Gulf Keystone Patroleum (GKP) announced that it has completed a fully subscribed placing of 152,300,000 new common shares at a placing price of 75p per share, raising gross proceeds of approximately US$165m. These shares were placed by Mirabaud Securities, Renaissance Capital, Fox-Davies Capital Limited and Madison Williams and the Company with existing and new institutional shareholders. The proceeds raised will be used primarily to progress the three Shaikan appraisal wells, the Shaikan-1 extended well test and production facilities, Sheikh Adi exploration well and the acquisition of further 3D seismic data over Shaikan and Sheikh Adi licences. The funds raised will also be used for any future increase in GKP's interests in Kurdistan assets.
Comment: The Company is now fully financed to proceed with the appraisal of the Shaikan discovery and the exploration of two additional assets, Akri Bijeel and Sheikh Adi. A well is currently being drilled in Akri Bijeel by the operator Mol and has already been announced as a discovery; the well is very close to TD. A well will soon be spudded in Sheikh Adi on a continuation of the Shaikan structure and as such with a very high probability of success. Financing and political risks were at the forefront of investors mind with respect to Gulf Keystone. The financing risk is now mostly behind us and we have seen in the last week or two some very important steps being taken towards a solution of the political standoff. We remain convinced that the political is around the corner and that thereafter assets prices in Kurdistan will rise sharply. We remain buyers of Gulf Keystone with an unchanged pric e target of 200p.
Providence Resources (PVR) announced that it has elected not to complete the acquisition of 40% of the Kinsale Head Assets because the upfront investment required is now at a significant variance to the original proposal and the economics of the deal have therefore changed materially. Providence has advised PETRONAS accordingly. The initial deposit of US$3.8m will now be refunded in full.
Chromex Mining (CHX) announced it has secured US$5M funding, on a pre-payment for product basis, for a Dense Media Separation circuit and ancillary plant improvements at the Stellite opencast chrome mine located on the western limb of the Bushveld Complex in South Africa. The DMS circuit, expected to be completed in Q4 2010, will double chrome production capacity to 40,000 tonnes run-of-mine tonnes per month, improve recovery margins and economic efficiencies at the plant.
Namakwa Diamonds (NAD) announced that it has secured debt financing ofUS$15M, at a competitive fixed interest rate of 8.5 per cent per annum, secured against certain assets of the Company's Southern African Group, from a private investor committed to the growth of Namakwa.
Mercator Gold (MCR) announced that the Mineral Resources of the Copper Flat copper-molybdenum-gold-silver deposit located in New Mexico, USA have been estimated by SRK Consulting (US), Inc at 107M short tons grading an average of 0.303% copper classified as Indicated Resources with an additional 46 million short tons grading an average of 0.240% copper classified as Inferred Resources. The resource is stated above a 0.12% copper cut-off and contained within a potentially economic open pit. The Mineral Resources are reported in accordance with Canadian National Instrument 43-101.