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(MMO)Mercom OIL, Askia Gold has teamed up with Desert Hill

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(MMO)Mercom OIL, Askia Gold has teamed up with Desert Hill

Post Sat Jul 18, 2015 9:14 pm

Askia has teamed up with Desert Hill Fund to offer its IP for mining blueprints in key regions they have interests. As part of our funding agreement with Desert Hill Fund we are now creating a Mineral Extraction Blueprint that will allow regions without this type of infrastructure to employ and commence operations.
Askia has been set on a course departing it from mining operations as its IP became more valuable and our equipment designs took off. We are in discussions with DHF for up to 1000 units over the next 5 years, which makes our equipment business 50 times the size of our mining and extraction.
DESERT HILL FUND
PRIVATE EQUITY IN KURDISTAN
http://www.deserthillfund.com/

Mercom Oil Sands Plc (MMO) Gold Investments Askia Gold Limited
The Company has invested GBP400,000 for a 30 per cent. interest in Lion Natural Resources plc (“Lion”). Lion holds investments in two companies with projects in Sierra Leone and Kenya respectively.
Askia Gold Limited
Lion’s major asset is its interest in Askia Gold Limited (www.askiagold.com), which has developed strong links between the Sierra Leone Government, principal Chiefs and local community leaders in highly productive gold production areas. The company is developing an alluvial gold project and has entered into various partnership agreements with a major mining company, investors and equipment manufacturers. It is projecting output of 25kg of gold per month for its phase one expansion which is scheduled to be completed during Q3 2014. It is expected that production costs will be 28 per cent. of output and scalable without increase in cost up to 60kg per month.
Askia Gold is finalizing its gold mining equipment to supply mines with efficient eco friendly washing plants.
Mining companies today have to be concerned about contamination. Most government organizations need to recognize the hazards and adopt new eco friendly gold concentrators and green-based gold mining technologies as a standard. The mining industry is now eliminating hazardous products or waste material that are commonly used in many mines especially in Africa.

Our gold mining products only use waste and the flow of a natural river, not even vibration. All aspects of an Askia unit is eco-Friendly, thus avoiding the need for a chemical permit, issues with government agencies, hazardous waste disposal costs, and most importantly, the extreme environmental issues connected with chemical extraction of gold.
Advanced Gold Corp.
In Kenya, Lion holds a small minority interest in Advance Gold Corp. (“AGC”) which is quoted on the TSX Venture Exchange under the symbol AAX (http://www.advancegold.ca/s/home.asp).
Kakamega Project
Project Overview

Advance Gold Corp. (the “Company”) has entered into an Option and Joint Venture Agreement with Aviva Corporation Ltd. (“Aviva”). Under the terms of the agreement Aviva has the right to earn at least 75% equity in three prospective Special Licences in Western Kenya namely: Bukura SL265, Sigalagala SL266 and Rosterman SL267.
The three licences are excisions within Aviva’s existing West Kenyan Special Prospecting Licence SPL213 Siaya. They cover a total of 64km² and include Kenya’s largest historical gold mine, Rosterman, which is reported to have produced 250,000oz Au @ over 13g/t between 1932 and 1952.
The key terms of the agreement are as follows:
Option Period
Aviva will spend a minimum of $100,000 in ground on the 3 licences within 12 months.
At the end of the initial 12 month period Aviva will make a US$100,000 cash payment to the Company to secure an option to earn up to 75% of the Special Licences.
Earn-in
First Earn-in Period – Aviva can move to 51% ownership by spending a further US$0.5M on the three licences over a period of 12 months.
Second Earn-in Period – Aviva can move to 75% by solely funding an additional US$1M over a period of 24 months.
Election Period
Once Aviva has reached 75%, the Company may elect to contribute or dilute to 10% after which Aviva may convert the Company’s interest in the property to a 3% net smelter royalty.
Under the terms of an existing agreement between Aviva and Lonmin these properties fall within the designated 2km area of interest and will be offered to the West Kenya joint venture after the commencement of the earn-in period. – The Option and Joint Venture Agreement is subject to final approval by the Commissioner of Mines and Geology of Kenya.
Background to the Three Special Licences
In addition to the potential in and around the old mines, prospects and artisanal workings themselves, all three Special Licences lie along regional structures that are interpreted to represent reactivated, inverted syn-sedimentary extensional fault on or close to the Kavirondian-Nyanzian unconformity. These structures, highlighted in Figure 1, are target areas considered to have potential to host gold deposits.

Figure 1. Tenure showing mineral occurrences, targets and simplified geology.
Recent diamond drilling by Aviva along the structural trend, at Kimingini and Bushiangala, has returned encouraging results which included visible gold in two of the holes drilled to date. Additional walk-up drill targets along the trend have now been identified at Isulu, Shigokho, Bukura and Sigalagala. Figure 2 shows anomalous stream sediment and soil geochemical data together with major structures and prospects on a reduced to pole magnetic image. The majority of gold-in soil anomalies have never been drilled.

Figure 2. Stream sediment and soil geochemistry with major structures and prospects on reduced to pole magnetic image.
The three Special Licences comprise a total of ~64km² and were granted to the Company’s wholly owned subsidiary Gold Rim Exploration Kenya Limited in October 2008 and renewed for a further 2 years in 2010.
On November 1, 2012 Advance announced that African Barrick Gold Plc. (“ABG”) was assigned an Option and Joint Venture Agreement that Advance had previously entered into with Aviva Corporation Ltd. regarding Special License 265 (Bukura), Special License 266 (Sigalagala) and Special License 267 (Rosterman) located in the Kakamega region of Kenya.
ABG has the right to acquire a 51% ownership interest in the three Advance Special Licenses in consideration for ABG incurring exploration expenditure of US$0.5 million in a defined period of 24 months in relation to those mineral rights. ABG can further increase its interest to 75 % by spending an additional US$ 1million within a further 24 month period.
On February 28, 2013 Advance announced that ABG would proceed with an exploration program on Advance’s three projects in the Kakamega Dome area in Kenya, East Africa. The work done on the Advance projects would be in conjunction with ABG’s regional exploration work on their West Kenya Joint Venture. The three Advance projects include Special License 265 (Bukura), Special License 266 (Sigalagala) and Special License 267 (Rosterman) that cover in total 64km2.
Rosterman SL267
The most northerly of the three licences hosts the historic Rosterman mine, which is reported to have produced in excess of 250,000oz Au at in excess of 13g/t. Rosterman was subject to significant exploration activity during the mining period up until 1952 but since then very little exploration appears to have been done. The potential for residual ore, more lodes and the value of selvedges to mined lodes justifies immediate further exploration activity.
Recent structural mapping has highlighted a major long lived structure on the northern flank of the Kakamega Dome combined with a number of occurrences of gold in stream anomalies that appear never to have been followed up.

Plate 1. Colonial and artisanal gold workings at Rosterman and gold in panned concentrate.
On July 25, 2013 Advance announced that ABG had completed a deep diamond drill hole to a depth of 506m. All Rosterman quartz reefs targeted were intersected; however, limited disseminated sulphides were intersected in zones between quartz reefs. The Rosterman “reefs” were marked by remnant quartz veins, voids and/or broken ground (possibly backfill) in the core. The deepest reef intersected was the Number 4 Footwall Reef, and in the area of the core hole it was completely preserved in the core. Several other narrow quartz reefs were intersected by the core hole between the known mined reefs.
On January 28, 2014 Advance announced that ABG had completed the drilling of 325 Aircore holes for 12,494 metres with results received for 192 holes. Over 20% of the holes assayed to date have returned significant intercepts of greater than 0.1 grams per tonne gold (g/t Au).
Bukura SL265 and Sigalagala SL266
The southern licences, Bukura and Sigalagala, in addition to hosting numerous significant historical colonial mines and areas of active artisanal mining, lie along the western portion of the Liranda lineament known as the Bushiangala-Shitole segment. Kimingini, Busiangala, Isulu and Shitgoko all lie in close proximity to the mapped and interpreted structure. Sigalagala appears to lie on a different structure to the north of the main Liranda lineament.
Once again very little work has been completed since the 1950′s. The Bukura Gold and Sigalagala colonial workings represent walk up drill targets. Stream sediment anomalies on the Bukura licence require followup as do soil anomalies on the Sigalagala licence.
timing40
 
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Re: (MMO)Mercom OIL, Askia Gold has teamed up with Desert Hi

Post Sat Jul 18, 2015 9:15 pm

Quindell share ramping scam

Running the Financial Conduct Authority was always going to be a poisoned chalice. Even without the significant banks, policed by the Bank of England’s Prudential Regulatory Authority, it has a very wide remit, and prioritising was going to be key.

What Britain has always needed is a City regulator willing to go after miscreants with all guns blazing. In this regard ousted FCA chief executive Martin Wheatley failed miserably. Time after time we have seen the FCA acting in the slipstream of the American enforcers rather than getting out in front.

He will always be blamed for the incompetent handling of a proposed investigation into the insurance industry, which saw £3billion wiped off the shares of the industry in March 2014 in matter of minutes.



The person responsible for preventing disorderly markets created them. It is amazing that he survived this at all.

More recently, Wheatley and the FCA have been castigated on all sides for failing to get to grips with the challenges of the Government’s pension freedoms.

Maybe the Chancellor was biding his time. George Osborne’s statement damns him with faint praise, noting a ‘different leadership is needed to take the organisation to the next stage of development’.

What is absolutely clear is that there is a determination at the Bank of England to restore confidence in the UK’s wholesale financial markets, after the Libor and foreign exchange rigging, and to ensure that London’s leadership as world financial centre is not eroded.



The Fair & Effective Markets Review was a joint Bank and FCA project. It is Mark Carney, at the Bank, who has chosen to make the issue his own.

There is no point in going through a rambling list of FCA failures at this point. Suffice it to say, it has tended to pick the low hanging fruit but failed to assure investors that it is willing to declare war on the larger players. The recent decision not to go after the ‘London Whale’ at JP Morgan Chase, the person at the centre of one of the biggest scandals in the City of recent times, is a case in point.

At a different level, the half-hearted response to a series of misdeeds on the AIM market, such as the Quindell share ramping scam, has not added lustre.

It is just as well that the Chancellor is launching a worldwide search for a successor. Osborne has had notable success with overseas recruitment, including Canadian Carney at the Bank of England, New Zealander Ross McEwan at Royal Bank of Scotland and Antonio Horta-Osorio at Lloyds.

As always on these occasions it is the chairman who ultimately wields the knife and makes the appropriate noises. John Griffith-Jones praises Wheatley for ‘putting conduct so firmly at the top of the financial services agenda’. If it is conduct that is important, Griffith-Jones ought to take a good look at himself.

His former firm, KPMG, where he was senior partner, failed in its audit duties at the Co-op Bank, HBOS, BNY Mellon and Tesco. It has been a litany of errors that should have made his position as head of the FCA untenable.

There should have been a double ejection.

Lincoln address

Mark Carney’s Lincoln Cathedral speech sought to give some clarity on the timing, sequencing and scale of future interest rate rises.

But it was not just about giving some guidance to markets, it was as much about educating consumers and small enterprises.

As we head through August into the autumn, interest votes in the Monetary Policy Committee are likely to be more divided as three or four members move into the hawkish camp.

Departing external member David Miles is the most recent convert.

After six years when the starting point for mortgage charges has been a 0.5 bank rate, the possibility of official rates rising to 2.25 per cent-2.5 per cent will come as a real shock. It will be a particular jolt for 1.46m first-time buyers (who have never experienced an increase) as well as the 2m or so people who have remortgaged.

Similarly, entrepreneurs and small businesses have thrived on relatively low-cost credit as the country has pulled out of recession.

The Bank of England has given homeowners and enterprise some lead time. But we should not underestimate the severity of the jolt.

The Mousetrap

T goodness that Barclays still has Sir Michael Rake as deputy chairman to protect it from governance breaches. Because they keep on coming.

The latest: a fine of $800,000 (£511,000) from the way the bank recorded share trades between 2009 and 2012: a mere bagatelle.

Still on the horizon: the outcome of the trading in ‘dark pools’ inquiry and the Serious Fraud Office investigation into ‘commission’ payments made at the time of 2008 capital raisings in the Middle East.

This show keeps on running.
timing40
 
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Re: (MMO)Mercom OIL, Askia Gold has teamed up with Desert Hi

Post Sat Jul 18, 2015 9:25 pm

Obtala Resources (LSE: OBT)looks undervalued

Obtala Resources (LSE: OBT) is one of the few direct plays on Africa's rapidly changing economy.

A vertically integrated agribusiness, timber and retail company, Obtala is an odd collection of businesses. Although as a group, this motley collection of businesses spread across several countries, is starting to yield results.

For the year ended 31st December 2014, Obtala's sales increased by 271% to $2.63m. The group's gross profit margin hit 49.4%, and group cash leaped by 54% to $5.1m.
The sale of the Paragon holding was part of Obtala's strategy to concentrate its efforts on the building market, merging agribusiness and timber operations.
Bright prospects

Obtala may be a minnow at present, but investors shouldn't overlook the company's bright outlook.

Obtala is in the process of constructing an Africa-wide conglomerate, and, of course, this will take time. Nevertheless, last year the group made solid progress on its development plan.

For example, in late 2014 the company concept to enter the retail market under the African Home Stores banner. The company acquired a 72.69% controlling interest in Lifes' Comfort Solutions Limited a private Lesotho registered company, which operates five departmental home solution retail outlets. Since the acquisition, the group has opened one more store and is evaluating three more potential sites.

Meanwhile, in Mozambique, Obtala is developing a timber business to provide materials for the country's construction industry. This asset in itself is expected to be highly profitable for the company.

An independent report has placed a net present value on the timber concessions of $161m using a 12% discount rate. Management recently announced that they were accelerating plans to increase timber production.

And Obtala's last core business is fruit and veg farming, as well as processing in Tanzania. Obtala is currently awaiting to achieve certain levels of international food and safety accreditation and certification before it can commence the export of its products from this region.

The process should be complete this year.

Base to grow

Obtala is looking to growth through three primary markets above. This diversification, combined with the group's strong balance sheet should yield positive results.
Indeed, Obtala's strong balance sheet gives it a crucial advantage over many of its small-cap peers.

At the end of 2014 the group had a net cash position of $5.1m, enough to support operations for around two years -- long enough for Obtala to start generating cash from operations.

Moreover, Obtala has an asset rich balance sheet with no debt. Shareholder equity amounted to £93m or approximately 35p per share at the end of 2014. So, at present levels Obtala is trading at a price-to-book value of 0.2.

City analysts have yet to put together any earnings estimates for Obtala.

So overall, the sky's the limit for Obtala
On this basis then, Obtala looks undervalued.
timing40
 
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Re: (MMO)Mercom OIL, Askia Gold has teamed up with Desert Hi

Post Sat Jul 18, 2015 9:39 pm

Dual listed Central Rand Gold (CRG) plunged.

after it said that it had not yet reached an agreement for the acquisition of its wholly-owned subsidiary, CRG Netherlands Antilles.

The mining company fell as much as 30.23 percent to R3, which valued it at R261.54 million.

CRG is a JSE and London Stock Exchange listed gold exploration and production company operating on Johannesburg’s southern outskirts.

The decline of the share was the latest indication that the market was uncomfortable at the disposal of the Netherlands Antilles subsidiary to China-based companies Huili Resources and Hiria Group.

“The board cautions that at this time there can be no certainty that the discussions with both Huili or Hiria will lead to a binding agreement being entered into by either party, nor that the potential sale of Central Rand Gold (Netherlands Antilles), or any other transaction will be completed,” the company said yesterday.

Target

CRG has previously extended the target of the completion date for the acquisition twice to allow the Huili Resources and Hiria Group to complete outstanding the due diligence processes. The latest deadline expired on Wednesday.

CRG said its talks with Huili and Hiria were now focused on commercial and structural issues. “Central Rand Gold is exploring a number of structural alternatives with Hiria and Hangzhou Everbright which range from the acquisition of Central Rand Gold (Netherlands Antilles) to a strategic investment into the company,” CRG said.

CRG said the discussions had been focused around various technical due diligence items largely focused on the future dewatering of the Central Basin 225 metres below the surface and surrounding surface and open pit resource opportunities.

“The discussions continue to progress towards completion and the company will advise shareholders once a resolution is achieved,” the company said.

CRG said it has worked closely with Hiria over the past four weeks to resolve both technical due diligence and commercial items. The company confirmed that Huili’s right of first purchase, within 21 days of a third party offer being received for Central Rand Gold (Netherlands Antilles) remained in place.

CRG was linked to controversial businessmen Kenny Kunene and former convict Gayton Mackenzie, who both had minority shareholding in the company. McKenzie was employed at CRG from April 2007 to December 2010. Kunene was employed there from August 2007 until February 2011.

The company had run into trouble with the government when the Department of Mineral Resources in 2011 cancelled CRG’s mining licence.
timing40
 
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Location: london

Re: (MMO)Mercom OIL, Askia Gold has teamed up with Desert Hi

Post Sun Jul 19, 2015 12:31 pm

Red Emperor Resources NL Fil-Aussie consortium to drill West Philippine Sea
MANILA – Amid a territorial dispute with China over the West Philippine Sea, an Australian-Filipino consortium is set to drill a new deepwater exploratory well there, in the hopes of unlocking a commercially viable oil reservoir.

The consortium, composed of Australia’s Otto Energy Investments Ltd., Red Emperor Resources NL, and Palawan 55 Exploration and Production Corp., will spud the Hawkeye exploratory well on August 1, after the super deepwater drillship Maersk Venturer arrives on July 31.

The consortium operates Service Contract (SC) 55, a deepwater block in the southwest Palawan Basin that covers an area of 988 hectares.

SC 55 is not situated in the contested territory in the West Philippine Sea.

It can be recalled that in March, Forum Energy Plc, the operator of another petroleum exploration concession in the West Philippine Sea, suspended its operations. This is because it falls within the disputed area that is now the subject of a United Nations arbitration process between the Philippines and China.

In a statement released Sunday, Liquefied Petroleum Gas Marketers’ Association (LPG-MA) Partylist Representative Arnel Ty said: “This new drilling underscores the strategic economic value of the West Philippine Sea, which is the source of most of the country’s productive offshore oil and gas fields.”

Ty also noted that the drilling is believed to hoard stacks of hydrocarbon that could enable the Philippines to become self-sufficient in its future energy needs once harnessed.

Otto Energy said the Hawkeye well is expected to take around 23 days to drill from the Maersk Venturer’s arrival until release.

Otto also said Hawkeye could possibly contain a “best estimate” of 112 million barrels of oil.

Palawan 55 is a wholly owned subsidiary of Trans-Asia Petroleum Corp., a Philippine Stock Exchange-listed entity controlled by businessman Ramon R. del Rosario Jr.

Palawan 55 has a 6.82% interest in the project. Otto Energy is the operator with a 78.18% interest in the project, while Red Emperor has a 15% stake.
timing40
 
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Re: (MMO)Mercom OIL, Askia Gold has teamed up with Desert Hi

Post Fri Jul 24, 2015 10:20 am

Bidding war for Central Rand Gold (CRG)

China’s growing appetite for SA mining assets

China’s been supporting much of our resource industry for the better part of 15 years.
The recent firm offer by Heaven-Sent Capital Management Group (can there be a greater name for an investor specialising in distressed purchases?) to acquire the entire share capital of Village Main Reef, gave me pause to reflect on the level of Chinese investment directly into South African listed mining and metals companies.

I use the word ‘directly’ because indirectly, China has been the consumer of a wide range of resources at the margin for many years. So while there may not have been direct investments into any of our iron-ore producers for instance, China, through its purchases of raw materials, has been supporting much of our entire resource industry for the better part of fifteen years.

Recent Chinese investment into SA listed mining and metals companies

Year Chinese company Local company Resource Amount invested
2015 Heaven-Sent Capital Management Village Main Reef Gold $55.4m for 100% interest
2015 Ankong Investment, Shengbang Jiabo Consulting Central Rand Gold Gold Two separate expressions of interest to acquire 100% for circa $150m
2014 Hebei Iron and Steel Group IDC Steel Production $4.5bn Greenfields joint venture, production to start next year
2014 Hebei Zhongbou Eastern Platinum Platinum $225m for 100%
2012 Hebei Iron and Steel Group, Tewoo Group, General Nice Development Palabora Mining Company Copper $288m for 54.5% interest, with IDC taking the balance
2012 Beijing Haohua Energy Resource Group Coal of Africa Limited Coal $100m followed up with a further $19m equity investment
2012 Jinchuan Group and China Africa Development Fund Wesizwe Platinum Platinum $227m for a 45% interest
2012 China Development Bank Wesizwe Platinum – Bakubung Mine Platinum $650m loan
2011 Shanghai Pengxin China Africa Precious Metals Gold 74% stake bought out of liquidation of Pamodzi Gold for R150m. Further R600m capital injection
2011 Baiyin Nonferrous Group, China-Africa Development Fund, Long March Capital, CITIC Kingview Capital Gold One, carried into Sibanye Gold Gold $500m
As you can see from the above table, direct investment by Chinese companies has varied in scale across commodities over the past few years and appears to be accelerating.

The offer to shareholders by Heaven-Sent (one of China’s largest private equity firms) is being done autonomously and on strictly commercial terms. The bidding war that looks set to begin for Central Rand Gold (CRG) looks to be conducted along similar lines and has two publicly named potential Chinese suitors. Both firms – Shengbang Jiaboa (an investment and financial advisory firm) and Ankong have indicated they would pay as much as $150 million (R3.7 billion) for the assets of the company. Central Rand Gold currently has a market capitalisation of just R385 million.

While this seems a bit bizarre, the expressions of interest all came in a matter of weeks after Central Rand Gold entered into a non-binding Memorandum of Understanding (MoU) with another Chinese company – Zhejiang Golden Machinery Plant. The purpose of the “Strategic Partnership” in the near term, at least, will be to assist with the upgrade and optimisation of CRG’s metallurgical plant. In the longer term, it is hoped that Zhejiang will provide plant design and engineering expertise to the group.

While gold appears to be the most popular commodity from a Chinese perspective (as can be seen by the number of deals involving the precious metal), the interest in base metals and platinum might appear to be more strategic. These types of deals can also be attributed to the strong political ties and co-operation that exists between South Africa and China’s respective governments.

The Hebei Iron and Steel Groups’ freshly penned MoU with the IDC may lay the basis for a $4.5 billion joint venture to produce steel in the country. This would fulfil government’s aspirations of introducing competition to the “monopolistic pricing regime” (read: ArcelorMittal) that pervades the production of steel, as well as fulfil the ambition to further beneficiate our vast natural resources.

Hebei is China’s second largest steel producer, and the project in turn, may provide China with access to a steady supply of steel with none of the associated environmental costs.

Hebei, perhaps with the knowledge of the imminent MoU with the IDC at hand, was also happy to step in and relieve Rio Tinto and Anglo-American of their interest in the Palabora Mining Company (now called Palabora Copper). Copper can be added to steel to increase the level of corrosion resistance, and the output from Palabora would certainly be a convenient source for anyone interested in building a steel factory.

The presence of large multi-lateral financial institutions – like the $5 billion China Africa Development Fund, have also paved the way for large investments in platinum. You might regard platinum as a precious metal, similar to gold. But anyone with knowledge of China’s vast pollution problem might categorise the metal as strategic. As can be seen from the debt and equity investments made into Wesizwe, the large equity investment of $227 million was augmented with a $600 million loan to build the Bakubung mine. The mine will begin ramp-up in 2017.

The self-proclaimed underlying rationale for much of China’s interest in South African resource assets has been on continuity of supply. But whether this stands the test of time as China’s economy evolves remains to be seen. At the risk of sounding ungrateful, the presence of at least one large suitor in an uncertain time for the industry, makes South Africa feel very much like the Belle of the Ball.
timing40
 
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