Territory Resource Wrap – May 19

by | May 19, 2022 | Business, Business News Brief | 0 comments

The NT Independent is providing you with an update of resource news from across the Northern Territory. This week, KGL appoints a new director, RML inks contracts with OZL minerals, Territory Government approves TM Gold’s Spring Hill mine project, plus more.

Joint venture announcement ups STO shares

Santos Ltd (STO) shares recently went into an upswing after announcing that its joint venture with State Gas (GAS) has been selected preferred tenderer for two gas exploration areas in Central Queensland.

GAS said the new areas are exceedingly prospective for coal seam gas in the Bandanna Formation. The company also noted that the prospects may also hold conventional gas and are not inhibited by domestic gas reservations. The exploration areas cover 1,035 square kilometres and will lift State Gas’ acreage by 60 per cent to 2,630 kilometres square.

Santos owns 65 per cent of the new permits and is the operator, given its experience in running big projects.

Meanwhile, Santos said that its other joint venture Central Petroleum Ltd (CTP) has also been given approvals to carry out various exploration activities in the Northern Territory. These approvals include rig contracting and environmental and land access. This joint venture aims to drill three sub-salt exploration wells next year to search for hydrocarbons, helium and naturally occurring hydrogen south of Alice Springs.

Santos’s share price went up by 16 per cent in the past year due largely to higher oil prices brought about by the war in Ukraine.

KGL Resources Limited appoints a new director

The Board of KGL Resources Limited (KGL) announced that Jeff Gerard will join the board as an independent non-executive director.

Mr Gerard’s appointment will be effective starting next month and will assume the positions of both the Audit and Risk and Remuneration Committees.

KGL Chairman Peter Hay said that he could not think of a person with a more appropriate skill set to join KGL’s existing board members than Mr Gerard. “His extensive experience will assist the board and management in finalising the Feasibility Study and taking the Jervois project through to production,” Mr Hay said.

Mr Gerard’s experience in the resources industry (both local and abroad) in different capacities in operations, technical, commercial and executive management roles spans over 40 years. Mr Gerard also currently serves on the board of Atrum Coal Limited (ATU) and Australia Future Energy, a private renewable energy/ammonia company.

RML inks farm-in contracts with OZL Minerals

Resolution Minerals Ltd (RML), through Xavier Resources Pty Ltd—a wholly-owned subsidiary, entered into a contract (farm-in and joint venture) for the Benmara Project with OZ Exploration Pty Ltd (OZE), a wholly-owned subsidiary of OZ Minerals Ltd (OZL).

The joint venture agreement states that OZL can earn from Xavier up to a 75 per cent legal and beneficial interest in the mineral exploration tenements, EL31287, EL32228, EL32229, EL32849, EL32850, EL32883, and EL33059 (Benmara Project), in the Northern Territory.

“We are very pleased to announce this new exploration funding agreement with copper focussed producer OZ Minerals for the Benmara Project in the underexplored South Nicholson Basin, Northern Territory,” RML CEO Christine Lawley said.

“While all eyes will be on drilling activities in June on our flagship 64North Gold Project in Alaska, do not underestimate the value creation being undertaken in Australia with significant drilling activities planned closer to home on our Northern Territory Projects in 2022.”

The new farm-in and JV agreement with OZL validate RML’s strategy in exploring and identifying potential large-scale base metal deposits similar to the world-class McArthur River Mine in this under-explored region during the 2021 field season.

 

Territory Government okays TM Gold’s Spring Hill Mine project

The Northern Territory Government has approved TM Gold to start operations at the Spring Hill Mine located 30 kilometres north of Pine Creek, which is expected to initially produce about 102,000 ounces of gold over 13 months, after meeting all environmental requirements from the NT Environmental Protection Authority.

“The Territory Government is working hard to make the Territory the best place for exploration and mining investment in Australia,” Minister for Mining and Industry Nicole Manison said. “The Spring Hill Mine will support over 30 local jobs with mining scheduled to commence later this year. Our resources industry is one of the biggest contributors to the NT economy and Spring Hill Mine is now the sixth significant mine approved in the last 2 years.”

TM Gold major shareholder and Executive Chairman of PC Gold (a subsidiary of TM Gold) Ashley Pattison said the company appreciates the support given by the NT Department of Industry, Tourism and Trade in getting the Mining Management Plan for the Spring Hill gold mine approved.

The Spring Hill deposit is located within one of the largest mining leases in the Territory and Stage One of the project is seen as a crucial stepping stone to much longer mine life.

The Spring Hill Mine Project approval joins other approvals over the last 12 months: Core Lithium, Finniss Project; Nathan River Resources, Nathan River Project; McArthur River Mine, Overburden Management Project; KGL Resources, Jervois Project; and Vista Gold, Mount Todd Mine Project.

Up to $1M MetalGrove shares earmarked for Shree shareholders

Shree Minerals Limited (SHH) shareholders will receive priority allocation of MetalGrove Mining Ltd (MGM) shares up to a total of five million fully paid ordinary shares in the capital of MGM at an issue price of $0.20 per share for a maximum of $1 million.

The allocation to shareholders comes in connection with MGM’s initial public offering (IPO) of up to 35 million shares at $0.20 per share to raise between $5 million to $7 million.

MGM said allocations from eligible SHH shareholders for more than five million shares (equivalent to $1 million) will be put under a customary scale-back of applications under the priority offer, which will undergo reference to the pro-rata shareholdings of eligible shareholders. This will be subject to a minimum distribution of $2,000 per applicant.

All applications of more than five million shares will be treated as additional applications under the IPO. The closing date for the priority offer is 5pm on June 6.

Early this year, SHH divested its stake in the Arunta Joint Venture with Territory Lithium, which holds the Box Hole, Edwards Creek and Bruce gold projects, all in the Northern Territory, to MGM. SHH said it aims to focus on its existing high-priority exploration targets in New South Wales and Western Australia.

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