 13 minutes ago